0001493152-24-011903 | 10-K | XBRL Viewer | Security National Financial Corp

[1]	See death benefits on the consolidated statements of earnings
[2]	Included in increase in future benefits on the consolidated statements of earnings
[3]	Included in surrender and other policy benefits on the consolidated statements of earnings

Summary of Bank Loans Payable (Details) (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Oct. 31, 2022
Debt Instrument [Line Items]
Debt instrument principal amount			$ 7,020,000,000.00
Debt instrument interest rate	7.00%	7.00%
Note Payable 1 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount	$ 75,108	$ 75,108
Note Payable 2 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount	$ 243,781	$ 243,781
Debt instrument interest rate	3.85%	3.85%
Debt instrument, book value	$ 62,977,000	$ 62,977,000
Note Payable 3 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount	$ 179,562	$ 179,562
Debt instrument interest rate	3.30%	3.30%
Debt instrument, book value	$ 44,811,000	$ 44,811,000
Note Payable 4 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	4.7865%	4.7865%
Debt instrument, book value	$ 16,594,000	$ 16,594,000
Note Payable 5 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount	$ 100,000,000	$ 100,000,000
Debt instrument basis spread variable rate	2.10%	2.10%
Note Payable 6 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount	$ 100,000,000	$ 100,000,000
Debt instrument basis spread variable rate	2.00%	2.00%
Note Payable 7 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount	$ 75,000,000	$ 75,000,000
Debt instrument basis spread variable rate	2.50%	2.50%
Note Payable 8 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount	$ 15,000,000	$ 15,000,000
Debt instrument basis spread variable rate	2.10%	2.10%

Schedule of Activity Restricted Stock Units (Details)	12 Months Ended
Schedule of Activity Restricted Stock Units (Details)	Dec. 31, 2023 $ / shares shares
Common Class A [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, available RSUs for future grant	92,820
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average grant date fair value, beginning \| $ / shares	$ 6.48
Weighted average grant date fair value, ending \| $ / shares	$ 7.72
Restricted Stock Units (RSUs) [Member] \| Common Class A [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non-vested Number of shares, beginning	1,620
Non-vested Number of shares, Granted	1,840
Non-vested Number of shares, Vested	(1,215)
Non-vested Number of shares, ending	2,245
Number of shares, available RSUs for future grant	16,540

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 35
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-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Mortgage Servicing Rights (Details Narrative) - USD ($)		12 Months Ended
Mortgage Servicing Rights (Details Narrative) - USD ($)	Oct. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Mortgage loans unpaid principal amount	$ 7,020,000,000.00
Sale of mortgage servicing rights	51,185,906		$ 51,185,906
Gain on sale of Mortgage servicing rights	$ 34,051,938		$ 34,051,938

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

9) Income Taxes

The Company’s income tax liability is summarized as follows:

Summary of Income Tax Liability

	2023		2022
	December 31,
	2023		2022
Current	$	246,437	$	16,352,190
Deferred		13,506,544		14,358,337
Total	$	13,752,981	$	30,710,527

Significant components of the Company’s deferred tax assets and liabilities are approximately as follows:

	2023		2022
	December 31,
	2023		2022
Assets
Future policy benefits	$	14,902,816	$	14,605,453
Loan loss reserve		142,281		448,673
Unearned premium		534,203		582,459
Net operating loss		1,050,770		237,855
Deferred compensation		2,138,385		2,166,593
Tax on unrealized appreciation		491,271		2,590,726
Other		917,335		601,335
Less: Valuation allowance		-		(1,506,144	)
Total deferred tax assets		20,177,061		19,726,950

Liabilities
Deferred policy acquisition costs		18,478,562		17,511,778
Basis difference in property, equipment and real estate		11,054,092		11,959,391
Value of business acquired		1,778,199		2,058,785
Deferred gains		1,308,365		1,490,946
Trusts		1,064,387		1,064,387
Total deferred tax liabilities		33,683,605		34,085,287
Net deferred tax liability	$	13,506,544	$	14,358,337

The valuation allowance relates to differences between recorded deferred tax assets and liabilities and ultimate anticipated realization.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

9) Income Taxes (Continued)

The Company’s income tax expense is summarized as follows:

	2023			2022
	December 31,
	2023			2022
Current
Federal	$	4,091,306		$	15,346,331
State		209,537			3,294,234
		4,300,843			18,640,565

Deferred
Federal		(2,139,124	)		(7,400,620	)
State		(356,365	)		(2,553,385	)
		(2,495,489	)		(9,954,005	)
Total	$	1,805,354		$	8,686,560

The reconciliation of income tax expense at the U.S. federal statutory rates is as follows:

	2023			2022
	December 31,
	2023			2022
Computed expense at statutory rate	$	3,423,086		$	7,219,141
State tax expense (benefit), net of federal tax benefit		(115,994	)		585,269
Change in valuation allowance		(1,506,144	)		623,609
Other, net		4,406			258,541
Income tax expense	$	1,805,354		$	8,686,560

The Company’s overall effective tax rate for 2023 and 2022 was 11.1% and 25.3% respectively. The Company’s effective tax rates differ from the U.S. federal statutory rate of 21% partially due to its provision for state income taxes and a decrease to the valuation allowance related to Kilpatrick Life Insurance Company. The decrease in the effective tax rate when compared to the prior year is partially due to a decrease to the valuation allowance in the current period when compared to the prior period year.

As of December 31, 2023, the Company had no significant unrecognized tax benefits. As of December 31, 2023, the Company does not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. Federal and state income tax returns for 2020 through 2023 are subject to examination by taxing authorities.

Summary of Operating Loss Carryforwards

Net Operating Losses and Tax Credit Carryforwards:

Year of Expiration
2024	$	-
2025		-
2026		-
2027		-
2028		-
Thereafter up through 2038		903,042
Indefinite carryforwards		2,396,389
	$	3,299,431

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Schedule of Future Minimum Rental Payments for Finance Leases and Operating Leases (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Leases
Finance Leases 2024	$ 7,187
Operating Leases 2024	3,187,826
Finance Leases 2025	3,525
Operating Leases 2025	2,073,045
Finance Leases 2026	2,833
Operating Leases 2026	1,443,598
Finance Leases 2027	2,833
Operating Leases 2027	340,112
Finance Leases 2028	1,181
Operating Leases 2028	128,854
Finance Leases Thereafter
Operating Leases Thereafter	195,695
Finance Leases Total undiscounted lease payments	17,559
Operating Leases Total undiscounted lease payments	7,369,130
Finance Leases Less: Discount on cash flows	(2,009)
Operating Leases Less: Discount on cash flows	(480,588)
Finance Leases Present value of lease liabilities	15,550	$ 31,082
Operating Leases Present value of lease liabilities	$ 6,888,542	$ 10,596,471

Schedule of Real Estate Owned and Occupied by the Company (Details)

Dec. 31, 2023

ft²

Mortgage Operations [Member]

Approximate square footage

221,000

^[1]

Square footage occupied by the company

50.00%

^[1]

Life Insurance Operations [Member]

Approximate square footage

19,694

^[1],[2]

Square footage occupied by the company

28.00%

^[1],[2]

Life Insurance Operations 1 [Member]

Approximate square footage

12,274

^[3]

Square footage occupied by the company

100.00%

^[3]

Life Insurance Sales [Member]

Approximate square footage

8,059

^[3],[4]

Square footage occupied by the company

100.00%

^[3],[4]

Life Insurance Sales 1 [Member]

Approximate square footage

1,560

^[3],[5]

Square footage occupied by the company

100.00%

^[3],[5]

Life Insurance Sales 2 [Member]

Approximate square footage

1,737

^[2],[3]

Square footage occupied by the company

100.00%

^[2],[3]

[1]	Included in real estate held for investment on the consolidated balance sheets
[2]	Listed for sale and sold during the first quarter of 2024
[3]	Included in property and equipment on the consolidated balance sheets
[4]	Listed for sale and currently under contract
[5]	Listed for sale

Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

23) Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period in exchange for consideration. The Company determines if a contract is a lease at the inception of the contract. At the commencement date of a lease, the Company measures the lease liability at the present value of the lease payments over the lease term, discounted using the discount rate for the lease. The Company uses the rate implicit in the lease, if available, otherwise the Company uses its incremental borrowing rate. Also, at the commencement date of a lease, the Company measures the cost of the related right-of-use asset which consists of the amount of the initial measurement of the lease liability, any lease payments made to the lessor at or before the commencement date, minus any lease incentives received and any initial direct costs incurred by the Company.

Information about the Nature of Leases and Subleases

The Company leases office space and equipment from third parties under various non-cancelable agreements. The Company has operating leases for office space for its segments in areas where it conducts business. The Company subleases some of this office space. The Company also has finance leases for certain equipment, such as copy machines and postage machines. The Company does not have any lease agreements with variable lease payments. The Company has not included any options to extend or terminate leases in the recognition of the right-of-use assets or lease liabilities because of the uncertainty that they will be exercised. No residual value guarantees have been provided to the Company. The Company does not have any restrictions or covenants imposed by leases.

Leases that have not Commenced

The Company does not have any leases that have not commenced that create significant rights or obligations for the Company.

Related Party Lease Transactions

The Company does not have any related party lease transactions that require disclosure as of December 31, 2023.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

23) Leases (Continued)

Short-term Leases

The Company made an accounting policy election not to apply the recognition requirements of ASC 842 to short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying assets that the lessee is reasonably certain to exercise.

Significant Judgments and Assumptions

The Company does not use any significant judgments or assumptions regarding the determination of whether a contract contains a lease; the allocation of the consideration in a contract between lease and nonlease components; or the determination of the discount rates for the leases. The following table presents the Company’s total lease cost recognized in earnings, amounts capitalized as right-of-use assets and cash flows from lease transactions.

	2023			2022
	Years Ended December 31
	2023			2022
Lease Cost
Finance lease cost:
Amortization of right-of-use assets (1)	$	25,573		$	30,163
Interest on lease liabilities (2)		1,713			2,773
Operating lease cost (3)		3,914,954			4,498,894
Short-term lease cost (3)(4)		1,874,556			1,135,003
Sublease income (3)		(323,272	)		(209,455	)
Total lease cost	$	5,493,524		$	5,457,378

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,007,919		$	4,250,630
Operating cash flows from finance leases		1,713			2,773
Financing cash flows from finance leases		27,868			31,685

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	160,348		$	2,054,534
Finance leases		12,332			-

Weighted-average remaining lease term (in years)
Finance leases		3.29			1.25
Operating leases		2.88			3.46

Weighted-average discount rate
Finance leases		6.81	%		5.78	%
Operating leases		4.54	%		4.50	%

(1)

Included in Depreciation on property and equipment on the consolidated statements of earnings

(2)

Included in Interest expense on the consolidated statements of earnings

(3)

Included in Rent and rent related expenses on the consolidated statements of earnings

(4)

Includes leases with a term of 12 months or less

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

23) Leases (Continued)

The following table presents the maturity analysis of the Company’s lease liabilities.

	Finance Leases			Operating Leases
Lease payments due in:
2024	$	7,187		$	3,187,826
2025		3,525			2,073,045
2026		2,833			1,443,598
2027		2,833			340,112
2028		1,181			128,854
Thereafter		-			195,695
Total undiscounted lease payments		17,559			7,369,130
Less: Discount on cash flows		(2,009	)		(480,588	)
Present value of lease liabilities	$	15,550		$	6,888,542

The following table presents the Company’s right-of-use assets and lease liabilities.

		Year Ended December 31,
	Balance Sheet Location	2023			2022
Operating Leases
Right-of-use assets	Other assets	$	6,374,336		$	9,987,699
Right-of-use assets	Other assets	$	6,374,336		$	9,987,699

Lease liabilities	Other liabilities and accrued expenses	$	6,888,542		$	10,596,471
Lease liabilities	Other liabilities and accrued expenses	$	6,888,542		$	10,596,471

Finance Leases
Right-of-use assets		$	130,367		$	228,221
Accumulated amortization			(115,565	)		(200,178	)
Right-of-use assets, net	Property and equipment, net	$	14,802		$	28,043
Right-of-use assets, net	Property and equipment, net	$	14,802		$	28,043

Lease liabilities	Bank and other loans payable	$	15,550		$	31,082
Lease liabilities	Bank and other loans payable	$	15,551		$	31,082

The Company is also a lessor and has operating lease agreements with various tenants that lease its commercial properties. See Note 2 for information about the Company’s real estate held for investment.

Consolidated Balance Sheets - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Investments:
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $390,884,441 and $362,750,511 for 2023 and 2022, respectively; net of allowance for credit losses of $314,549 and nil for 2023 and 2022, respectively)	$ 381,535,986	$ 345,858,492
Equity securities at estimated fair value (cost of $10,571,505 and $9,942,265 for 2023 and 2022, respectively)	13,636,071	11,682,526
Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)	275,616,837	308,123,927
Real estate held for investment (net of accumulated depreciation of $29,307,791 and $23,793,204 for 2023 and 2022, respectively)	183,419,292	191,328,616
Real estate held for sale	3,028,973	11,161,582
Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)	69,404,617	70,508,156
Accrued investment income	10,170,790	10,299,826
Total investments	936,812,566	948,963,125
Cash and cash equivalents	126,941,658	120,919,805
Loans held for sale at estimated fair value	126,549,190	141,179,620
Receivables (net of allowance for credit losses of $1,897,887 and $2,229,791 for 2023 and 2022, respectively)	15,335,315	28,573,092
Restricted assets (including $9,239,063 and $6,565,552 for 2023 and 2022, respectively, at estimated fair value)	20,028,976	18,935,055
Cemetery perpetual care trust investments (including $4,969,005 and $3,859,893 for 2023 and 2022 at estimated fair value)	8,082,917	7,276,210
Receivable from reinsurers	14,857,059	15,033,938
Cemetery land and improvements	9,163,691	9,101,474
Deferred policy and pre-need contract acquisition costs	116,351,067	108,655,128
Mortgage servicing rights, net	3,461,146	3,039,765
Property and equipment, net	19,175,099	20,579,649
Value of business acquired	8,467,613	9,803,736
Goodwill	5,253,783	5,253,783
Other	20,072,195	23,798,512
Total Assets	1,430,552,275	1,461,112,892
Liabilities
Future policy benefits and unpaid claims	916,038,616	889,327,303
Unearned premium reserve	2,543,822	2,773,616
Bank and other loans payable	105,555,137	161,712,804
Deferred pre-need cemetery and mortuary contract revenues	18,237,246	16,226,836
Cemetery perpetual care obligation	5,326,196	5,099,542
Accounts payable	2,936,968	5,361,449
Other liabilities and accrued expenses	53,266,090	57,113,888
Income taxes	13,752,981	30,710,527
Total liabilities	1,117,657,056	1,168,325,965
Stockholders’ Equity
Preferred stock - non-voting-$1.00 par value; 5,000,000 shares authorized; none issued or outstanding
Additional paid-in capital	72,424,429	64,767,769
Accumulated other comprehensive loss, net of taxes	(6,885,558)	(13,070,277)
Retained earnings	206,978,373	202,160,306
Treasury stock, at cost - 806,311 Class A shares and 35,717 Class C shares as of December 31, 2023; and 525,870 Class A shares and 34,016 Class C shares as of December 31, 2022	(5,661,737)	(4,366,651)
Total stockholders’ equity	312,895,219	292,786,927
Total Liabilities and Stockholders’ Equity	1,430,552,275	1,461,112,892
Common Class A [Member]
Stockholders’ Equity
Common stock value	40,096,004	37,516,062
Common Class B [Member]
Stockholders’ Equity
Common stock value
Common Class C [Member]
Stockholders’ Equity
Common stock value	$ 5,943,708	$ 5,779,718

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock [Member] Common Class A [Member]	Common Stock [Member] Common Class C [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Total
Balance, value at Dec. 31, 2021	$ 35,285,444	$ 5,733,130	$ 57,985,947	$ 18,070,448	$ 184,537,489	$ (1,845,624)	$ 299,766,834
Net earnings					25,690,302		25,690,302
Other comprehensive income				(31,140,725)			(31,140,725)
Stock based compensation expense			929,692				929,692
Exercise of stock options	219,174		(75,742)				143,432
Sale of treasury stock			(187,757)			5,249,054	5,061,297
Purchase of treasury stock			106,176			(7,770,081)	(7,663,905)
Stock dividends	1,779,108	278,924	6,009,453		(8,067,485)
Conversion Class C to Class A	232,336	(232,336)
Balance, value at Dec. 31, 2022	37,516,062	5,779,718	64,767,769	(13,070,277)	202,160,306	(4,366,651)	292,786,927
Net earnings					14,495,058		14,495,058
Other comprehensive income				6,184,719			6,184,719
Stock based compensation expense			601,362				601,362
Exercise of stock options	558,354		(423,967)				134,387
Sale of treasury stock			76,202			2,134,517	2,210,719
Purchase of treasury stock			583,156			(3,429,603)	(2,846,447)
Stock dividends	1,899,960	283,188	6,822,337		(9,005,485)
Conversion Class C to Class A	119,198	(119,198)
Adoption of ASU 2016-13					(671,506)		(671,506)
Vesting of restricted stock units	2,430		(2,430)
Balance, value at Dec. 31, 2023	$ 40,096,004	$ 5,943,708	$ 72,424,429	$ (6,885,558)	$ 206,978,373	$ (5,661,737)	$ 312,895,219

Accumulated Other Comprehensive Income (loss) (Tables)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income

The following summarizes the changes in accumulated other comprehensive income (loss):

	2023			2022
	December 31
	2023			2022

Unrealized gains (losses) on fixed maturity securities available for sale	$	7,853,398		$	(39,493,861	)
Amounts reclassified into net earnings		(39,074	)		162,173
Net unrealized gains (losses) before taxes		7,814,324			(39,331,688	)
Tax benefit (expense)		(1,640,186	)		8,259,656
Net		6,174,138			(31,072,032	)
Unrealized gains (losses) on restricted assets (1)		11,175			(71,035	)
Tax benefit (expense)		(2,784	)		17,695
Net		8,391			(53,340	)
Unrealized gains (losses) on cemetery perpetual care trust investments (1)		2,917			(20,446	)
Tax benefit (expense)		(727	)		5,093
Net		2,190			(15,353	)
Other comprehensive income (loss) changes	$	6,184,719		$	(31,140,725	)

(1)

Fixed maturity securities available for sale

Schedule of Accumulated Balances of Other Comprehensive Income

The following is the accumulated balances of other comprehensive income (loss) as of December 31, 2023:

	Beginning Balance December 31, 2022			Change for the period		Ending Balance December 31, 2023
Unrealized gains (losses) on fixed maturity securities available for sale	$	(13,050,767	)	$	6,174,138	$	(6,876,629	)
Unrealized gains (losses) on restricted assets (1)		(13,148	)		8,391		(4,757	)
Unrealized gains (losses) on cemetery perpetual care trust investments (1)		(6,362	)		2,190		(4,172	)
Other comprehensive income (loss)	$	(13,070,277	)	$	6,184,719	$	(6,885,558	)

(1)

Fixed maturity securities available for sale

The following is the accumulated balances of other comprehensive income (loss) as of December 31, 2022:

	Beginning Balance December 31, 2021		Change for the period			Ending Balance December 31, 2022
Unrealized gains (losses) on fixed maturity securities available for sale	$	18,021,265	$	(31,072,032	)	$	(13,050,767	)
Unrealized gains (losses) on restricted assets (1)		40,192		(53,340	)		(13,148	)
Unrealized gains (losses) on cemetery perpetual care trust investments (1)		8,991		(15,353	)		(6,362	)
Other comprehensive income (loss)	$	18,070,448	$	(31,140,725	)	$	(13,070,277	)

(1)

Fixed maturity securities available for sale

Schedule of Carrying Value of Intangible Asset (Details) - USD ($)

Dec. 31, 2023

Dec. 31, 2022

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, accumulated amortization

$ (807,333)

$ (553,333)

Finite-lived intangible assets, net

$ 3,002,667

3,256,667

Trade Names [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible asset, useful life

^[1]

15 years

Finite-lived intangible assets, gross

^[1]

$ 2,100,000

2,100,000

Other [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible asset, useful life

^[1]

15 years

Finite-lived intangible assets, gross

^[1]

$ 210,000

210,000

Trade Names 2 [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible asset, useful life

^[2]

15 years

Finite-lived intangible assets, gross

^[2]

$ 610,000

610,000

Customer Lists [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible asset, useful life

^[3]

15 years

Finite-lived intangible assets, gross

^[3]

$ 890,000

[1]	Rivera Funerals, Cremations and Memorial Gardens
[2]	Kilpatrick Life
[3]	Beta Capital Corp

Reinsurance, Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Reinsurance, Commitments and Contingencies

10) Reinsurance, Commitments and Contingencies

Reinsurance

The Company follows the procedure of reinsuring risks of more than a specified limit, which ranges from $25,000 to $100,000 on newly issued policies. The Company has also assumed various reinsurance agreements through acquisition of various life companies and has assets held in trust related to certain agreements. The Company is ultimately liable for these reinsured amounts in the event such reinsurers are unable to pay their portion of the claims. The Company evaluates the financial condition of reinsurers and monitors the concentration of credit risk. The Company had a significant concentration of credit risk with a single reinsurer of 94.0% and 93.7% of ceded life insurance in force as of December 31, 2023 and 2022, respectively. This represented approximately 8.8% and 11.3% of the Company’s total life insurance in force as of December 31, 2023 and 2022, respectively. See Financial Statement Schedule IV for information regarding life insurance in force and premiums for reinsurance.

Mortgage Loan Loss Settlements

Future loan losses can be extremely difficult to estimate. However, the Company believes that the Company’s reserve methodology and its current practice of property preservation allow it to estimate potential losses on loans sold. See Note 3 for additional information about the Company’s loan loss reserve.

Non-Cancelable Leases

The Company leases office space and equipment under various non-cancelable agreements. See Note 23 regarding leases.

Other Contingencies and Commitments

The Company has commitments to fund existing construction and land development loans pursuant to the various loan agreements. As of December 31, 2023, the Company’s commitments were approximately $146,953,000 for these loans, of which $104,977,000 had been funded. The Company advances funds in accordance with the loan agreements once the work has been completed and an independent inspection is made. The maximum loan commitment ranges between 50% and 80% of appraised value. The Company receives fees and interest for these loans and the interest rate is generally fixed at 5.25% to 8.50% per annum. Maturities range between six and eighteen months.

The Company belongs to a captive insurance group (“the captive group”) for certain casualty insurance, worker compensation and general liability programs. The captive group maintains insurance reserves relative to these programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the insurance liabilities and related reserves, the captive group considers several factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. If actual claims or adverse development of loss reserves occurs and exceed these estimates, additional reserves may be required from the Company and its members. The estimation process contains uncertainty since captive insurance management must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date.

The Company is a defendant in various other legal actions arising from the normal conduct of business. The Company believes that none of the actions, if adversely determined, will have a material effect on the Company’s financial position or results of operations. Based on the Company’s assessment and legal counsel’s representations concerning the likelihood of unfavorable outcomes, no amounts have been accrued for the above claims in the consolidated financial statements. The Company is not a party to any other material legal proceedings outside the ordinary course of business or to any other legal proceedings, which, if adversely determined, would have a material adverse effect on its financial condition or results of operations.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Schedule of Mortgage Fee Income for Loans Held for Sale (Details) (Parenthethical) - USD ($)		12 Months Ended
	Oct. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Loans Held For Sale
Mortgage servicing rights	$ 34,051,938		$ 34,051,938

Summary of Operating Loss Carryforwards (Details)	Dec. 31, 2023 USD ($)
Operating Loss Carryforwards [Line Items]
Net operating losses and tax credit carryforwards	$ 3,299,431
Year of Expiration 2024 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses and tax credit carryforwards
Year of Expiration 2025 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses and tax credit carryforwards
Year of Expiration 2026 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses and tax credit carryforwards
Year Of Expiration 2027 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses and tax credit carryforwards
Year of Expiration 2028 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses and tax credit carryforwards
Year of Expiration Thereafter Up Through 2038 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses and tax credit carryforwards	903,042
Indefinite Carryforwards [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses and tax credit carryforwards	$ 2,396,389

Schedule of Annual Undiscounted Cash Flows of Operating Lease Payments (Details) - Commercial Real Estate 1 [Member]	Dec. 31, 2023 USD ($)
Marketable Securities [Line Items]
2024	$ 11,816,339
2025	11,843,124
2026	10,695,017
2027	9,198,450
2028	9,009,534
Thereafter	46,371,762
Total	$ 98,934,226

Schedule of Estimate of Future Amortization for Other Intangible Assets (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Total	$ 3,002,667	$ 3,256,667
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
2024	254,000
2025	254,000
2026	254,000
2027	254,000
2028	254,000
Thereafter	1,732,667
Total	$ 3,002,667

Schedule of Assets on Deposit With Life Insurance (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Other investments	$ 69,404,617	$ 70,508,156
Asset Pledged as Collateral [Member]
Marketable Securities [Line Items]
Fixed maturity securities available for sale at estimated fair value	93,903,089	93,034,880
Total assets pledged as collateral	93,903,089	93,034,880
Third Party Reinsurance Agreements [Member]
Marketable Securities [Line Items]
Fixed maturity securities available for sale at estimated fair value	27,903,952	27,955,297
Cash and cash equivalents	2,101,052	1,866,453
Total assets on deposit	30,005,004	29,821,750
Life Insurance Regulatory Authorities [Member]
Marketable Securities [Line Items]
Fixed maturity securities available for sale at estimated fair value	6,206,650	8,817,959
Other investments	400,000
Cash and cash equivalents	1,909,215	2,214,206
Total assets on deposit	$ 8,515,865	$ 11,032,165

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Insider Trading Arrangements [Line Items]
Rule 10b51 Arrangement Adopted	false
Non-Rule 10b51 Arrangement Adopted	false
Rule 10b51 Arrangement Terminated	false
Non-Rule 10b51 Arrangement Terminated	false

Schedule of Fair Value Assets Measured on a Nonrecurring Basis (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment	$ 275,616,837	$ 308,123,927
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment	794,224
Assets fair value disclosure nonrecurring	794,224
Fair Value, Nonrecurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment
Assets fair value disclosure nonrecurring
Fair Value, Nonrecurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment
Assets fair value disclosure nonrecurring
Fair Value, Nonrecurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment	794,224
Assets fair value disclosure nonrecurring	$ 794,224

Future Policy Benefits and Unpaid Claims (Tables)

12 Months Ended

Dec. 31, 2023

Insurance [Abstract]

Schedule of Liability for Future Policy Benefits, by Product Segment

The following table provides information regarding future policy benefits and unpaid claims and the related receivable from reinsurers.

	December 31,
	2023		2022
Life	$	756,936,902	$	726,462,594
Annuities		106,285,010		106,637,094
Policyholder account balances		39,245,123		41,146,171
Accident and health		572,689		603,526
Other policyholder funds		4,411,108		4,279,218
Reported but unpaid claims		3,525,774		5,651,030
Incurred but not reported claims		5,062,010		4,547,670

Gross future policy benefits and unpaid claims	$	916,038,616	$	889,327,303

Receivable from reinsurers

Life		10,478,863		10,600,613
Annuities		4,238,934		4,225,873
Accident and health		77,917		79,467
Reported but unpaid claims		48,345		110,985
Incurred but not reported claims		13,000		17,000

Total receivable from reinsurers		14,857,059		15,033,938

Net future policy benefits and unpaid claims	$	901,181,557	$	874,293,365

Net unpaid claims	$	8,526,439	$	10,070,715

Summary of Liability for Reported but Unpaid Claims and Incurred but not Reported Claims

The following table provides a roll forward of the Company’s liability for reported but unpaid claims and incurred but not reported claims, net of the related receivable from reinsurers.

	Life			Annuities			Accident and Health			Total
Balance at 12/31/2021	$	8,015,101		$	678,378		$	104,504		$	8,797,983
Incurred		59,377,962	(1)		13,987,576	(2)		40,744	(3)		73,406,282
Settled		(57,988,800	)		(14,016,502	)		(128,248	)		(72,133,550	)
Balance at 12/31/2022		9,404,263			649,452			17,000			10,070,715
Incurred		61,390,517	(1)		12,669,463	(2)		30,408	(3)		74,090,388
Settled		(62,665,619	)		(12,939,637	)		(29,408	)		(75,634,664	)
Balance at 12/31/2023	$	8,129,161		$	379,278		$	18,000		$	8,526,439

(1)

See death benefits on the consolidated statements of earnings

(2)

Included in increase in future benefits on the consolidated statements of earnings

(3)

Included in surrender and other policy benefits on the consolidated statements of earnings

Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Receivables, beginning balance

^[1]

$ 5,392,779

$ 5,298,636

Contract asset, beginning balance

Contract liability, beginning balance

16,226,836

14,508,022

Receivables, ending balance

^[1]

6,321,573

5,392,779

Contract asset, ending balance

Contract liability, ending balance

18,237,246

16,226,836

Increase (decrease) in accounts receivable

^[1]

928,794

94,143

Increase (decrease) in contract asset

Increase (decrease) in contract liability

$ 2,010,410

$ 1,718,814

[1]	Included in Receivables, net on the consolidated balance sheets

Significant Accounting Policies (Details Narrative) - USD ($)		12 Months Ended
	Jan. 01, 2023	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Remaining outstanding principal balance percentage		0.25%
Participating business		2.00%	2.00%
Diversification of business		$ 100,000
Concentration risk percentage		100.00%
Accounting Standards Update 2016-13 [Member]
Property, Plant and Equipment [Line Items]
Decrease in retained earnings	$ 671,506
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives		3 years
Debt instrument interest rate effective percentage		4.00%
Participating policy percentage of premium income		3.00%
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives		40 years
Debt instrument interest rate effective percentage		10.00%
Participating policy percentage of premium income		6.50%
MSRs Class One [Member]
Property, Plant and Equipment [Line Items]
Debt instrument term		30 years
MSRs Class Two [Member]
Property, Plant and Equipment [Line Items]
Debt instrument term		15 years

Loans Held for Sale (Tables)

12 Months Ended

Dec. 31, 2023

Loans Held For Sale

Schedule of Aggregate Fair Value Loans Held for Sale

The following table presents the aggregate fair value and the aggregate unpaid principal balance of loans held for sale.

	2023			2022
	December 31,
	2023			2022
Aggregate fair value	$	126,549,190		$	141,179,620
Unpaid principal balance		127,185,867			141,337,811
Unrealized loss		(636,677	)		(158,191	)

Schedule of Mortgage Fee Income for Loans Held for Sale

Major categories of mortgage fee income for loans held for sale are summarized as follows:

	2023			2022
	Years Ended December 31
	2023			2022
Loan fees	$	21,724,456		$	24,184,972
Interest income		9,547,741			9,666,149
Secondary gains		68,505,014			153,870,807	(1)
Change in fair value of loan commitments		(1,123,615	)		(4,308,638	)
Change in fair value of loans held for sale		(478,460	)		(8,834,797	)
Provision for loan loss reserve		(27,164	)		(1,078,812	)
Mortgage fee income	$	98,147,972		$	173,499,681

(1)

Includes a net gain of $34,051,938 for the sale of mortgage servicing rights

Summary of Loan Loss Reserve Included in Other Liabilities and Accrued Expenses

The loan loss reserve, which is included in other liabilities and accrued expenses, is summarized as follows:

	December 31,
	2023			2022
Beginning Balance	$	1,725,667		$	2,447,139
Provision for current loan originations (1)		27,164			1,078,812
Charge-offs, net of recaptured amounts		(1,205,598	)		(1,800,284	)
Ending Balance	$	547,233		$	1,725,667

(1)

Included in Mortgage fee income

Accumulated Other Comprehensive Income (loss)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive Income (loss)

18) Accumulated Other Comprehensive Income (loss)

The following summarizes the changes in accumulated other comprehensive income (loss):

	2023			2022
	December 31
	2023			2022

Unrealized gains (losses) on fixed maturity securities available for sale	$	7,853,398		$	(39,493,861	)
Amounts reclassified into net earnings		(39,074	)		162,173
Net unrealized gains (losses) before taxes		7,814,324			(39,331,688	)
Tax benefit (expense)		(1,640,186	)		8,259,656
Net		6,174,138			(31,072,032	)
Unrealized gains (losses) on restricted assets (1)		11,175			(71,035	)
Tax benefit (expense)		(2,784	)		17,695
Net		8,391			(53,340	)
Unrealized gains (losses) on cemetery perpetual care trust investments (1)		2,917			(20,446	)
Tax benefit (expense)		(727	)		5,093
Net		2,190			(15,353	)
Other comprehensive income (loss) changes	$	6,184,719		$	(31,140,725	)

(1)

Fixed maturity securities available for sale

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

18) Accumulated Other Comprehensive Income (loss) (Continued)

The following is the accumulated balances of other comprehensive income (loss) as of December 31, 2023:

	Beginning Balance December 31, 2022			Change for the period		Ending Balance December 31, 2023
Unrealized gains (losses) on fixed maturity securities available for sale	$	(13,050,767	)	$	6,174,138	$	(6,876,629	)
Unrealized gains (losses) on restricted assets (1)		(13,148	)		8,391		(4,757	)
Unrealized gains (losses) on cemetery perpetual care trust investments (1)		(6,362	)		2,190		(4,172	)
Other comprehensive income (loss)	$	(13,070,277	)	$	6,184,719	$	(6,885,558	)

(1)

Fixed maturity securities available for sale

The following is the accumulated balances of other comprehensive income (loss) as of December 31, 2022:

	Beginning Balance December 31, 2021		Change for the period			Ending Balance December 31, 2022
Unrealized gains (losses) on fixed maturity securities available for sale	$	18,021,265	$	(31,072,032	)	$	(13,050,767	)
Unrealized gains (losses) on restricted assets (1)		40,192		(53,340	)		(13,148	)
Unrealized gains (losses) on cemetery perpetual care trust investments (1)		8,991		(15,353	)		(6,362	)
Other comprehensive income (loss)	$	18,070,448	$	(31,140,725	)	$	(13,070,277	)

(1)

Fixed maturity securities available for sale

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Value of Business Acquired, Goodwill and Other Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Weighted average amortization period	5 years 1 month 6 days
Amortization expense	$ 254,000	$ 256,000

Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Numerator:

Net earnings

$ 14,495,058

$ 25,690,302

Denominator:

Denominator for basic earnings per share-weighted-average shares

^[1]

22,083,772

22,187,410

Employee stock options

594,196

848,323

Unvested restricted stock units

395

Dilutive potential common shares

594,196

848,718

Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions

22,677,968

23,036,128

Basic earnings per share

^[1]

$ 0.66

$ 1.16

Diluted earnings per share

^[1]

$ 0.64

$ 1.12

[1]

Net earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share.

