Core Viewpoint - Security National Financial Corporation (SNFC) reported significant financial growth for the year ended December 31, 2024, with after-tax earnings from operations increasing by 83% to $26,536,000, driven by a 5% rise in revenues to $334,523,000 [1][2]. Financial Performance - After-tax earnings from operations rose from $14,495,000 in 2023 to $26,536,000 in 2024, marking an 83% increase [1]. - Total revenues increased from $318,497,000 in 2023 to $334,523,000 in 2024, reflecting a 5% growth [1]. - Net earnings per common share improved from $0.61 in 2023 to $1.11 in 2024 [2]. - Book value per common share increased from $13.44 as of December 31, 2023, to $14.45 as of December 31, 2024 [2]. Business Segments Performance - **Life Insurance Segment**: Revenues grew from $185,176,000 in 2023 to $191,530,000 in 2024 (3.4% increase), with earnings before taxes rising from $25,272,000 to $31,456,000 (24.5% increase) [2]. - **Cemeteries and Mortuaries Segment**: Revenues increased from $31,938,000 in 2023 to $33,022,000 (3.4% increase), with earnings before taxes improving from $8,444,000 to $8,861,000 (4.9% increase) [2]. - **Mortgages Segment**: Revenues rose from $101,383,000 in 2023 to $109,971,000 (8.5% increase), while losses decreased from $17,416,000 to $6,213,000 (64% reduction) [2]. Management Insights - The Chairman and CEO highlighted the company's solid progress in 2024, particularly in the Life Insurance and Cemetery/Mortuary segments, which achieved their best operational years [2]. - The company has focused on modernizing commission systems and improving sales force value propositions to enhance performance [2]. - The management team is actively working on streamlining operations and improving customer experience in a challenging mortgage industry environment [2].

Development Projects - The Company has developed or is in the process of developing assets with an initial development cost exceeding $100,000,000, primarily related to the Center53 Development and multiple single-family residential projects[51] - The first phase of the Center53 Development, completed in July 2017, is currently 88% leased, while the second phase, which began in March 2020, is currently 100% leased[52] Employment and Workforce - As of December 31, 2024, the Company employed 1,186 full-time and 235 part-time employees, with 678 in the mortgage segment, 388 in the life insurance segment, and 120 in the cemetery and mortuary segment[66] - The Company sponsors a 401(k) retirement plan for each business segment, with matching contributions based on employee contributions[68] Sales and Marketing - The Company actively seeks to sell its cemetery and funeral products on a pre-need basis, employing commission-based sales representatives[46] - The Company's residential mortgage lending services are marketed primarily to real estate brokers, builders, and directly to consumers, with a strong presence in Utah, Florida, Texas, Nevada, and Arizona[50] Investment Portfolio - The Company maintains a diversified investment portfolio consisting of common stocks, preferred stocks, municipal bonds, corporate bonds, mortgage loans, real estate, and other securities[42] Regulatory Environment - The Company's life insurance subsidiaries are subject to regulations in multiple states, including Utah, Louisiana, Mississippi, and Texas, which may cause unforeseen costs and operational restrictions[54] - The Company is subject to comprehensive regulations under the Federal Trade Commission's funeral industry rules and state regulations for its cemetery and mortuary operations[56] Industry Competition - The life insurance industry is highly competitive, with approximately 700 legal reserve life insurance companies in the U.S., and the Company competes with larger firms that have more diversified product lines[61]

Core Viewpoint - The passing of Mia Love, a respected board member of Security National, is a significant loss for the company and the community, highlighting her contributions and legacy in public service and governance [1][2][3]. Company Contributions - Mia Love served as a board member of Security National, providing invaluable leadership and insight that advanced the company's mission and commitment to excellence [2]. - Her expertise in public policy and strategic development was crucial in strengthening the company's governance [2]. Leadership Impact - Scott Quist, CEO of Security National, expressed deep sorrow over Mia Love's passing, emphasizing her integrity, wisdom, and compassion as a leader [3]. - Love's contributions extended beyond the company, as she was recognized for her advocacy and commitment to improving lives through her political career [3]. Community Legacy - Mia Love is remembered for her pioneering spirit and unwavering commitment to service, leaving a lasting legacy in both the company and the broader community [3].

