Security National Financial Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Security National Financial Corp. has filed its annual 10-K report for the fiscal year ending December 31, 2023, providing a comprehensive overview of its financial performance and position.</b>

AI Summary

SECURITY NATIONAL FINANCIAL CORP (SNFCA) filed a Annual Report (10-K) with the SEC on March 29, 2024. Security National Financial Corp. filed its 2023 Form 10-K on March 29, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Utah and operates in the Finance Services sector. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement components such as Common Stock, Additional Paid-In Capital, and Retained Earnings are detailed.

Why It Matters

For investors and stakeholders tracking SECURITY NATIONAL FINANCIAL CORP, this filing contains several important signals. This 10-K filing provides investors with the most up-to-date and detailed financial information for Security National Financial Corp., crucial for assessing its performance and making informed investment decisions. The detailed breakdown of financial statement components and historical data allows for trend analysis and comparison against industry benchmarks.

Risk Assessment

Risk Level: low — SECURITY NATIONAL FINANCIAL CORP shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative or positive news, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the company's financial health and operational landscape for the fiscal year 2023.

Key Numbers

• 20231231 — Fiscal Year End (Period covered by the 10-K filing)
• 20240329 — Filing Date (Date the 10-K was filed with the SEC)
• 2021, 2022, 2023 — Fiscal Years Reported (Years for which financial data is presented)

Key Players & Entities

• SECURITY NATIONAL FINANCIAL CORP (company) — Filer name
• 0000318673 (company) — Central Index Key
• UT (company) — State of incorporation
• SALT LAKE CITY (company) — Business address city
• 20231231 (date) — Fiscal year end
• 20240329 (date) — Filing date

FAQ

Industry Context

Security National Financial Corp. operates within the Finance Services sector, which encompasses a broad range of financial activities and institutions.

Regulatory Implications

As a publicly traded company, Security National Financial Corp. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of annual reports on Form 10-K.

What Investors Should Do

1. Analyze the balance sheet, income statement, and cash flow statement for the fiscal years 2021-2023.
2. Examine any disclosed risk factors to understand potential challenges and uncertainties.
3. Review management's discussion and analysis (MD&A) for insights into the company's performance and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-29: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report for fiscal year 2023, following previous filings which would include quarterly reports (10-Q) and potentially prior annual reports.

Key Financial Figures

• $8.45 — approximately $ 64,000,000 based on the $8.45 closing sale price of the Class A commo
• $2.00 — 048,581 shares of Class A common stock, $2.00 par value per share, and 2,971,680 shar
• $30,000 — at generally has face coverage of up to $30,000. The Company believes that funeral plan
• $100,000 — irthday Non-Medical Limits 0-50 $100,000 51-up Medical information require
• $333,211,000 — companies as of December 31, 2023, was $333,211,000, which represented approximately 9.3% o
• $100,000,000 — e an initial development cost exceeding $100,000,000, primarily relating to the Center53 Dev

Filing Documents

• form10-k.htm (10-K) — 4846KB
• ex10-6.htm (EX-10.6) — 171KB
• ex-19.htm (EX-19) — 36KB
• ex20.htm (EX-20) — 46KB
• ex21.htm (EX-21) — 21KB
• ex31-1.htm (EX-31.1) — 12KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 8KB
• ex32-2.htm (EX-32.2) — 7KB
• form10-k_001.jpg (GRAPHIC) — 19KB
• 0001493152-24-011903.txt (&nbsp;) — 26263KB
• snfca-20231231.xsd (EX-101.SCH) — 152KB
• snfca-20231231_cal.xml (EX-101.CAL) — 148KB
• snfca-20231231_def.xml (EX-101.DEF) — 646KB
• snfca-20231231_lab.xml (EX-101.LAB) — 1029KB
• snfca-20231231_pre.xml (EX-101.PRE) — 882KB
• form10-k_htm.xml (XML) — 6700KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 10 Item 2.

Properties

Properties 12 Item 3.

Legal Proceedings

Legal Proceedings 16 Item 4. Mine Safety Disclosures 16 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 16 Item 6. [Reserved] 18 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 32 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 125 Item 9A.

Controls and Procedures

Controls and Procedures 125 Item 9B. Other Information 125 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 126 Part III Item 10. Directors, Executive Officers, and Corporate Governance 126 Item 11.

