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]
Security National Financial (SNFCA) - 2024 Q3 - Quarterly Report