Capital Stock (Tables)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Summary of Activities in Shares of Capital Stock

The following table summarizes the activity in shares of capital stock.

	Class A		Class C
Outstanding shares at December 31, 2021		17,642,722		2,866,565

Exercise of stock options		109,587		-
Vesting of restricted stock units		-		-
Stock dividends		889,554		139,462
Conversion of Class C to Class A		116,168		(116,168	)

Outstanding shares at December 31, 2022		18,758,031		2,889,859
Common stock, shares, outstanding, beginning		18,758,031		2,889,859

Exercise of stock options		279,177		-
Vesting of restricted stock units		1,215		-
Stock dividends		949,980		141,594
Conversion of Class C to Class A		59,599		(59,599	)

Outstanding shares at December 31, 2023		20,048,002		2,971,854
Common stock, shares, outstanding, ending		20,048,002		2,971,854

Schedule of Earnings Per Share, Basic and Diluted

Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share amounts were calculated as follows:

	2023		2022
	Years Ended December 31,
	2023		2022
Numerator:
Net earnings	$	14,495,058	$	25,690,302

Denominator:
Denominator for basic earnings per share-weighted-average shares		22,083,772		22,187,410

Effect of dilutive securities
Employee stock options		594,196		848,323
Unvested restricted stock units		-		395
Dilutive potential common shares		594,196		848,718

Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions		22,677,968		23,036,128

Basic earnings per share	$	0.66	$	1.16
Diluted earnings per share	$	0.64	$	1.12

Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Computed expense at statutory rate	$ 3,423,086	$ 7,219,141
State tax expense (benefit), net of federal tax benefit	(115,994)	585,269
Change in valuation allowance	(1,506,144)	623,609
Other, net	4,406	258,541
Total	$ 1,805,354	$ 8,686,560

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Schedule of Residential Construction Mortgage Loans (Details)	Dec. 31, 2023 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 281,382,873
Residential Construction Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	60,311,679
2022	16,624,182
2021	27,116,887
Total	$ 104,052,748
% of Total	100.00%
Residential Construction Mortgage Loans [Member] \| Less than 65% [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 40,215,360
2022	8,732,500
2021	20,442,302
Total	$ 69,390,162
% of Total	66.69%
Residential Construction Mortgage Loans [Member] \| 65% to 80% [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 20,096,319
2022	7,891,682
2021	6,674,585
Total	$ 34,662,586
% of Total	33.31%
Residential Construction Mortgage Loans [Member] \| Greater than 80% [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023
2022
2021
Total
% of Total	0.00%
Performing Financial Instruments [Member] \| Residential Construction Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 60,311,679
2022	16,624,182
2021	27,116,887
Total	$ 104,052,748
% of Total	100.00%
Nonperforming Financial Instruments [Member] \| Residential Construction Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023
2022
2021
Total
% of Total	0.00%

Schedule of Changes in Accumulated Other Comprehensive Income (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Unrealized gains (losses) on fixed maturity securities available for sale

$ 7,853,398

$ (39,493,861)

Amounts reclassified into net earnings

(39,074)

162,173

Unrealized gains (losses) on cemetery perpetual care trust investments

7,814,324

(39,331,688)

Tax benefit (expense)

(1,640,186)

8,259,656

Net

6,174,138

(31,072,032)

Tax benefit (expense)

(727)

5,093

Net

2,190

(15,353)

Other comprehensive income (loss) changes

6,184,719

(31,140,725)

Restricted Assets [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Unrealized gains (losses) on cemetery perpetual care trust investments

^[1]

11,175

(71,035)

Net

8,391

(53,340)

Tax benefit (expense)

(2,784)

17,695

Cemetery Perpetual Care Trust Investments [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Unrealized gains (losses) on cemetery perpetual care trust investments

^[1]

$ 2,917

$ (20,446)

[1]	Fixed maturity securities available for sale

Schedule of Mortgage Servicing Rights (Details) - USD ($)

12 Months Ended

Oct. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Balance before valuation allowance at beginning of year

$ 3,039,765

$ 53,060,455

MSR additions resulting from loan sales

1,009,312

10,243,922

Amortization

^[1]

(587,931)

(9,078,706)

Sale of MSRs

$ (51,185,906)

(51,185,906)

Application of valuation allowance to write down MSRs with other than temporary impairment

Balance before valuation allowance at year end

3,461,146

3,039,765

Balance at beginning of year

Additions

Balance at year end

Mortgage servicing rights, net

3,461,146

3,039,765

Estimated fair value of MSRs at end of period

$ 4,543,657

$ 3,927,877

[1]	Included in other expenses on the consolidated statements of earnings

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
Property and Equipment (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2,351,661	$ 2,496,906
Impairment loss	$ 122,229

Schedule of Allowance Credit Losses (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Receivables [Abstract]

Beginning balance

$ 2,229,791

$ 1,800,725

Change in provision for credit losses

^[1]

(110,935)

799,888

Charge-offs

(220,969)

(370,822)

Ending balance

$ 1,897,887

$ 2,229,791

[1]	Included in other expenses on the condensed consolidated statements of earnings

Schedule of Revenues and Expenses by Reportable Segment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenue from customers	$ 240,671,219	$ 305,495,176
Net investment income	72,343,047	66,197,592
Gains (losses) on investments and other assets	1,837,342	(857,460)
Other revenues	3,645,882	18,817,020
Net investment income
Total revenues	318,497,490	389,652,328
Death, surrenders and other policy benefits	66,002,863	64,066,432
Increase in future policy benefits	34,008,997	28,858,969
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	18,024,338	17,950,202
Commissions	39,929,556	63,321,092
Personnel	83,141,759	100,111,523
Advertising	3,710,445	5,697,998
Rent and rent related	6,857,137	6,883,013
Depreciation on property and equipment	2,351,661	2,496,906
Provision for loan loss reserve
Cost related to funding mortgage loans	6,440,439	7,540,041
Intersegment
Other	32,058,856	45,797,753
Intersegment
Other	4,865,327	7,830,443
Costs of goods and services sold-mortuaries and cemeteries	4,805,700	4,721,094
Total benefits and expenses	302,197,078	355,275,466
Earnings before income taxes	16,300,412	34,376,862
Income tax expense	(1,805,354)	(8,686,560)
Net earnings	14,495,058	25,690,302
Identifiable assets	1,424,302,971	1,455,859,109
Goodwill	5,253,783	5,253,783	$ 5,253,783
Life Insurance [Member]
Segment Reporting Information [Line Items]
Revenue from customers	114,735,304	105,144,646
Net investment income	67,811,926	62,565,021
Gains (losses) on investments and other assets	962,824	(459,462)
Other revenues	1,666,020	1,932,402
Net investment income	8,203,306	6,601,132
Total revenues	193,379,380	175,783,739
Death, surrenders and other policy benefits	66,002,863	64,066,432
Increase in future policy benefits	34,008,997	28,858,969
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	17,485,699	17,352,803
Commissions	3,963,185	4,097,680
Personnel	26,769,211	26,285,207
Advertising	638,071	1,649,273
Rent and rent related	414,564	384,908
Depreciation on property and equipment	880,116	1,036,521
Provision for loan loss reserve
Cost related to funding mortgage loans
Intersegment	310,689	232,915
Other	12,991,888	13,190,827
Intersegment	560,718	462,753
Other	4,081,348	3,969,905
Costs of goods and services sold-mortuaries and cemeteries
Total benefits and expenses	168,107,349	161,588,193
Earnings before income taxes	25,272,031	14,195,546
Income tax expense	(3,655,148)	(4,034,979)
Net earnings	21,616,883	10,160,567
Identifiable assets	1,325,287,933	1,246,840,586
Goodwill	2,765,570	2,765,570	$ 2,765,570
Cemetery/Mortuary [Member]
Segment Reporting Information [Line Items]
Revenue from customers	27,864,811	26,993,855
Net investment income	2,951,577	2,444,599
Gains (losses) on investments and other assets	717,312	(796,096)
Other revenues	404,256	305,073
Net investment income	340,001	451,139
Total revenues	32,277,957	29,398,570
Death, surrenders and other policy benefits
Increase in future policy benefits
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	538,639	597,399
Commissions	1,777,071	1,372,200
Personnel	9,722,659	9,305,429
Advertising	663,113	628,114
Rent and rent related	159,877	163,182
Depreciation on property and equipment	812,641	759,415
Provision for loan loss reserve
Cost related to funding mortgage loans
Intersegment	143,652	160,690
Other	4,961,320	5,321,730
Intersegment	247,664	274,911
Other	955	710
Costs of goods and services sold-mortuaries and cemeteries	4,805,700	4,721,094
Total benefits and expenses	23,833,291	23,304,874
Earnings before income taxes	8,444,666	6,093,696
Income tax expense	(2,131,289)	(1,523,954)
Net earnings	6,313,377	4,569,742
Identifiable assets	95,059,724	82,320,929
Goodwill	2,488,213	2,488,213
Mortgage [Member]
Segment Reporting Information [Line Items]
Revenue from customers	98,071,104	173,356,675
Net investment income	1,579,544	1,187,972
Gains (losses) on investments and other assets	157,206	398,098
Other revenues	1,575,606	16,579,545
Net investment income	531,406	356,574
Total revenues	101,914,866	191,878,864
Death, surrenders and other policy benefits
Increase in future policy benefits
Amortization of deferred policy and pre-need acquisition costs and value of business acquired
Commissions	34,189,300	57,851,212
Personnel	46,649,889	64,520,887
Advertising	2,409,261	3,420,611
Rent and rent related	6,282,696	6,334,923
Depreciation on property and equipment	658,904	700,970
Provision for loan loss reserve
Cost related to funding mortgage loans	6,440,439	7,540,041
Intersegment	1,930,370	1,795,507
Other	14,105,648	27,285,196
Intersegment	5,881,620	4,482,069
Other	783,024	3,859,828
Costs of goods and services sold-mortuaries and cemeteries
Total benefits and expenses	119,331,151	177,791,244
Earnings before income taxes	(17,416,285)	14,087,620
Income tax expense	3,981,083	(3,127,627)
Net earnings	(13,435,202)	10,959,993
Identifiable assets	97,018,754	219,872,163
Goodwill
Intercompany Eliminations [Member]
Segment Reporting Information [Line Items]
Revenue from customers
Net investment income
Gains (losses) on investments and other assets
Other revenues
Net investment income	(9,074,713)	(7,408,845)
Total revenues	(9,074,713)	(7,408,845)
Death, surrenders and other policy benefits
Increase in future policy benefits
Amortization of deferred policy and pre-need acquisition costs and value of business acquired
Commissions
Personnel
Advertising
Rent and rent related
Depreciation on property and equipment
Provision for loan loss reserve
Cost related to funding mortgage loans
Intersegment	(2,384,711)	(2,189,112)
Other
Intersegment	(6,690,002)	(5,219,733)
Other
Costs of goods and services sold-mortuaries and cemeteries
Total benefits and expenses	(9,074,713)	(7,408,845)
Earnings before income taxes
Income tax expense
Net earnings
Identifiable assets	(93,063,440)	(93,174,569)
Goodwill

Business Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business Segment Information

15) 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 pre-sold loans before the funds are received from financial institutional investors.

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. 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.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

15) Business Segment Information (Continued)

	Insurance			Mortuary			Mortgage			Eliminations			Consolidated
	Year Ended December 31, 2023
	Life			Cemetery/						Intercompany
	Insurance			Mortuary			Mortgage			Eliminations			Consolidated
Revenues:
From external sources:
Revenue from customers	$	114,735,304		$	27,864,811		$	98,071,104			-		$	240,671,219
Net investment income		67,811,926			2,951,577			1,579,544			-			72,343,047
Gains (losses) on investments and other assets		962,824			717,312			157,206			-			1,837,342
Other revenues		1,666,020			404,256			1,575,606			-			3,645,882
Intersegment revenues:
Net investment income		8,203,306			340,001			531,406			(9,074,713	)		-
Total revenues		193,379,380			32,277,957			101,914,866			(9,074,713	)		318,497,490
Expenses:
Death, surrenders and other policy benefits		66,002,863			-			-			-			66,002,863
Increase in future policy benefits		34,008,997			-			-			-			34,008,997
Amortization of deferred policy and pre-need acquisition costs and value of business acquired		17,485,699			538,639			-			-			18,024,338
Selling, general and administrative expenses:
Commissions		3,963,185			1,777,071			34,189,300			-			39,929,556
Personnel		26,769,211			9,722,659			46,649,889			-			83,141,759
Advertising		638,071			663,113			2,409,261			-			3,710,445
Rent and rent related		414,564			159,877			6,282,696			-			6,857,137
Depreciation on property and equipment		880,116			812,641			658,904			-			2,351,661
Provision for loan loss reserve		-			-			-			-			-
Cost related to funding mortgage loans		-			-			6,440,439			-			6,440,439
Intersegment		310,689			143,652			1,930,370			(2,384,711	)		-
Other		12,991,888			4,961,320			14,105,648			-			32,058,856
Interest expense:
Intersegment		560,718			247,664			5,881,620			(6,690,002	)		-
Other		4,081,348			955			783,024			-			4,865,327
Costs of goods and services sold-mortuaries and cemeteries		-			4,805,700			-			-			4,805,700
Total benefits and expenses		168,107,349			23,833,291			119,331,151			(9,074,713	)		302,197,078
Earnings (loss) before income taxes	$	25,272,031		$	8,444,666		$	(17,416,285	)	$	-		$	16,300,412
Income tax benefit (expense)		(3,655,148	)		(2,131,289	)		3,981,083			-			(1,805,354	)
Net earnings (loss)	$	21,616,883		$	6,313,377		$	(13,435,202	)	$	-		$	14,495,058

Identifiable assets	$	1,325,287,933		$	95,059,724		$	97,018,754		$	(93,063,440	)	$	1,424,302,971

Goodwill	$	2,765,570		$	2,488,213		$	-		$	-		$	5,253,783

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

15) Business Segment Information (Continued)

	Insurance			Mortuary			Mortgage			Eliminations			Consolidated
	Year Ended December 31, 2022
	Life			Cemetery/						Intercompany
	Insurance			Mortuary			Mortgage			Eliminations			Consolidated
Revenues:
From external sources:
Revenue from customers	$	105,144,646		$	26,993,855		$	173,356,675			-		$	305,495,176
Net investment income		62,565,021			2,444,599			1,187,972			-			66,197,592
Gains (losses) on investments and other assets		(459,462	)		(796,096	)		398,098			-			(857,460	)
Other revenues		1,932,402			305,073			16,579,545			-			18,817,020
Intersegment revenues:
Net investment income		6,601,132			451,139			356,574			(7,408,845	)		-
Total revenues		175,783,739			29,398,570			191,878,864			(7,408,845	)		389,652,328
Expenses:
Death, surrenders and other policy benefits		64,066,432			-			-			-			64,066,432
Increase in future policy benefits		28,858,969			-			-			-			28,858,969
Amortization of deferred policy and pre-need acquisition costs and value of business acquired		17,352,803			597,399			-			-			17,950,202
Selling, general and administrative expenses:
Commissions		4,097,680			1,372,200			57,851,212			-			63,321,092
Personnel		26,285,207			9,305,429			64,520,887			-			100,111,523
Advertising		1,649,273			628,114			3,420,611			-			5,697,998
Rent and rent related		384,908			163,182			6,334,923			-			6,883,013
Depreciation on property and equipment		1,036,521			759,415			700,970			-			2,496,906
Provision for loan loss reserve		-			-			-			-			-
Cost related to funding mortgage loans		-			-			7,540,041			-			7,540,041
Intersegment		232,915			160,690			1,795,507			(2,189,112	)		-
Other		13,190,827			5,321,730			27,285,196			-			45,797,753
Interest expense:
Intersegment		462,753			274,911			4,482,069			(5,219,733	)		-
Other		3,969,905			710			3,859,828			-			7,830,443
Costs of goods and services sold-mortuaries and cemeteries		-			4,721,094			-			-			4,721,094
Total benefits and expenses		161,588,193			23,304,874			177,791,244			(7,408,845	)		355,275,466
Earnings before income taxes	$	14,195,546		$	6,093,696		$	14,087,620		$	-		$	34,376,862
Income tax expense		(4,034,979	)		(1,523,954	)		(3,127,627	)		-			(8,686,560	)
Net earnings	$	10,160,567		$	4,569,742		$	10,959,993		$	-		$	25,690,302

Identifiable assets	$	1,246,840,586		$	82,320,929		$	219,872,163		$	(93,174,569	)	$	1,455,859,109

Goodwill	$	2,765,570		$	2,488,213		$	-		$	-		$	5,253,783

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Schedule of Aging of Insurance Assignments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Insurance assignments, allowance for loan losses	$ (1,553,836)	$ (1,609,951)	$ (1,686,218)
Past Due 30 to 59 Days [Member]
Financing Receivable, Past Due [Line Items]
Insurance assignments during period	10,829,629	10,621,443
Past Due 60 to 89 Days [Member]
Financing Receivable, Past Due [Line Items]
Insurance assignments during period	3,709,754	3,997,484
Over 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Insurance assignments during period	4,329,468	5,813,013
Total Past Due [Member]
Financing Receivable, Past Due [Line Items]
Insurance assignments during period	18,868,851	20,431,941
Current [Member]
Financing Receivable, Past Due [Line Items]
Insurance assignments during period	26,736,471	26,510,594
Insurance Assignments [Member]
Financing Receivable, Past Due [Line Items]
Insurance assignments during period	45,605,322	46,942,536
Net Insurance Assignments [Member]
Financing Receivable, Past Due [Line Items]
Insurance assignments during period	$ 44,051,486	$ 45,332,585

Summary of Activities in Shares of Capital Stock (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Common Class A [Member]
Class of Stock [Line Items]
Common stock, shares, outstanding, beginning	18,758,031	17,642,722
Exercise of stock options	279,177	109,587
Vesting of restricted stock units	1,215
Stock dividends	949,980	889,554
Conversion of Class C to Class A	59,599	116,168
Common stock, shares, outstanding, ending	20,048,002	18,758,031
Common Class C [Member]
Class of Stock [Line Items]
Common stock, shares, outstanding, beginning	2,889,859	2,866,565
Exercise of stock options
Vesting of restricted stock units
Stock dividends	141,594	139,462
Conversion of Class C to Class A	(59,599)	(116,168)
Common stock, shares, outstanding, ending	2,971,854	2,889,859

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Significant Accounting Policies

1) Significant Accounting Policies

General Overview of Business

Security National Financial Corporation and its wholly owned subsidiaries (the “Company”) operate 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 marketed primarily in the states located in western, mid-western and southern regions of the United States. The cemetery and mortuary segment of the Company consists of eight mortuaries and five cemeteries in Utah, one cemetery in California, and four mortuaries and one cemetery in New Mexico. The mortgage segment is an approved government and conventional lender that originates and underwrites residential and commercial loans for new construction, existing homes, and real estate projects primarily in Florida, Nevada, Texas, and Utah.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”).

Principles of Consolidation

These consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation.

Use of Estimates

Management of the Company has made several estimates and assumptions related to the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with GAAP. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant changes in the near term are those used in determining the value of derivative assets and liabilities; those used in determining deferred acquisition costs and the value of business acquired; those used in determining the value of mortgage loans foreclosed to real estate held for investment or sale; those used in determining the liability for future policy benefits and unearned revenue; those used in determining the estimated future costs for pre-need sales; those used in determining the value of mortgage servicing rights; those used in determining the value of loans held for sale; those used in determining allowances for credit losses; those used in determining loan loss reserve; and those used in determining deferred tax assets and liabilities. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects.

Investments

The Company’s management determines the appropriate classifications of investments in fixed maturity securities and equity securities at the acquisition date and re-evaluates the classifications at each balance sheet date.

Fixed maturity securities available for sale are carried at estimated fair value. Changes in fair values are reported as unrealized gains or losses and are recorded in accumulated other comprehensive income (loss).

Equity securities are carried at estimated fair value. Changes in fair values are reported as unrealized gains or losses and are recorded through net earnings as a component of gains (losses) on investments and other assets.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Mortgage loans held for investment are carried at their unpaid principal balances adjusted for net deferred fees, charge-offs, premiums, discounts, and the related allowance for credit losses. Interest income is included in net investment income on the consolidated statements of earnings and is recognized when earned. The Company defers related material loan origination fees, net of related direct loan origination costs, and amortizes the net fees over the term of the loans. Origination fees are included in net investment income on the consolidated statements of earnings. Mortgage loans are secured by the underlying property and require an appraisal at the time of underwriting and funding. Generally, the Company requires that loans not exceed 80% of the fair market value of the respective loan collateral. For loans of more than 80% of the fair market value of the respective loan collateral, additional collateral or mortgage insurance by an approved third-party insurer is required.

Real estate held for investment is carried at cost, less accumulated depreciation provided on a straight-line basis over the estimated useful lives of the properties or is adjusted to a new basis for impairment in value, if any. Included, if any, are foreclosed properties. These properties are recorded at the lower of cost or fair value upon foreclosure. Also, included is residential subdivision land development which is carried at cost.

Real estate held for sale is carried at lower of cost or fair value, less estimated costs to sell. Depreciation is not recognized on real estate classified as held for sale.

Other investments and policy loans are carried at the aggregate unpaid balances, less allowances for credit losses.

Accrued investment income refers to earned income from investments that has not yet been received by the Company.

Gains (losses) on investments (except for equity securities carried at fair value through net earnings) arise when investments are sold and are recorded on the trade date and the cost of the securities sold is determined using the specific identification method. The provision (release) for credit losses for fixed maturity securities held for sale are also included in gains (losses) on investments. See Note 2 for more information regarding the Company’s evaluation of credit losses.

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, which at times exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Loans Held for Sale

Accounting Standards Codification (“ASC”) No. 825, “Financial Instruments”, allows for the option to report certain financial assets and liabilities at fair value initially and at subsequent measurement dates with changes in fair value included in earnings. The option may be applied instrument by instrument, but it is irrevocable. The Company elected the fair value option for loans held for sale. The Company believes the fair value option most closely aligns the timing of the recognition of gains and costs. These loans are intended for sale and the Company believes that fair value is the best indicator of the resolution of these loans. Electing fair value also reduces certain timing differences and better matches changes in the fair value of these assets with changes in the fair value of the related derivatives used for these assets. See Note 3 and Note 17 to Consolidated Financial Statements for additional disclosures regarding loans held for sale.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Mortgage Fee Income

Mortgage fee income consists of origination fees, processing fees, interest income and other income related to the origination and sale of mortgage loans held for sale. All revenues and costs are recognized when the mortgage loan is funded and any changes in fair value are shown as a component of mortgage fee income. See Note 3 and Note 17 to Consolidated Financial Statements for additional disclosures regarding loans held for sale.

The Company, through its mortgage subsidiaries, sells mortgage loans to third-party investors without recourse unless defects are identified in the representations and warranties made at loan sale. It may be required, however, to repurchase a loan or pay a fee instead of repurchasing under certain events, which include the following:

	●	Failure to deliver original documents specified by the investor,
	●	The existence of misrepresentation or fraud in the origination of the loan,
	●	The loan becomes delinquent due to nonpayment during the first several months after it is sold,
	●	Early pay-off of a loan, as defined by the agreements,
	●	Excessive time to settle a loan,
	●	Investor declines purchase, and
	●	Discontinued product and expired commitment.

Loan purchase commitments generally specify a date 30 to 45 days after delivery upon which the underlying loans should be settled. Depending on market conditions, these commitment settlement dates can be extended at a cost to the Company.

It is the Company’s policy to cure any documentation problems regarding such loans at a minimal cost for up to a six-month period and to pursue efforts to enforce loan purchase commitments from third-party investors concerning the loans. The Company believes that six months allows adequate time to remedy any documentation issues, to enforce purchase commitments, and to exhaust other alternatives. Remedial methods include the following:

	●	Research reasons for rejection,
	●	Provide additional documents,
	●	Request investor exceptions,
	●	Appeal rejection decision to purchase committee, and
	●	Commit to secondary investors.

Once purchase commitments have expired and other alternatives to remedy are exhausted, which could be earlier than the six-month period, the loans are repurchased and transferred to the long-term investment portfolio at the lower of cost or fair value and previously recorded mortgage fee income that was to be received from a third-party investor is written off against the loan loss reserve.

Determining Fair Value

The cost for loans held for sale is equal to the amount paid to the warehouse bank and the amount originally funded by the Company. Fair value is often difficult to determine and may contain significant unobservable inputs, but is based on the following:

	●	For loans that are committed, the Company uses the commitment price.
	●	For loans that are non-committed that have an active market, the Company uses the market price.
	●	For loans that are non-committed where there is no market but there is a similar product, the Company uses the market value for the similar product.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

●

For loans that are non-committed where no active market exists, the Company determines that the unpaid principal balance best approximates the market value, after considering the fair value of the underlying real estate collateral, estimated future cash flows, and the loan interest rate.

The appraised value of the real estate underlying the original mortgage loan adds support to the Company’s determination of fair value because if the loan becomes delinquent, the Company has sufficient value to collect the unpaid principal balance or the carrying value of the loan, thus minimizing credit losses.

Most loans originated are sold to third-party investors. The amounts expected to be sold to investors are shown on the consolidated balance sheets as loans held for sale.

Loan Loss Reserve

The loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on loans sold. The Company may be required to reimburse third-party investors for costs associated with early payoff of loans within six months of origination of such loans and to repurchase loans where there is a default in any of the first four monthly payments to the investors or, in lieu of repurchase, to pay a negotiated fee to the investors. The Company’s estimates are based upon historical loss experience and the best estimate of the probable loan loss liabilities.

Upon completion of a transfer that satisfies the conditions to be accounted for as a sale, the Company initially measures at fair value liabilities incurred in a sale relating to any guarantee or recourse provisions. The Company accrues a monthly allowance for indemnification losses to investors based on total production. This estimate is based on the Company’s historical experience and is included as a component of mortgage fee income. Subsequent updates to the recorded liability from changes in assumptions are recorded in selling, general and administrative expenses as a component of provision for loan loss reserve. The estimated liability for indemnification losses is included in other liabilities and accrued expenses.

The loan loss reserve analysis involves mortgage loans that have been sold to third-party investors, which were believed to have met investor underwriting guidelines at the time of sale, where the Company has received a demand from the investor. There are generally three types of demands: make whole, repurchase, or indemnification. These types of demands are further described as follows:

Make whole demand — A make whole demand occurs when an investor forecloses on a property and then sells the property. The make whole amount is calculated as the difference between the original unpaid principal balance, payments received, accrued interest and fees, less the sale proceeds.

Repurchase demand — A repurchase demand usually occurs when there is a significant payment default, error in underwriting or detected loan fraud.

Indemnification demand — On certain loans the Company has negotiated a set fee that is to be paid in lieu of repurchase. The fee varies by investor and by loan product type.

The Company believes the allowance for loan losses and the loan loss reserve represent probable loan losses incurred as of the balance sheet date.

Additional information related to the Loan Loss Reserve is included in Note 3.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Restricted Assets

Restricted assets are assets held in a trust account for future mortuary services and merchandise. Restricted assets also include escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company funded its medical benefit safe-harbor limit based on the qualified direct costs and has included this amount as a component of restricted cash. Additional information related to restricted assets is included in Notes 2 and 8 to Consolidated Financial Statements.

Cemetery Perpetual Care Trust Investments

Cemetery endowment care trusts have been set up for five of the seven cemeteries owned by the Company. Under endowment care arrangements a portion of the price for each lot sold is withheld and invested in a portfolio of investments like those described in the prior paragraph. The earnings stream from the investments is designed to fund future maintenance and upkeep of the cemetery. Additional information related to cemetery perpetual care trust investments is included in Notes 2 and 8 to Consolidated Financial Statements.

Cemetery Land and Improvements

The development of a cemetery involves not only the initial acquisition of raw land but also the installation of roads, water lines, landscaping, and other costs to establish a marketable cemetery lot. The costs of developing the cemetery are shown as an asset on the balance sheet. The amount on the balance sheet is reduced by the total cost assigned to the development of a particular lot when the criterion for recognizing a sale of that lot is met.

Deferred Policy Acquisition Costs and Value of Business Acquired

Commissions and other costs, net of commission and expense allowances for reinsurance ceded, that vary with and are primarily related to the production of new insurance business have been deferred. Deferred policy acquisition costs (“DAC”) for traditional life insurance are amortized over the premium paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For interest-sensitive insurance products, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges, investment, mortality, and expense margins. This amortization is adjusted when estimates of current or future gross profits to be realized from a group of products are reevaluated. Deferred acquisition costs are written off when policies lapse or are surrendered.

When accounting for DAC, the Company considers internal replacements of insurance and investment contracts. An internal replacement is a modification in product benefits, features, rights, or coverage that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to contract, or by the election of a feature or coverage within a contract. Modifications that result in a replacement contract that is substantially changed from the replaced contract are accounted for as an extinguishment of the replaced contract. Unamortized DAC, unearned revenue liabilities and deferred sales inducements from the replaced contract are written-off. Modifications that result in a contract that is substantially unchanged from the replaced contract are accounted for as a continuation of the replaced contract.

Value of business acquired (“VOBA”) is the present value of estimated future profits of the acquired business and is amortized like deferred policy acquisition costs.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Premium Deficiency and Loss Recognition Testing

At least annually, the Company tests the adequacy of the net benefit reserves (liability for future policy benefits, net of DAC and VOBA) recorded for life insurance and annuity products. The Company tests for recoverability by using the Company’s current best-estimate assumptions as to policyholder mortality, persistency, maintenance expenses and invested asset returns. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized DAC and VOBA assets. These cash flows consist primarily of premium income, less benefits, and expenses. If the current contract liabilities plus the present value of future premiums is greater than the sum of the present values of future policy benefits, commissions, and expenses plus the current DAC and VOBA less unearned premium reserve balances, then the capitalized assets are deemed recoverable. The present values are calculated using the best estimate of the after-tax net investment earned rate.

Mortgage Servicing Rights

Mortgage Servicing Rights (“MSR”) arise from contractual agreements between the Company and third-party investors (or their agents) when mortgage loans are sold. Under these contracts, the Company is obligated to retain and provide loan servicing functions on loans sold, in exchange for fees and other remuneration. The servicing functions typically performed include, among other responsibilities, collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest, holding custodial (impound) funds for payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising the acquisition of real estate owned and property dispositions.

The total residential mortgage loans serviced for others consist primarily of agency conforming fixed-rate mortgage loans. The value of MSRs is derived from the net cash flows associated with the servicing contracts. The Company receives a servicing fee of generally about 0.25% annually on the remaining outstanding principal balances of the loans. Based on the result of the cash flow analysis, an asset or liability is recorded for mortgage servicing rights. The servicing fees are collected from the monthly payments made by the mortgagors. The Company generally receives other remuneration including rights to various mortgagor-contracted fees such as late charges, and collateral reconveyance charges and the Company is generally entitled to retain the interest earned on funds held pending remittance of mortgagor principal, interest, tax, and insurance payments. Contractual servicing fees and late fees are included in other revenues on the consolidated statements of earnings.

The Company’s subsequent accounting for MSRs is based on the class of MSRs. The Company has identified two classes of MSRs: MSRs backed by mortgage loans with an initial term of 30 years and MSRs backed by mortgage loans with an initial term of 15 years. The Company distinguishes between these classes of MSRs due to their differing sensitivities to change in value as the result of changes in the market. After being initially recorded at fair value, MSRs backed by mortgage loans are accounted for using the amortization method. Amortization expense is included in other expenses on the consolidated statements of earnings. MSR amortization is determined by amortizing the MSR balance in proportion to, and over the period of the estimated future net servicing income of the underlying financial assets.

Interest rate risk, prepayment risk, and default risk are inherent risks in MSR valuation. Interest rate changes largely drive prepayment rates. Refinance activity generally increases as rates decline. A significant decrease in rates beyond expectation could cause a decline in the value of the MSR. On the contrary, if rates increase borrowers are less likely to refinance or prepay their mortgage, which extends the duration of the loan and MSR values are likely to rise. Because of these risks, discount rates and prepayment speeds are used to estimate the fair value.

The Company periodically assesses MSRs for impairment. Impairment occurs when the current fair value of the MSR falls below the asset’s carrying value (carrying value is the amortized cost reduced by any related valuation allowance). If MSRs are impaired, the impairment is recognized in current period earnings and the carrying value of the MSRs is adjusted through a valuation allowance.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

The Company periodically reviews the various loan strata to determine whether the value of the MSRs in each stratum is impaired and likely to recover. When management deems recovery of the value to be unlikely in the foreseeable future, a write-down of the cost of the MSRs for that stratum to its estimated recoverable value is charged to the valuation allowance.

