Security National Financial (SNFCA) - 2024 Q1 - Quarterly Report

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].