Business Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Business Segment Information

7) Business Segment Information

Description of Products and Services by Segment

The Company has three reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment consists of life insurance premiums and operating expenses from the sale of insurance products sold by the Company’s independent agency force and net investment income derived from investing policyholder and segment surplus funds. The Company’s cemetery and mortuary segment consists of revenues and operating expenses from the sale of at-need cemetery and mortuary merchandise and services at its mortuaries and cemeteries, pre-need sales of cemetery spaces after collection of 10% or more of the purchase price and the net investment income from investing segment surplus funds. The Company’s mortgage segment consists of fee income and expenses from the originations of residential mortgage loans and interest earned and interest expenses from warehousing loans held for sale.

Measurement of Segment Profit or Loss and Segment Assets

The accounting policies of the reportable segments are the same as those described in the Significant Accounting Principles of the Form 10-K for the year ended December 31, 2022. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit, and are eliminated upon consolidation.

Factors Management Used to Identify the Enterprise’s Reportable Segments

The Company’s reportable segments are business units that are managed separately due to the different products provided and the need to report separately to the various regulatory jurisdictions. The Company regularly reviews the quantitative thresholds and other criteria to determine when other business segments may need to be reported.

	Life Insurance		Cemetery/ Mortuary		Mortgage			Intercompany Eliminations			Consolidated
For the Three Months Ended June 30, 2023
Revenues from external customers	$	48,071,089	$	8,812,508	$	26,962,562		$	-		$	83,846,159
Intersegment revenues		2,517,490		84,767		135,807			(2,738,064	)		-
Segment profit (loss) before income taxes		9,158,186		2,828,159		(3,837,012	)		-			8,149,333
For the Six Months Ended June 30, 2023
Revenues from external customers	$	93,486,386	$	16,010,904	$	53,849,603		$	-		$	163,346,893
Intersegment revenues		4,027,518		168,603		259,506			(4,455,627	)		-
Segment profit (loss) before income taxes		12,841,921		4,612,751		(7,720,451	)		-			9,734,221
Identifiable Assets	$	1,284,084,674	$	89,589,716	$	114,402,197		$	(89,723,622	)	$	1,398,352,965
Goodwill		2,765,570		2,488,213		-			-			5,253,783
Total Assets	$	1,286,850,244	$	92,077,929	$	114,402,197		$	(89,723,622	)	$	1,403,606,748
For the Three Months Ended June 30, 2022
Revenues from external customers	$	41,166,269	$	7,291,018	$	47,109,367		$	-		$	95,566,654
Intersegment revenues		2,075,987		85,151		77,826			(2,238,964	)		-
Segment profit (loss) before income taxes		3,931,784		1,485,938		(687,876	)		-			4,729,846
For the Six Months Ended June 30, 2022
Revenues from external customers	$	82,668,078	$	14,754,212	$	100,570,271		$	-		$	197,992,561
Intersegment revenues		3,771,766		267,740		152,535			(4,192,041	)		-
Segment profit before income taxes		4,748,269		3,506,255		918,838			-			9,173,362
Identifiable Assets	$	1,229,780,002	$	78,739,030	$	250,312,796		$	(91,917,796	)	$	1,466,914,032
Goodwill		2,765,570		2,488,213		-			-			5,253,783
Total Assets	$	1,232,545,572	$	81,227,243	$	250,312,796		$	(91,917,796	)	$	1,472,167,815

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2023 (Unaudited)