Property and Equipment

Property and equipment are recorded at cost. Depreciation is calculated principally on the straight-line method over the estimated useful lives of the assets which range from three to forty years. Leasehold improvements paid for by the Company as a lessee are amortized over the lesser of the useful life or remaining lease terms.

Long-lived Assets

Long-lived assets to be held and used, including property and equipment and real estate held for investment, are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset, and long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

Derivative Instruments

Mortgage Banking Derivatives

Loan Commitments

The Company is exposed to price risk due to the potential impact of changes in interest rates on the values of loan commitments from the time a loan commitment is made to an applicant to the time the loan that would result from the exercise of that loan commitment is funded. Managing price risk is complicated by the fact that the ultimate percentage of loan commitments that will be exercised (i.e., the number of loans that will be funded) fluctuates. The probability that a loan will not be funded, or the loan application is denied or withdrawn within the terms of the commitment is driven by several factors, particularly the change, if any, in mortgage rates following the issuance of the loan commitment.

In general, the probability of funding increases if mortgage rates rise and decreases if mortgage rates fall. This is due primarily to the relative attractiveness of current mortgage rates compared to the applicant’s committed rate. The probability that a loan will not be funded within the terms of the mortgage loan commitment also is influenced by the source of the applications (retail, broker, or correspondent channels), proximity to rate lock expiration, purpose for the loan (purchase or refinance), product type and the application approval status. The Company has developed fallout estimates using historical data that consider all the variables, as well as renegotiations of rate and point commitments that tend to occur when mortgage rates fall. These fallout estimates are used to estimate the number of loans that the Company expects to be funded within the terms of the loan commitments and are updated periodically to reflect the most current data.

The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the loan commitment is issued and is shown net of expenses. Following issuance, the value of a loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will fund within the terms of the commitments.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Forward Sale Commitments

The Company utilizes forward commitments to economically hedge the price risk associated with its outstanding mortgage loan commitments. A forward commitment protects the Company from losses on sales of the loans arising from exercise of the loan commitments. Management expects these types of commitments will experience changes in fair value opposite to changes in fair value of the loan commitments, thereby reducing earnings volatility related to the recognition in earnings of changes in the values of the commitments.

The net changes in fair value of loan commitments and forward sale commitments are shown in current earnings as a component of mortgage fee income on the consolidated statements of earnings. Mortgage banking derivatives are shown in other assets and other liabilities and accrued expenses on the consolidated balance sheets.

Call and Put Option Derivatives

The Company discontinued its use of selling “out of the money” call options on its equity securities and the use of selling put options as a source of revenue in the first quarter of 2023. The net changes in the fair value of call and put options are shown in current earnings as a component of realized gains (losses) on investments and other assets. Call and put options are shown in other liabilities and accrued expenses on the condensed consolidated balance sheets.

Allowances for Credit Losses

The Company records allowances for current expected credit losses from fixed maturity securities available for sale, mortgage loans held for investment, other investments, and receivables in accordance with GAAP. The allowances for credit losses are valuation accounts that are reported as a reduction of the financial asset’s cost basis and are measured on a pool basis when similar risk characteristics exist. The Company estimates allowances for credit losses using relevant available information from both internal and external sources. The Company considers its historical loss experience, analyzes current market conditions and forecasts and uses third-party assistance to arrive at current expected credit losses. Amounts are written off against the allowance for credit losses when determined to be uncollectible. See below under Recent Accounting Pronouncements regarding the adoption of ASU 2016-13. See Notes 2 and 4 to Consolidated Financial Statements regarding the Company’s evaluation of allowances for credit losses.

Future Policy Benefits and Unpaid Claims

Future policy benefit reserves for traditional life insurance are computed using a net level method, including assumptions as to investment yields, mortality, morbidity, withdrawals, and other assumptions based on the life insurance subsidiaries’ experience, modified as necessary to give effect to anticipated trends and to include provisions for possible unfavorable deviations. Such liabilities are, for some plans, graded to equal statutory values or cash values at or prior to maturity, which are deemed a reasonable equivalent for GAAP. The range of assumed interest rates for all traditional life insurance policy reserves was 4% to 10%. Benefit reserves for traditional limited-payment life insurance policies include the deferred portion of the premiums received during the premium-paying period. Deferred premiums are recognized as income over the life of the policies. Policy benefit claims are charged to expense in the period the claims are incurred. Increases in future policy benefits are charged to expense.

Future policy benefit reserves for interest-sensitive insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period more than related policy account balances. Interest credit rates for interest-sensitive insurance products ranged from 3% to 6.5%.

The Company records an unpaid claims liability for claims in the course of settlement equal to the death benefit amount less any reinsurance recoverable amount for claims reported. There is also an unpaid claims liability for claims incurred but not reported. This liability is based on the historical experience of the net amount of claims that were reported in reporting periods subsequent to the reporting period when claims were incurred.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Participating Insurance

Participating business constituted 2% of insurance in force for the years ended 2023 and 2022. The provision for policyholders’ dividends included in policyholder obligations is based on dividend scales anticipated by management. The amounts to be paid are determined by the Board of Directors. The expense recognized for policyholder dividends is included in surrenders and other policy benefits on the consolidated statements of earnings.

Recognition of Insurance Premiums and Other Considerations

Premiums and other consideration for traditional life insurance products (which include those products with fixed and guaranteed premiums and benefits and consist principally of whole life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies) are recognized as revenues when due from policyholders. Premiums and other consideration for interest-sensitive insurance policies (which include universal life policies, interest-sensitive life policies, deferred annuities, and annuities without life contingencies) are recognized when earned and consist of amounts assessed against policyholder account balances during the period for policy administration charges and surrender charges.

Reinsurance

The Company follows the procedure of reinsuring risks of more than $100,000 to provide for greater diversification of business to allow management to control exposure to potential losses arising from large risks and provide additional capacity for growth. The Company remains liable for amounts ceded in the event the reinsurers are unable to meet their obligations.

The Company entered into coinsurance agreements with unaffiliated insurance companies under which the Company assumed 100% of the risk for certain life insurance policies and certain other policy-related liabilities of the insurance company.

Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Expense allowances received in connection with reinsurance ceded are accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly.

Pre-need Sales and Costs

Pre-need contract sales of funeral services and caskets - revenue and costs associated with the sales of pre-need funeral services and caskets are deferred until the performance obligations are fulfilled (services are performed or the caskets are delivered).

Sales of cemetery interment rights (cemetery burial property) - revenue and costs associated with the sale of cemetery interment rights are deferred until 10% of the sales price has been collected.

Pre-need contract sales of cemetery merchandise (primarily markers and vaults) - revenue and costs associated with the sale of pre-need cemetery merchandise is deferred until the merchandise is delivered to the Company.

Pre-need contract sales of cemetery services (primarily merchandise delivery, installation fees and burial opening and closing fees) - revenue and costs associated with the sales of pre-need cemetery services are deferred until the services are performed.

Prearranged funeral and pre-need cemetery customer acquisition costs - costs incurred related to obtaining new pre-need contract cemetery and prearranged funeral services, which include only costs that vary with and are primarily related to the acquisition of new pre-need cemetery and prearranged funeral services, are deferred until the merchandise is delivered or services are performed.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Revenues and costs for at-need sales are recorded when a valid contract exists, the services are performed, collection is reasonably assured and there are no significant performance obligations remaining.

The Company, through its cemetery and mortuary operations, provides guaranteed funeral arrangements wherein a prospective customer can receive future goods and services at guaranteed prices. To accomplish this, the Company, through its life insurance operations, sells to the customer an increasing benefit life insurance policy that is assigned to the mortuaries. If, at the time of need, the policyholder/potential mortuary customer utilizes one of the Company’s facilities, the guaranteed funeral arrangement contract that has been assigned will provide the funeral goods and services at the contracted price. The increasing life insurance policy will cover the difference between the original contract prices and current prices. Risks may arise if the difference cannot be fully met by the life insurance policy. However, management believes that given current inflation rates and related price increases of goods and services, the risk of exposure is minimal.

Goodwill

Previous acquisitions have been accounted for as purchases under which assets acquired and liabilities assumed were recorded at their fair values with the excess purchase price recognized as goodwill. The Company evaluates annually or when changes in circumstances warrant the recoverability of goodwill and if there is a decrease in value, the related impairment is recognized as a charge against income.

Other Intangibles

Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. The Company engages a third-party valuation firm to analyze the value of the intangible assets that result from significant acquisitions. The value of the intangible assets that result from these acquisitions are included in Other Assets and are determined using the income approach, relying on a relief from the royalty method.

Income Taxes

Income taxes include taxes currently payable plus deferred taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the temporary differences in the financial reporting basis and tax basis of assets and liabilities and operating loss carry-forwards. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. Liabilities are established for uncertain tax positions expected to be taken in income tax returns when such positions are judged to meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax penalties are included as a component of income tax expense.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Earnings Per Common Share

The Company computes earnings per share, which requires a presentation of basic and diluted earnings per share. Basic earnings per equivalent Class A common share are computed by dividing net earnings by the weighted-average number of Class A common shares outstanding during each year presented, after the effect of the assumed conversion of Class C common stock to Class A common stock. Diluted earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding during the year used to compute basic earnings per share plus dilutive potential incremental shares by application of the treasury stock method. Basic and diluted earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.

Stock Based Compensation

The cost of employee services received in exchange for an award of equity instruments is recognized in the financial statements and is measured based on the fair value on the grant date of the award. The fair value of stock options is calculated using the Black Scholes Option Pricing Model. Stock option compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award and is included in personnel expenses on the consolidated statements of earnings.

Concentration of Credit Risk

For a description of the concentration risk regarding available for sale debt securities, mortgage loans held for investment and real estate held for investment, refer to Note 2, and for receivables from reinsurers, refer to Note 10 of the Notes to Consolidated Financial Statements.

Advertising

The Company expenses advertising costs as incurred.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Recent Accounting Pronouncements

Accounting Standards Adopted in 2023

ASU No. 2016-13: “Financial Instruments – Credit Losses (Topic 326)” — Issued in September 2016, ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis (such as mortgage loans held for investment and held to maturity debt securities) and available for sale debt securities. For assets held at an amortized cost basis, Topic 326 eliminates the probable initial recognition threshold and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities Topic 326 requires that credit losses be presented as an allowance rather than as a write-down. The Company adopted this standard on January 1, 2023, and after a review of the affected assets, decreased the opening balance of retained earnings in stockholders’ equity by $671,506 on January 1, 2023. The allowances for credit losses increased (decreased) by the following amounts.

	Amount
Mortgage loans held for investment:
Residential	$	(192,607	)
Residential construction		301,830
Commercial		555,807
Total		665,030

Restricted assets - mortgage loans held for investment:
Residential construction		3,463

Cemetery perpetual care trust investments - mortgage loans held for investment:
Residential construction		3,013

Grand Total		671,506

Accounting Standards Issued But Not Yet Adopted

ASU No. 2018-12: “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” — Issued in August 2018, ASU 2018-12 is intended to improve the timeliness of recognizing changes in the liability for future policy benefits on traditional long-duration contracts by requiring that assumptions be updated after contract inception and by modifying the rate used to discount future cash flows. The standard is aimed at improving the accounting for certain market-based options or guarantees associated with deposit or account balance contracts, simplifying amortization of deferred acquisition costs while improving and expanding required disclosures. In November 2020, the FASB issued an update to ASU No. 2018-12 that requires the standard to be adopted by the Company commencing on January 1, 2025. The Company is nearing completion of its analysis and implementation of the new standard, including the identification of cohorts, system updates, and design. The Company has engaged its team of actuaries, accountants, and systems specialists and consulted external system providers as part of the implementation. The Company is in the process of estimating the impact of the new guidance on the consolidated financial statements.

ASU No. 2023-09: “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” — Issued in December 2023, ASU 2023-09 requires that public business entities, on an annual basis: (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments in this update require that all entities disclose on an annual basis the following information about income taxes paid: (i) the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes and (ii) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). ASU 2023-09 is effective for the Company beginning on January 1, 2025. The Company is in the process of estimating the impact of the new guidance on the consolidated financial statements.

ASU No. 2023-07: “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” — Issued in November 2023, ASU 2023-07 requires enhanced disclosures about significant segment expenses. The key amendments include: (i) disclosures on significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss on an annual and interim basis; (ii) disclosures on an amount for other segment items by reportable segment and a description of its composition on an annual and interim basis. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss; (iii) providing all annual disclosures on a reportable segment’s profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting in interim periods; and (iv) specifying the title and position of the CODM. ASU 2023-07 is effective for the Company for annual periods beginning January 1, 2024 and interim periods beginning January 1, 2025. The Company is in the process of estimating the impact of the new guidance on the consolidated financial statements.

The Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company’s results of operations or financial position.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Schedule of Mortgage loans Held for Investment (Details)	Dec. 31, 2023 USD ($)
Schedule of Investments [Line Items]
Total	$ 281,382,873
Principal Amounts Due in 1 Year	130,997,762
Principal Amounts Due in 2-5 Year	43,861,375
Principal Amounts Due Thereafter	106,523,736
Residential Mortgage [Member]
Schedule of Investments [Line Items]
Total	103,153,587
Principal Amounts Due in 1 Year	2,554,380
Principal Amounts Due in 2-5 Year	9,231,545
Principal Amounts Due Thereafter	91,367,662
Residential Construction [Member]
Schedule of Investments [Line Items]
Total	104,052,748
Principal Amounts Due in 1 Year	88,880,893
Principal Amounts Due in 2-5 Year	15,171,855
Principal Amounts Due Thereafter
Commercial [Member]
Schedule of Investments [Line Items]
Total	74,176,538
Principal Amounts Due in 1 Year	39,562,489
Principal Amounts Due in 2-5 Year	19,457,975
Principal Amounts Due Thereafter	$ 15,156,074

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

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+ Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Bank and Other Loans Payable (Tables)

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Summary of Bank Loans Payable

Bank and other loans payable are summarized as follows:

Summary of Bank Loans Payable

	December 31,
	2023			2022
		-			1,690,892
Prime rate note payable in monthly installments of $75,108 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, paid in full in June 2023.	$	-		$	1,690,892

3.85% fixed note payable in monthly installments of $243,781 including principal and interest, collateralized by real property with a book value of approximately $62,977,000, due June 2032.		50,129,255			48,613,833

3.30% fixed note payable in monthly installments of $179,562 including principal and interest, collateralized by real property with a book value of approximately $44,811,000, due April 2031.		38,478,359			39,298,298

4.7865% fixed interest only note payable in monthly installments, collateralized by real property with a book value of approximately $16,594,000, due June 2028.		9,200,000			9,200,000

1 month SOFR rate plus 2.1% loan purchase agreement with a warehouse line availability of $100,000,000, expired December 2023 due to the lender exiting the market place.		-			17,978,527

1 month SOFR rate plus 2% loan purchase agreement with a warehouse line availability of $100,000,000, matures November 2024.		114,518			29,768,762

1 month SOFR rate plus 2.5% loan purchase agreement with a warehouse line availability of $75,000,000, expired December 2023 due to the lender exiting the market place.		-			15,131,410

1 month SOFR rate plus 2.1% loan purchase agreement with a warehouse line availability of $15,000,000, matures May 2024.		7,617,455			-

Finance lease liabilities		15,550			31,082

Total bank and other loans		105,555,137			161,712,804

Less current installments		(9,543,052	)		(65,560,608	)
Bank and other loans, excluding current installments	$	96,012,085		$	96,152,196

Schedule of Combined Maturities of Bank Loans Payable Lines of Credit and Notes and Contracts Payable

The following tabulation shows the combined maturities of bank and other loans payable:

2024	$	9,543,052
2025		1,881,631
2026		1,952,430
2027		2,026,547
2028		11,296,737
Thereafter		78,854,740
Total	$	105,555,137

Schedule of Liability for Future Policy Benefits, by Product Segment (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Effects of Reinsurance [Line Items]
Gross future policy benefits and unpaid claims	$ 916,038,616	$ 889,327,303
Total receivable from reinsurers	14,857,059	15,033,938
Net future policy benefits and unpaid claims	901,181,557	874,293,365
Net unpaid claims	8,526,439	10,070,715	$ 8,797,983
Life Insurance Product Line [Member]
Effects of Reinsurance [Line Items]
Gross future policy benefits and unpaid claims	756,936,902	726,462,594
Total receivable from reinsurers	10,478,863	10,600,613
Net unpaid claims	8,129,161	9,404,263	8,015,101
Fixed Annuity [Member]
Effects of Reinsurance [Line Items]
Gross future policy benefits and unpaid claims	106,285,010	106,637,094
Total receivable from reinsurers	4,238,934	4,225,873
Net unpaid claims	379,278	649,452	678,378
Policyholder Account Balances [Member]
Effects of Reinsurance [Line Items]
Gross future policy benefits and unpaid claims	39,245,123	41,146,171
Accident and Health [Member]
Effects of Reinsurance [Line Items]
Gross future policy benefits and unpaid claims	572,689	603,526
Total receivable from reinsurers	77,917	79,467
Net unpaid claims	18,000	17,000	$ 104,504
Other Policyholder Funds [Member]
Effects of Reinsurance [Line Items]
Gross future policy benefits and unpaid claims	4,411,108	4,279,218
Reported but Unpaid Claims [Member]
Effects of Reinsurance [Line Items]
Gross future policy benefits and unpaid claims	3,525,774	5,651,030
Total receivable from reinsurers	48,345	110,985
Incurred but not Reported Claims [Member]
Effects of Reinsurance [Line Items]
Gross future policy benefits and unpaid claims	5,062,010	4,547,670
Total receivable from reinsurers	$ 13,000	$ 17,000

Schedule of Goodwill by Segment (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Indefinite-Lived Intangible Assets [Line Items]
Goodwill, gross	$ 5,253,783	$ 5,253,783	$ 5,253,783
Accumulated impairment
Total goodwill, net	5,253,783	5,253,783	5,253,783
Acquisition
Life Insurance [Member]
Indefinite-Lived Intangible Assets [Line Items]
Goodwill, gross	2,765,570	2,765,570	2,765,570
Accumulated impairment
Total goodwill, net	2,765,570	2,765,570	2,765,570
Acquisition
Cemetery Mortuary [Member]
Indefinite-Lived Intangible Assets [Line Items]
Goodwill, gross	2,488,213	2,488,213	2,488,213
Accumulated impairment
Total goodwill, net	2,488,213	2,488,213	$ 2,488,213
Acquisition

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Schedule of Increased (Decrease) in Allowances for Credit Losses Upon ASU (Details) - USD ($)

12 Months Ended

Jan. 01, 2023

Dec. 31, 2023

Dec. 31, 2022

Allowances for credit losses increase (decrease)

^[1]

$ (110,935)

$ 799,888

Accounting Standards Update 2016-13 [Member]

Allowances for credit losses increase (decrease)

$ 671,506

Accounting Standards Update 2016-13 [Member] | Mortgage Loans Held for Investment [Member]

Allowances for credit losses increase (decrease)

665,030

Accounting Standards Update 2016-13 [Member] | Mortgage Loans Held for Investment [Member] | Residential Mortgage [Member]

Allowances for credit losses increase (decrease)

(192,607)

Accounting Standards Update 2016-13 [Member] | Mortgage Loans Held for Investment [Member] | Residential Construction [Member]

Allowances for credit losses increase (decrease)

301,830

Accounting Standards Update 2016-13 [Member] | Mortgage Loans Held for Investment [Member] | Commercial [Member]

Allowances for credit losses increase (decrease)

555,807

Accounting Standards Update 2016-13 [Member] | Restricted Assets Mortgage Loans Held For Investment [Member] | Residential Construction [Member]

Allowances for credit losses increase (decrease)

3,463

Accounting Standards Update 2016-13 [Member] | Cemetery Perpetual Care Trust Investments Mortgage Loans Held For Investment [Member] | Residential Construction [Member]

Allowances for credit losses increase (decrease)

$ 3,013

[1]	Included in other expenses on the condensed consolidated statements of earnings

Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Revenues and Expenses by Reportable Segment

	Insurance			Mortuary			Mortgage			Eliminations			Consolidated
	Year Ended December 31, 2023
	Life			Cemetery/						Intercompany
	Insurance			Mortuary			Mortgage			Eliminations			Consolidated
Revenues:
From external sources:
Revenue from customers	$	114,735,304		$	27,864,811		$	98,071,104			-		$	240,671,219
Net investment income		67,811,926			2,951,577			1,579,544			-			72,343,047
Gains (losses) on investments and other assets		962,824			717,312			157,206			-			1,837,342
Other revenues		1,666,020			404,256			1,575,606			-			3,645,882
Intersegment revenues:
Net investment income		8,203,306			340,001			531,406			(9,074,713	)		-
Total revenues		193,379,380			32,277,957			101,914,866			(9,074,713	)		318,497,490
Expenses:
Death, surrenders and other policy benefits		66,002,863			-			-			-			66,002,863
Increase in future policy benefits		34,008,997			-			-			-			34,008,997
Amortization of deferred policy and pre-need acquisition costs and value of business acquired		17,485,699			538,639			-			-			18,024,338
Selling, general and administrative expenses:
Commissions		3,963,185			1,777,071			34,189,300			-			39,929,556
Personnel		26,769,211			9,722,659			46,649,889			-			83,141,759
Advertising		638,071			663,113			2,409,261			-			3,710,445
Rent and rent related		414,564			159,877			6,282,696			-			6,857,137
Depreciation on property and equipment		880,116			812,641			658,904			-			2,351,661
Provision for loan loss reserve		-			-			-			-			-
Cost related to funding mortgage loans		-			-			6,440,439			-			6,440,439
Intersegment		310,689			143,652			1,930,370			(2,384,711	)		-
Other		12,991,888			4,961,320			14,105,648			-			32,058,856
Interest expense:
Intersegment		560,718			247,664			5,881,620			(6,690,002	)		-
Other		4,081,348			955			783,024			-			4,865,327
Costs of goods and services sold-mortuaries and cemeteries		-			4,805,700			-			-			4,805,700
Total benefits and expenses		168,107,349			23,833,291			119,331,151			(9,074,713	)		302,197,078
Earnings (loss) before income taxes	$	25,272,031		$	8,444,666		$	(17,416,285	)	$	-		$	16,300,412
Income tax benefit (expense)		(3,655,148	)		(2,131,289	)		3,981,083			-			(1,805,354	)
Net earnings (loss)	$	21,616,883		$	6,313,377		$	(13,435,202	)	$	-		$	14,495,058

Identifiable assets	$	1,325,287,933		$	95,059,724		$	97,018,754		$	(93,063,440	)	$	1,424,302,971

Goodwill	$	2,765,570		$	2,488,213		$	-		$	-		$	5,253,783

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

15) Business Segment Information (Continued)

	Insurance			Mortuary			Mortgage			Eliminations			Consolidated
	Year Ended December 31, 2022
	Life			Cemetery/						Intercompany
	Insurance			Mortuary			Mortgage			Eliminations			Consolidated
Revenues:
From external sources:
Revenue from customers	$	105,144,646		$	26,993,855		$	173,356,675			-		$	305,495,176
Net investment income		62,565,021			2,444,599			1,187,972			-			66,197,592
Gains (losses) on investments and other assets		(459,462	)		(796,096	)		398,098			-			(857,460	)
Other revenues		1,932,402			305,073			16,579,545			-			18,817,020
Intersegment revenues:
Net investment income		6,601,132			451,139			356,574			(7,408,845	)		-
Total revenues		175,783,739			29,398,570			191,878,864			(7,408,845	)		389,652,328
Expenses:
Death, surrenders and other policy benefits		64,066,432			-			-			-			64,066,432
Increase in future policy benefits		28,858,969			-			-			-			28,858,969
Amortization of deferred policy and pre-need acquisition costs and value of business acquired		17,352,803			597,399			-			-			17,950,202
Selling, general and administrative expenses:
Commissions		4,097,680			1,372,200			57,851,212			-			63,321,092
Personnel		26,285,207			9,305,429			64,520,887			-			100,111,523
Advertising		1,649,273			628,114			3,420,611			-			5,697,998
Rent and rent related		384,908			163,182			6,334,923			-			6,883,013
Depreciation on property and equipment		1,036,521			759,415			700,970			-			2,496,906
Provision for loan loss reserve		-			-			-			-			-
Cost related to funding mortgage loans		-			-			7,540,041			-			7,540,041
Intersegment		232,915			160,690			1,795,507			(2,189,112	)		-
Other		13,190,827			5,321,730			27,285,196			-			45,797,753
Interest expense:
Intersegment		462,753			274,911			4,482,069			(5,219,733	)		-
Other		3,969,905			710			3,859,828			-			7,830,443
Costs of goods and services sold-mortuaries and cemeteries		-			4,721,094			-			-			4,721,094
Total benefits and expenses		161,588,193			23,304,874			177,791,244			(7,408,845	)		355,275,466
Earnings before income taxes	$	14,195,546		$	6,093,696		$	14,087,620		$	-		$	34,376,862
Income tax expense		(4,034,979	)		(1,523,954	)		(3,127,627	)		-			(8,686,560	)
Net earnings	$	10,160,567		$	4,569,742		$	10,959,993		$	-		$	25,690,302

Identifiable assets	$	1,246,840,586		$	82,320,929		$	219,872,163		$	(93,174,569	)	$	1,455,859,109

Goodwill	$	2,765,570		$	2,488,213		$	-		$	-		$	5,253,783

Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Leases
Operating Lease, Right-of-Use Asset	$ 6,374,336	$ 9,987,699
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other	Other
Operating Lease Liabilities	$ 6,888,542	$ 10,596,471
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities and accrued expenses	Other liabilities and accrued expenses
Finance Lease, Right-of-Use Assets	$ 130,367	$ 228,221
Finance Lease, Right-of-Use Asset, Accumulated Amortization	(115,565)	(200,178)
Finance Lease, Right-of-Use Assets, Net	$ 14,802	$ 28,043
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net	Property and equipment, net
Finance Lease Liabilities	$ 15,550	$ 31,082
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Bank and other loans payable	Bank and other loans payable

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases

Schedule of Lease Cost Recognized in Earnings

	2023			2022
	Years Ended December 31
	2023			2022
Lease Cost
Finance lease cost:
Amortization of right-of-use assets (1)	$	25,573		$	30,163
Interest on lease liabilities (2)		1,713			2,773
Operating lease cost (3)		3,914,954			4,498,894
Short-term lease cost (3)(4)		1,874,556			1,135,003
Sublease income (3)		(323,272	)		(209,455	)
Total lease cost	$	5,493,524		$	5,457,378

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,007,919		$	4,250,630
Operating cash flows from finance leases		1,713			2,773
Financing cash flows from finance leases		27,868			31,685

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	160,348		$	2,054,534
Finance leases		12,332			-

Weighted-average remaining lease term (in years)
Finance leases		3.29			1.25
Operating leases		2.88			3.46

Weighted-average discount rate
Finance leases		6.81	%		5.78	%
Operating leases		4.54	%		4.50	%

(1)

Included in Depreciation on property and equipment on the consolidated statements of earnings

(2)

Included in Interest expense on the consolidated statements of earnings

(3)

Included in Rent and rent related expenses on the consolidated statements of earnings

(4)

Includes leases with a term of 12 months or less

Schedule of Future Minimum Rental Payments for Finance Leases and Operating Leases

The following table presents the maturity analysis of the Company’s lease liabilities.

	Finance Leases			Operating Leases
Lease payments due in:
2024	$	7,187		$	3,187,826
2025		3,525			2,073,045
2026		2,833			1,443,598
2027		2,833			340,112
2028		1,181			128,854
Thereafter		-			195,695
Total undiscounted lease payments		17,559			7,369,130
Less: Discount on cash flows		(2,009	)		(480,588	)
Present value of lease liabilities	$	15,550		$	6,888,542

Schedule of Right-of-Use Assets and Lease Liabilities

The following table presents the Company’s right-of-use assets and lease liabilities.

		Year Ended December 31,
	Balance Sheet Location	2023			2022
Operating Leases
Right-of-use assets	Other assets	$	6,374,336		$	9,987,699
Right-of-use assets	Other assets	$	6,374,336		$	9,987,699

Lease liabilities	Other liabilities and accrued expenses	$	6,888,542		$	10,596,471
Lease liabilities	Other liabilities and accrued expenses	$	6,888,542		$	10,596,471

Finance Leases
Right-of-use assets		$	130,367		$	228,221
Accumulated amortization			(115,565	)		(200,178	)
Right-of-use assets, net	Property and equipment, net	$	14,802		$	28,043
Right-of-use assets, net	Property and equipment, net	$	14,802		$	28,043

Lease liabilities	Bank and other loans payable	$	15,550		$	31,082
Lease liabilities	Bank and other loans payable	$	15,551		$	31,082

Statutory Financial Information and Dividend Limitations

12 Months Ended

Dec. 31, 2023

Statutory Financial Information And Dividend Limitations

Statutory Financial Information and Dividend Limitations

14) Statutory Financial Information and Dividend Limitations

The Company’s insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Prescribed statutory accounting practices include a variety of publications of the NAIC, as well as state laws, regulations, and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed.

The states in which the Company’s life insurance subsidiaries are domiciled require the preparation of statutory-basis financial statements in conformity with the NAIC Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner and/or director. Statutory accounting practices differ from GAAP primarily since they require charging policy acquisition and certain sales inducement costs to expense as incurred, establishing life insurance reserves based on different actuarial assumptions, and valuing certain investments and establishing deferred taxes on a different basis.

Statutory net income and capital and surplus of the Company’s insurance subsidiaries, determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities are as follows:

	Statutory Net Income					Statutory Capital and Surplus
	Years Ended December 31,					December 31,
	2023		2022			2023		2022
Amounts by insurance subsidiary:
Security National Life Insurance Company	$	7,419,511	$	9,126,955		$	76,330,794	$	66,753,938
Kilpatrick Life Insurance Company		2,967,779		2,373,682			20,535,591		17,300,717
First Guaranty Insurance Company		958,497		1,007,026			8,427,355		8,107,405
Southern Security Life Insurance Company, Inc.		35		(2,691	)		1,578,322		1,579,971
Trans-Western Life Insurance Company		15		4,008			512,570		512,555
Total	$	11,345,837	$	12,508,980		$	107,384,632	$	94,254,586

The Utah, Louisiana, Mississippi, and Texas Insurance Departments impose minimum risk-based capital (“RBC”) requirements that were developed by the NAIC on insurance enterprises. The formulas for determining the RBC specify various factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio (the Ratio) of the enterprise’s regulatory total adjusted capital, as defined by the NAIC, to its authorized control level, as defined by the NAIC. Enterprises below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The life insurance subsidiaries each have a ratio that is greater than the first level of regulatory action as of December 31, 2023. The Company does not have any guarantees to maintain the capital and surplus of any affiliates except for the Company’s agreement to provide additional capital to Security National Life Insurance Company in the event risk-based capital drops below 350% of the authorized control level.

Generally, the net assets of the life insurance subsidiaries available for transfer to the Company are limited to the amounts of the life insurance subsidiaries net assets, as determined in accordance with statutory accounting practices, that exceed minimum statutory capital requirements. Additional requirements must be met depending on the state, and payments of such amounts as dividends are subject to approval by regulatory authorities.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

14) Statutory Financial Information and Dividend Limitations (Continued)

Under the Utah Insurance Code, Security National Life Insurance Company is permitted to pay stockholder dividends, or otherwise make distributions, to the Company subject to certain limitations. Security National Life Insurance Company must ensure that its surplus held for policyholders is reasonable in relation to its outstanding liabilities and adequate to its financial needs after payment of any such dividend or distribution. Furthermore, where any dividend or distribution, together with all other dividends and distributions made within the preceding 12 months, exceeds the lesser of (i) 10% of its surplus held for policyholders as of the next preceding December 31; or (ii) its net gain from operations, not including realized capital gains, for the 12-month period ending the next preceding December 31, such dividend or distribution constitutes “extraordinary” under Utah law and Security National Life Insurance Company would be required to file notice of its intention to declare such a dividend or make such a distribution with the Utah Commissioner and the Utah Commissioner must either approve the distribution or dividend or not disapprove the dividend or distribution within 30 days’ of the notice filing. Based on Security National Life Insurance Company’s surplus held for policyholders and net gain from operations as of December 31, 2023, the maximum aggregate amount of dividends and distributions that it could pay or make in 2024 and which would not constitute an “extraordinary” dividend or distribution under Utah law and would therefore not require notice and approval or lack of disproval from the Utah Commissioner, would be approximately $7,357,000.