Revenue Growth - Total revenues increased by $8,032,000, or 10.0%, to $88,274,000 for the three-month period ended September 30, 2024, compared to $80,242,000 for the same period in 2023[264] - Total revenues increased by $11,664,000, or 4.8%, to $255,253,000 for the nine-month period ended September 30, 2024, from $243,589,000 for the same period in 2023[278] Mortgage Operations - Mortgage fee income rose by $5,288,000, or 21.2%, to $30,224,000 for the three-month period ended September 30, 2024, from $24,936,000 for the comparable period in 2023[265] - Mortgage fee income increased by $4,671,000, or 6.1%, to $81,675,000 for the nine-month period ended September 30, 2024, from $77,004,000 for the same period in 2023[279] - The fair value of loans held for sale increased by $4,834,000 for the nine-month period ended September 30, 2024, contributing to improved profitability in mortgage operations[262] - For the nine-month period ended September 30, 2024, the company originated 5,505 loans totaling $1,723,036,000, compared to 5,680 loans totaling $1,708,831,000 for the same period in 2023[260] Insurance Operations - Earnings before income taxes for the insurance operations increased by 72% to $12,358,000 for the three-month period ended September 30, 2024, compared to $7,175,000 for the same period in 2023[253] - The company experienced a 355% increase in gains on investments and other assets for the insurance operations, reaching $1,317,000 for the three-month period ended September 30, 2024, compared to a loss of $516,000 for the same period in 2023[253] - Insurance premiums and other considerations increased by $1,104,000, or 3.8%, to $30,011,000 for the three-month period ended September 30, 2024, from $28,907,000 for the same period in 2023[266] - Insurance premiums and other considerations increased by $4,136,000, or 4.8%, to $89,824,000 for the nine-month period ended September 30, 2024, from $85,688,000 for the same period in 2023[280] Cemetery and Mortuary Operations - Total revenues from cemetery and mortuary operations increased by 15% to $8,543,000 for the three-month period ended September 30, 2024, compared to $7,416,000 for the same period in 2023[256] - The company reported a 93% increase in earnings before income taxes for cemetery and mortuary operations, reaching $2,840,000 for the three-month period ended September 30, 2024, compared to $1,470,000 for the same period in 2023[256] - Net mortuary and cemetery sales decreased by $420,000, or 5.8%, to $6,814,000 for the three-month period ended September 30, 2024, from $7,234,000 for the same period in 2023[268] Investment Performance - Gains on investments and other assets increased by $2,280,000 to $1,348,000 in net gains for the three-month period ended September 30, 2024, compared to $932,000 in net losses for the same period in 2023[269] - Net investment income decreased by $1,449,000, or 7.5%, to $17,799,000 for the three-month period ended September 30, 2024, compared to $19,248,000 for the same period in 2023[267] Financial Position - The company's operations provided cash of approximately $34,894,000 for the nine-month period ended September 30, 2024, compared to approximately $18,384,000 for the same period in 2023[292] - The Company's total capitalization increased to $453,312,000 as of September 30, 2024, from $418,450,000 as of December 31, 2023, driven by a $33,427,000 rise in stockholders' equity[298] - Stockholders' equity as a percentage of total capitalization improved to 76.4% as of September 30, 2024, compared to 74.8% as of December 31, 2023[298] - The combined statutory capital and surplus of the Company's life insurance subsidiaries rose to approximately $121,504,000 as of September 30, 2024, from $107,385,000 as of December 31, 2023[300] Operational Efficiency - Selling, general and administrative expenses decreased by $2,100,000, or 1.6%, to $128,952,000 for the nine-month period ended September 30, 2024, from $131,052,000 for the same period in 2023[287] - Interest expense decreased by $858,000, or 21.3%, to $3,162,000 for the nine-month period ended September 30, 2024, from $4,020,000 for the same period in 2023[288] Compliance and Control - The Company's disclosure controls and procedures were deemed effective as of September 30, 2024, ensuring compliance with SEC reporting requirements[301] - There have been no significant changes in the Company's internal control over financial reporting that materially affected its effectiveness during the last fiscal quarter[302] - The Company is not involved in any material legal proceedings that could adversely impact its financial condition or results of operations[304] Lapse Rate - The lapse rate for life insurance was 4.4% in 2023, slightly up from 4.3% in 2022, with 2024's lapse rate remaining consistent with 2023[299]