Executive Compensation

Executive Compensation 126 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 126 Item 13. Certain Relationships and Related Transactions, and Director Independence 126 Item 14. Principal Accounting Fees and Services 126 Part IV Item 15. Exhibits, Financial Statement Schedules 126 Item 16. Form 10-K Summary 126

Signatures

Signatures 127 Financial Statement Schedules 128 2 PART I Item 1. Business Security National Financial Corporation (the "Company") operates in three reportable business segments: life insurance, cemetery and mortuary, and mortgages. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. These products are marketed in 40 states through a commissioned sales force of independent licensed insurance agents who may also sell insurance products of other companies. The cemetery and mortuary segment consists of eight mortuaries and five cemeteries in the state of Utah, one cemetery in the state of California, and one cemetery and four mortuaries in the state of New Mexico. The Company also engages in pre-need selling of funeral, cemetery, mortuary, and cremation services through its cemetery and mortuary locations. The mortgage segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes, and other real estate projects. The mortgage segment operates through 100 retail offices in 23 states and is an approved mortgage lender in several other states. The Company's design and structure are that each business segment is related to the other business segments and contributes to the profitability of the other segments. The Company's cemetery and mortuary segment provides a level of public awareness that assists in the sales and marketing of insurance and pre-need cemetery and funeral products. The Company's insurance segment invests its assets (including, in part, pre-need funeral products and services) in investments authorized by the respective insurance departments of their states of domicile. The Company also pursues growth through acquisitions. The Company's mortgage segment provides mortgage loans and other real estate investment opportunities. The Company was organized as a holding co

Underwriting

Underwriting The factors considered in evaluating an application for ordinary life insurance coverage can include the applicant's age, occupation, general health condition, and medical history. Upon receipt of a satisfactory (non-funeral plan insurance) application, which contains pertinent medical questions, the Company issues insurance based upon its medical limits and requirements subject to the following general non-medical limits: Age Nearest Birthday Non-Medical Limits 0-50 $100,000 51-up Medical information required (APS or exam) When underwriting life insurance, the Company will sometimes issue policies with higher premium rates for substandard risks. The Company's funeral plan insurance is written on a simplified medical application with underwriting requirements being a completed application, a phone interview of the applicant, and an intelliscript prescription history inquiry. There are several underwriting classes in which an applicant can be placed. Annuities Products The Company's annuity business includes single premium deferred annuities, flexible premium deferred annuities, and immediate annuities. A single premium deferred annuity is a contract where the individual remits a sum of money to the Company, which is retained on deposit until such time as the individual may wish to annuitize or surrender the contract for cash. A flexible premium deferred annuity gives the contract holder the right to make premium payments of varying amounts or to make no further premium payments after his initial payment. These single and flexible premium deferred annuities can have initial surrender charges. The surrender charges act as a deterrent to individuals who may wish to prematurely surrender their annuity contracts. An immediate annuity is a contract in which the individual remits a sum of money to the Company in return for the Company's obligation to pay a series of payments on a periodic basis over a designated period, such as an

Financial Statements" for additional disclosure and discussion regarding reinsurance

Financial Statements" for additional disclosure and discussion regarding reinsurance. Investments The investments that support the Company's life insurance and annuity obligations are determined by the investment committees of the Company's subsidiaries and ratified by the full boards of directors of the respective subsidiaries. A significant portion of the Company's investments must meet statutory requirements governing the nature and quality of permitted investments by its insurance subsidiaries. The Company maintains a diversified investment portfolio consisting of common stocks, preferred stocks, municipal bonds, corporate bonds, mortgage loans, real estate, and other securities and investments. See "Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Notes to Consolidated

Financial Statements" for additional disclosure and discussion regarding investments

Financial Statements" for additional disclosure and discussion regarding investments. 6 Cemetery and Mortuary Products Through its cemetery and mortuary segment, the Company markets a variety of products and services both on a pre-need basis (prior to death) and an at-need basis (at the time of death). The products include plots, interment vaults, mausoleum crypts, markers, caskets, urns, and other death care related products. These services include professional services of funeral directors, opening and closing of graves, use of chapels and viewing rooms, and use of automobiles and clothing. The Company has a mortuary at each of its cemeteries, other than Holladay Memorial Park and Singing Hills Memorial Park, and has six separate stand-alone mortuary facilities. Markets and Distribution The Company's pre-need cemetery and mortuary sales are marketed to persons of all ages but are generally purchased by persons 45 years of age and older. The Company is limited in its geographic distribution of these products to areas lying within an approximate 20-mile radius of its mortuaries and cemeteries. The Company's at-need sales are similarly limited in geographic area. The Company actively seeks to sell its cemetery and funeral products to customers on a pre-need basis. The Company employs cemetery sales representatives on a commission basis to sell these products. Many of these pre-need cemetery and mortuary sales representatives are also licensed insurance salesmen and sell funeral plan insurance. In some instances, the Company's cemetery and mortuary facilities are the named beneficiaries of the funeral plan policies. Potential customers are located via telephone sales prospecting, responses to letters mailed by the pre-planning consultants, billboards and other outside advertising, referrals, and door-to-door canvassing. The Company trains its sales representatives and helps generate leads for them. Mortgage Loans Products The Company, through Sec

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View this 10-K filing on SEC EDGAR