Under the Louisiana Insurance Code, First Guaranty Insurance Company and Kilpatrick Life Insurance Company are permitted to pay stockholder dividends, or otherwise make distributions, to the Company subject to certain limitations. First Guaranty Insurance Company and Kilpatrick Life Insurance Company must ensure that its surplus held for policyholders is reasonable in relation to its outstanding liabilities and adequate to its financial needs after payment of any such dividend or distribution. Furthermore, where any dividend or distribution, together with all other dividends and distributions made within the preceding 12 months, exceeds the lesser of (i) 10% of its surplus held for policyholders as of the next preceding December 31; or (ii) its net gain from operations, not including realized capital gains, for the 12-month period ending the next preceding December 31, such dividend or distribution constitutes “extraordinary” under Louisiana law and First Guaranty Insurance Company and Kilpatrick Life Insurance Company would be required to file notice of its intention to declare such a dividend or make such a distribution with the Louisiana Commissioner and the Louisiana Commissioner must either approve the distribution or dividend or not disapprove the dividend or distribution within 30 days’ of the notice filing. Based on First Guaranty Insurance Company’s and Kilpatrick Life Insurance Company’s surplus held for policyholders and net gain from operations as of December 31, 2023, the maximum aggregate amount of dividends and distributions that it could pay or make in 2024 and which would not constitute an “extraordinary” dividend or distribution under Louisiana law and would therefore not require notice and approval or lack of disproval from the Louisiana Commissioner, would be approximately $742,000 for First Guaranty Insurance Company and $1,973,000 for Kilpatrick Life Insurance Company.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Schedule of Financial Instruments Carried at Other Than Fair Value (Details) - USD ($)

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

$ 275,616,837

$ 308,123,927

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

69,404,617

70,508,156

Restricted assets

20,028,976

18,935,055

Cemetery perpetual care trust investments

8,082,917

7,276,210

Mortgage servicing rights

3,461,146

3,039,765

$ 53,060,455

Mortgage servicing rights, estimated fair value

4,543,657

3,927,877

Bank and other loans payable

(105,555,137)

(161,712,804)

Future policy benefits and unpaid claims

(916,038,616)

(889,327,303)

Residential Mortgage [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

99,519,750

90,290,776

Other investments and policy loans, estimated fair value

96,998,106

88,575,293

Residential Mortgage [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

Residential Mortgage [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

Residential Mortgage [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

96,998,106

88,575,293

Residential Construction [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

103,529,896

172,139,077

Other investments and policy loans, estimated fair value

103,529,896

172,139,077

Residential Construction [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

Residential Construction [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

Residential Construction [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

103,529,896

172,139,077

Commercial Loan [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

72,567,191

45,694,074

Other investments and policy loans, estimated fair value

72,149,530

44,079,537

Commercial Loan [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

Commercial Loan [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

Commercial Loan [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

72,149,530

44,079,537

Mortgage Loans Net 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

275,616,837

308,123,927

Other investments and policy loans, estimated fair value

272,677,532

304,793,907

Mortgage Loans Net 1 [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

Mortgage Loans Net 1 [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

Mortgage Loans Net 1 [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage loans held for investment (net of allowance for credit losses of $3,818,653 and $1,970,311 for 2023 and 2022, respectively)

272,677,532

304,793,907

Policy Loan [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Other investments and policy loans, estimated fair value

13,264,183

13,095,473

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

13,264,183

13,095,473

Policy Loan [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

Policy Loan [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

13,264,183

13,095,473

Insurance Assignments [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

44,051,486

^[1]

45,332,585

^[2]

Other investments and policy loans, estimated fair value

44,051,486

^[1]

45,332,585

^[2]

Insurance Assignments [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

^[1]

^[2]

Insurance Assignments [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

^[1]

^[2]

Insurance Assignments [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Other investments and policy loans (net of allowances for credit losses of $1,553,836 and $1,609,951 for 2023 and 2022, respectively)

44,051,486

^[1]

45,332,585

^[2]

Restricted Assets [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Restricted assets

675,219

^[3]

1,731,469

^[4]

Restricted assets, estimated fair value

675,219

^[3]

1,731,469

^[4]

Restricted Assets [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Restricted assets

^[3]

^[4]

Restricted Assets [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Restricted assets

^[3]

^[4]

Restricted Assets [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Restricted assets

675,219

^[3]

1,731,469

^[4]

Cemetery Perpetual Care Trust Investments [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Cemetery perpetual care trust investments

246,865

^[3]

1,506,517

^[4]

Cemetery perpetual care trust investments, estimated fair value

246,865

^[3]

1,506,517

^[4]

Cemetery Perpetual Care Trust Investments [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Cemetery perpetual care trust investments

^[3]

^[4]

Cemetery Perpetual Care Trust Investments [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Cemetery perpetual care trust investments

^[3]

^[4]

Cemetery Perpetual Care Trust Investments [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Cemetery perpetual care trust investments

246,865

^[3]

1,506,517

^[4]

Mortgage Servicing Rights [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage servicing rights

3,461,146

3,039,765

Mortgage servicing rights, estimated fair value

4,543,657

3,927,877

Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage servicing rights

Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage servicing rights

Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Mortgage servicing rights

4,543,657

3,927,877

Bank And Other Loans Payable [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Bank and other loans payable

(105,555,137)

(161,712,804)

Bank and other loans payable, fair value

(105,555,137)

(161,712,804)

Bank And Other Loans Payable [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Bank and other loans payable

Bank And Other Loans Payable [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Bank and other loans payable

Future policy benefits and unpaid claims

^[5]

^[6]

Bank And Other Loans Payable [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Bank and other loans payable

(105,555,137)

(161,712,804)

Policyholder Account Balances [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Future policy benefits and unpaid claims

(39,245,123)

^[5]

(41,146,171)

^[6]

Future policy benefits and unpaid claims

(48,920,691)

^[5]

(42,181,089)

^[6]

Policyholder Account Balances [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Future policy benefits and unpaid claims

^[5]

^[6]

Policyholder Account Balances [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Future policy benefits and unpaid claims

(48,920,691)

^[5]

(42,181,089)

^[6]

Future Policy Benefits Annuities [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Future policy benefits and unpaid claims

(106,285,010)

^[5]

(106,637,094)

^[6]

Future policy benefits and unpaid claims

(102,177,585)

^[5]

(126,078,031)

^[6]

Future Policy Benefits Annuities [Member] | Fair Value, Inputs, Level 1 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Future policy benefits and unpaid claims

^[5]

^[6]

Future Policy Benefits Annuities [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Future policy benefits and unpaid claims

^[5]

^[6]

Future Policy Benefits Annuities [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Future policy benefits and unpaid claims

$ (102,177,585)

^[5]

$ (126,078,031)

^[6]

[1]	Included in other investments and policy loans on the consolidated balance sheets
[2]	Included in other investments and policy loans on the consolidated balance sheets
[3]	Mortgage loans held for investment
[4]	Mortgage loans held for investment
[5]	Included in future policy benefits and unpaid claims on the consolidated balance sheets
[6]	Included in future policy benefits and unpaid claims on the consolidated balance sheets

Schedule of Mortgage Fee Income for Loans Held for Sale (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Loans Held For Sale

Loan fees

$ 21,724,456

$ 24,184,972

Interest income

9,547,741

9,666,149

Secondary gains

68,505,014

153,870,807

^[1]

Change in fair value of loan commitments

(1,123,615)

(4,308,638)

Change in fair value of loans held for sale

(478,460)

(8,834,797)

Provision for loan loss reserve

(27,164)

(1,078,812)

Mortgage fee income

$ 98,147,972

$ 173,499,681

[1]	Includes a net gain of $34,051,938 for the sale of mortgage servicing rights

Schedule of Major Categories of Net Investment Income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Proceeds from sales	$ 2,557,074	$ 3,091,105
Gross realized gains	11,508	24,281
Gross realized losses	(57,861)	(32,976)
Gross investment income	89,319,209	83,650,926
Investment expenses	(16,976,162)	(17,453,334)
Net investment income	72,343,047	66,197,592
Fixed Maturity Securities [Member]
Marketable Securities [Line Items]
Gross investment income	16,871,558	12,395,764
Equity Securities [Member]
Marketable Securities [Line Items]
Gross investment income	616,989	511,118
Mortgage Loans Real Estate [Member]
Marketable Securities [Line Items]
Gross investment income	33,242,094	34,949,763
Real Estate [Member]
Marketable Securities [Line Items]
Gross investment income	14,786,017	14,563,269
Policy Student and Other Loans [Member]
Marketable Securities [Line Items]
Gross investment income	816,711	932,362
Insurance Assignments [Member]
Marketable Securities [Line Items]
Gross investment income	18,118,391	18,112,840
Other Investments [Member]
Marketable Securities [Line Items]
Gross investment income	617,420	518,865
Cash and Cash Equivalents [Member]
Marketable Securities [Line Items]
Gross investment income	$ 4,250,029	$ 1,666,945

Consolidated Statements of Cash Flows - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Cash flows from operating activities:

Net earnings

$ 14,495,058

$ 25,690,302

Adjustments to reconcile net earnings to net cash used in operating activities:

Losses (gains) on investments and other assets

(1,837,342)

857,460

Depreciation

8,641,080

8,598,072

Provision for credit losses

1,959,707

1,331,887

Net amortization of deferred fees and costs, premiums and discounts

(2,140,548)

(1,018,200)

Provision for deferred income taxes

(2,495,489)

(9,954,005)

Policy and pre-need acquisition costs deferred

(24,432,809)

(20,233,669)

Policy and pre-need acquisition costs amortized

16,724,336

16,685,871

Value of business acquired amortized

1,300,002

1,264,331

Mortgage servicing rights, additions

(1,009,312)

(10,243,922)

Amortization of mortgage servicing rights

^[1]

587,931

9,078,706

Net gains on the sale of mortgage servicing rights

(34,051,938)

Stock based compensation expense

601,362

929,692

Benefit plans funded with treasury stock

2,210,719

5,061,297

Net change in fair value of loans held for sale

478,460

8,834,797

Originations of loans held for sale

(2,173,080,584)

(3,373,554,484)

Proceeds from sales of loans held for sale

2,224,454,040

3,549,405,402

Net gains on sales of loans held for sale

(40,239,112)

(74,779,721)

Change in assets and liabilities:

Land and improvements held for sale

(62,217)

(123,597)

Future policy benefits and unpaid claims

29,745,349

27,487,657

Other operating assets and liabilities

(2,025,510)

(815,484)

Net cash provided by operating activities

53,875,121

130,450,454

Cash flows from investing activities:

Purchases of fixed maturity securities

(70,315,501)

(151,581,252)

Sales, calls and maturities of fixed maturity securities

42,966,901

25,163,141

Purchase of equity securities

(6,993,289)

(4,193,460)

Sales of equity securities

6,346,625

2,804,274

Purchases of restricted assets

(3,065,758)

(862,654)

Sales, calls and maturities of restricted assets

840,080

Purchases of cemetery perpetual care trust investments

(1,083,550)

Sales, calls and maturities of cemetery perpetual care trust investments

458,046

1,205,208

Mortgage loans held for investment, other investments and policy loans made

(645,581,141)

(752,301,471)

Payments received for mortgage loans held for investment, other investments and policy loans

682,267,677

759,243,828

Proceeds from the sale of mortgage servicing rights

79,981,150

Purchases of property and equipment

(1,109,937)

(1,600,195)

Sales of property and equipment

69,248

Purchases of real estate

(22,894,604)

(20,458,983)

Sales of real estate

32,772,520

25,369,430

Net cash provided by (used in) investing activities

14,608,069

(37,161,736)

Cash flows from financing activities:

Investment contract receipts

12,572,508

11,730,820

Investment contract withdrawals

(15,654,593)

(15,795,677)

Proceeds from stock options exercised

134,387

143,432

Purchase of treasury stock

(2,846,447)

(7,663,905)

Repayment of bank loans

(69,602,737)

(50,308,296)

Proceeds from bank loans

68,500,000

59,618,050

Net change in warehouse line borrowings for loans held for sale

(55,146,726)

(98,943,607)

Net cash used in financing activities

(62,043,608)

(101,219,183)

Net change in cash, cash equivalents, restricted cash and restricted cash equivalents

6,439,582

(7,930,465)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year

133,483,817

141,414,282

Total cash, cash equivalents, restricted cash and restricted cash equivalents

139,923,399

133,483,817

Supplemental Disclosure of Cash Flow Information:

Interest

5,136,747

7,697,921

Income taxes

20,406,598

729,687

Non Cash Investing and Financing Activities:

Transfer of loans held for sale to mortgage loans held for investment

3,017,626

51,691,213

Transfer from mortgage loans held for investment to restricted assets

1,625,961

Transfer from mortgage loans held for investment to cemetery perpetual care trust investments

1,611,550

Accrued real estate construction costs and retainage

1,025,397

Mortgage loans held for investment foreclosed into real estate held for investment

10,998,485

Right-of-use assets obtained in exchange for operating lease liabilities

160,348

2,054,534

Right-of-use assets obtained in exchange for finance lease liabilities

12,332

Cash and cash equivalents

126,941,658

120,919,805

Restricted assets

10,114,694

10,638,034

Cemetery perpetual care trust investments

$ 2,867,047

$ 1,925,978

[1]	Included in other expenses on the consolidated statements of earnings

Schedule of Derivative Assets at Fair Value (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Loan Commitments [Member]
Subsidiary, Sale of Stock [Line Items]
Derivative, notional amount	$ 161,832,250	$ 453,371,808
Derivative asset, notional amount	4,995,486	4,089,856
Derivative liability, notional amount	3,412,224	1,382,979
Call Option [Member]
Subsidiary, Sale of Stock [Line Items]
Derivative, notional amount		868,600
Derivative asset, notional amount
Derivative liability, notional amount		29,715
Put Option [Member]
Subsidiary, Sale of Stock [Line Items]
Derivative, notional amount		654,500
Derivative asset, notional amount
Derivative liability, notional amount		13,888
Net Derivatives Loan Commitments [Member]
Subsidiary, Sale of Stock [Line Items]
Derivative, notional amount	161,832,250	454,894,908
Derivative asset, notional amount	4,995,486	4,089,856
Derivative liability, notional amount	$ 3,412,224	$ 1,426,582

- Definition

Nominal or face amount used to calculate payments on the derivative asset.

+ References + Details

- Definition

Nominal or face amount used to calculate payments on the derivative liability.

+ References + Details

Summary of Income Tax Liability (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Current	$ 246,437	$ 16,352,190
Deferred	13,506,544	14,358,337
Total	$ 13,752,981	$ 30,710,527

Statutory Financial Information and Dividend Limitations (Tables)

12 Months Ended

Dec. 31, 2023

Statutory Financial Information And Dividend Limitations

Schedule of Statutory Accounting Practices

	Statutory Net Income					Statutory Capital and Surplus
	Years Ended December 31,					December 31,
	2023		2022			2023		2022
Amounts by insurance subsidiary:
Security National Life Insurance Company	$	7,419,511	$	9,126,955		$	76,330,794	$	66,753,938
Kilpatrick Life Insurance Company		2,967,779		2,373,682			20,535,591		17,300,717
First Guaranty Insurance Company		958,497		1,007,026			8,427,355		8,107,405
Southern Security Life Insurance Company, Inc.		35		(2,691	)		1,578,322		1,579,971
Trans-Western Life Insurance Company		15		4,008			512,570		512,555
Total	$	11,345,837	$	12,508,980		$	107,384,632	$	94,254,586

Investments (Details Narrative) - USD ($)	12 Months Ended
Investments (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Credit loss recognized	$ 325,314
Fixed maturity securities rated investment grade, percent	98.20%	97.70%
Loans Payable to Bank	$ 105,555,137	$ 161,712,804
Depreciation expense	2,351,661	2,496,906
Impairment losses on residential real estate held for sale		$ 94,000
Loan interest rate	7.00%	7.00%
Interest not accrued on non-performing loans	$ 237,000	$ 226,000
[custom:RealizedInvestmentGains]	730,000	817,000
Net investment income	72,343,047	66,197,592
Cemeteries and Mortuaries [Member]
Debt Securities, Available-for-Sale [Line Items]
Net investment income	$ 2,365,378	$ 2,404,277
UTAH
Debt Securities, Available-for-Sale [Line Items]
Loan interest rate	44.00%	64.00%
FLORIDA
Debt Securities, Available-for-Sale [Line Items]
Loan interest rate	11.00%	10.00%
CALIFORNIA
Debt Securities, Available-for-Sale [Line Items]
Loan interest rate	10.00%	5.00%
TEXAS
Debt Securities, Available-for-Sale [Line Items]
Loan interest rate	7.00%	5.00%
AZERBAIJAN
Debt Securities, Available-for-Sale [Line Items]
Loan interest rate	6.00%
Minimum [Member]
Debt Securities, Available-for-Sale [Line Items]
Lease term	3 years
Maximum [Member]
Debt Securities, Available-for-Sale [Line Items]
Lease term	10 years
606 Securities [Member]
Debt Securities, Available-for-Sale [Line Items]
Average market value over amortized cost	94.90%
713 Securities [Member]
Debt Securities, Available-for-Sale [Line Items]
Average market value over amortized cost		93.60%
Commercial Real Estate 1 [Member]
Debt Securities, Available-for-Sale [Line Items]
Collateral for bank loans	$ 124,381,467	$ 129,330,119
Loans Payable to Bank	97,807,614	97,112,131
Depreciation expense	6,278,828	6,090,575
Residential Real Estate [Member]
Debt Securities, Available-for-Sale [Line Items]
Depreciation expense	10,592	10,592
Residential Real Estate [Member]
Debt Securities, Available-for-Sale [Line Items]
Foreclosed real estate expense		$ 11,010,029

Statutory Financial Information and Dividend Limitations (Details Narrative)	Dec. 31, 2023 USD ($)
Cash dividend paid	$ 7,357,000
First Guaranty Insurance Company [Member]
Cash dividend paid	742,000
Kilpatrick Life Insurance Company [Member]
Cash dividend paid	$ 1,973,000

Schedule of Fair Value of Fixed Maturity Securities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	$ 599,958	$ 16,883,189
Available for sale securities, fair value	44,674,633	267,774,539
Available for sale securities, unrecognized holding loss	12,984,162	2,291,672
Available for sale securities, fair value	205,910,291	13,189,587
Available for sale securities, unrecognized holding loss	13,584,120	19,174,861
Available for sale securities, fair value	250,584,924	280,964,126
Restricted Assets [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	1,000	14,907
Available for sale securities, fair value	249,877	959,010
Available for sale securities, unrecognized holding loss	7,282	3,469
Available for sale securities, fair value	673,319	58,072
Available for sale securities, unrecognized holding loss	8,282	18,376
Available for sale securities, fair value	923,196	1,017,082
US Treasury Securities [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	29,394	2,685,277
Available for sale securities, fair value	9,436,090	79,400,753
Available for sale securities, unrecognized holding loss	1,387,054
Available for sale securities, fair value	70,885,403
Available for sale securities, unrecognized holding loss	1,416,448	2,685,277
Available for sale securities, fair value	80,321,493	79,400,753
US Treasury Securities [Member] \| Restricted Assets [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	1,000
Available for sale securities, fair value	249,877
Available for sale securities, unrecognized holding loss
Available for sale securities, fair value
Available for sale securities, unrecognized holding loss	1,000
Available for sale securities, fair value	249,877
US States and Political Subdivisions Debt Securities [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	11,105	378,067
Available for sale securities, fair value	470,325	5,467,910
Available for sale securities, unrecognized holding loss	308,155	80,070
Available for sale securities, fair value	5,284,498	429,020
Available for sale securities, unrecognized holding loss	319,260	458,137
Available for sale securities, fair value	5,754,823	5,896,930
US States and Political Subdivisions Debt Securities [Member] \| Restricted Assets [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss		11,891
Available for sale securities, fair value		760,255
Available for sale securities, unrecognized holding loss	4,542	3,469
Available for sale securities, fair value	451,985	58,072
Available for sale securities, unrecognized holding loss	4,542	15,360
Available for sale securities, fair value	451,985	818,327
Corporate Securities [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	529,660	10,935,114
Available for sale securities, fair value	32,507,773	162,995,969
Available for sale securities, unrecognized holding loss	6,615,847	995,659
Available for sale securities, fair value	107,556,216	5,781,822
Available for sale securities, unrecognized holding loss	7,145,507	11,930,773
Available for sale securities, fair value	140,063,989	168,777,791
Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	29,799	2,884,731
Available for sale securities, fair value	2,260,445	19,909,907
Available for sale securities, unrecognized holding loss	4,673,106	1,215,943
Available for sale securities, fair value	22,184,174	6,978,745
Available for sale securities, unrecognized holding loss	4,702,905	4,100,674
Available for sale securities, fair value	24,444,619	26,888,652
Cemetery Perpectual Care Obligation [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	574	1,883
Available for sale securities, fair value	143,448	154,004
Available for sale securities, unrecognized holding loss	5,285	6,633
Available for sale securities, fair value	164,179	71,112
Available for sale securities, unrecognized holding loss	5,859	8,516
Available for sale securities, fair value	307,627	225,116
Cemetery Perpectual Care Obligation [Member] \| US Treasury Securities [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	574	38
Available for sale securities, fair value	143,448	59,392
Available for sale securities, unrecognized holding loss
Available for sale securities, fair value
Available for sale securities, unrecognized holding loss	574	38
Available for sale securities, fair value	143,448	59,392
Cemetery Perpectual Care Obligation [Member] \| US States and Political Subdivisions Debt Securities [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss		1,845
Available for sale securities, fair value		94,612
Available for sale securities, unrecognized holding loss	5,114	6,633
Available for sale securities, fair value	110,678	71,112
Available for sale securities, unrecognized holding loss	5,114	8,478
Available for sale securities, fair value	110,678	165,724
Cemetery Perpectual Care Obligation [Member] \| US Government Corporations and Agencies Securities [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss
Available for sale securities, fair value
Available for sale securities, fair value	53,501
Available for sale securities, unrecognized holding loss	171
Available for sale securities, fair value	53,501
Cemetery Perpectual Care Oblication [Member] \| Cemetery Perpectual Care Obligation [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss	171
Corporate Debt Securities [Member] \| Restricted Assets [Member]
Marketable Securities [Line Items]
Available for sale securities, unrecognized holding loss		3,016
Available for sale securities, fair value		198,755
Available for sale securities, unrecognized holding loss	2,740
Available for sale securities, fair value	221,334
Available for sale securities, unrecognized holding loss	2,740	3,016
Available for sale securities, fair value	$ 221,334	$ 198,755

Schedule of Gain (Loss) on Investments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Investments [Line Items]
Gross realized gains	$ 11,508	$ 24,281
Gross realized losses	(57,861)	(32,976)
Net credit loss (provision) release	(325,314)
Total	1,837,342	(857,460)
Fixed Maturity Securities [Member]
Schedule of Investments [Line Items]
Gross realized gains	67,686	205,949
Gross realized losses	(106,760)	(43,776)
Net credit loss (provision) release	(325,314)
Equity Securities One [Member]
Schedule of Investments [Line Items]
Gains (losses) on securities sold	254,917	(10,519)
Unrealized gains (losses) on securities held at the end of the period	1,782,219	(2,109,556)
Real Estate Held For Investment and Sale [Member]
Schedule of Investments [Line Items]
Gross realized gains	197,194	1,239,332
Gross realized losses	(71,792)	(825,593)
Other Assets Including Call and Put Option Derivatives [Member]
Schedule of Investments [Line Items]
Gross realized gains	214,349	686,703
Gross realized losses	$ (175,157)

Schedule of Investments (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Marketable Securities [Line Items]

Available for sale securities, amortized cost

$ 390,884,441

$ 362,750,511

Available for sale securities, unrecognized holding gain

4,550,214

2,282,842

Available for sale securities, unrecognized holding loss

(13,584,120)

^[1]

(19,174,861)

Available for sale securities, allowance for credit losses

(314,549)

Available for sale securities, estimated fair value

381,535,986

345,858,492

Available-for-sale securities, amortized cost basis

10,571,505

9,942,265

Available-for-sale securities, gross unrealized gain

13,636,071

11,682,526

Mortgage loans on real estate and construction

281,382,873

Mortgage loans on real estate and construction, unamortized deferred loan fees, net

(1,623,226)

(1,746,605)

Mortgage loans on real estate and construction, allowance for losses

(3,818,653)

(1,970,311)

$ (1,699,902)

Mortgage loans on real estate and construction, discount

(324,157)

(342,860)

Mortgage loans on real estate and construction

275,616,837

308,123,927

Real estate held for investment, net of depreciation

183,419,292

191,328,616

Real estate held for sale

3,028,973

11,161,582

Policy loans

13,264,183

13,095,473

Insurance assignments

45,605,322

46,942,536

Federal home loan bank stock

2,279,800

^[2]

2,600,300

^[3]

Other investments

9,809,148

9,479,798

Allowance for credit losses

(1,553,836)

(1,609,951)

(1,686,218)

Total policy loans and other investments

69,404,617

70,508,156

Accrued investment income

10,170,790

10,299,826

Total investments

936,812,566

948,963,125

Allowance for doubtful accounts

(1,609,951)

Cash and cash equivalents

139,923,399

133,483,817

141,414,282

Total cemetery perpetual care trust investments

8,082,917

7,276,210

Cemetery perpetual care obligation

5,326,196

5,099,542

US Treasury Securities [Member]

Marketable Securities [Line Items]

Available for sale securities, allowance for credit losses

US States and Political Subdivisions Debt Securities [Member]

Marketable Securities [Line Items]

Available for sale securities, allowance for credit losses

US Treasury Securities [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

111,450,753

93,182,210

Available for sale securities, unrecognized holding gain

344,425

180,643

Available for sale securities, unrecognized holding loss

(1,416,448)

^[1]

(2,685,277)

Available for sale securities, allowance for credit losses

Available for sale securities, estimated fair value

110,378,730

90,677,576

US States and Political Subdivisions Debt Securities [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

6,524,083

6,675,071

Available for sale securities, unrecognized holding gain

500

13,869

Available for sale securities, unrecognized holding loss

(319,260)

^[1]

(458,137)

Available for sale securities, allowance for credit losses

Available for sale securities, estimated fair value

6,205,323

6,230,803

Corporate Debt Securities [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

232,299,727

229,141,544

Available for sale securities, unrecognized holding gain

3,688,642

1,909,630

Available for sale securities, unrecognized holding loss

(7,145,507)

^[1]

(11,930,773)

Available for sale securities, allowance for credit losses

(308,500)

Available for sale securities, estimated fair value

228,534,362

219,120,401

Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

40,359,878

33,501,686

Available for sale securities, unrecognized holding gain

506,647

168,700

Available for sale securities, unrecognized holding loss

(4,702,905)

^[1]

(4,100,674)

Available for sale securities, allowance for credit losses

(6,049)

Available for sale securities, estimated fair value

36,157,571

29,569,712

Redeemable Preferred Stock [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

250,000

Available for sale securities, unrecognized holding gain

10,000

Available for sale securities, unrecognized holding loss

^[1]

Available for sale securities, allowance for credit losses

Available for sale securities, estimated fair value

260,000

Industrial Miscellaneous and All Other [Member]

Marketable Securities [Line Items]

Available-for-sale securities, amortized cost basis

10,571,505

9,942,265

Available for sale securities, unrecognized holding gain

3,504,141

2,688,375

Available for sale securities, unrecognized holding loss

(439,575)

^[1]

(948,114)

Available-for-sale securities, gross unrealized gain

13,636,071

11,682,526

Equity Securities One [Member]

Marketable Securities [Line Items]

Available-for-sale securities, amortized cost basis

10,571,505

9,942,265

Available for sale securities, unrecognized holding gain

3,504,141

2,688,375

Available for sale securities, unrecognized holding loss

(439,575)

^[1]

(948,114)

Available-for-sale securities, gross unrealized gain

13,636,071

11,682,526

Residential Mortgage [Member]

Marketable Securities [Line Items]

Mortgage loans on real estate and construction

103,153,587

93,355,623

Mortgage loans on real estate and construction, unamortized deferred loan fees, net

(1,135,491)

(1,212,994)

Mortgage loans on real estate and construction, allowance for losses

(2,390,894)

(1,739,980)

(1,469,571)

Mortgage loans on real estate and construction, discount

(107,452)

(111,873)

Mortgage loans on real estate and construction

99,519,750

90,290,776

Real estate held for investment, net of depreciation

40,924,865

38,437,960

Real estate held for sale

11,010,029

Residential Construction [Member]

Marketable Securities [Line Items]

Mortgage loans on real estate and construction

104,052,748

172,516,125

Mortgage loans on real estate and construction, unamortized deferred loan fees, net

(314,746)

(333,846)

Mortgage loans on real estate and construction, allowance for losses

(208,106)

(43,202)

$ (43,202)

Mortgage loans on real estate and construction, discount

Mortgage loans on real estate and construction

103,529,896

172,139,077

Commercial [Member]

Marketable Securities [Line Items]

Mortgage loans on real estate and construction

74,176,538

46,311,955

Real estate held for investment, net of depreciation

142,494,427

152,890,656

Real estate held for sale

3,028,973

151,553

Cemetery Perpectual Care Obligation [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

647,261

263,205

Available for sale securities, unrecognized holding gain

302

Available for sale securities, unrecognized holding loss

(5,859)

(8,516)

Available for sale securities, estimated fair value

641,704

254,731

Cash and cash equivalents

2,867,047

1,925,978

Total cemetery perpetual care trust investments

8,082,917

7,276,210

Cemetery perpetual care obligation

(5,326,196)

(5,099,542)

Trust investments in excess of trust obligations

2,756,721

2,176,668

Cemetery Perpectual Care Obligation [Member] | US Treasury Securities [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

477,797

89,004

Available for sale securities, unrecognized holding gain

302

Available for sale securities, unrecognized holding loss

(574)

(38)

Available for sale securities, estimated fair value

477,525

89,008

Cemetery Perpectual Care Obligation [Member] | US States and Political Subdivisions Debt Securities [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

115,792

174,201

Available for sale securities, unrecognized holding gain

Available for sale securities, unrecognized holding loss

(5,114)

(8,478)

Available for sale securities, estimated fair value

110,678

165,723

Cemetery Perpectual Care Obligation [Member] | Industrial Miscellaneous and All Other [Member]

Marketable Securities [Line Items]

Available-for-sale securities, amortized cost basis

3,614,392

3,195,942

Available for sale securities, unrecognized holding gain

859,680

584,383

Available for sale securities, unrecognized holding loss

(146,771)

(175,163)

Available-for-sale securities, gross unrealized gain

4,327,301

3,605,162

Cemetery Perpectual Care Obligation [Member] | Equity Securities One [Member]

Marketable Securities [Line Items]

Available-for-sale securities, amortized cost basis

3,614,392

3,195,942

Available for sale securities, unrecognized holding gain

859,680

584,383

Available for sale securities, unrecognized holding loss

(146,771)

(175,163)

Available-for-sale securities, gross unrealized gain

4,327,301

3,605,162

Mortgage loans on real estate and construction

246,865

Cemetery Perpectual Care Obligation [Member] | Residential Construction [Member]

Marketable Securities [Line Items]

Mortgage loans on real estate and construction

247,360

1,506,517

Real estate held for investment, net of depreciation

$ 16,178

Cemetery Perpectual Care Oblication [Member]

Marketable Securities [Line Items]

Available for sale securities, amortized cost

$ 647,261

[1]	Gross unrealized losses are net of allowance for credit losses
[2]	Includes $530,900 of Membership stock and $1,748,900 of Activity stock due to short-term advances and letters of credit.
[3]	Includes $938,500 of Membership stock and $1,661,800 of Activity stock due to short-term advances and letters of credit.

Schedule of Statutory Accounting Practices (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statutory net income amount	$ 11,345,837	$ 12,508,980
Statutory capital and surplus, balance	107,384,632	94,254,586
Security National Life Insurance [Member]
Statutory net income amount	7,419,511	9,126,955
Statutory capital and surplus, balance	76,330,794	66,753,938
Kilpatrick Life Insurance Company [Member]
Statutory net income amount	2,967,779	2,373,682
Statutory capital and surplus, balance	20,535,591	17,300,717
First Guaranty Insurance Company [Member]
Statutory net income amount	958,497	1,007,026
Statutory capital and surplus, balance	8,427,355	8,107,405
Southern Security Life Insurance Company, Inc. [Member]
Statutory net income amount	35	(2,691)
Statutory capital and surplus, balance	1,578,322	1,579,971
Trans-Western Life Insurance Company [Member]
Statutory net income amount	15	4,008
Statutory capital and surplus, balance	$ 512,570	$ 512,555

Investments

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

2) Investments

The Company’s investments as of December 31, 2023 are summarized as follows:

Schedule of Investments

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses (1)			Allowance for Credit Losses			Estimated Fair Value
December 31, 2023:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	111,450,753		$	344,425	$	(1,416,448	)	$	-		$	110,378,730

Obligations of states and political subdivisions		6,524,083			500		(319,260	)		-			6,205,323

Corporate securities including public utilities		232,299,727			3,688,642		(7,145,507	)		(308,500	)		228,534,362

Mortgage-backed securities		40,359,878			506,647		(4,702,905	)		(6,049	)		36,157,571

Redeemable preferred stock		250,000			10,000		-			-			260,000

Total fixed maturity securities available for sale	$	390,884,441		$	4,550,214	$	(13,584,120	)	$	(314,549	)	$	381,535,986

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous and all other	$	10,571,505		$	3,504,141	$	(439,575	)				$	13,636,071

Total equity securities at estimated fair value	$	10,571,505		$	3,504,141	$	(439,575	)				$	13,636,071

Mortgage loans held for investment at amortized cost:
Residential	$	103,153,587
Residential construction		104,052,748
Commercial		74,176,538
Less: Unamortized deferred loan fees, net		(1,623,226	)
Less: Allowance for credit losses		(3,818,653	)
Less: Net discounts		(324,157	)

Total mortgage loans held for investment	$	275,616,837

Real estate held for investment - net of accumulated depreciation:
Residential	$	40,924,865
Commercial		142,494,427

Total real estate held for investment	$	183,419,292

Real estate held for sale:
Residential	$	-
Commercial		3,028,973

Total real estate held for sale	$	3,028,973

Other investments and policy loans at amortized cost:
Policy loans	$	13,264,183
Insurance assignments		45,605,322
Federal Home Loan Bank stock (2)		2,279,800
Other investments		9,809,148
Less: Allowance for credit losses		(1,553,836	)

Total policy loans and other investments	$	69,404,617

Accrued investment income	$	10,170,790

Total investments	$	936,812,566

(1)

Gross unrealized losses are net of allowance for credit losses

(2)

Includes $530,900 of Membership stock and $1,748,900 of Activity stock due to short-term advances and letters of credit.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The Company’s investments as of December 31, 2022 are summarized as follows:

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2022:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	93,182,210		$	180,643	$	(2,685,277	)	$	90,677,576

Obligations of states and political subdivisions		6,675,071			13,869		(458,137	)		6,230,803

Corporate securities including public utilities		229,141,544			1,909,630		(11,930,773	)		219,120,401

Mortgage-backed securities		33,501,686			168,700		(4,100,674	)		29,569,712

Redeemable preferred stock		250,000			10,000		-			260,000

Total fixed maturity securities available for sale	$	362,750,511		$	2,282,842	$	(19,174,861	)	$	345,858,492

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous and all other	$	9,942,265		$	2,688,375	$	(948,114	)	$	11,682,526

Total equity securities at estimated fair value	$	9,942,265		$	2,688,375	$	(948,114	)	$	11,682,526

Mortgage loans held for investment at amortized cost:
Residential	$	93,355,623
Residential construction		172,516,125
Commercial		46,311,955
Less: Unamortized deferred loan fees, net		(1,746,605	)
Less: Allowance for loan losses		(1,970,311	)
Less: Net discounts		(342,860	)

Total mortgage loans held for investment	$	308,123,927

Real estate held for investment - net of accumulated depreciation:
Residential	$	38,437,960
Commercial		152,890,656

Total real estate held for investment	$	191,328,616

Real estate held for sale:
Residential	$	11,010,029
Commercial		151,553

Total real estate held for sale	$	11,161,582

Other investments and policy loans at amortized cost:
Policy loans	$	13,095,473
Insurance assignments		46,942,536
Federal Home Loan Bank stock (1)		2,600,300
Other investments		9,479,798
Less: Allowance for doubtful accounts		(1,609,951	)

Total policy loans and other investments	$	70,508,156

Accrued investment income	$	10,299,826

Total investments	$	948,963,125

(1)

Includes $938,500 of Membership stock and $1,661,800 of Activity stock due to short-term advances and letters of credit.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

There were no investments, aggregated by issuer, of more than 10% of shareholders’ equity (before net unrealized gains and losses on equity securities and fixed maturity securities) as of December 31, 2023, other than investments issued or guaranteed by the United States Government.

