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Security National Financial (SNFCA) - 2024 Q1 - Quarterly Report
SNFCASecurity National Financial (SNFCA)2024-05-14 15:00

Revenue and Income - Total revenues increased by 1,687,000,or2.11,687,000, or 2.1%, to 81,188,000 for the three-month period ended March 31, 2024, from 79,501,000forthecomparableperiodin2023[283].−Insurancepremiumsandotherconsiderationsincreasedby79,501,000 for the comparable period in 2023[283]. - Insurance premiums and other considerations increased by 1,885,000, or 6.7%, to 29,852,000forthethree−monthperiodendedMarch31,2024,from29,852,000 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,or12.22,172,000, or 12.2%, to 19,947,000 for the three-month period ended March 31, 2024, from 17,775,000forthecomparableperiodin2023[286].−Gainsoninvestmentsandotherassetsincreasedby17,775,000 for the comparable period in 2023[286]. - Gains on investments and other assets increased by 1,558,000, or 1401.9%, to 1,669,000forthethree−monthperiodendedMarch31,2024,from1,669,000 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 3,414,000forthethree−monthperiodendedMarch31,2024,from3,414,000 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 3,534,000forthethree−monthperiodendedMarch31,2024,from3,534,000 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 465,605,000forthethree−monthperiodendedMarch31,2024,comparedto1,702loanstotaling465,605,000 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,or16.04,157,000, or 16.0%, to 21,832,000 for the three-month period ended March 31, 2024, from 25,989,000forthecomparableperiodin2023[284].ExpensesandBenefits−Totalbenefitsandexpenseswere25,989,000 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,or98.077,916,000, 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 38,248,000forthethree−monthperiodendedMarch31,2024,comparedto38,248,000 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,or29.3426,000, or 29.3%, to 1,027,000 for the three-month period ended March 31, 2024, from 1,453,000forthecomparableperiodin2023[294].EarningsandCashFlow−Earningsbeforeincometaxesincreasedby1321,453,000 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 3,684,000forthecomparableperiodin2023[273].−TheCompany′soperationsprovidedcashofapproximately3,684,000 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 16,074,000inthesameperiodof2023[296].CapitalizationandEquity−Thetotalcapitalizationofstockholders′equity,bank,andotherloanspayablewas16,074,000 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 418,450,000asofDecember31,2023[301].−ThecombinedstatutorycapitalandsurplusoftheCompany′slifeinsurancesubsidiarieswas418,450,000 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 107,385,000asofDecember31,2023[303].−Stockholders′equityasapercentoftotalcapitalizationincreasedto75.4107,385,000 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].