Core Viewpoint - Security National Financial Corporation (SNFC) reported significant financial growth for the quarter and six months ended June 30, 2024, with after-tax earnings increasing nearly 15% and 94% respectively compared to the same periods in 2023 [1]. Financial Performance - For the three months ended June 30, 2024, after-tax earnings rose from $6,353,000 in 2023 to $7,272,000 in 2024, marking a 14.5% increase [1]. - For the six months ended June 30, 2024, after-tax earnings increased from $7,593,000 in 2023 to $14,746,000 in 2024, representing a 94% growth [1]. Business Segments Overview - **Life Insurance**: Revenues decreased by 1.7% from $48,071,000 in 2023 to $47,237,000 in 2024, with earnings before taxes dropping by 21.8% from $9,158,000 to $7,165,000 [2]. - **Cemeteries/Mortuaries**: Revenues fell by 6.1% from $8,812,000 in 2023 to $8,278,000 in 2024, with earnings before taxes decreasing by 26.1% from $2,828,000 to $2,091,000 [2]. - **Mortgages**: Revenues increased by 12.3% from $26,963,000 in 2023 to $30,276,000 in 2024, with earnings before taxes improving significantly from a loss of $3,837,000 to a profit of $134,000, a 103.5% change [2]. Total Revenue and Earnings - Total revenues for the three months ended June 30, 2024, were $85,791,000, a 2.3% increase from $83,846,000 in 2023, while earnings before taxes rose by 15.2% from $8,149,000 to $9,390,000 [2]. - For the six months ended June 30, 2024, total revenues were $166,980,000, a 2.2% increase from $163,347,000 in 2023, with earnings before taxes soaring by 95.3% from $9,734,000 to $19,009,000 [3]. Earnings Per Share and Book Value - Net earnings per common share for the six months ended June 30, 2024, were $0.62, compared to $0.32 per share for the prior year [4]. - Book value per common share was $13.91 as of June 30, 2024, down from $14.11 as of December 31, 2023 [4].

Core Points - Security National Financial Corporation has authorized a 5% stock dividend for stockholders of record on July 5, 2024, to be issued on July 12, 2024 [1] - This marks the 36th consecutive year that the company has declared a stock dividend, indicating a consistent commitment to returning value to shareholders [2] Company Information - The stock dividend provides options for long-term appreciation or cash flow for stockholders who may choose to sell the shares [2]

Core Viewpoint - Security National Financial Corporation has announced a 5% stock dividend for its shareholders, marking the 36th consecutive year of such declarations, which reflects the company's commitment to providing value to its investors [2][3]. Group 1: Stock Dividend Announcement - On June 21, 2024, the Board of Directors authorized a 5% stock dividend for shareholders of record on July 5, 2024, with the dividend to be issued on July 12, 2024 [2]. - The company has a long-standing history of declaring stock dividends, with this being the 36th consecutive year [3]. Group 2: Shareholder Benefits - The stock dividend is viewed positively by many shareholders, as it provides options for long-term appreciation or cash flow if they choose to sell the shares [3].