Fixed Maturity Securities

The table below summarizes unrealized losses on fixed maturities securities available for sale that were carried at estimated fair value as of December 31, 2023 and 2022. The fair values of fixed maturity securities are based on quoted market prices, when available. For fixed maturity securities not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements, are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit, and maturity of the investments. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities.

	Unrealized Losses for Less than Twelve Months		Fair Value		Unrealized Losses for More than Twelve Months		Fair Value		Total Unrealized Loss		Fair Value
At December 31, 2023
U.S. Treasury securities and obligations of U.S. Government agencies	$	29,394	$	9,436,090	$	1,387,054	$	70,885,403	$	1,416,448	$	80,321,493
Obligations of states and political subdivisions		11,105		470,325		308,155		5,284,498		319,260		5,754,823
Corporate securities including public utilities		529,660		32,507,773		6,615,847		107,556,216		7,145,507		140,063,989
Mortgage and other asset-backed securities		29,799		2,260,445		4,673,106		22,184,174		4,702,905		24,444,619
Total unrealized losses	$	599,958	$	44,674,633	$	12,984,162	$	205,910,291	$	13,584,120	$	250,584,924

At December 31, 2022
U.S. Treasury securities and obligations of U.S. Government agencies	$	2,685,277	$	79,400,753	$	-	$	-	$	2,685,277	$	79,400,753
Obligations of states and political subdivisions		378,067		5,467,910		80,070		429,020		458,137		5,896,930
Corporate securities including public utilities		10,935,114		162,995,969		995,659		5,781,822		11,930,773		168,777,791
Mortgage and other asset-backed securities		2,884,731		19,909,907		1,215,943		6,978,745		4,100,674		26,888,652
Total unrealized losses	$	16,883,189	$	267,774,539	$	2,291,672	$	13,189,587	$	19,174,861	$	280,964,126

Relevant holdings were comprised of 606 securities with fair values aggregating 94.9% of the aggregated amortized cost as of December 31, 2023. Relevant holdings were comprised of 713 securities with fair values aggregating 93.6% of the aggregated amortized cost as of December 31, 2022. Credit loss provision (release) of $325,314 and nil have been recognized for 2023 and 2022, respectively. Credit losses are included in gains (losses) on investments and other assets on the condensed consolidated statements of earnings. Other unrealized losses for which no credit loss was recognized are primarily the result of increases in interest rates.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Evaluation of Allowance for Credit Losses

See Note 1 regarding the adoption of ASU 2016-13.

On a quarterly basis, the Company evaluates its fixed maturity securities classified as available for sale to identify any potential credit losses. This evaluation includes a review of current ratings by the National Association of Insurance Commissions (“NAIC”) and other industry rating agencies. Securities with a rating of 1 or 2 are considered investment grade and are not reviewed for credit loss unless current market data or recent company news could lead to a credit downgrade. Securities with ratings of 3 to 5 are evaluated for credit loss. The evaluation involves assessing all facts and circumstances surrounding each security including, but not limited to, historical values, interest payment history, projected earnings, and revenue growth rates as well as a review of the reason for a downgrade in the NAIC rating. Based on the analysis of a security that is rated 3 to 5, a determination is made whether the security will likely make interest and principal payments in accordance with the terms of the financial instrument. Securities with a rating of 6 are automatically determined to be impaired and a credit loss is recognized in earnings.

Where the decline in fair value of fixed maturity securities is attributable to changes in market interest rates or to factors such as market volatility, liquidity and spread widening, and the Company anticipates recovery of all contractual or expected cash flows, the Company does not consider these securities to have credit loss because the Company does not intend to sell these securities and it is not more likely than not the Company will be required to sell these securities before a recovery of amortized cost, which may be at maturity.

If the Company intends to sell a fixed maturity security or if it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis, a credit loss has occurred and the difference between the amortized cost and the fair value that relates to the expected credit loss is recognized as a loss in earnings, included in gains (losses) on investments and other assets on the condensed consolidated statements of earnings.

If the Company does not intend to sell a debt security and it is less likely than not that the Company will be required to sell the debt security but the Company also does not expect to recover the entire amortized cost basis of the security, a credit loss is recognized in earnings for the amount of the expected credit loss with a corresponding allowance for credit losses as a contra-asset account. The credit loss is included in gains (losses) on investments and other assets on the condensed consolidated statements of earnings. The recognized credit loss is limited to the total unrealized loss on the security due to a change in credit.

Amounts on available for sale fixed maturities that are deemed to be uncollectible are written off and removed from the allowance for credit loss. A write-off may also occur if the Company intends to sell a security or when it is more likely than not that the Company will be required to sell the security before the recovery of its amortized cost.

The Company does not measure a credit loss allowance on accrued interest receivable, included in accrued investment income on the condensed consolidated balance sheets, as the Company writes off any accrued interest receivable balance to net investment income in a timely manner (after 90 days) when the Company has concerns regarding collectability.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Credit Quality Indicators

The NAIC assigns designations to fixed maturity securities. These designations range from Class 1 (highest quality) to Class 6 (lowest quality). The NAIC designations are utilized by insurers in preparing their annual statutory statements. NAIC Class 1 and 2 are considered investment grade while the NAIC Class 3 through 6 designations are considered non-investment grade. Based on the NAIC designations, the Company had 98.2% and 97.7% of its fixed maturity securities rated investment grade as of December 31, 2023 and 2022, respectively. The following table summarizes the credit quality, by NAIC designation, of the Company’s fixed maturity securities available for sale, excluding redeemable preferred stock.

	December 31, 2023				December 31, 2022
NAIC Designation	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
1	$	221,933,425	$	216,975,288	$	197,753,818	$	189,691,540
2		161,062,016		157,346,803		156,261,804		148,073,873
3		6,418,829		5,953,542		7,080,305		6,635,786
4		982,290		948,478		1,377,541		1,157,454
5		236,648		51,875		25,736		39,155
6		1,233		-		1,307		684
Total	$	390,634,441	$	381,275,986	$	362,500,511	$	345,598,492

The following tables presents a roll forward of the Company’s allowance for credit losses on fixed maturity securities available for sale:


	Year Ended December 31, 2023
	U.S. Treasury Securities And Obligations of U.S. Government Agencies		Obligations of states and political subdivisions		Corporate securities including public utilities			Mortgage-backed securities		Total

Beginning balance - December 31, 2022	$	-	$	-	$	-		$	-	$	-

Additions for credit losses not previously recorded		-		-		261,500			6,049		267,549
Change in allowance on securities with previous allowance		-		-		57,764			-		57,764
Reductions for securities sold during the period		-		-		(10,764	)		-		(10,764	)
Reductions for securities with credit losses due to intent to sell		-		-		-			-		-
Write-offs charged against the allowance		-		-		-			-		-
Recoveries of amounts previously written off		-		-		-			-		-

Ending Balance - December 31, 2023	$	-	$	-	$	308,500		$	6,049	$	314,549

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The following table presents a roll forward of the Company’s cumulative other than temporary credit impairments (“OTTI”) recognized in earnings on fixed maturity securities available for sale which was required to be presented prior to the adoption of ASU 2016-13:

	2022
Balance of credit-related OTTI at January 1	$	264,977

Additions for credit impairments recognized on:
Securities not previously impaired		-
Securities previously impaired		-

Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period (realized)		(39,502	)
Securities due to an increase in expected cash flows		-

Balance of credit-related OTTI at December 31	$	225,475

The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2023, by contractual maturity. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Estimated Fair
	Cost		Value
Due in 1 year	$	-	$	-
Due in 2-5 years		168,831,608		166,186,132
Due in 5-10 years		95,804,878		95,031,727
Due in more than 10 years		85,638,077		83,900,556
Mortgage-backed securities		40,359,878		36,157,571
Redeemable preferred stock		250,000		260,000
Total	$	390,884,441	$	381,535,986

Information regarding sales of fixed maturity securities available for sale is presented as follows.

	2023			2022
	Years Ended December 31,
	2023			2022
Proceeds from sales	$	2,557,074		$	3,091,105
Gross realized gains		11,508			24,281
Gross realized losses		(57,861	)		(32,976	)

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Assets on Deposit, Held in Trust, and Pledged as Collateral

Assets on deposit with life insurance regulatory authorities as required by law were as follows:

	2023		2022
	Years Ended December 31,
	2023		2022
Fixed maturity securities available for sale at estimated fair value	$	6,206,650	$	8,817,959
Other investments		400,000		-
Cash and cash equivalents		1,909,215		2,214,206
Total assets on deposit	$	8,515,865	$	11,032,165

Assets held in trust related to third-party reinsurance agreements were as follows:

	Years Ended December 31,
	2023		2022
Fixed maturity securities available for sale at estimated fair value	$	27,903,952	$	27,955,297
Cash and cash equivalents		2,101,052		1,866,453
Total assets on deposit	$	30,005,004	$	29,821,750

The Company is a member of the Federal Home Loan Bank of Des Moines and Dallas (“FHLB”). Assets pledged as collateral with the FHLB are presented below. These pledged securities are used as collateral for any FHLB cash advances. See Note 7 of the Notes to the Consolidated Financial Statements for more information about the FHLB.

	Years Ended December 31,
	2023		2022
Fixed maturity securities available for sale at estimated fair value	$	93,903,089	$	93,034,880
Total assets pledged as collateral	$	93,903,089	$	93,034,880

Real Estate Held for Investment and Held for Sale

The Company strategically deploys resources into real estate assets to match the income and yield durations of its primary obligations. The sources for these real estate assets come through its various business segments in the form of acquisition, development, and mortgage foreclosures. The Company reports real estate held for investment and held for sale pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

Commercial Real Estate Held for Investment and Held for Sale

The Company owns and manages commercial real estate assets as a means of generating investment income. These assets are acquired in accordance with the Company’s goals and objectives for risk-adjusted returns. Due diligence is conducted on each asset using internal and third-party resources. The geographic locations and asset classes of investments are determined by senior management under the direction of the Board of Directors.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The Company employs full-time employees to attend to the day-to-day operations of those assets within the greater Salt Lake area and close surrounding markets. The Company utilizes third party property managers where the geographic location does not warrant full-time staff or through strategic lease-up periods. The Company generally looks to acquire assets that are in regions expected to have high growth in employment and population and that provide operational efficiencies.

The Company currently owns and operates nine commercial properties in three states. These properties include office buildings, flex office space, and the redevelopment and expansion of its corporate campus (“Center53”) in Salt Lake City, Utah. The Company uses bank debt in strategic cases, primarily where it is anticipated to improve yields, or facilitate the acquisition of higher quality assets or asset class diversification.

The aggregated net book value of commercial real estate serving as collateral for bank loans was $124,381,467 and $129,330,119 as of December 31, 2023 and 2022, respectively. The associated bank loan carrying values totaled $97,807,614 and $97,112,131 as of December 31, 2023 and 2022, respectively.

During 2023 and 2022, the Company did not record any impairment losses on commercial real estate held for investment or held for sale. Impairment losses, if any, are included in gains (losses) on investments and other assets on the consolidated statements of earnings.

During 2023 and 2022, the Company recorded depreciation expense on commercial real estate held for investment of $6,278,828 and $6,090,575, respectively. Commercial real estate held for investment is stated at cost and is depreciated over the estimated useful life, primarily using the straight-line method. Depreciation is included in net investment income on the consolidated statements of earnings.

The Company’s commercial real estate held for investment is summarized as follows:

	Net Book Value				Total Square Footage
	December 31,				December 31,
	2023		2022		2023		2022
Utah (1)	$	142,475,177	$	147,627,946		625,920		625,920
Louisiana		19,250		2,380,847		1,622		31,778
Mississippi (2)		-		2,881,863		-		19,694

	$	142,494,427	$	152,890,656		627,542		677,392

(1)

Includes Center53

(2)

This property was moved to held for sale

Operating leases arise from the leasing of the Company’s commercial real estate held for investment. Initial lease terms generally range from three to ten years.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease payments expected to be received.


2024	$	11,816,339
2025		11,843,124
2026		10,695,017
2027		9,198,450
2028		9,009,534
Thereafter		46,371,762
Total	$	98,934,226

The Company’s commercial real estate held for sale is summarized as follows:

	Net Book Value				Total Square Footage
	December 31,				December 31,
	2023		2022		2023		2022
Mississippi (1)	$	3,028,973	$	151,553		19,694		-

	$	3,028,973	$	151,553		19,694		-

(1)

Consists of approximately 93 acres of undeveloped land for $151,553 for 2023 and 2022. The remaining property for $2,877,420 was sold in February 2024 for a gain of approximately $250,000.

These properties are being marketed with the assistance of commercial real estate brokers in Mississippi.

Residential Real Estate Held for Investment and Held for Sale

The Company occasionally acquires a small portfolio of residential homes primarily because of loan foreclosures. The Company has the option to sell these properties or to continue to hold them for expected cash flow and price appreciation.

The Company also invests in residential subdivision development.

The Company established Security National Real Estate Services (“SNRE”) to manage its residential property portfolio. SNRE cultivates and maintains the preferred vendor relationships necessary to manage costs and quality of work performed on the Company’s entire residential property portfolio.

During 2023 and 2022, the Company recorded impairment losses on residential real estate held for sale of nil and $94,000, respectively. Impairment losses, if any, are included in gains (losses) on investments and other assets on the consolidated statements of earnings.

During 2023 and 2022, the Company recorded depreciation expense on residential real estate held for investment of $10,592 and $10,592, respectively. Residential real estate held for investment is stated at cost and is depreciated over the estimated useful life, primarily using the straight-line method. Depreciation is included in net investment income on the consolidated statements of earnings.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The Company’s residential real estate held for investment is summarized as follows:

	Net Book Value
	December 31,
	2023		2022
Utah (1)	$	40,924,865	$	38,437,960
	$	40,924,865	$	38,437,960

(1)

Includes multiple residential subdivision development projects

The following table presents additional information regarding the Company’s residential subdivision development in Utah.

	December 31,
	2023		2022
Lots available for sale		42		80
Lots to be developed		1,145		1,131
Ending Balance	$	40,739,201	$	38,241,705

The Company’s residential real estate held for sale is summarized as follows:

	Net Book Value
	December 31,
	2023		2022
Utah	$	-	$	11,010,029	(1)
	$	-	$	11,010,029

(1)

All sold in 2023

The net book value of foreclosed residential real estate included in residential real estate held for investment or sale was nil and $11,010,029 as of December 31, 2023 and 2022, respectively.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Real Estate Owned and Occupied by the Company

The primary business units of the Company occupy a portion of the commercial real estate owned by the Company. As of December 31, 2023, real estate owned and occupied by the Company is summarized as follows:

Location	Business Segment	Approximate Square Footage		Square Footage Occupied by the Company
433 Ascension Way, Floors 4, 5 and 6, Salt Lake City, UT - Center53 Building 2 (1)	Corporate Offices, Life Insurance, Cemetery/Mortuary Operations, and Mortgage Operations and Sales		221,000		50	%
1044 River Oaks Dr., Flowood, MS (1) (3)	Life Insurance Operations		19,694		28	%
1818 Marshall Street, Shreveport, LA (2)	Life Insurance Operations		12,274		100	%
909 Foisy Street, Alexandria, LA (2) (4)	Life Insurance Sales		8,059		100	%
812 Sheppard Street, Minden, LA (2) (5)	Life Insurance Sales		1,560		100	%
1550 N 3rd Street, Jena, LA (2) (3)	Life Insurance Sales		1,737		100	%

(1)

Included in real estate held for investment on the consolidated balance sheets

(2)

Included in property and equipment on the consolidated balance sheets

(3)

Listed for sale and sold during the first quarter of 2024

(4)

Listed for sale and currently under contract

(5)

Listed for sale

Mortgage Loans Held for Investment

The Company reports mortgage loans held for investment pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

Concentrations of credit risk arise when several mortgage loan debtors have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Although the Company has a diversified mortgage loan portfolio consisting of residential mortgages, commercial loans and residential construction loans and requires collateral on all real estate exposures, a substantial portion of the relevant debtors’ ability to honor obligations is dependent upon the economic stability of the geographic region in which the debtors do business or are employed. As of December 31, 2023, the Company had 44%, 11%, 10%, 7% and 6%, of its mortgage loans from borrowers located in the states of Utah, Florida, California, Texas, and Arizona, respectively. As of December 31, 2022, the Company had 64%, 10%, 5% and 5% of its mortgage loans from borrowers located in the states of Utah, Florida, California, and Texas, respectively.

Evaluation of Allowance for Credit Losses

See Note 1 regarding the adoption of ASU 2016-13.

The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the Company’s mortgage loans held for investment to present the net amount expected to be collected. The Company reports in net earnings, as a credit loss expense, the amount necessary to adjust the allowance for credit losses for the Company’s current estimate of expected credit losses on mortgage loans held for investment. This credit loss expense is included in other expenses on the condensed consolidated statements of earnings.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Once a mortgage loan is past due 90 days, it is the policy of the Company to end the accrual of interest income on the loan and reverse any interest income that had been accrued. Given this policy, the Company does not measure a credit loss allowance on accrued interest receivable. Accrued interest receivable is included in accrued investment income on the condensed consolidated balance sheets. Payments received for mortgage loans on a non-accrual status are recognized when received. The interest income recognized from payments received for mortgage loans on a non-accrual status was immaterial. Accrual of interest resumes if a mortgage loan is brought current. Interest not accrued on these loans totaled approximately $237,000 and $226,000 as of December 31, 2023 and 2022, respectively.

The Company measures expected credit losses based on the fair value of the collateral when the Company determines that foreclosure is probable. When a mortgage loan becomes delinquent, the Company proceeds to foreclose and all expenses for foreclosure are expensed as incurred. Once foreclosed, the property is classified as real estate held for investment or held for sale.

To determine the allowance for credit losses, the Company has segmented its mortgage loans held for investment by loan type. The Company’s loan types are commercial, residential, and residential construction. The inherent risks within the portfolio vary depending upon the loan type as follows:

Commercial - Underwritten in accordance with the Company’s policies to determine the borrower’s ability to repay the obligation as agreed. Commercial loans are made primarily based on the underlying collateral supporting the loan. Accordingly, the repayment of a commercial loan depends primarily on the collateral and its ability to generate income and secondarily on the borrower’s (or guarantor’s) ability to repay.

Commercial loans are evaluated for credit loss by analyzing common metrics that are predictors for future credit losses such as debt service coverage ratio (“DSCR”), loan to value (“LTV”), local market conditions, borrower quality, and underlying collateral. The fair value of the underlying collateral is based on a third-party appraisal of the property at origination of the loan. The fair value is assessed if the loan becomes 90 days delinquent. The Company uses these metrics to pool similar loans. The allowance for credit losses is based on estimates, historical experience, probability of loss, value of the underlying collateral, and other factors that affect the collectability of the loan. The Company applies a future loss factor to the outstanding balance of each group to arrive at the allowance for credit losses.

Residential — These loans are secured by first and second mortgages on single-family dwellings. The borrower’s ability to repay is sensitive to the life events and the general economic condition of the region. Where loan to value exceeds 80%, the loan is generally guaranteed by private mortgage insurance, the FHA, or VA.

Residential loans are evaluated for credit loss by using relevant available information from both internal and external sources. Among other things, the Company uses its historical delinquency information and considers current and forecasted economic conditions. External sources include a monthly analysis of its residential portfolio by a third party. The third party uses the Company’s current loan data and runs it through various models to project cash flows and provide a projected life of loan loss. The models consider loan features such as loan type, loan to value, payment status, age, and current property values. Analyzing the information from the various sources allows the Company to arrive at the allowance for credit losses.

Residential construction (including land acquisition and development) – These loans are underwritten in accordance with the Company’s underwriting policies, which include a financial analysis of the builders, borrowers (guarantors), construction cost estimates, and independent appraisal valuations, and factor in estimates of the value of construction projects upon completion. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project and the ability of the borrower to secure long-term financing.

Additionally, land acquisition and development loans are underwritten in accordance with the Company’s underwriting policies, which include independent appraisal valuations as well as the estimated value associated with the land upon completion of development into finished lots. These loans are of a higher risk than other mortgage loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term or construction financing, and interest rate sensitivity.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Residential construction mortgage loans are evaluated for credit loss by considering historical activity and current housing market trends to arrive at a per loan basis point allowance that is recognized at loan origination and for subsequent draws. The per loan basis point is reviewed at least annually or as loan losses or market trends require.

The following table presents a roll forward of the allowance for credit losses as of the dates indicated:

Schedule of Allowance for Loan Losses

	Commercial		Residential			Residential Construction			Total
December 31, 2023
Allowance for credit losses:
Beginning balance - January 1, 2023	$	187,129	$	1,739,980		$	43,202		$	1,970,311
Adoption of ASU 2016-13 (1)		555,807		(192,607	)		301,830			665,030
Change in provision for credit losses (2)		476,717		843,521			(136,926	)		1,183,312
Charge-offs		-		-			-			-
Ending balance - December 31, 2023	$	1,219,653	$	2,390,894		$	208,106		$	3,818,653

December 31, 2022
Allowance for credit losses:
Beginning balance - January 1, 2022	$	187,129	$	1,469,571		$	43,202		$	1,699,902
Change in provision for credit losses (2)		-		270,409			-			270,409
Charge-offs		-		-			-			-
Ending balance - December 31, 2022	$	187,129	$	1,739,980		$	43,202		$	1,970,311

(1)

See Note 1 of the notes to the consolidated financial statements

(2)

Included in other expenses on the consolidated statements of earnings

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The following table presents the aging of mortgage loans held for investment by loan type.

Schedule of Aging of Mortgage Loans

	Commercial			Residential			Residential Construction			Total
December 31, 2023
30-59 days past due	$	-		$	3,387,673		$	-		$	3,387,673
60-89 days past due		-			3,472,760			-			3,472,760
Over 90 days past due (1)		405,000			3,480,931			-			3,885,931
In process of foreclosure (1)		1,241,508			1,021,790			-			2,263,298
Total past due		1,646,508			11,363,154			-			13,009,662
Current		72,530,030			91,790,433			104,052,748			268,373,211
Total mortgage loans		74,176,538			103,153,587			104,052,748			281,382,873
Allowance for credit losses		(1,219,653	)		(2,390,894	)		(208,106	)		(3,818,653	)
Unamortized deferred loan fees, net		(172,989	)		(1,135,491	)		(314,746	)		(1,623,226	)
Unamortized discounts, net		(216,705	)		(107,452	)		-			(324,157	)
Net mortgage loans held for investment	$	72,567,191		$	99,519,750		$	103,529,896		$	275,616,837

December 31, 2022
30-59 days past due	$	1,000,000		$	3,553,390		$	-		$	4,553,390
60-89 days past due		-			814,184			-			814,184
Over 90 days past due (1)		-			1,286,211			-			1,286,211
In process of foreclosure (1)		405,000			876,174			-			1,281,174
Total past due		1,405,000			6,529,959			-			7,934,959
Current		44,906,955			86,825,664			172,516,125			304,248,744
Total mortgage loans		46,311,955			93,355,623			172,516,125			312,183,703
Allowance for credit losses		(187,129	)		(1,739,980	)		(43,202	)		(1,970,311	)
Unamortized deferred loan fees, net		(199,765	)		(1,212,994	)		(333,846	)		(1,746,605	)
Unamortized discounts, net		(230,987	)		(111,873	)		-			(342,860	)
Net mortgage loans held for investment	$	45,694,074		$	90,290,776		$	172,139,077		$	308,123,927

(1)

Interest income is not recognized on loans which are more than 90 days past due or in foreclosure.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Credit Quality Indicators

The Company evaluates and monitors the credit quality of its commercial loans by analyzing LTV and DSCR. Monitoring a commercial mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment.

The aggregate unpaid principal balance of commercial mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2023:

Credit Quality Indicator	2023		2022			2021		2020		2019		Prior		Total		% of Total
LTV:
Less than 65%	$	34,304,954	$	13,555,737		$	3,778,248	$	-	$	2,964,740	$	6,565,389	$	61,169,068		82.46	%
65% to 80%		1,523,926		5,115,231			1,050,000		4,913,313		-		-		12,602,470		16.99	%
Greater than 80%		-		-			405,000		-		-		-		405,000		0.55	%

Total	$	35,828,880	$	18,670,968		$	5,233,248	$	4,913,313	$	2,964,740	$	6,565,389	$	74,176,538		100.00	%

DSCR
>1.20x	$	20,990,000	$	1,000,000		$	700,000	$	4,913,313	$	2,964,740	$	2,612,625	$	33,180,678		44.73	%
1.00x - 1.20x		8,338,880		8,496,127			3,483,248		-		-		3,952,764		24,271,019		32.72	%
<1.00x		6,500,000		9,174,841⁽¹⁾	(1)		1,050,000		-		-		-		16,724,841		22.55	%

Total	$	35,828,880	$	18,670,968		$	5,233,248	$	4,913,313	$	2,964,740	$	6,565,389	$	74,176,538		100.00	%

(1)

Commercial construction loan

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The Company evaluates and monitors the credit quality of its residential mortgage loans by analyzing LTV and loan performance. The Company defines non-performing mortgage loans as loans more than 90 days past due and on a non-accrual status. Monitoring a residential mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment.

The aggregate unpaid principal balance of residential mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2023:

Credit Quality Indicator	2023		2022		2021		2020		2019		Prior		Total		% of Total
Performance Indicators:
Performing	$	15,337,828	$	53,875,389	$	7,156,934	$	7,453,796	$	2,786,562	$	12,040,357	$	98,650,866		95.63	%
Non-performing (1)		-		2,202,114		365,061		613,101		-		1,322,445		4,502,721		4.37	%

Total	$	15,337,828	$	56,077,503	$	7,521,995	$	8,066,897	$	2,786,562	$	13,362,802	$	103,153,587		100.00	%

(1)

Includes residential mortgage loans in the process of foreclosure of $1,021,790

	2023		2022		2021		2020		2019		Prior		Total		% of Total
LTV:
Less than 65%	$	3,280,144	$	7,049,522	$	1,843,286	$	1,746,970	$	446,675	$	5,206,095	$	19,572,692		18.97	%
65% to 80%		10,962,770		44,371,320		4,269,894		4,222,170		2,339,887		5,711,440		71,877,481		69.68	%
Greater than 80%		1,094,914		4,656,661		1,408,815		2,097,757		-		2,445,267		11,703,414		11.35	%

Total	$	15,337,828	$	56,077,503	$	7,521,995	$	8,066,897	$	2,786,562	$	13,362,802	$	103,153,587		100.00	%

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The company evaluates and monitors the credit quality of its residential construction loans (including land acquisition and development loans) by analyzing LTV and loan performance. Monitoring a residential construction mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment.

The aggregate unpaid principal balance of residential construction mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2023:

Credit Quality Indicator	2023		2022		2021		Total		% of Total
Performance Indicators:
Performing	$	60,311,679	$	16,624,182	$	27,116,887	$	104,052,748		100.00	%
Non-performing		-		-		-		-		0.00	%

Total	$	60,311,679	$	16,624,182	$	27,116,887	$	104,052,748		100.00	%

LTV:
Less than 65%	$	40,215,360	$	8,732,500	$	20,442,302	$	69,390,162		66.69	%
65% to 80%		20,096,319		7,891,682		6,674,585		34,662,586		33.31	%
Greater than 80%		-		-		-		-		0.00	%

Total	$	60,311,679	$	16,624,182	$	27,116,887	$	104,052,748		100.00	%

Principal Amounts Due

The following table presents the amortized cost and contractual payments on mortgage loans held for investment by category as of December 31, 2023. Expected principal payments may differ from contractual obligations because certain borrowers may elect to pay off mortgage obligations with or without early payment penalties.

			Principal		Principal		Principal
			Amounts		Amounts		Amounts
			Due in		Due in		Due
	Total		1 Year		2-5 Years		Thereafter
Residential	$	103,153,587	$	2,554,380	$	9,231,545	$	91,367,662
Residential Construction		104,052,748		88,880,893		15,171,855		-
Commercial		74,176,538		39,562,489		19,457,975		15,156,074
Total	$	281,382,873	$	130,997,762	$	43,861,375	$	106,523,736

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Insurance Assignments

The following table presents the aging of insurance assignments, included in other investments and policy loans on the condensed consolidated balance sheets:

	Years Ended December 31,
	2023			2022
30-59 days past due	$	10,829,629		$	10,621,443
60-89 days past due		3,709,754			3,997,484
Over 90 days past due		4,329,468			5,813,013
Total past due		18,868,851			20,431,941
Current		26,736,471			26,510,594
Total insurance assignments		45,605,322			46,942,536
Allowance for credit losses		(1,553,836	)		(1,609,951	)
Net insurance assignments	$	44,051,486		$	45,332,585

The Company records an allowance for credit losses when the insurance assignment is funded. Once an insurance assignment moves to 90 days or legal proceedings, it is monitored for write-off and collectability, and any adjustments to the allowance are recorded at that time. See Note 1 regarding the adoption of ASU 2016-13.

The following table presents a roll forward of the allowance for credit losses for insurance assignments:

Schedule of Allowance for Credit Losses

	Allowance
Beginning balance - January 1, 2023	$	1,609,951
Change in provision for credit losses (1)		891,959
Charge-offs		(948,074	)
Ending balance - December 31, 2023	$	1,553,836

Beginning balance - January 1, 2022	$	1,686,218
Change in provision for credit losses (1)		889,480
Charge-offs		(965,747	)
Ending balance - December 31, 2022	$	1,609,951

(1)

Included in other expenses on the consolidated statements of earnings

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Investment Related Earnings

The following table presents the net realized gains and losses from sales, calls, and maturities, unrealized gains and losses on equity securities from investments and other assets.

Schedule of Gain (Loss) on Investments

	2023			2022
	Years Ended December 31
	2023			2022
Fixed maturity securities available for sale:
Gross realized gains	$	67,686		$	205,949
Gross realized losses		(106,760	)		(43,776	)
Net credit loss (provision) release		(325,314	)		-

Equity securities:
Gains (losses) on securities sold		254,917			(10,519	)
Unrealized gains (losses) on securities held at the end of the period		1,782,219			(2,109,556	)

Real estate held for investment and sale:
Gross realized gains		197,194			1,239,332
Gross realized losses		(71,792	)		(825,593	)

Other assets, including call and put option derivatives:
Gross realized gains		214,349			686,703
Gross realized losses		(175,157	)		-
Total	$	1,837,342		$	(857,460	)

The net realized gains and losses on the sale of securities are recorded on the trade date, and the cost of the securities sold is determined using the specific identification method.

Net realized gains and losses includes gains and losses by the restricted assets and cemetery perpetual care trust investments of the cemeteries and mortuaries of $730,000 in net gains and $817,000 in net losses for 2023 and 2022, respectively.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

Major categories of net investment income were as follows:

	2023			2022
	Years Ended December 31
	2023			2022
Fixed maturity securities available for sale	$	16,871,558		$	12,395,764
Equity securities		616,989			511,118
Mortgage loans held for investment		33,242,094			34,949,763
Real estate held for investment and sale		14,786,017			14,563,269
Policy loans		816,711			932,362
Insurance assignments		18,118,391			18,112,840
Other investments		617,420			518,865
Cash and cash equivalents		4,250,029			1,666,945
Gross investment income		89,319,209			83,650,926
Investment expenses		(16,976,162	)		(17,453,334	)
Net investment income	$	72,343,047		$	66,197,592

Net investment income includes income earned by the restricted assets and cemetery perpetual care trust investments of the cemeteries and mortuaries of $2,365,378 and $2,404,277 for 2023 and 2022, respectively.

Net investment income on real estate consists primarily of rental revenue. Investment expenses consist primarily of depreciation, property taxes, operating expenses of real estate and an estimated portion of administrative expenses relating to investment activities.

Accrued Investment Income

Accrued investment income consists of the following:

Schedule of Accrued Investment Income

	2023		2022
	Years Ended December 31,
	2023		2022
Fixed maturity securities available for sale	$	3,984,695	$	3,563,767
Equity securities		20,451		14,496
Mortgage loans held for investment		2,661,092		3,220,709
Real estate held for investment		3,486,115		3,455,305
Policy Loans		-		37,951
Cash and cash equivalents		18,437		7,598
Total accrued investment income	$	10,170,790	$	10,299,826

Schedule of Gains and Losses on Derivatives (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Loan Commitments [Member]
Subsidiary, Sale of Stock [Line Items]
Gain (loss) on derivatives	$ (1,123,615)	$ (4,308,638)
Call and Put Options [Member]
Subsidiary, Sale of Stock [Line Items]
Gain (loss) on derivatives	$ 49,963	$ 202,886
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Gains (losses) on investments and other assets	Gains (losses) on investments and other assets

Schedule of Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Pre-need merchandise and services	$ 3,951,267	$ 3,780,173
At-need specialty merchandise	23,090	35,371
Pre-need land sales
Deferred policy and pre-need contract acquisition costs	$ 3,974,357	$ 3,815,544

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Schedule of Increased (Decrease) in Allowances for Credit Losses Upon ASU

	Amount
Mortgage loans held for investment:
Residential	$	(192,607	)
Residential construction		301,830
Commercial		555,807
Total		665,030

Restricted assets - mortgage loans held for investment:
Residential construction		3,463

Cemetery perpetual care trust investments - mortgage loans held for investment:
Residential construction		3,013

Grand Total		671,506

Revenues from Contracts with Customers

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

22) Revenues from Contracts with Customers

The Company reports revenues from contracts with customers pursuant to ASC No. 606, Revenue from Contracts with Customers.

Contracts with Customers

Information about Performance Obligations and Contract Balances

The Company’s cemetery and mortuary segment sells a variety of goods and services to customers in both at-need and pre-need situations. Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled. The total contract liability for future obligations is included in deferred pre-need cemetery and mortuary contract revenues on the consolidated balance sheets and, as of December 31, 2023 and 2022, the balances were $18,237,246 and $16,226,836, respectively.

The Company’s three types of future obligations are as follows:

Pre-need Merchandise and Service Revenue: All pre-need merchandise and service revenue is deferred, and the funds are placed in trust until the need arises, the merchandise is received or the service is performed. The trust is then relieved, and the revenue and commissions are recognized. As of December 31, 2023 and 2022, the balances were $17,424,764 and $15,289,901, respectively.

At-need Specialty Merchandise Revenue: At-need specialty merchandise revenue consists of customizable merchandise ordered from a manufacturer such as markers and bases. When specialty merchandise is ordered, it can take time to manufacture and deliver the product. Revenue is deferred until the at-need merchandise is received. As of December 31, 2023 and 2022, the balances were $812,482 and $936,935, respectively. Deferred revenue for at-need specialty revenue is not placed in trust.

Deferred Pre-need Land Revenue: Deferred pre-need revenue and corresponding commissions are deferred until 10% of the funds are received from the customer through regular monthly payments. As of December 31, 2023 and 2022, the balances were nil and nil, respectively. Deferred pre-need land revenue is not placed in trust.

Complete payment of the contract does not constitute fulfillment of the performance obligation. Goods or services are deferred until such a time the service is performed or merchandise is received. Pre-need contracts are required to be paid in full prior to a customer using a good or service from a pre-need contract. Goods and services from pre-need contracts can be transferred when paid in full from one owner to another. In such cases, the Company will act as an agent in transferring the requested goods and services. A transfer of goods and services does not fulfill an obligation and revenue remains deferred.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

22) Revenues from Contracts with Customers (Continued)

The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows:

	Contract Balances
	Receivables (1)		Contract Asset		Contract Liability
Opening (1/1/2023)	$	5,392,779	$	-	$	16,226,836
Closing (12/31/2023)		6,321,573		-		18,237,246
Increase/(decrease)		928,794		-		2,010,410

	Contract Balances
	Receivables (1)		Contract Asset		Contract Liability
Opening (1/1/2022)	$	5,298,636	$	-	$	14,508,022
Closing (12/31/2022)		5,392,779		-		16,226,836
Increase/(decrease)		94,143		-		1,718,814

(1)

Included in Receivables, net on the consolidated balance sheets

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

22) Revenues from Contracts with Customers (Continued)

The following table disaggregates the opening and closing balances of the Company’s contract balances.

	Contract Balances
	Contract Asset		Contract Liability
Pre-need merchandise and services	$	-	$	15,289,901
At-need specialty merchandise		-		936,935
Pre-need land sales		-		-
Opening (1/1/2023)	$	-	$	16,226,836

Pre-need merchandise and services	$	-	$	17,424,764
At-need specialty merchandise		-		812,482
Pre-need land sales		-		-
Closing (12/31/2023)	$	-	$	18,237,246

	Contract Balances
	Contract Asset		Contract Liability
Pre-need merchandise and services	$	-	$	13,722,348
At-need specialty merchandise		-		785,674
Pre-need land sales		-		-
Opening (1/1/2022)	$	-	$	14,508,022

Pre-need merchandise and services	$	-	$	15,289,901
At-need specialty merchandise		-		936,935
Pre-need land sales		-		-
Closing (12/31/2022)	$	-	$	16,226,836

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

22) Revenues from Contracts with Customers (Continued)

The amount of revenue recognized for 2023 and 2022 that was included in the opening contract liability balance was $4,539,540 and $4,588,290, respectively.

The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment.

Disaggregation of Revenue

The following table disaggregates revenue for the Company’s cemetery and mortuary contracts.

	2023		2022
	Years Ended December 31
	2023		2022
Major goods/service lines
At-need	$	19,957,735	$	21,283,237
Pre-need		7,907,076		5,710,618
Net mortuary and cemetery sales	$	27,864,811	$	26,993,855

Timing of Revenue Recognition
Goods transferred at a point in time	$	17,560,899	$	16,412,963
Services transferred at a point in time		10,303,912		10,580,892
Net mortuary and cemetery sales	$	27,864,811	$	26,993,855

Significant Judgments and Estimates

The Company’s cemetery and mortuary segment recognizes revenue on future performance obligations when goods are delivered and when services are performed and is not determined by the terms or payments of the contract as long as any good or service is paid in full prior to delivery. Prices are determined based on the market at the time a contract is created. Goods or services are not partially completed. There are no significant judgements, estimations, or allocation methods for when revenue should be recognized.

Practical Expedients

The Company has not elected to use any of the practical expedients under ASC 606.

Contract Costs

The Company’s cemetery and mortuary segment defers certain costs associated with obtaining a contract on future obligations.

Pre-need Merchandise and Service Revenue: Pre-need merchandise and service revenues are deferred until the goods or services are delivered. Recognition can be years until the obligations are satisfied. Commissions and other costs are capitalized and deferred until the obligation is satisfied. Other costs include rent on pre-need offices and training rooms, and call center costs. Costs that are allocated based on a percentage include family service advisor compensation, bonuses, utilities, and supplies that are all used to procure a pre-need sale.

At-need Specialty Merchandise Revenue: At-need specialty merchandise is ordered from a third-party manufacturer. Generally, at-need specialty merchandise is ordered and received within 90 days of order. These orders are also short-term in nature and are deferred until the product is received from the manufacturer and the obligation is satisfied.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

22) Revenues from Contracts with Customers (Continued)

Deferred Pre-need Land Revenue: Revenue is recognized on pre-need land sales when the customer has paid at least 10% toward the land price. In cases where customers pay less than 10% the revenue and associated commissions are deferred until such a time when 10% of the contract price is received.

The following table disaggregates contract costs that are included in the deferred policy and pre-need contract acquisition costs on the consolidated balances sheets.

	2023		2022
	Years Ended December 31
	2023		2022
Pre-need merchandise and services	$	3,951,267	$	3,780,173
At-need specialty merchandise		23,090		35,371
Pre-need land sales		-		-
	$	3,974,357	$	3,815,544

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Assets
Future policy benefits	$ 14,902,816	$ 14,605,453
Loan loss reserve	142,281	448,673
Unearned premium	534,203	582,459
Net operating loss	1,050,770	237,855
Deferred compensation	2,138,385	2,166,593
Tax on unrealized appreciation	491,271	2,590,726
Other	917,335	601,335
Less: Valuation allowance		(1,506,144)
Total deferred tax assets	20,177,061	19,726,950
Liabilities
Deferred policy acquisition costs	18,478,562	17,511,778
Basis difference in property, equipment and real estate	11,054,092	11,959,391
Value of business acquired	1,778,199	2,058,785
Deferred gains	1,308,365	1,490,946
Trusts	1,064,387	1,064,387
Total deferred tax liabilities	33,683,605	34,085,287
Net deferred tax liability	$ 13,506,544	$ 14,358,337

Schedule of Assumptions Used (Details)

12 Months Ended

Dec. 31, 2023

$ / shares

All Plans December 1, 2023 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Weighted Average Fair Value of Each Option

$ 1.88

Expected Dividend Yield

5.00%

^[1]

Underlying stock FMV

$ 7.99

Weighted Average Volatility

36.76%

Weighted Average Risk Free Interest Rate

4.14%

Weighted Average Expected Life (Term)

4 years 10 months 24 days

All Plans January 30, 2023 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Weighted Average Fair Value of Each Option

$ 1.65

Expected Dividend Yield

5.00%

^[1]

Underlying stock FMV

$ 7.10

Weighted Average Volatility

36.73%

Weighted Average Risk Free Interest Rate

3.64%

Weighted Average Expected Life (Term)

5 years 3 months 21 days

All Plans January 18, 2023 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Weighted Average Fair Value of Each Option

$ 1.70

Expected Dividend Yield

5.00%

^[1]

Underlying stock FMV

$ 7.37

Weighted Average Volatility

36.79%

Weighted Average Risk Free Interest Rate

3.40%

Weighted Average Expected Life (Term)

5 years 3 months 21 days

All Plans December 2, 2022 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Weighted Average Fair Value of Each Option

$ 1.48

Expected Dividend Yield

5.00%

^[1]

Underlying stock FMV

$ 6.48

Weighted Average Volatility

37.03%

Weighted Average Risk Free Interest Rate

3.69%

Weighted Average Expected Life (Term)

4 years 10 months 17 days

[1]	Stock dividend

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis

The following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the consolidated balance sheet as of December 31, 2023.

	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturity securities available for sale	$	381,535,986		$	-	$	380,297,330	$	1,238,656
Equity securities		13,636,071			13,636,071		-		-
Loans held for sale		126,549,190			-		-		126,549,190
Restricted assets (1)		1,853,860			-		1,853,860		-
Restricted assets (2)		7,385,203			7,385,203		-		-
Cemetery perpetual care trust investments (1)		641,704			-		641,704		-
Cemetery perpetual care trust investments (2)		4,327,301			4,327,301		-		-
Derivatives - loan commitments (3)		4,995,486			-		-		4,995,486
Total assets accounted for at fair value on a recurring basis	$	540,924,801		$	25,348,575	$	382,792,894	$	132,783,332

Liabilities accounted for at fair value on a recurring basis
Derivatives - loan commitments (4)	$	(3,412,224	)	$	-	$	-	$	(3,412,224	)
Total liabilities accounted for at fair value on a recurring basis	$	(3,412,224	)	$	-	$	-	$	(3,412,224	)

(1)

Fixed maturity securities available for sale

(2)

Equity securities

(3)

Included in other assets on the consolidated balance sheets

(4)

Included in other liabilities and accrued expenses on the consolidated balance sheets

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturity securities available for sale	$	345,858,492		$	-		$	344,422,973	$	1,435,519
Equity securities		11,682,526			11,682,526			-		-
Loans held for sale		141,179,620			-			-		141,179,620
Restricted assets (1)		1,217,308			-			1,217,308		-
Restricted assets (2)		5,348,244			5,348,244			-		-
Cemetery perpetual care trust investments (1)		254,731			-			254,731		-
Cemetery perpetual care trust investments (2)		3,605,162			3,605,162			-		-
Derivatives - loan commitments (3)		4,089,856			-			-		4,089,856
Total assets accounted for at fair value on a recurring basis	$	513,235,939		$	20,635,932		$	345,895,012	$	146,704,995

Liabilities accounted for at fair value on a recurring basis
Derivatives - call options (4)	$	(29,715	)	$	(29,715	)	$	-	$	-
Derivatives - put options (4)		(13,888	)		(13,888	)		-		-
Derivatives - loan commitments (4)		(1,382,979	)		-			-		(1,382,979	)
Total liabilities accounted for at fair value on a recurring basis	$	(1,426,582	)	$	(43,603	)	$	-	$	(1,382,979	)

(1)

Fixed maturity securities available for sale

(2)

Equity securities

(3)

Included in other assets on the consolidated balance sheets

(4)

Included in other liabilities and accrued expenses on the consolidated balance sheets

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

				Significant	Range of Inputs
	Fair Value at		Valuation	Unobservable	Minimum			Maximum			Weighted
	12/31/2023		Technique	Input(s)	Value			Value			Average
Loans held for sale	$	126,549,190	Market approach	Investor contract pricing as a percentage of unpaid principal balance		70.0	%		121.0	%		100.0	%

Derivatives - loan commitments (net)		1,583,262	Market approach	Pull-through rate		70.0	%		99.0	%		86.0	%
				Initial-Value		N/A			N/A			N/A
				Servicing		0 bps			119 bps			49 bps

Fixed maturity securities available for sale		1,238,656	Broker quotes	Pricing quotes	$	98.40		$	102.46		$	99.86

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

				Significant	Range of Inputs
	Fair Value at		Valuation	Unobservable	Minimum			Maximum			Weighted
	12/31/2022		Technique	Input(s)	Value			Value			Average
Loans held for sale	$	141,179,620	Market approach	Investor contract pricing as a percentage of unpaid principal balance		69.9	%		106.1	%		99.8	%

Derivatives - loan commitments (net)		2,706,877	Market approach	Pull-through rate		65.0	%		95.0	%		82.2	%
				Initial-Value		N/A			N/A			N/A
				Servicing		0 bps			153 bps			73 bps

Fixed maturity securities available for sale		1,435,519	Broker quotes	Pricing quotes	$	100.00		$	111.11		$	104.97

Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs

The following table is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs:

	Net Derivatives Loan Commitments			Loans Held for Sale			Fixed Maturity Securities Available for Sale

Balance - December 31, 2022	$	2,706,877		$	141,179,620		$	1,435,519
Originations/purchases		-			2,173,080,584			-
Sales, maturities and paydowns		-			(2,224,454,040	)		(129,521	)
Transfer to mortgage loans held for investment		-			(3,017,626	)		-
Total gains (losses):
Included in earnings		(1,123,615	)(1)		39,760,652	(1)		(108	)(2)
Included in other comprehensive income		-			-			(67,234	)

Balance - December 31, 2023	$	1,583,262		$	126,549,190		$	1,238,656

(1)

As a component of mortgage fee income on the consolidated statements of earnings

(2)

As a component of net investment income on the consolidated statements of earnings

The following table is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs:

	Net Derivatives Loan Commitments			Loans Held for Sale			Fixed Maturity Securities Available for Sale

Balance - December 31, 2021	$	7,015,515		$	302,776,827		$	2,023,348
Originations/purchases		-			3,373,554,484			-
Sales, maturities and paydowns		-			(3,549,405,402	)		(528,980	)
Transfer to mortgage loans held for investment		-			(51,691,213	)		-
Total gains (losses):
Included in earnings		(4,308,638	)(1)		65,944,924 (1)			1,957 (2)
Included in other comprehensive income		-			-			(60,806	)

Balance - December 31, 2022	$	2,706,877		$	141,179,620		$	1,435,519

(1)

As a component of mortgage fee income on the consolidated statements of earnings

(2)

As a component of net investment income on the consolidated statements of earnings

Schedule of Fair Value Assets Measured on a Nonrecurring Basis

The following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the consolidated balance sheet as of December 31, 2022.

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a nonrecurring basis
Impaired mortgage loans held for investment	$	794,224	$	-	$	-	$	794,224
Total assets accounted for at fair value on a nonrecurring basis	$	794,224	$	-	$	-	$	794,224

Schedule of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2023:

	Carrying Value			Level 1		Level 2		Level 3			Total Estimated Fair Value
Assets
Mortgage loans held for investment
Residential	$	99,519,750		$	-	$	-	$	96,998,106		$	96,998,106
Residential construction		103,529,896			-		-		103,529,896			103,529,896
Commercial		72,567,191			-		-		72,149,530			72,149,530
Mortgage loans held for investment, net	$	275,616,837		$	-	$	-	$	272,677,532		$	272,677,532
Policy loans		13,264,183			-		-		13,264,183			13,264,183
Insurance assignments, net (1)		44,051,486			-		-		44,051,486			44,051,486
Restricted assets (2)		675,219			-		-		675,219			675,219
Cemetery perpetual care trust investments (2)		246,865			-		-		246,865			246,865
Mortgage servicing rights, net		3,461,146			-		-		4,543,657			4,543,657

Liabilities
Bank and other loans payable	$	(105,555,137	)	$	-	$	-	$	(105,555,137	)	$	(105,555,137	)
Policyholder account balances (3)		(39,245,123	)		-		-		(48,920,691	)		(48,920,691	)
Future policy benefits - annuities (3)		(106,285,010	)		-		-		(102,177,585	)		(102,177,585	)

(1)

Included in other investments and policy loans on the consolidated balance sheets

(2)

Mortgage loans held for investment

(3)

Included in future policy benefits and unpaid claims on the consolidated balance sheets

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2022:

	Carrying Value			Level 1		Level 2		Level 3			Total Estimated Fair Value
Assets
Mortgage loans held for investment
Residential	$	90,290,776		$	-	$	-	$	88,575,293		$	88,575,293
Residential construction		172,139,077			-		-		172,139,077			172,139,077
Commercial		45,694,074			-		-		44,079,537			44,079,537
Mortgage loans held for investment, net	$	308,123,927		$	-	$	-	$	304,793,907		$	304,793,907
Policy loans		13,095,473			-		-		13,095,473			13,095,473
Insurance assignments, net (1)		45,332,585			-		-		45,332,585			45,332,585
Restricted assets (2)		1,731,469			-		-		1,731,469			1,731,469
Cemetery perpetual care trust investments (2)		1,506,517			-		-		1,506,517			1,506,517
Mortgage servicing rights, net		3,039,765			-		-		3,927,877			3,927,877

Liabilities
Bank and other loans payable	$	(161,712,804	)	$	-	$	-	$	(161,712,804	)	$	(161,712,804	)
Policyholder account balances (3)		(41,146,171	)		-		-		(42,181,089	)		(42,181,089	)
Future policy benefits - annuities (3)		(106,637,094	)		-		-		(126,078,031	)		(126,078,031	)

(1)

Included in other investments and policy loans on the consolidated balance sheets

(2)

Mortgage loans held for investment

(3)

Included in future policy benefits and unpaid claims on the consolidated balance sheets

Schedule of Other Revenues (Details) - USD ($)	9 Months Ended	12 Months Ended
Schedule of Other Revenues (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Contractual servicing fees		$ 1,144,540	$ 15,792,105
Late Fee Income, Servicing Financial Asset, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other revenues		Other revenues
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other revenues		Other revenues
Late fees		97,300	$ 398,754
Total		$ 1,241,840	$ 16,190,859

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Total	$ 3,002,667	$ 3,256,667
Mortgage Servicing Rights [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
2024	390,131
2025	342,170
2026	306,597
2027	271,773
2028	242,596
Thereafter	1,907,879
Total	$ 3,461,146

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

General Overview of Business

General Overview of Business

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”).

Principles of Consolidation

Principles of Consolidation

Use of Estimates

Use of Estimates

Investments

Investments

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Real estate held for sale is carried at lower of cost or fair value, less estimated costs to sell. Depreciation is not recognized on real estate classified as held for sale.

Other investments and policy loans are carried at the aggregate unpaid balances, less allowances for credit losses.

Accrued investment income refers to earned income from investments that has not yet been received by the Company.

Cash and Cash Equivalents

Cash and Cash Equivalents

Loans Held for Sale

Loans Held for Sale

Mortgage Fee Income

Mortgage Fee Income

	●	Failure to deliver original documents specified by the investor,
	●	The existence of misrepresentation or fraud in the origination of the loan,
	●	The loan becomes delinquent due to nonpayment during the first several months after it is sold,
	●	Early pay-off of a loan, as defined by the agreements,
	●	Excessive time to settle a loan,
	●	Investor declines purchase, and
	●	Discontinued product and expired commitment.

	●	Research reasons for rejection,
	●	Provide additional documents,
	●	Request investor exceptions,
	●	Appeal rejection decision to purchase committee, and
	●	Commit to secondary investors.

Determining Fair Value

Determining Fair Value

	●	For loans that are committed, the Company uses the commitment price.
	●	For loans that are non-committed that have an active market, the Company uses the market price.
	●	For loans that are non-committed where there is no market but there is a similar product, the Company uses the market value for the similar product.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

●

Most loans originated are sold to third-party investors. The amounts expected to be sold to investors are shown on the consolidated balance sheets as loans held for sale.

Loan Loss Reserve

Loan Loss Reserve

Repurchase demand — A repurchase demand usually occurs when there is a significant payment default, error in underwriting or detected loan fraud.

Indemnification demand — On certain loans the Company has negotiated a set fee that is to be paid in lieu of repurchase. The fee varies by investor and by loan product type.

The Company believes the allowance for loan losses and the loan loss reserve represent probable loan losses incurred as of the balance sheet date.

Additional information related to the Loan Loss Reserve is included in Note 3.

Restricted Assets

Restricted Assets

Cemetery Perpetual Care Trust Investments

Cemetery Perpetual Care Trust Investments

Cemetery Land and Improvements

Deferred Policy Acquisition Costs and Value of Business Acquired

Deferred Policy Acquisition Costs and Value of Business Acquired

Value of business acquired (“VOBA”) is the present value of estimated future profits of the acquired business and is amortized like deferred policy acquisition costs.

Premium Deficiency and Loss Recognition Testing

Premium Deficiency and Loss Recognition Testing

Mortgage Servicing Rights

Mortgage Servicing Rights

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Property and Equipment

Property and Equipment

Long-lived Assets

Derivative Instruments

Derivative Instruments

Mortgage Banking Derivatives

Loan Commitments

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Forward Sale Commitments

Call and Put Option Derivatives

Allowances for Credit Losses

Allowances for Credit Losses

Future Policy Benefits and Unpaid Claims

Participating Insurance

Participating Insurance

Recognition of Insurance Premiums and Other Considerations

Recognition of Insurance Premiums and Other Considerations

Reinsurance

Reinsurance

Pre-need Sales and Costs

Pre-need Sales and Costs

Sales of cemetery interment rights (cemetery burial property) - revenue and costs associated with the sale of cemetery interment rights are deferred until 10% of the sales price has been collected.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

1) Significant Accounting Policies (Continued)

Goodwill

Goodwill

Other Intangibles

Other Intangibles

Income Taxes

Income Taxes

Earnings Per Common Share

Earnings Per Common Share

Stock Based Compensation

Stock Based Compensation

Concentration of Credit Risk

Advertising

Advertising

The Company expenses advertising costs as incurred.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted in 2023

	Amount
Mortgage loans held for investment:
Residential	$	(192,607	)
Residential construction		301,830
Commercial		555,807
Total		665,030

Restricted assets - mortgage loans held for investment:
Residential construction		3,463

Cemetery perpetual care trust investments - mortgage loans held for investment:
Residential construction		3,013

Grand Total		671,506

Accounting Standards Issued But Not Yet Adopted

The Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company’s results of operations or financial position.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets

12 Months Ended

Dec. 31, 2023

Cemetery Perpetual Care Trust Investments And Obligation And Restricted Assets

Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets

Cemetery Perpetual Care Trust Investments and Obligation

State law requires the Company to pay into endowment care trusts a portion of the proceeds from the sale of certain cemetery property interment rights for cemeteries that have established an endowment care trust. These endowment care trusts are defined as Variable Interest Entities pursuant to GAAP. The Company is the primary beneficiary of these trusts, as it absorbs both the losses and any expenses associated with the trusts. The Company has consolidated cemetery endowment care trust investments with a corresponding amount recorded as Cemetery Perpetual Care Obligation in the accompanying consolidated balance sheets.

The components of the cemetery perpetual care investments and obligation as of December 31, 2023 are as follows:

Schedule of Investments

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2023:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	477,797		$	302	$	(574	)	$	477,525
Obligations of states and political subdivisions		115,792			-		(5,114	)		110,678
Corporate securities including public utilities		53,672			-		(171	)		53,501
Total fixed maturity securities available for sale	$	647,261		$	302	$	(5,859	)	$	641,704

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$	3,614,392		$	859,680	$	(146,771	)	$	4,327,301
Total equity securities at estimated fair value	$	3,614,392		$	859,680	$	(146,771	)	$	4,327,301

Mortgage loans held for investment at amortized cost:
Residential construction	$	247,360
Less: Allowance for credit losses		(495	)
Total mortgage loans held for investment	$	246,865

Cash and cash equivalents	$	2,867,047

Total cemetery perpetual care trust investments	$	8,082,917

Cemetery perpetual care obligation	$	(5,326,196	)

Trust investments in excess of trust obligations	$	2,756,721

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Continued)

The components of the cemetery perpetual care investments and obligation as of December 31, 2022 are as follows:

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2022:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	89,004		$	42	$	(38	)	$	89,008
Obligations of states and political subdivisions		174,201			-		(8,478	)		165,723
Total fixed maturity securities available for sale	$	263,205		$	42	$	(8,516	)	$	254,731

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$	3,195,942		$	584,383	$	(175,163	)	$	3,605,162
Total equity securities at estimated fair value	$	3,195,942		$	584,383	$	(175,163	)	$	3,605,162

Mortgage loans held for investment at amortized cost:
Residential construction	$	1,506,517

Real estate held for investment: Residential	$	(16,178	)

Cash and cash equivalents	$	1,925,978

Total cemetery perpetual care trust investments	$	7,276,210

Cemetery perpetual care obligation	$	(5,099,542	)

Trust investments in excess of trust obligations	$	2,176,668

Fixed Maturity Securities

The table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as of December 31, 2023 and 2022. The unrealized losses were primarily related to interest rate fluctuations. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities:

	Unrealized Losses for Less than Twelve Months		Fair Value		Unrealized Losses for More than Twelve Months		Fair Value		Total Unrealized Loss		Fair Value
At December 31, 2023
U.S. Treasury securities and obligations of U.S. Government agencies	$	574	$	143,448	$	-	$	-	$	574	$	143,448
Obligations of states and political subdivisions		-		-		5,114		110,678		5,114		110,678
Corporate securities including public utilities		-		-		171		53,501		171		53,501
Total unrealized losses	$	574	$	143,448	$	5,285	$	164,179	$	5,859	$	307,627

At December 31, 2022
U.S. Treasury securities and obligations of U.S. Government agencies	$	38	$	59,392	$	-	$	-	$	38	$	59,392
Obligations of states and political subdivisions		1,845		94,612		6,633		71,112		8,478		165,724
Total unrealized losses	$	1,883	$	154,004	$	6,633	$	71,112	$	8,516	$	225,116

Relevant holdings were comprised of four securities with fair values aggregating 98.1% of aggregate amortized cost as of December 31, 2023. There were five securities with fair values aggregating 96.4% of aggregate amortized cost as of December 31, 2022. No credit losses have been recognized for 2023 and 2022, since the increase in unrealized losses is primarily a result of increases in interest rates. See Note 2 for additional information regarding the Company’s evaluation of the allowance for credit losses for fixed maturity securities available for sale.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Continued)

The table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of December 31, 2023, by contractual maturity. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Estimated Fair
	Cost		Value
Due in 1 year	$	333,775	$	334,077
Due in 2-5 years		259,814		254,126
Due in 5-10 years		-		-
Due in more than 10 years		53,672		53,501
Total	$	647,261	$	641,704

Restricted Assets

The Company has also established certain restricted assets to provide for future merchandise and service obligations incurred in connection with its pre-need sales for its cemetery and mortuary segment.

Restricted cash also represents escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company elected to maintain its medical benefit fund without change from the prior year and has included this amount as a component of restricted cash. These restricted cash items are for the Company’s life insurance and mortgage segments.

Restricted assets as of December 31, 2023 are summarized as follows:

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2023:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	932,737		$	1,433	$	(1,000	)	$	933,170
Obligations of states and political subdivisions		652,770			305		(4,542	)		648,533
Corporate securities including public utilities		274,688			209		(2,740	)		272,157
Total fixed maturity securities available for sale	$	1,860,195		$	1,947	$	(8,282	)	$	1,853,860

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$	6,516,044		$	1,117,155	$	(247,996	)	$	7,385,203
Total equity securities at estimated fair value	$	6,516,044		$	1,117,155	$	(247,996	)	$	7,385,203

Mortgage loans held for investment at amortized cost:
Residential construction	$	676,572
Less: Allowance for credit losses		(1,353	)
Total mortgage loans held for investment	$	675,219

Cash and cash equivalents (1)	$	10,114,694

Total restricted assets	$	20,028,976

(1)

Including cash and cash equivalents of $6,930,933 for the life insurance and mortgage segments.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Continued)

Restricted assets as of December 31, 2022 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2022:
Fixed maturity securities, available for sale, at estimated fair value:
Obligations of states and political subdivisions	$	1,033,047	$	866	$	(15,360	)	$	1,018,553
Corporate securities including public utilities		201,771		-		(3,016	)		198,755
Total fixed maturity securities available for sale	$	1,234,818	$	866	$	(18,376	)	$	1,217,308

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$	4,955,360	$	703,049	$	(310,165	)	$	5,348,244
Total equity securities at estimated fair value	$	4,955,360	$	703,049	$	(310,165	)	$	5,348,244

Mortgage loans held for investment at amortized cost:
Residential construction	$	1,731,469
Cash and cash equivalents (1)	$	10,638,034

Total restricted assets	$	18,935,055

(1)

Including cash and cash equivalents of $8,527,620 for the life insurance and mortgage segments.

A surplus note receivable in the amount of $4,000,000 at December 31, 2023 and 2022, from Security National Life, was eliminated in consolidation.

Fixed Maturity Securities

	Unrealized Losses for Less than Twelve Months		Fair Value		Unrealized Losses for More than Twelve Months		Fair Value		Total Unrealized Loss		Fair Value
At December 31, 2023
U.S. Treasury securities and obligations of U.S. Government agencies	$	1,000	$	249,877	$	-	$	-	$	1,000	$	249,877
Obligations of states and political subdivisions		-		-		4,542		451,985		4,542		451,985
Corporate securities including public utilities		-		-		2,740		221,334		2,740		221,334
Total unrealized losses	$	1,000	$	249,877	$	7,282	$	673,319	$	8,282	$	923,196

At December 31, 2022
Obligations of states and political subdivisions	$	11,891	$	760,255	$	3,469	$	58,072	$	15,360	$	818,327
Corporate securities including public utilities		3,016		198,755		-		-		3,016		198,755
Total unrealized losses	$	14,907	$	959,010	$	3,469	$	58,072	$	18,376	$	1,017,082

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Continued)

Relevant holdings were comprised of 12 securities with fair values aggregating 99.1% of aggregate amortized cost as of December 31, 2023. Relevant holdings were comprised of 17 securities with fair values aggregating of 98.2% of aggregate amortized cost at December 31, 2022. No credit losses have been recognized for 2023 and 2022, since the increase in unrealized losses is primarily a result of increases in interest rates. See Note 3 for additional information regarding the Company’s evaluation of the allowance for credit losses for fixed maturity securities available for sale.

	Amortized		Estimated Fair
	Cost		Value
Due in 1 year	$	681,860	$	683,293
Due in 2-5 years		462,189		457,618
Due in 5-10 years		147,422		147,121
Due in more than 10 years		568,724		565,828
Total	$	1,860,195	$	1,853,860

See Notes 1, 2 and 17 for additional information regarding restricted assets and cemetery perpetual care trust investments.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Schedule of Allowance for Credit Losses on Fixed Maturity Securities Available for Sale (Details)	12 Months Ended
	Dec. 31, 2023 USD ($)
Impairment Effects on Earnings Per Share [Line Items]
Beginning balance - December 31, 2022
Additions for credit losses not previously recorded	267,549
Change in allowance on securities with previous allowance	57,764
Reductions for securities sold during the period	(10,764)
Reductions for securities with credit losses due to intent to sell
Write-offs charged against the allowance
Recoveries of amounts previously written off
Ending Balance - December 31, 2023	314,549
US Treasury Securities [Member]
Impairment Effects on Earnings Per Share [Line Items]
Beginning balance - December 31, 2022
Additions for credit losses not previously recorded
Change in allowance on securities with previous allowance
Reductions for securities sold during the period
Reductions for securities with credit losses due to intent to sell
Write-offs charged against the allowance
Recoveries of amounts previously written off
Ending Balance - December 31, 2023
US States and Political Subdivisions Debt Securities [Member]
Impairment Effects on Earnings Per Share [Line Items]
Beginning balance - December 31, 2022
Additions for credit losses not previously recorded
Change in allowance on securities with previous allowance
Reductions for securities sold during the period
Reductions for securities with credit losses due to intent to sell
Write-offs charged against the allowance
Recoveries of amounts previously written off
Ending Balance - December 31, 2023
Corporate Debt Securities [Member]
Impairment Effects on Earnings Per Share [Line Items]
Beginning balance - December 31, 2022
Additions for credit losses not previously recorded	261,500
Change in allowance on securities with previous allowance	57,764
Reductions for securities sold during the period	(10,764)
Reductions for securities with credit losses due to intent to sell
Write-offs charged against the allowance
Recoveries of amounts previously written off
Ending Balance - December 31, 2023	308,500
Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises [Member]
Impairment Effects on Earnings Per Share [Line Items]
Beginning balance - December 31, 2022
Additions for credit losses not previously recorded	6,049
Change in allowance on securities with previous allowance
Reductions for securities sold during the period
Reductions for securities with credit losses due to intent to sell
Write-offs charged against the allowance
Recoveries of amounts previously written off
Ending Balance - December 31, 2023	$ 6,049

Consolidated Statements of Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net earnings	$ 14,495,058	$ 25,690,302
Other comprehensive income:
Unrealized gains (losses) on fixed maturity securities available for sale	7,814,324	(39,331,688)
Unrealized gains (losses) on restricted assets	11,175	(71,035)
Unrealized gains (losses) on cemetery perpetual care trust investments	2,917	(20,446)
Other comprehensive income (loss), before income tax	7,828,416	(39,423,169)
Income tax benefit (expense)	(1,643,697)	8,282,444
Other comprehensive income (loss), net of income tax	6,184,719	(31,140,725)
Comprehensive income (loss)	$ 20,679,777	$ (5,450,423)

Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Current
Federal	$ 4,091,306	$ 15,346,331
State	209,537	3,294,234
Total Current Income Tax Expense (Benefit)	4,300,843	18,640,565
Deferred
Federal	(2,139,124)	(7,400,620)
State	(356,365)	(2,553,385)
Total Deferred Income Tax Expense (Benefit)	(2,495,489)	(9,954,005)
Total	$ 1,805,354	$ 8,686,560

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Guarantor Obligations [Line Items]
Amortized cost	$ 390,884,441	$ 362,750,511
Estimated fair value	381,535,986	345,858,492
National Association of Insurance Commissioners [Member]
Guarantor Obligations [Line Items]
Amortized cost	390,634,441	362,500,511
Estimated fair value	381,275,986	345,598,492
NAIC, Class 1 Designation [Member]
Guarantor Obligations [Line Items]
Amortized cost	221,933,425	197,753,818
Estimated fair value	216,975,288	189,691,540
NAIC, Class 2 Designation [Member]
Guarantor Obligations [Line Items]
Amortized cost	161,062,016	156,261,804
Estimated fair value	157,346,803	148,073,873
NAIC, Class 3 Designation [Member]
Guarantor Obligations [Line Items]
Amortized cost	6,418,829	7,080,305
Estimated fair value	5,953,542	6,635,786
NAIC, Class 4 Designation [Member]
Guarantor Obligations [Line Items]
Amortized cost	982,290	1,377,541
Estimated fair value	948,478	1,157,454
NAIC, Class 5 Designation [Member]
Guarantor Obligations [Line Items]
Amortized cost	236,648	25,736
Estimated fair value	51,875	39,155
NAIC, Class 6 Designation [Member]
Guarantor Obligations [Line Items]
Amortized cost	1,233	1,307
Estimated fair value		$ 684

Schedule of Opening and Closing Balances of the Assets and Liabilities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Contract asset, beginning balance
Contract liability, beginning balance	16,226,836	14,508,022
Contract asset, ending balance
Contract liability, ending balance	18,237,246	16,226,836
Pre-need Merchandise and Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Contract asset, beginning balance
Contract liability, beginning balance	15,289,901	13,722,348
Contract asset, ending balance
Contract liability, ending balance	17,424,764	15,289,901
At-need Specialty Merchandise Revenue [Member]
Disaggregation of Revenue [Line Items]
Contract asset, beginning balance
Contract liability, beginning balance	936,935	785,674
Contract asset, ending balance
Contract liability, ending balance	812,482	936,935
Pre-need Land Sales [Member]
Disaggregation of Revenue [Line Items]
Contract asset, beginning balance
Contract liability, beginning balance
Contract asset, ending balance
Contract liability, ending balance

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Schedule of Value of Business Acquired (Details) (Parenthethical)	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Debt instrument, interest rate, stated percentage	7.00%	7.00%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Summary of Income Tax Liability

The Company’s income tax liability is summarized as follows:

Summary of Income Tax Liability

	2023		2022
	December 31,
	2023		2022
Current	$	246,437	$	16,352,190
Deferred		13,506,544		14,358,337
Total	$	13,752,981	$	30,710,527

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are approximately as follows:

	2023		2022
	December 31,
	2023		2022
Assets
Future policy benefits	$	14,902,816	$	14,605,453
Loan loss reserve		142,281		448,673
Unearned premium		534,203		582,459
Net operating loss		1,050,770		237,855
Deferred compensation		2,138,385		2,166,593
Tax on unrealized appreciation		491,271		2,590,726
Other		917,335		601,335
Less: Valuation allowance		-		(1,506,144	)
Total deferred tax assets		20,177,061		19,726,950

Liabilities
Deferred policy acquisition costs		18,478,562		17,511,778
Basis difference in property, equipment and real estate		11,054,092		11,959,391
Value of business acquired		1,778,199		2,058,785
Deferred gains		1,308,365		1,490,946
Trusts		1,064,387		1,064,387
Total deferred tax liabilities		33,683,605		34,085,287
Net deferred tax liability	$	13,506,544	$	14,358,337

Schedule of Components of Income Tax Expense (Benefit)

The Company’s income tax expense is summarized as follows:

	2023			2022
	December 31,
	2023			2022
Current
Federal	$	4,091,306		$	15,346,331
State		209,537			3,294,234
		4,300,843			18,640,565

Deferred
Federal		(2,139,124	)		(7,400,620	)
State		(356,365	)		(2,553,385	)
		(2,495,489	)		(9,954,005	)
Total	$	1,805,354		$	8,686,560

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income tax expense at the U.S. federal statutory rates is as follows:

	2023			2022
	December 31,
	2023			2022
Computed expense at statutory rate	$	3,423,086		$	7,219,141
State tax expense (benefit), net of federal tax benefit		(115,994	)		585,269
Change in valuation allowance		(1,506,144	)		623,609
Other, net		4,406			258,541
Income tax expense	$	1,805,354		$	8,686,560

Summary of Operating Loss Carryforwards

Net Operating Losses and Tax Credit Carryforwards:

Year of Expiration
2024	$	-
2025		-
2026		-
2027		-
2028		-
Thereafter up through 2038		903,042
Indefinite carryforwards		2,396,389
	$	3,299,431

Future Policy Benefits and Unpaid Claims

12 Months Ended

Dec. 31, 2023

Insurance [Abstract]

Future Policy Benefits and Unpaid Claims

21) Future Policy Benefits and Unpaid Claims

The Company reports future policy benefits and unpaid claims pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

The following table provides information regarding future policy benefits and unpaid claims and the related receivable from reinsurers.

	December 31,
	2023		2022
Life	$	756,936,902	$	726,462,594
Annuities		106,285,010		106,637,094
Policyholder account balances		39,245,123		41,146,171
Accident and health		572,689		603,526
Other policyholder funds		4,411,108		4,279,218
Reported but unpaid claims		3,525,774		5,651,030
Incurred but not reported claims		5,062,010		4,547,670

Gross future policy benefits and unpaid claims	$	916,038,616	$	889,327,303

Receivable from reinsurers

Life		10,478,863		10,600,613
Annuities		4,238,934		4,225,873
Accident and health		77,917		79,467
Reported but unpaid claims		48,345		110,985
Incurred but not reported claims		13,000		17,000

Total receivable from reinsurers		14,857,059		15,033,938

Net future policy benefits and unpaid claims	$	901,181,557	$	874,293,365

Net unpaid claims	$	8,526,439	$	10,070,715

The following table provides a roll forward of the Company’s liability for reported but unpaid claims and incurred but not reported claims, net of the related receivable from reinsurers.

	Life			Annuities			Accident and Health			Total
Balance at 12/31/2021	$	8,015,101		$	678,378		$	104,504		$	8,797,983
Incurred		59,377,962	(1)		13,987,576	(2)		40,744	(3)		73,406,282
Settled		(57,988,800	)		(14,016,502	)		(128,248	)		(72,133,550	)
Balance at 12/31/2022		9,404,263			649,452			17,000			10,070,715
Incurred		61,390,517	(1)		12,669,463	(2)		30,408	(3)		74,090,388
Settled		(62,665,619	)		(12,939,637	)		(29,408	)		(75,634,664	)
Balance at 12/31/2023	$	8,129,161		$	379,278		$	18,000		$	8,526,439

(1)

See death benefits on the consolidated statements of earnings

(2)

Included in increase in future benefits on the consolidated statements of earnings

(3)

Included in surrender and other policy benefits on the consolidated statements of earnings

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Derivative Instruments

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

19) Derivative Instruments

The Company reports derivative instruments pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

The following table shows the fair value and notional amounts of derivative instruments.

		December 31, 2023						December 31, 2022
	Balance Sheet Location	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives not designated as hedging instruments:
Loan commitments	Other assets and Other liabilities	$	161,832,250	$	4,995,486	$	3,412,224	$	453,371,808	$	4,089,856	$	1,382,979
Call options	Other liabilities		-		—		-		868,600		—		29,715
Put options	Other liabilities		-		—		-		654,500		—		13,888
Total		$	161,832,250	$	4,995,486	$	3,412,224	$	454,894,908	$	4,089,856	$	1,426,582

The following table presents the gains (losses) on derivatives. There were no gains or losses reclassified from accumulated other comprehensive income into income or gains or losses recognized in income on derivatives ineffective portion or any amounts excluded from effective testing.

		Years ended December 31,
Derivative	Classification	2023			2022
Loan commitments	Mortgage fee income	$	(1,123,615	)	$	(4,308,638	)

Call and put options	Gains on investments and other assets	$	49,963		$	202,886

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Pay vs Performance Disclosure - USD ($)	12 Months Ended
Pay vs Performance Disclosure - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ 14,495,058	$ 25,690,302

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Capital Stock (Details Narrative) - $ / shares	12 Months Ended
Capital Stock (Details Narrative) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock voting rights	Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares
Stockholders dividends descriptions	Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2019, a 7.5% stock dividend in the year 2020, and a 5% stock dividend in the years 2021 through 2023, as authorized by the Company’s Board of Directors
Share-Based Payment Arrangement, Option [Member]
Class of Stock [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		339,150
Common Class B [Member]
Class of Stock [Line Items]
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares, issued	0	0

Schedule of Activity of Stock Option Plans (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Common Class A [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Number of shares, outstanding, beginning

976,605

1,024,351

Weighted average exercise price, outstanding, beginning

$ 4.56

$ 4.38

Number of Shares, adjustment for effect of stock dividends

38,266

47,780

Number of shares, granted

106,500

82,500

Number of shares, exercised

(286,965)

(176,435)

Number of shares, cancelled

(836)

(1,591)

Number of shares, outstanding, ending

833,570

976,605

Weighted average exercise price, outstanding, ending

$ 5.22

$ 4.56

Number of shares, options exercisable

739,070

Weighted average exercise price, options exercisable

$ 4.87

Number of shares, available options for future grant

92,820

Weighted average contractual term of options outstanding

5 years 3 months

Weighted average contractual term of options exercisable

4 years 7 months 28 days

Aggregated intrinsic value of options outstanding

^[1]

$ 3,149,704

Aggregated intrinsic value of options exercisable

^[1]

$ 3,049,987

Common Class C [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Number of shares, outstanding, beginning

1,157,203

821,146

Weighted average exercise price, outstanding, beginning

$ 5.31

$ 5.26

Number of Shares, adjustment for effect of stock dividends

57,859

41,057

Number of shares, granted

305,000

295,000

Number of shares, exercised

Number of shares, cancelled

Number of shares, outstanding, ending

1,520,062

1,157,203

Weighted average exercise price, outstanding, ending

$ 5.86

$ 5.31

Number of shares, options exercisable

1,215,062

Weighted average exercise price, options exercisable

$ 5.31

Number of shares, available options for future grant

529,750

Weighted average contractual term of options outstanding

6 years 6 months

Weighted average contractual term of options exercisable

5 years 10 months 24 days

Aggregated intrinsic value of options outstanding

^[1]

$ 4,765,559

Aggregated intrinsic value of options exercisable

^[1]

$ 4,483,509

[1]	The Company used a stock price of $9.00 as of December 31, 2023 to derive intrinsic value.

Schedule of Earnings on Fixed Maturity Securities (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)
Investments, Debt and Equity Securities [Abstract]
Balance of credit-related OTTI at January 1	$ 264,977
Securities not previously impaired
Securities previously impaired
Securities that matured or were sold during the period (realized)	(39,502)
Securities due to an increase in expected cash flows
Balance of credit-related OTTI at December 31	$ 225,475

Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Mortgage Servicing Rights

20) Mortgage Servicing Rights

The Company reports MSRs pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

The following table presents the MSR activity.

Schedule of Mortgage Servicing Rights

	2023			2022
	December 31,
	2023			2022
Amortized cost:
Balance before valuation allowance at beginning of year	$	3,039,765		$	53,060,455
MSR additions resulting from loan sales		1,009,312			10,243,922
Amortization (1)		(587,931	)		(9,078,706	)
Sale of MSRs		-			(51,185,906	)
Application of valuation allowance to write down MSRs with other than temporary impairment		-			-
Balance before valuation allowance at year end	$	3,461,146		$	3,039,765

Valuation allowance for impairment of MSRs:
Balance at beginning of year	$	-		$	-
Additions		-			-
Application of valuation allowance to write down MSRs with other than temporary impairment		-			-
Balance at year end	$	-		$	-

Mortgage servicing rights, net	$	3,461,146		$	3,039,765

Estimated fair value of MSRs at year end	$	4,543,657		$	3,927,877

(1)

Included in other expenses on the consolidated statements of earnings

The table below summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the Company’s assumptions in its December 31, 2023 valuation of MSRs. The assumptions used in the following table are likely to change as market conditions, portfolio composition and borrower behavior change, causing both actual and projected amortization levels to change over time.

	Estimated MSR Amortization
2024	$	390,131
2025		342,170
2026		306,597
2027		271,773
2028		242,596
Thereafter		1,907,879
Total	$	3,461,146

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

20) Mortgage Servicing Rights (Continued)

The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the consolidated statements of earnings.

Schedule of Other Revenues

	2023		2022
	Years Ended December 31,
	2023		2022
Contractual servicing fees	$	1,144,540	$	15,792,105
Late fees		97,300		398,754
Total	$	1,241,840	$	16,190,859

The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio.

	December 31,
	2023		2022
Servicing UPB	$	414,147,436	$	360,023,384

The following key assumptions were used in determining MSR value.

	Prepayment Speeds		Average Life(Years)		Discount Rate
December 31, 2023		9.70		7.79		11.85
December 31, 2022		8.12		8.49		11.95

On October 31, 2022, the Company sold certain of its MSRs. The MSRs related to mortgage loans previously originated by the Company in aggregate unpaid principal amount of approximately $7.02 billion. As a result of the sale, the book value of the Company’s MSRs decreased $51,185,906 and generated a gain of $34,051,938 included in mortgage fee income on the consolidated statements of earnings. Substantially all the consideration was received by the Company with the remainder subject to certain holdbacks during transfer of the MSRs. The Company completed the physical transfer of files prior to its deadline. The holdbacks were received in 2023.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Schedule of Value of Business Acquired (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Balance at beginning of year

$ 9,803,736

$ 8,421,432

Value of business acquired

2,136,085

Imputed interest at 7% included in earnings

^[1]

626,666

642,919

Amortization included in earnings

^[1]

(1,926,668)

(1,907,250)

Shadow amortization included in other comprehensive income

(36,121)

510,550

Net amortization

(1,336,123)

(753,781)

Balance at end of year

$ 8,467,613

$ 9,803,736

[1]	Included in Amortization of deferred policy and pre-need acquisition costs and value of business acquired on the consolidated statements of earnings

Retirement Plans (Details Narrative) - Employee Stock Ownership Plan [Member] - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Pretax contributions	$ 22,500	$ 20,500
Employees stock ownership plan description	The Company matched 100% of up to 3% of an employee’s total annual compensation and matched 50% of 4% to 5% of an employee’s annual compensation
Contribution to plan	$ 1,819,275	2,573,956
Compensation expenses
Accrued liability of retirement plan	$ 267,686	401,529
Retirement description	Under the terms of the employment agreement, this individual is entitled to receive retirement benefits from the Company for a period of ten years in an amount equal to 50% of his rate of compensation at the time of his retirement
Retirement compensation	$ 267,685
Payment to retirement compensation	$ 133,843	133,843
Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Employees stock ownership plan description	Effective December 2, 2022, the Board members approved a motion to extend the Chief Executive Officer’s employment agreement, dated December 4, 2012, for an additional two-year term ending December 2024. In the event of disability, the Chief Executive Officer’s salary would be continued for up to five years at 75% of its current level of compensation. In the event of a sale or merger of the Company and the Chief Executive Officer is not retained in his current position, the Company would be obligated to continue paying the Chief Executive Officer’s current compensation and benefits for seven years following the merger or sale. The agreement further provides that the Chief Executive Officer is entitled to receive annual retirement benefits beginning (i) one month from the date of his retirement (to commence no sooner than age 65), (ii) five years following complete disability, or (iii) upon termination of his employment without cause. These retirement benefits are to be paid for a period of twenty years in annual installments in the amount equal to 75% of his then current level of compensation
Accrued liability of retirement plan	$ 7,556,363	$ 7,556,363

Capital Stock

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Capital Stock

12) Capital Stock

The Company has one class of preferred stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. The preferred stock is non-voting.

The Company has two classes of common stock with shares outstanding, Class A common shares and Class C common shares. Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares. Class C shares are convertible into Class A shares at any time on a one-to-one ratio.

Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2019, a 7.5% stock dividend in the year 2020, and a 5% stock dividend in the years 2021 through 2023, as authorized by the Company’s Board of Directors.

The Company has Class B common stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. Class B shares are non-voting stock except to any proposed amendment to the Articles of Incorporation which would affect Class B common stock.

The following table summarizes the activity in shares of capital stock.

	Class A		Class C
Outstanding shares at December 31, 2021		17,642,722		2,866,565

Exercise of stock options		109,587		-
Vesting of restricted stock units		-		-
Stock dividends		889,554		139,462
Conversion of Class C to Class A		116,168		(116,168	)

Outstanding shares at December 31, 2022		18,758,031		2,889,859
Common stock, shares, outstanding, beginning		18,758,031		2,889,859

Exercise of stock options		279,177		-
Vesting of restricted stock units		1,215		-
Stock dividends		949,980		141,594
Conversion of Class C to Class A		59,599		(59,599	)

Outstanding shares at December 31, 2023		20,048,002		2,971,854
Common stock, shares, outstanding, ending		20,048,002		2,971,854

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

12) Capital Stock (Continued)

	2023		2022
	Years Ended December 31,
	2023		2022
Numerator:
Net earnings	$	14,495,058	$	25,690,302

Denominator:
Denominator for basic earnings per share-weighted-average shares		22,083,772		22,187,410

Effect of dilutive securities
Employee stock options		594,196		848,323
Unvested restricted stock units		-		395
Dilutive potential common shares		594,196		848,718

Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions		22,677,968		23,036,128

Basic earnings per share	$	0.66	$	1.16
Diluted earnings per share	$	0.64	$	1.12

For 2023 and 2022, there were nil and 339,150 of anti-dilutive employee stock option shares, respectively, that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive. Basic and diluted earnings per share amounts are the same for each class of common stock.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Retirement Plans

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Retirement Plans

11) Retirement Plans

The Company has three 401(k) savings plans covering all eligible employees which include employer participation in accordance with the provisions of Section 401(k) of the Internal Revenue Code. The plans allow participants to make pretax contributions up to a maximum of $22,500 and $20,500 for the years 2023 and 2022, respectively or the statutory limits. The Company matched 100% of up to 3% of an employee’s total annual compensation and matched 50% of 4% to 5% of an employee’s annual compensation. The match was in Company stock. The Company’s contribution for 2023 and 2022 was $1,819,275 and $2,573,956, respectively under the plan.

The Company has a Non-Qualified Deferred Compensation Plan. Under the terms of the Plan, the Company will provide deferred compensation for a select group of management or highly compensated employees, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended. The Board has appointed a Committee of the Company to be the Plan Administrator and to determine the employees who are eligible to participate in the plan. The employees who participate may elect to defer a portion of their compensation into the plan. The Company may contribute into the plan at the discretion of the Company’s Board of Directors. The Company did not make any contributions for 2023 and 2022.

Effective December 2, 2022, the Board members approved a motion to extend the Chief Executive Officer’s employment agreement, dated December 4, 2012, for an additional two-year term ending December 2024. In the event of disability, the Chief Executive Officer’s salary would be continued for up to five years at 75% of its current level of compensation. In the event of a sale or merger of the Company and the Chief Executive Officer is not retained in his current position, the Company would be obligated to continue paying the Chief Executive Officer’s current compensation and benefits for seven years following the merger or sale. The agreement further provides that the Chief Executive Officer is entitled to receive annual retirement benefits beginning (i) one month from the date of his retirement (to commence no sooner than age 65), (ii) five years following complete disability, or (iii) upon termination of his employment without cause. These retirement benefits are to be paid for a period of twenty years in annual installments in the amount equal to 75% of his then current level of compensation. If the Chief Executive Officer dies prior to receiving all retirement benefits thereunder, the remaining benefits are to be paid to his heirs. The Company expensed nil and nil during 2023 and 2022, respectively, to cover the present value of anticipated retirement benefits under the employment agreement. The liability accrued was $7,556,363 and $7,556,363 as of December 31, 2023 and 2022, respectively.

The Company, through its wholly owned subsidiary, SecurityNational Mortgage, also has an employment agreement with its former Vice President of Mortgage Operations and President of SecurityNational Mortgage, who retired from the Company on December 31, 2015. Under the terms of the employment agreement, this individual is entitled to receive retirement benefits from the Company for a period of ten years in an amount equal to 50% of his rate of compensation at the time of his retirement, which was $267,685 for the year ended December 31, 2015. Such retirement payments are paid monthly during the ten-year period. If this individual dies prior to receiving all his retirement benefits under his employment agreement, the remaining benefits will be made to his heirs. The company paid $133,843 and $133,843 in retirement compensation to this individual during 2023 and 2022, respectively. The liability accrued was $267,686 and $401,529 as of December 31, 2023 and 2022, respectively and is included in other liabilities and accrued expenses on the consolidated balance sheets.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Schedule of Acquisitions Net Amortization Charged to Income (Details)	Dec. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 1,219,496
2025	1,112,965
2026	1,030,635
2027	957,074
2028	833,216
Thereafter	3,314,227
Total	$ 8,467,613

Schedule of Commercial Mortgage Loans By Credit Quality Indicator (Details)

Dec. 31, 2023

USD ($)

Financing Receivable, Credit Quality Indicator [Line Items]

Total

$ 281,382,873

Commercial Portfolio Segment [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

35,828,880

18,670,968

5,233,248

4,913,313

2,964,740

6,565,389

$ 74,176,538

100.00%

Residential Portfolio Segment [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 15,337,828

56,077,503

7,521,995

8,066,897

2,786,562

13,362,802

$ 103,153,587

100.00%

Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 15,337,828

53,875,389

7,156,934

7,453,796

2,786,562

12,040,357

$ 98,650,866

95.63%

Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

2023

^[1]

2022

2,202,114

^[1]

2021

365,061

^[1]

2020

613,101

^[1]

2019

^[1]

Prior

1,322,445

^[1]

Total

$ 4,502,721

^[1]

% of Total

4.37%

^[1]

Residential Mortgage Loans [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 15,337,828

56,077,503

7,521,995

8,066,897

2,786,562

13,362,802

$ 103,153,587

100.00%

Less than 65% [Member] | Commercial Portfolio Segment [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 34,304,954

13,555,737

3,778,248

2,964,740

6,565,389

$ 61,169,068

82.46%

Less than 65% [Member] | Residential Mortgage Loans [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 3,280,144

7,049,522

1,843,286

1,746,970

446,675

5,206,095

$ 19,572,692

18.97%

65% to 80% [Member] | Commercial Portfolio Segment [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 1,523,926

5,115,231

1,050,000

4,913,313

$ 12,602,470

16.99%

65% to 80% [Member] | Residential Mortgage Loans [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 10,962,770

44,371,320

4,269,894

4,222,170

2,339,887

5,711,440

$ 71,877,481

69.68%

Greater than 80% [Member] | Commercial Portfolio Segment [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

405,000

$ 405,000

0.55%

Greater than 80% [Member] | Residential Mortgage Loans [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 1,094,914

4,656,661

1,408,815

2,097,757

2,445,267

$ 11,703,414

11.35%

Greater than 1.20x [Member] | Commercial Portfolio Segment [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 20,990,000

1,000,000

700,000

4,913,313

2,964,740

2,612,625

$ 33,180,678

44.73%

1.00x - 1.20x [Member] | Commercial Portfolio Segment [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

$ 8,338,880

8,496,127

3,483,248

3,952,764

$ 24,271,019

32.72%

Less than 1.00x [Member] | Commercial Portfolio Segment [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

2023

$ 6,500,000

2022

9,174,841

^[2]

1,050,000

$ 16,724,841

22.55%

[1]	Includes residential mortgage loans in the process of foreclosure of $1,021,790
[2]	Commercial construction loan

Schedule of Accumulated Balances of Other Comprehensive Income (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Equity [Abstract]

Unrealized gains on fix maturity securities available-for-sale

$ (13,050,767)

$ 18,021,265

Increase (Decrease) in Unrealized gains on fixed maturity securities available-for-sale

6,174,138

(31,072,032)

Unrealized gains on fix maturity securities available-for-sale

(6,876,629)

(13,050,767)

Unrealized gains (losses) on restricted assets

(13,148)

^[1]

40,192

^[2]

Increase Dececrease in Unrealized gains (losses) on restricted assets

8,391

^[1]

(53,340)

^[2]

Unrealized gains (losses) on restricted assets

^[1]

(4,757)

(13,148)

Unrealized gains (losses) on cemetery perpetual care trust investments

(6,362)

^[1]

8,991

^[2]

Increase Dececrease in Unrealized gains (losses) on cemetery perpetual care trust investments

2,190

^[1]

(15,353)

^[2]

Unrealized gains (losses) on cemetery perpetual care trust investments

^[1]

(4,172)

(6,362)

Other comprehensive income (loss), Balance

(13,070,277)

18,070,448

Increase (Decrease) in Other comprehensive income (loss), Balance

6,184,719

(31,140,725)

Other comprehensive income (loss), Balance

$ (6,885,558)

$ (13,070,277)

[1]	Fixed maturity securities available for sale
[2]	Fixed maturity securities available for sale

- Definition

Amount, after tax, of accumulated increase (decrease) in equity from transaction and other event and circumstance from nonowner source.

+ References + Details

Fair Value of Financial Instruments (Details Narrative)	12 Months Ended
Fair Value of Financial Instruments (Details Narrative)	Dec. 31, 2024
Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Sensitive insurance product percentage	1.50%
Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Sensitive insurance product percentage	6.50%

Schedule of Allowance for Loan Losses (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Marketable Securities [Line Items]

Financing receivable, allowance for credit loss, beginning balance

$ 1,970,311

$ 1,699,902

Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-13)

^[1]

665,030

Provision for credit losses

^[2]

1,183,312

270,409

Allowance for credit losses, charge-offs

Financing receivable, allowance for credit loss, ending balance

3,818,653

1,970,311

Commercial Loan [Member]

Marketable Securities [Line Items]

Financing receivable, allowance for credit loss, beginning balance

187,129

Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-13)

^[1]

555,807

Provision for credit losses

^[2]

476,717

Allowance for credit losses, charge-offs

Financing receivable, allowance for credit loss, ending balance

1,219,653

187,129

Residential Mortgage [Member]

Marketable Securities [Line Items]

Financing receivable, allowance for credit loss, beginning balance

1,739,980

1,469,571

Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-13)

^[1]

(192,607)

Provision for credit losses

^[2]

843,521

270,409

Allowance for credit losses, charge-offs

Financing receivable, allowance for credit loss, ending balance

2,390,894

1,739,980

Residential Construction [Member]

Marketable Securities [Line Items]

Financing receivable, allowance for credit loss, beginning balance

43,202

Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-13)

^[1]

301,830

Provision for credit losses

^[2]

(136,926)

Allowance for credit losses, charge-offs

Financing receivable, allowance for credit loss, ending balance

$ 208,106

$ 43,202

[1]	See Note 1 of the notes to the consolidated financial statements
[2]	Included in other expenses on the consolidated statements of earnings

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Schedule of Allowance for Credit Losses (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Marketable Securities [Line Items]

Financing Receivable, Allowance for Credit Loss, Beginning

$ 1,609,951

$ 1,686,218

Financing Receivable, Allowance for Credit Loss, Ending

1,553,836

1,609,951

Commercial Loan [Member]

Marketable Securities [Line Items]

Allowance for credit losses, change in provision

^[1]

891,959

889,480

Allowance for credit losses, Charge-offs

$ (948,074)

$ (965,747)

[1]	Included in other expenses on the consolidated statements of earnings

Schedule of Residential Real Estate Investment (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

$ 183,419,292

$ 191,328,616

Real estate held for sale

3,028,973

11,161,582

Residential Real Estate [Member]

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

40,924,865

38,437,960

Real estate held for sale

11,010,029

UTAH | Land Developments [Member]

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

40,739,201

38,241,705

Lots available for sale

Lots to be developed

1,145

1,131

UTAH | Residential Real Estate [Member]

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

^[1]

40,924,865

38,437,960

Real estate held for sale

$ 11,010,029

^[2]

[1]	Includes multiple residential subdivision development projects
[2]	All sold in 2023

Schedule of Property and Equipment (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 32,882,880	$ 34,113,705
Less accumulated depreciation	(13,707,781)	(13,534,056)
Total	19,175,099	20,579,649
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,567,819	16,545,799
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 16,315,061	$ 17,567,906

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Subsidiary, Sale of Stock [Line Items]

Fair Value Balance

$ 126,549,190

$ 141,179,620

Fair Value Balance

4,995,486

^[1]

4,089,856

^[2]

Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $390,884,441 and $362,750,511 for 2023 and 2022, respectively; net of allowance for credit losses of $314,549 and nil for 2023 and 2022, respectively)

381,535,986

345,858,492

Loans Held For Sale [Member]

Subsidiary, Sale of Stock [Line Items]

Fair Value Balance

$ 126,549,190

$ 141,179,620

$ 302,776,827

Fair value measurement, range of inputs, minimum value

70.00%

69.90%

Fair value measurement, range of inputs, maximum value

121.00%

106.10%

Fair value measurement with unobservable inputs reconciliation, recurring basis, asset and liability, weighted average

100.00%

99.80%

Net Derivatives Loan Commitments [Member]

Subsidiary, Sale of Stock [Line Items]

Fair value measurement, range of inputs, minimum value

70.00%

65.00%

Fair value measurement, range of inputs, maximum value

99.00%

95.00%

Fair value measurement with unobservable inputs reconciliation, recurring basis, asset and liability, weighted average

86.00%

82.20%

Fair Value Balance

$ 1,583,262

$ 2,706,877

7,015,515

Fixed Maturity Securities Available For Sale 1 [Member]

Subsidiary, Sale of Stock [Line Items]

$ 1,238,656

$ 1,435,519

$ 2,023,348

Fair Value Measurement, Range of Inputs, Minimum Value, price per share

$ 98.40

$ 100.00

Fair Value Measurement, Range of Inputs, Maximum Value, price per share

102.46

111.11

Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Weighted Average, price per share

$ 99.86

$ 104.97

[1]	Included in other assets on the consolidated balance sheets
[2]	Included in other assets on the consolidated balance sheets

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2023	Mar. 26, 2024	Jun. 30, 2023
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	000-09341
Entity Registrant Name	SECURITY NATIONAL FINANCIAL CORPORATION
Entity Central Index Key	0000318673
Entity Tax Identification Number	87-0345941
Entity Incorporation, State or Country Code	UT
Entity Address, Address Line One	433 West Ascension Way
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84123
City Area Code	(801)
Local Phone Number	264-1060
Title of 12(b) Security	Class A Common Stock
Trading Symbol	SNFCA
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 64,000,000
Documents Incorporated by Reference	Portions of the following document are incorporated by reference in Part III of this Report: the registrant’s definitive proxy statement relating to its 2024 Annual Meeting of Shareholders
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Auditor Firm ID	34
Auditor Name	Deloitte & Touche LLP
Auditor Location	Salt Lake City, UT
Common Class A [Member]
Entity Common Stock, Shares Outstanding		20,048,581
Common Class C [Member]
Entity Common Stock, Shares Outstanding		2,971,680

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment is summarized below:

Schedule of Property and Equipment

	2023			2022
	December 31,
	2023			2022
Land and buildings	$	16,567,819		$	16,545,799
Furniture and equipment		16,315,061			17,567,906
Property and equipment, gross		32,882,880			34,113,705
Less accumulated depreciation		(13,707,781	)		(13,534,056	)
Total	$	19,175,099		$	20,579,649

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Amortized cost	$ 390,884,441	$ 362,750,511
Allowance for credit loss	314,549
Equity securities cost	10,571,505	9,942,265
Allowance for loan and lease losses, real estate	3,818,653	1,970,311
Real estate investment property, accumulated depreciation	29,307,791	23,793,204
Allowance for doubtful accounts, premiums and other receivables	1,553,836	1,609,951
Accounts receivable, allowance for credit loss	1,897,887	2,229,791
Aggregate fair value, restricted assets	9,239,063	6,565,552
Aggregate fair value, cemetery perpetual care trust investments	$ 4,969,005	$ 3,859,893
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Class A [Member]
Common stock, par value	$ 2.00	$ 2.00
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	20,048,002	18,758,031
Common stock, shares outstanding	20,048,002	18,758,031
Treasury stock, shares	806,311	525,870
Common Class B [Member]
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Common Class C [Member]
Common stock, par value	$ 2.00	$ 2.00
Common stock, shares authorized	6,000,000	6,000,000
Common stock, shares issued	2,971,854	2,889,859
Common stock, shares outstanding	2,971,854	2,889,859
Treasury stock, shares	35,717	34,016

Stock Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Assumptions Used

The following table summarizes the assumptions used in estimating the fair value of each stock option granted along with the weighted-average fair value of the stock options granted.

Schedule of Assumptions Used

				Assumptions
Grant Date	Plan	Weighted-Average Fair Value of Each Option		Expected Dividend Yield (1)			Underlying stock FMV		Weighted-Average Volatility			Weighted-Average Risk-Free Interest Rate			Weighted-Average Expected Life (years)
December 1, 2023	All Plans	$	1.88		5	%	$	7.99		36.76	%		4.14	%		4.9

January 30, 2023	All Plans	$	1.65		5	%	$	7.10		36.73	%		3.64	%		5.31

January 18, 2023	All Plans	$	1.70		5	%	$	7.37		36.79	%		3.40	%		5.31

December 2, 2022	All Plans	$	1.48		5	%	$	6.48		37.03	%		3.69	%		4.88

(1)

Stock dividend

Schedule of Activity of Stock Option Plans

Activity of the stock option plans is summarized as follows:

	Number of Class A Shares			Weighted Average Exercise Price		Number of Class C Shares		Weighted Average Exercise Price
Outstanding at January 1, 2022		1,024,351		$	4.38		821,146	$	5.26
Adjustment for the effect of stock dividends		47,780					41,057
Granted		82,500					295,000
Exercised		(176,435	)				-
Cancelled		(1,591	)				-

Outstanding at December 31, 2022		976,605		$	4.56		1,157,203	$	5.31
Adjustment for the effect of stock dividends		38,266					57,859
Granted		106,500					305,000
Exercised		(286,965	)				-
Cancelled		(836	)				-

Outstanding at December 31, 2023		833,570		$	5.22		1,520,062	$	5.86

Exercisable at end of year		739,070		$	4.87		1,215,062	$	5.31

Available options for future grant		92,820					529,750

Weighted average contractual term of options outstanding at December 31, 2023		5.25 years					6.50 years

Weighted average contractual term of options exercisable at December 31, 2023		4.66 years					5.90 years

Aggregated intrinsic value of options outstanding at December 31, 2023 (1)	$	3,149,704				$	4,765,559

Aggregated intrinsic value of options exercisable at December 31, 2023 (1)	$	3,049,987				$	4,483,509

(1)

The Company used a stock price of $9.00 as of December 31, 2023 to derive intrinsic value.

Schedule of Activity Restricted Stock Units

Activity of the RSUs is summarized as follows:

	Number of Class A Shares			Weighted Average Grant Date Fair Value
Non-vested at December 31, 2022		1,620		$	6.48
Granted		1,840
Vested		(1,215	)

Non-vested at December 31, 2023		2,245		$	7.72

Available RSUs for future grant		16,540

Schedule of Lease Cost Recognized in Earnings (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Leases

Amortization of right-of-use assets ()

^[1]

$ 25,573

$ 30,163

Interest on lease liabilities ()

^[2]

1,713

2,773

Operating lease cost ()

^[3]

3,914,954

4,498,894

Short-term lease cost

^[3],[4]

1,874,556

1,135,003

Sublease income ()

^[3]

(323,272)

(209,455)

Total lease cost

5,493,524

5,457,378

Operating cash flows from operating leases

4,007,919

4,250,630

Operating cash flows from finance leases

1,713

2,773

Financing cash flows from finance leases

27,868

31,685

Operating leases

160,348

2,054,534

Finance leases

$ 12,332

Finance lease, Weighted-average remaining lease term (in years)

3 years 3 months 14 days

1 year 3 months

Operating lease, Weighted-average remaining lease term (in years)

2 years 10 months 17 days

3 years 5 months 15 days

Finance lease, Weighted-average discount rate

6.81%

5.78%

Operating lease, Weighted-average discount rate

4.54%

4.50%

[1]	Included in Depreciation on property and equipment on the consolidated statements of earnings
[2]	Included in Interest expense on the consolidated statements of earnings
[3]	Included in Rent and rent related expenses on the consolidated statements of earnings
[4]	Includes leases with a term of 12 months or less

Consolidated Statements of Earnings - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Revenues:

Mortgage fee income

$ 98,147,972

$ 173,499,681

Insurance premiums and other considerations

114,658,436

105,001,640

Net investment income

72,343,047

66,197,592

Net mortuary and cemetery sales

27,864,811

26,993,855

Gains (losses) on investments and other assets

1,837,342

(857,460)

Other

3,645,882

18,817,020

Total revenues

318,497,490

389,652,328

Benefits and expenses:

Death benefits

61,390,517

59,377,962

Surrenders and other policy benefits

4,612,346

4,688,470

Increase in future policy benefits

34,008,997

28,858,969

Amortization of deferred policy and pre-need acquisition costs and value of business acquired

18,024,338

17,950,202

Selling, general and administrative expenses:

Commissions

39,929,556

63,321,092

Personnel

83,141,759

100,111,523

Advertising

3,710,445

5,697,998

Rent and rent related

6,857,137

6,883,013

Depreciation on property and equipment

2,351,661

2,496,906

Costs related to funding mortgage loans

6,440,439

7,540,041

Other

32,058,856

45,797,753

Interest expense

4,865,327

7,830,443

Cost of goods and services sold – cemeteries and mortuaries

4,805,700

4,721,094

Total benefits and expenses

302,197,078

355,275,466

Earnings before income taxes

16,300,412

34,376,862

Income tax expense

(1,805,354)

(8,686,560)

Net earnings

$ 14,495,058

$ 25,690,302

Net earnings per Class A equivalent common share

^[1]

$ 0.66

$ 1.16

Net earnings per Class A equivalent common share - assuming dilution

^[1]

$ 0.64

$ 1.12

Weighted average Class A equivalent common shares outstanding

^[1]

22,083,772

22,187,410

Weighted average Class A equivalent common shares outstanding-assuming dilution

^[1]

22,677,968

23,036,128

[1]

Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cemetery Perpectual Care Obligation [Member]
Schedule of Investments [Line Items]
Credit loss recognized	$ 0	$ 0
Security National Life Insurance [Member]
Schedule of Investments [Line Items]
Surplus notes receivable	$ 4,000,000	$ 4,000,000
Four Securities [Member]
Schedule of Investments [Line Items]
Average market value over amortized cost	98.10%
Five Securities [Member]
Schedule of Investments [Line Items]
Average market value over amortized cost		96.40%
12 Securities [Member]
Schedule of Investments [Line Items]
Average market value over amortized cost	99.10%
17 Securities [Member]
Schedule of Investments [Line Items]
Average market value over amortized cost		98.20%

Schedule of Commercial Mortgage Loans By Credit Quality Indicator (Details) (Parenthetical)	Dec. 31, 2023 USD ($)
Residential Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Mortgage loans in process of foreclosure, amount	$ 1,021,790

Summary of Loan Loss Reserve Included in Other Liabilities and Accrued Expenses (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Loans Held For Sale

Balance, beginning of period

$ 1,725,667

$ 2,447,139

Provision on current loan originations

^[1]

27,164

1,078,812

Charge-offs, net of recaptured amounts

(1,205,598)

(1,800,284)

Balance, end of period

$ 547,233

$ 1,725,667

[1]	Included in Mortgage fee income

Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Mortgage Servicing Rights

The following table presents the MSR activity.

Schedule of Mortgage Servicing Rights

	2023			2022
	December 31,
	2023			2022
Amortized cost:
Balance before valuation allowance at beginning of year	$	3,039,765		$	53,060,455
MSR additions resulting from loan sales		1,009,312			10,243,922
Amortization (1)		(587,931	)		(9,078,706	)
Sale of MSRs		-			(51,185,906	)
Application of valuation allowance to write down MSRs with other than temporary impairment		-			-
Balance before valuation allowance at year end	$	3,461,146		$	3,039,765

Valuation allowance for impairment of MSRs:
Balance at beginning of year	$	-		$	-
Additions		-			-
Application of valuation allowance to write down MSRs with other than temporary impairment		-			-
Balance at year end	$	-		$	-

Mortgage servicing rights, net	$	3,461,146		$	3,039,765

Estimated fair value of MSRs at year end	$	4,543,657		$	3,927,877

(1)

Included in other expenses on the consolidated statements of earnings

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights

	Estimated MSR Amortization
2024	$	390,131
2025		342,170
2026		306,597
2027		271,773
2028		242,596
Thereafter		1,907,879
Total	$	3,461,146

Schedule of Other Revenues

The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the consolidated statements of earnings.

Schedule of Other Revenues

	2023		2022
	Years Ended December 31,
	2023		2022
Contractual servicing fees	$	1,144,540	$	15,792,105
Late fees		97,300		398,754
Total	$	1,241,840	$	16,190,859

Summary of Unpaid Principal Balances of the Servicing Portfolio

The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio.

	December 31,
	2023		2022
Servicing UPB	$	414,147,436	$	360,023,384

Schedule of Assumptions Used in Determining MSR Value

The following key assumptions were used in determining MSR value.

	Prepayment Speeds		Average Life(Years)		Discount Rate
December 31, 2023		9.70		7.79		11.85
December 31, 2022		8.12		8.49		11.95

Schedule of Revenues of the Cemetery and Mortuary Contracts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Net mortuary and cemetery sales	$ 27,864,811	$ 26,993,855
Major Goods/Services Lines At-need [Member]
Net mortuary and cemetery sales	19,957,735	21,283,237
Major Goods/Services Lines Pre-need [Member]
Net mortuary and cemetery sales	7,907,076	5,710,618
Timing of Revenue Recognition Goods Transferred at a Point in Time [Member]
Net mortuary and cemetery sales	17,560,899	16,412,963
Timing of Revenue Recognition Services Transferred at a Point in Time [Member]
Net mortuary and cemetery sales	$ 10,303,912	$ 10,580,892

Schedule of Aging of Mortgage Loans (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Marketable Securities [Line Items]

Mortgage Loans during period

$ 281,382,873

$ 312,183,703

Mortgage Loans, Allowance for Loan Losses

(3,818,653)

(1,970,311)

$ (1,699,902)

Mortgage Loans, Unamortized deferred loan fees, net

(1,623,226)

(1,746,605)

Mortgage Loans, Unamortized discounts, net

(324,157)

(342,860)

Past Due 30 to 59 Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

3,387,673

4,553,390

Past Due 60 to 89 Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

3,472,760

814,184

Past Due 90 or More Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

^[1]

3,885,931

1,286,211

In Foreclosure [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

^[1]

2,263,298

1,281,174

Total Past Due [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

13,009,662

7,934,959

Current [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

268,373,211

304,248,744

Net Mortgage Loans [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

275,616,837

308,123,927

Commercial Loan [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

74,176,538

46,311,955

Mortgage Loans, Allowance for Loan Losses

(1,219,653)

(187,129)

Mortgage Loans, Unamortized deferred loan fees, net

(172,989)

(199,765)

Mortgage Loans, Unamortized discounts, net

(216,705)

(230,987)

Commercial Loan [Member] | Past Due 30 to 59 Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

1,000,000

Commercial Loan [Member] | Past Due 60 to 89 Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

Commercial Loan [Member] | Past Due 90 or More Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

^[1]

405,000

Commercial Loan [Member] | In Foreclosure [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

^[1]

1,241,508

405,000

Commercial Loan [Member] | Total Past Due [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

1,646,508

1,405,000

Commercial Loan [Member] | Current [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

72,530,030

44,906,955

Commercial Loan [Member] | Net Mortgage Loans [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

72,567,191

45,694,074

Residential Mortgage [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

103,153,587

93,355,623

Mortgage Loans, Allowance for Loan Losses

(2,390,894)

(1,739,980)

(1,469,571)

Mortgage Loans, Unamortized deferred loan fees, net

(1,135,491)

(1,212,994)

Mortgage Loans, Unamortized discounts, net

(107,452)

(111,873)

Residential Mortgage [Member] | Past Due 30 to 59 Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

3,387,673

3,553,390

Residential Mortgage [Member] | Past Due 60 to 89 Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

3,472,760

814,184

Residential Mortgage [Member] | Past Due 90 or More Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

^[1]

3,480,931

1,286,211

Residential Mortgage [Member] | In Foreclosure [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

^[1]

1,021,790

876,174

Residential Mortgage [Member] | Total Past Due [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

11,363,154

6,529,959

Residential Mortgage [Member] | Current [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

91,790,433

86,825,664

Residential Mortgage [Member] | Net Mortgage Loans [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

99,519,750

90,290,776

Residential Construction [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

104,052,748

172,516,125

Mortgage Loans, Allowance for Loan Losses

(208,106)

(43,202)

$ (43,202)

Mortgage Loans, Unamortized deferred loan fees, net

(314,746)

(333,846)

Mortgage Loans, Unamortized discounts, net

Residential Construction [Member] | Past Due 30 to 59 Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

Residential Construction [Member] | Past Due 60 to 89 Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

Residential Construction [Member] | Past Due 90 or More Days [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

^[1]

Residential Construction [Member] | In Foreclosure [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

^[1]

Residential Construction [Member] | Total Past Due [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

Residential Construction [Member] | Current [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

104,052,748

172,516,125

Residential Construction [Member] | Net Mortgage Loans [Member]

Marketable Securities [Line Items]

Mortgage Loans during period

$ 103,529,896

$ 172,139,077

[1]	Interest income is not recognized on loans which are more than 90 days past due or in foreclosure.

Loans Held for Sale

12 Months Ended

Dec. 31, 2023

Loans Held For Sale

Loans Held for Sale

3) Loans Held for Sale

The Company’s loans held for sale portfolio is valued using the fair value option. Changes in the fair value of the loans are included in mortgage fee income. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on recognition of mortgage loan interest income and is included in mortgage fee income on the consolidated statement of earnings. Included in loans held for sale are loans in the process of foreclosure with an aggregate unpaid principal balance of $1,636,090 and nil as of December 31, 2023 and 2022, respectively. See Note 17 of the Notes to Consolidated Financial Statements for additional disclosures regarding loans held for sale.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

3) Loans Held for Sale (Continued)

The following table presents the aggregate fair value and the aggregate unpaid principal balance of loans held for sale.

	2023			2022
	December 31,
	2023			2022
Aggregate fair value	$	126,549,190		$	141,179,620
Unpaid principal balance		127,185,867			141,337,811
Unrealized loss		(636,677	)		(158,191	)

Mortgage Fee Income

Mortgage fee income consists of origination fees, processing fees, interest income and other income related to the origination and sale of mortgage loans held for sale.

Major categories of mortgage fee income for loans held for sale are summarized as follows:

	2023			2022
	Years Ended December 31
	2023			2022
Loan fees	$	21,724,456		$	24,184,972
Interest income		9,547,741			9,666,149
Secondary gains		68,505,014			153,870,807	(1)
Change in fair value of loan commitments		(1,123,615	)		(4,308,638	)
Change in fair value of loans held for sale		(478,460	)		(8,834,797	)
Provision for loan loss reserve		(27,164	)		(1,078,812	)
Mortgage fee income	$	98,147,972		$	173,499,681

(1)

Includes a net gain of $34,051,938 for the sale of mortgage servicing rights

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

3) Loans Held for Sale (Continued)

Loan Loss Reserve

Repurchase demands from third party investors that correspond to mortgage loans previously held for sale and sold are reviewed and relevant data is captured so that an estimated future loss can be calculated. The key factors that are used in the estimated future loss calculation are as follows: (i) lien position, (ii) payment status, (iii) claim type, (iv) unpaid principal balance, (v) interest rate, and (vi) validity of the demand. Other data is captured and is useful for management purposes; the actual estimated loss is generally based on these key factors. The Company conducts its own review upon the receipt of a repurchase demand. In many instances, the Company can resolve the issues relating to the repurchase demand by the third-party investor without having to make any payments to the investor.

The loan loss reserve, which is included in other liabilities and accrued expenses, is summarized as follows:

	December 31,
	2023			2022
Beginning Balance	$	1,725,667		$	2,447,139
Provision for current loan originations (1)		27,164			1,078,812
Charge-offs, net of recaptured amounts		(1,205,598	)		(1,800,284	)
Ending Balance	$	547,233		$	1,725,667

(1)

Included in Mortgage fee income

The Company maintains reserves for estimated losses on current production volumes. For 2023, $27,164 in reserves were added at a rate of 4.3 basis points per loan, the equivalent of $430 per $1,000,000 in loans originated. This is a decrease over 2022, when $1,078,812 in reserves were added at a rate of 3.19 basis points per loan originated, the equivalent of $319 per $1,000,000 in loans originated. The Company monitors market data and trends, economic conditions (including forecasts) and its own experience to maintain adequate loss reserves on current production.

Schedule of Combined Maturities of Bank Loans Payable Lines of Credit and Notes and Contracts Payable (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Bank and other loans payable	$ 105,555,137	$ 161,712,804
Due in year 1 [Member]
Lessee, Lease, Description [Line Items]
Bank loans payable, lines of credit and notes and contracts payable	9,543,052
Due in Year 2 [Member]
Lessee, Lease, Description [Line Items]
Bank loans payable, lines of credit and notes and contracts payable	1,881,631
Due in Year 3 [Member]
Lessee, Lease, Description [Line Items]
Bank loans payable, lines of credit and notes and contracts payable	1,952,430
Due in Year 4 [Member]
Lessee, Lease, Description [Line Items]
Bank loans payable, lines of credit and notes and contracts payable	2,026,547
Due in Year 5 [Member]
Lessee, Lease, Description [Line Items]
Bank loans payable, lines of credit and notes and contracts payable	11,296,737
DueThereafter [Member]
Lessee, Lease, Description [Line Items]
Bank loans payable, lines of credit and notes and contracts payable	$ 78,854,740

Revenues from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities

The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows:

	Contract Balances
	Receivables (1)		Contract Asset		Contract Liability
Opening (1/1/2023)	$	5,392,779	$	-	$	16,226,836
Closing (12/31/2023)		6,321,573		-		18,237,246
Increase/(decrease)		928,794		-		2,010,410

	Contract Balances
	Receivables (1)		Contract Asset		Contract Liability
Opening (1/1/2022)	$	5,298,636	$	-	$	14,508,022
Closing (12/31/2022)		5,392,779		-		16,226,836
Increase/(decrease)		94,143		-		1,718,814

(1)

Included in Receivables, net on the consolidated balance sheets

Schedule of Opening and Closing Balances of the Assets and Liabilities

The following table disaggregates the opening and closing balances of the Company’s contract balances.

	Contract Balances
	Contract Asset		Contract Liability
Pre-need merchandise and services	$	-	$	15,289,901
At-need specialty merchandise		-		936,935
Pre-need land sales		-		-
Opening (1/1/2023)	$	-	$	16,226,836

Pre-need merchandise and services	$	-	$	17,424,764
At-need specialty merchandise		-		812,482
Pre-need land sales		-		-
Closing (12/31/2023)	$	-	$	18,237,246

	Contract Balances
	Contract Asset		Contract Liability
Pre-need merchandise and services	$	-	$	13,722,348
At-need specialty merchandise		-		785,674
Pre-need land sales		-		-
Opening (1/1/2022)	$	-	$	14,508,022

Pre-need merchandise and services	$	-	$	15,289,901
At-need specialty merchandise		-		936,935
Pre-need land sales		-		-
Closing (12/31/2022)	$	-	$	16,226,836

Schedule of Revenues of the Cemetery and Mortuary Contracts

The following table disaggregates revenue for the Company’s cemetery and mortuary contracts.

	2023		2022
	Years Ended December 31
	2023		2022
Major goods/service lines
At-need	$	19,957,735	$	21,283,237
Pre-need		7,907,076		5,710,618
Net mortuary and cemetery sales	$	27,864,811	$	26,993,855

Timing of Revenue Recognition
Goods transferred at a point in time	$	17,560,899	$	16,412,963
Services transferred at a point in time		10,303,912		10,580,892
Net mortuary and cemetery sales	$	27,864,811	$	26,993,855

Schedule of Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information

The following table disaggregates contract costs that are included in the deferred policy and pre-need contract acquisition costs on the consolidated balances sheets.

	2023		2022
	Years Ended December 31
	2023		2022
Pre-need merchandise and services	$	3,951,267	$	3,780,173
At-need specialty merchandise		23,090		35,371
Pre-need land sales		-		-
	$	3,974,357	$	3,815,544

Schedule of Commercial Real Estate Investment (Details) (Parenthetical) - USD ($)	Feb. 29, 2024	Dec. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Real Estate, Held-for-Sale		$ 3,028,973	$ 11,161,582
Undeveloped Land [Member]
Marketable Securities [Line Items]
Real Estate, Held-for-Sale		$ 151,553	$ 151,553
Remaining Property [Member] \| Subsequent Event [Member]
Marketable Securities [Line Items]
Real Estate, Held-for-Sale	$ 2,877,420
Gain Property [Member] \| Subsequent Event [Member]
Marketable Securities [Line Items]
Real Estate, Held-for-Sale	$ 250,000

Loans Held for Sale (Details Narrative) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Loans Held For Sale

Foreclosure loans unpaid principal balance

$ 1,636,090

Provision on current loan originations

^[1]

$ 27,164

$ 1,078,812

Loan increase per point

$ 430

$ 319

Amount of loan increased, per point

$ 1,000,000

[1]	Included in Mortgage fee income

Income Taxes (Details Narrative)	12 Months Ended
Income Taxes (Details Narrative)	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	11.10%	25.30%
Federal statutory income tax rate, percent	21.00%

Bank and Other Loans Payable

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Bank and Other Loans Payable

7) Bank and Other Loans Payable

Bank and other loans payable are summarized as follows:

Summary of Bank Loans Payable

	December 31,
	2023			2022
		-			1,690,892
Prime rate note payable in monthly installments of $75,108 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, paid in full in June 2023.	$	-		$	1,690,892

3.85% fixed note payable in monthly installments of $243,781 including principal and interest, collateralized by real property with a book value of approximately $62,977,000, due June 2032.		50,129,255			48,613,833

3.30% fixed note payable in monthly installments of $179,562 including principal and interest, collateralized by real property with a book value of approximately $44,811,000, due April 2031.		38,478,359			39,298,298

4.7865% fixed interest only note payable in monthly installments, collateralized by real property with a book value of approximately $16,594,000, due June 2028.		9,200,000			9,200,000

1 month SOFR rate plus 2.1% loan purchase agreement with a warehouse line availability of $100,000,000, expired December 2023 due to the lender exiting the market place.		-			17,978,527

1 month SOFR rate plus 2% loan purchase agreement with a warehouse line availability of $100,000,000, matures November 2024.		114,518			29,768,762

1 month SOFR rate plus 2.5% loan purchase agreement with a warehouse line availability of $75,000,000, expired December 2023 due to the lender exiting the market place.		-			15,131,410

1 month SOFR rate plus 2.1% loan purchase agreement with a warehouse line availability of $15,000,000, matures May 2024.		7,617,455			-

Finance lease liabilities		15,550			31,082

Total bank and other loans		105,555,137			161,712,804

Less current installments		(9,543,052	)		(65,560,608	)
Bank and other loans, excluding current installments	$	96,012,085		$	96,152,196

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

7) Bank and Other Loans Payable (Continued)

Sources of Liquidity

Federal Home Loan Bank Membership

The Federal Home Loan Banks (“the FHLBs”) are a group of cooperatives that lending institutions use to finance housing and economic development in local communities. The Company is a member of the FHLB based in Des Moines, Iowa and based in Dallas, Texas. As a member of the FHLB, the Company is required to maintain a minimum investment in capital stock of the FHLB and may pledge collateral to the bank for advances of funds to be used in its operations.

Federal Home Loan Bank of Des Moines

As of December 31, 2023, the amount available for borrowings from the FHLB of Des Moines was approximately $77,324,238, compared with $80,312,445 as of December 31, 2022. United States Treasury fixed maturity securities with an estimated fair value of $88,400,026 as of December 31, 2023 have been pledged at the FHLB of Des Moines as collateral for current and potential borrowings compared with $86,338,880 at December 31, 2022. As of December 31, 2023 and 2022, the Company had no outstanding FHLB borrowings. As of December 31, 2023, the Company’s total investment in FHLB stock was $453,600 compared with $856,800 as of December 31, 2022. As of December 31, 2023, the Company was contingently liable under standby letters of credit aggregating $5,823,496. These letters of credit are to be used to cover any contingency related to additional risk assessments pertaining to the Company’s captive insurance program for $443,758 and for bonding of residential land development for $5,379,738.

Federal Home Loan Bank of Dallas

As of December 31, 2023, the amount available for borrowings from the FHLB of Dallas was approximately $5,104,610, compared with $5,719,671 as of December 31, 2022. Mortgage-Backed fixed maturity securities with an estimated fair value of $5,503,063 as of December 31, 2023 have been pledged at the FHLB of Dallas as collateral for current and potential borrowings compared with $6,696,100 at December 31, 2022. As of December 31, 2023 and 2022, the Company had no outstanding FHLB borrowings. As of December 31, 2023, the Company’s total investment in FHLB stock was $1,826,200 compared with $1,743,500 as of December 31, 2022.

Revolving Lines of Credit

The Company has a $2,000,000 revolving line-of-credit with a bank with interest payable at the Prime rate plus 0.75% with a 3% prime floor, secured by the capital stock of Security National Life and maturing March 31, 2024, renewable annually. As of December 31, 2023, the Company was contingently liable under standby letters of credit aggregating $38,290, to be used as collateral for residential subdivision land development. The standby letters of credit will draw on the line of credit if necessary. The Company does not expect any material losses to result from the issuance of the standby letters of credit. As of December 31, 2023, there were no amounts outstanding under the revolving line-of-credit.

The Company also has a $2,500,000 revolving line-of-credit with a bank with interest payable at the daily simple SOFR plus 2.35%, which includes a mandatory .10% credit spread adjustment, maturing March 31, 2024. As of December 31, 2023, the Company was contingently liable under standby letters of credit aggregating $1,250,000, to be used as collateral for SecurityNational Mortgage’s state licensing. The standby letters of credit will draw on the line of credit if necessary. The Company does not expect any material losses to result from the issuance of the standby letters of credit. As of December 31, 2023, there were no amounts outstanding under the revolving line-of-credit.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

7) Bank and Other Loans Payable (Continued)

Debt Covenants for Mortgage Warehouse Lines of Credit

The Company, through its subsidiary SecurityNational Mortgage, has a line of credit with Texas Capital Bank N.A. This agreement allows SecurityNational Mortgage to borrow up to $100,000,000 for the sole purpose of funding mortgage loans (the “Texas Capital Bank Warehouse Line of Credit”). The agreement charges interest at the 1-Month SOFR rate plus 2.0% and matures on November 30, 2024. The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax income (excluding any changes in the fair value of mortgage servicing rights) of at least $1.00 on a rolling four-quarter basis.

The Company through its subsidiary SecurityNational Mortgage, has a line of credit with U.S Bank. This agreement allows SecurityNational Mortgage to borrow up to $15,000,000 for the sole purpose of funding mortgage loans (the “U.S. Bank Warehouse Line of Credit” and, together with the Texas Capital Bank Warehouse Line of Credit, the “Warehouse Lines of Credit”). The agreement charges interest at 2.10% plus the greater of (i) 0%, and (ii) the one-month forward-looking term rate based on SOFR and matures on May 26, 2024. The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax income (excluding any changes in the fair value of mortgage servicing rights) of at least $1.00 on a rolling twelve months.

The agreements for the warehouse lines of credit include cross default provisions where certain events of default under other of SecurityNational Mortgage’s obligations constitute events of default under the warehouse lines of credit. As of December 31, 2023, the Company was not in compliance with the net income covenant of the warehouse lines of credit and its operating cash flow covenant for its standby letter of credit with its primary bank. SecurityNational Mortgage has received or is in the process of receiving waivers under the warehouse lines of credit from the warehouse banks. In the unlikely event the Company is required to repay the outstanding advances of approximately $7,732,000 on the warehouse line of credit that has not provided a covenant waiver, the Company has sufficient cash and borrowing capacity on the warehouse lines of credit that have provided covenant waivers to fund its origination activities. The Company has performed an internal analysis of its funding capacities of both internal and external sources and has determined that there are sufficient funds to continue its business model. The Company continues to negotiate other warehouse lines of credit with other lenders.

Debt Covenants for Revolving Lines of Credit and Bank Loans

The Company has debt covenants on its revolving lines of credit and is required to comply with minimum operating cash flow ratios and minimum net worth for each of its business segments. The Company also has debt covenants for one of its loans on real estate for a minimum consolidated operating cash flow ratio, minimum liquidity, and consolidated net worth. In addition to these financial debt covenants, the company is required to provide segment specific financial statements and building specific financial statements on all bank loans. As of December 31, 2023, the Company was in compliance with all these debt covenants.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

7) Bank and Other Loans Payable (Continued)

The following tabulation shows the combined maturities of bank and other loans payable:

2024	$	9,543,052
2025		1,881,631
2026		1,952,430
2027		2,026,547
2028		11,296,737
Thereafter		78,854,740
Total	$	105,555,137

Interest expense in 2023 and 2022 was $4,865,327 and $7,830,443, respectively.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Schedule of Investments (Details) (Parenthethical) - USD ($)

Dec. 31, 2023

Dec. 31, 2022

Short term investment

$ 2,279,800

^[1]

$ 2,600,300

^[2]

Membership [Member]

Short term investment

530,900

938,500

Activity Stock Due [Member]

Short term investment

$ 1,748,900

$ 1,661,800

[1]	Includes $530,900 of Membership stock and $1,748,900 of Activity stock due to short-term advances and letters of credit.
[2]	Includes $938,500 of Membership stock and $1,661,800 of Activity stock due to short-term advances and letters of credit.

Revenues from Contracts with Customers (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 18,237,246	$ 16,226,836	$ 14,508,022
Revenue recognized included in the opening contract liability	4,539,540	4,588,290
Pre Need Merchandise and Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	17,424,764	15,289,901
At-need Specialty Merchandise Revenue [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	812,482	$ 936,935
Deferred Pre-need Land Revenue [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue
Revenue, remaining performance obligation, percentage	10.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Schedule of Assumptions Used in Determining MSR Value (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Prepayment speed	9.70	8.12
Average life	7 years 9 months 14 days	8 years 5 months 26 days
Discount rate	11.85	11.95

Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Amortized cost	$ 390,884,441	$ 362,750,511
Estimated fair value	381,535,986	345,858,492
Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises [Member]
Marketable Securities [Line Items]
Amortized cost	40,359,878	33,501,686
Estimated fair value	36,157,571	29,569,712
Redeemable Preferred Stock [Member]
Marketable Securities [Line Items]
Amortized cost	250,000	250,000
Estimated fair value	260,000	260,000
Cemetery Perpectual Care Obligation [Member]
Marketable Securities [Line Items]
Amortized cost	647,261	263,205
Estimated fair value	641,704	254,731
Restricted Assets [Member]
Marketable Securities [Line Items]
Amortized cost	1,860,195	1,234,818
Estimated fair value	1,853,860	$ 1,217,308
Due in 1 year [Member]
Marketable Securities [Line Items]
Amortized cost
Estimated fair value
Due in 1 year [Member] \| Cemetery Perpectual Care Obligation [Member]
Marketable Securities [Line Items]
Amortized cost	333,775
Estimated fair value	334,077
Due in 1 year [Member] \| Restricted Assets [Member]
Marketable Securities [Line Items]
Amortized cost	681,860
Estimated fair value	683,293
Due in 2-5 years [Member]
Marketable Securities [Line Items]
Amortized cost	168,831,608
Estimated fair value	166,186,132
Due in 2-5 years [Member] \| Cemetery Perpectual Care Obligation [Member]
Marketable Securities [Line Items]
Amortized cost	259,814
Estimated fair value	254,126
Due in 2-5 years [Member] \| Restricted Assets [Member]
Marketable Securities [Line Items]
Amortized cost	462,189
Estimated fair value	457,618
Due in 5-10 years [Member]
Marketable Securities [Line Items]
Amortized cost	95,804,878
Estimated fair value	95,031,727
Due in 5-10 years [Member] \| Cemetery Perpectual Care Obligation [Member]
Marketable Securities [Line Items]
Amortized cost
Estimated fair value
Due in 5-10 years [Member] \| Restricted Assets [Member]
Marketable Securities [Line Items]
Amortized cost	147,422
Estimated fair value	147,121
Due in more than 10 years [Member]
Marketable Securities [Line Items]
Amortized cost	85,638,077
Estimated fair value	83,900,556
Due in more than 10 years [Member] \| Cemetery Perpectual Care Obligation [Member]
Marketable Securities [Line Items]
Amortized cost	53,672
Estimated fair value	53,501
Due in more than 10 years [Member] \| Restricted Assets [Member]
Marketable Securities [Line Items]
Amortized cost	568,724
Estimated fair value	$ 565,828

Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Subsidiary, