Security National Financial (SNFCA) - 2024 Q2 - Quarterly Report

Revenue and Income - Total revenues increased by $1,945,000, or 2.3$85,791,000 for the three-month period ended June 30, 2024, compared to $83,846,000 for the same period in 2023[233]. - Total revenues increased by$3,633,000, or 2.2%, to $166,980,000 for the six-month period ended June 30, 2024, from$163,347,000 for the same period in 2023[241]. - Mortgage fee income increased by $3,541,000, or 13.6$29,620,000 for the three-month period ended June 30, 2024, from $26,079,000 for the same period in 2023[234]. - Net investment income for the six-month period ended June 30, 2024, was$35,796,000, a 2% increase from $35,175,000 for the same period in 2023[223]. - Net investment income decreased by$2,127,000, or 10.5%, to $18,045,000 for the three-month period ended June 30, 2024, compared to$20,172,000 for the same period in 2023[235]. Insurance and Premiums - Insurance premiums increased by $1,147,000, or 4.0$29,960,000 for the three-month period ended June 30, 2024, from $28,813,000 for the same period in 2023[234]. - For the six-month period ended June 30, 2024, insurance premiums increased by$3,032,000, contributing to overall profitability[222]. - Insurance premiums and other considerations increased by $3,032,000, or 5.3$59,813,000 for the six-month period ended June 30, 2024, from $56,781,000 for the comparable period in 2023[244]. Expenses and Benefits - Total benefits and expenses were$147,971,000, or 88.6% of total revenues, for the six-month period ended June 30, 2024, compared to $153,613,000, or 94.0$4,688,000, or 5.3%, to $83,713,000 for the six-month period ended June 30, 2024, from$88,401,000 for the comparable period in 2023[247]. - Interest expense decreased by $767,000, or 26.7$2,101,000 for the six-month period ended June 30, 2024, from $2,868,000 for the same period in 2023[248]. Profitability - Earnings before income taxes for the six-month period ended June 30, 2024, increased to$15,694,000, a 22% increase compared to $12,842,000 for the same period in 2023[223]. - The company experienced a$2,174,000 decrease in death, surrenders, and other policy benefits for the six-month period ended June 30, 2024[222]. - The company reported a 70% increase in gains on investments and other assets for the six-month period ended June 30, 2024, totaling $878,000 compared to$515,000 for the same period in 2023[223]. Sales and Loans - The company originated 3,494 loans totaling $1,089,824,000 for the six-month period ended June 30, 2024, compared to 3,738 loans totaling$1,139,735,000 for the same period in 2023[229]. - Cemetery pre-need sales increased by $956,000 for the six-month period ended June 30, 2024[226]. - Net mortuary and cemetery sales increased by$600,000, or 8.4%, to $7,769,000 for the three-month period ended June 30, 2024, from$7,169,000 for the comparable period in 2023[237]. Capitalization and Financial Position - The Company's total capitalization increased to $429,307,000 as of June 30, 2024, compared to$418,450,000 as of December 31, 2023[256]. - The combined statutory capital and surplus of the Company's life insurance subsidiaries was $114,667,000 as of June 30, 2024, compared to$107,385,000 as of December 31, 2023, indicating an increase of approximately 6.0%[257]. Compliance and Control - The Company’s disclosure controls and procedures were evaluated and deemed effective as of June 30, 2024, ensuring compliance with SEC reporting requirements[257]. - There have been no significant changes in the Company's internal control over financial reporting during the most recently completed fiscal quarter[258]. - The Company is not involved in any material legal proceedings that could adversely affect its financial condition or results of operation[259]. Lapse Rate and Cash Flow - The lapse rate for life insurance in 2023 was 4.4%, compared to 4.3% for 2022, with the 2024 lapse rate to date being approximately the same as 2023[256]. - The Company expects to pay out liabilities under its funeral plans over the long term, indicating a stable cash flow management strategy[251].