Revenue and Income - Total revenues increased by $1,687,000, or 2.1%, to $81,188,000 for the three-month period ended March 31, 2024, from $79,501,000 for the comparable period in 2023[283]. - Insurance premiums and other considerations increased by $1,885,000, or 6.7%, to $29,852,000 for the three-month period ended March 31, 2024, from $27,967,000 for the comparable period in 2023[285]. - Net investment income increased by $2,172,000, or 12.2%, to $19,947,000 for the three-month period ended March 31, 2024, from $17,775,000 for the comparable period in 2023[286]. - Gains on investments and other assets increased by $1,558,000, or 1401.9%, to $1,669,000 for the three-month period ended March 31, 2024, from $111,000 for the comparable period in 2023[288]. - Mortuary revenues increased by 4% to $3,414,000 for the three-month period ended March 31, 2024, from $3,275,000 for the comparable period in 2023[276]. - Cemetery revenues increased by 11% to $3,534,000 for the three-month period ended March 31, 2024, from $3,196,000 for the comparable period in 2023[276]. - SecurityNational Mortgage originated 1,486 loans totaling $465,605,000 for the three-month period ended March 31, 2024, compared to 1,702 loans totaling $531,868,000 for the comparable period in 2023[280]. - Mortgage fee income decreased by $4,157,000, or 16.0%, to $21,832,000 for the three-month period ended March 31, 2024, from $25,989,000 for the comparable period in 2023[284]. Expenses and Benefits - Total benefits and expenses were $71,569,000, or 88.2% of total revenues, for the three-month period ended March 31, 2024, compared to $77,916,000, or 98.0% of total revenues, for the comparable period in 2023[290]. - Selling, general and administrative expenses decreased by $6,279,000, or 14.1%, to $38,248,000 for the three-month period ended March 31, 2024, compared to $44,527,000 for the same period in 2023[293]. - Interest expense decreased by $426,000, or 29.3%, to $1,027,000 for the three-month period ended March 31, 2024, from $1,453,000 for the comparable period in 2023[294]. Earnings and Cash Flow - Earnings before income taxes increased by 132% to $8,530,000 for the three-month period ended March 31, 2024, from $3,684,000 for the comparable period in 2023[273]. - The Company's operations provided cash of approximately $25,077,000 during the three-month period ended March 31, 2024, compared to cash used of approximately $16,074,000 in the same period of 2023[296]. Capitalization and Equity - The total capitalization of stockholders' equity, bank, and other loans payable was $424,439,000 as of March 31, 2024, an increase from $418,450,000 as of December 31, 2023[301]. - The combined statutory capital and surplus of the Company's life insurance subsidiaries was $110,239,000 as of March 31, 2024, compared to $107,385,000 as of December 31, 2023[303]. - Stockholders' equity as a percent of total capitalization increased to 75.4% as of March 31, 2024, from 74.8% as of December 31, 2023[301]. Insurance Operations - The Company's lapse rate for life insurance in 2023 was 4.4%, slightly up from 4.3% in 2022, with the 2024 lapse rate to date remaining approximately the same as 2023[302]. - As of March 31, 2024, the Company's subsidiary SecurityNational Mortgage had approximately $6,963,000 in outstanding advances on the Warehouse Line of Credit that has not provided a covenant waiver[295]. - Bonds owned by the insurance subsidiaries amounted to $360,314,000 at estimated fair value as of March 31, 2024, representing 38.5% of the total investments of the Company[299]. - The Company continues to negotiate other warehouse lines of credit with other lenders to ensure sufficient funding for its business model[295].

Development Projects - The Company has developed or is in the process of developing assets with an initial development cost exceeding $100,000,000, primarily related to the Center53 Development and multiple single-family residential projects[54] - The Center53 Development is expected to create nearly one million square feet of office space in five buildings, with the first phase completed in July 2017 and currently 93% leased[55] Employment and Workforce - As of December 31, 2023, the Company employed 1,227 full-time and 246 part-time employees, with 729 in the mortgage segment, 373 in life insurance, and 125 in cemetery and mortuary[68] - The Company has an employee safe harbor retirement plan for each business segment, with matching contributions based on employee contributions[70] - As of December 31, 2023, 756 employees had elected to participate in the Company's group health insurance plans[69] Business Segments and Marketing - The Company's residential mortgage lending services are marketed primarily to real estate brokers, builders, and directly to consumers, with a strong presence in Utah, Florida, Texas, Nevada, and Arizona[53] - The Company actively seeks to sell its cemetery and funeral products on a pre-need basis, employing commission-based sales representatives, many of whom are also licensed insurance salesmen[49] Industry Competition and Regulation - The Company's insurance subsidiaries are subject to comprehensive regulation, which may cause unforeseen costs and operational restrictions[56] - The life insurance industry is highly competitive, with approximately 800 legal reserve life insurance companies in the U.S., many of which have greater financial resources[64] - The mortgage industry is highly competitive and sensitive to changes in interest rates, impacting refinancing opportunities[66]

Revenue Performance - Total revenues decreased by $3,235,000, or 3.9%, to $80,242,000 for the three months ended September 30, 2023, from $83,477,000 for the comparable period in 2022[290] - Revenues from external customers for insurance operations totaled $47,199,000 for the three months ended September 30, 2023, representing a 9% increase from $43,118,000 in 2022[280] - Total revenues from mortgage operations decreased by 24% to $25,626,000 for the three months ended September 30, 2023, from $33,667,000 in 2022[289] - Total revenues decreased by $37,881,000, or 13.5%, to $243,589,000 for the nine-month period ended September 30, 2023, from $281,470,000 for the same period in 2022[302] Insurance Operations - Insurance premiums increased by $2,669,000, or 10.2%, to $28,907,000 for the three months ended September 30, 2023, compared to $26,238,000 for the same period in 2022[292] - Earnings before income taxes for insurance operations increased by 69% to $7,175,000 for the three months ended September 30, 2023, compared to $4,234,000 in 2022[280] - The lapse rate for life insurance in 2022 was 4.3%, an improvement from 4.8% in 2021, with the 2023 lapse rate to date being approximately the same as 2022[322] - The combined statutory capital and surplus of the Company's life insurance subsidiaries was $103,984,000 as of September 30, 2023, up from $94,254,000 as of December 31, 2022[323] Cemetery and Mortuary Operations - Cemetery revenues increased by 26% to $4,324,000 for the three months ended September 30, 2023, compared to $3,443,000 in 2022[283] - Net mortuary and cemetery sales increased by $764,000, or 11.8%, to $7,234,000 for the three-month period ended September 30, 2023, from $6,470,000 for the comparable period in 2022[294] - Profitability for the nine-month period ended September 30, 2023, increased in cemetery and mortuary operations due to a $1,415,000 increase in gains on investments and other assets[283] Mortgage Operations - SecurityNational Mortgage originated 5,680 loans totaling $1,708,831,000 for the nine months ended September 30, 2023, compared to 8,886 loans totaling $2,837,349,000 for the same period in 2022[288] Expenses and Benefits - Total benefits and expenses were $75,083,000, or 93.6% of total revenues, for the three-month period ended September 30, 2023, compared to $86,780,000, or 104.0% of total revenues, for the same period in 2022[297] - Death benefits, surrenders, and other policy benefits increased by an aggregate of $2,898,000, or 12.8%, to $25,622,000 for the three-month period ended September 30, 2023, from $22,724,000 for the comparable period in 2022[298] - Selling, general and administrative expenses decreased by $13,005,000, or 23.4%, to $42,652,000 for the three-month period ended September 30, 2023, from $55,657,000 for the same period in 2022[300] - Selling, general and administrative expenses decreased by $51,346,000, or 28.2%, to $131,052,000 for the nine-month period ended September 30, 2023, from $182,398,000 for the comparable period in 2022[313] - Interest expense decreased by $985,000, or 46.1%, to $1,152,000 for the three-month period ended September 30, 2023, from $2,137,000 for the comparable period in 2022[301] Investment Performance - Net investment income increased by $645,000, or 3.5%, to $19,248,000 for the three-month period ended September 30, 2023, compared to $18,603,000 for the same period in 2022[293] - Losses on investments and other assets decreased by $1,247,000, or 57.2%, to $932,000 for the three-month period ended September 30, 2023, from $2,179,000 for the same period in 2022[295] Company Strategy and Capitalization - The Company expects to continue focusing on niche insurance products, cemetery and mortuary business, and capitalizing on the improving housing market through mortgage loans[276] - The Company's total capitalization of stockholders' equity, bank and other loans payable was $406,325,000 as of September 30, 2023, down from $454,499,000 as of December 31, 2022, primarily due to a decrease of $53,281,000 in bank loans and other loans payable[321] - Stockholders' equity as a percent of total capitalization increased to 73.3% as of September 30, 2023, compared to 64.4% as of December 31, 2022[321] - The Company does not maintain any deposit or credit facilities with Silicon Valley Bank, Signature Bank, or First Republic Bank, and continues to monitor the banking industry[325]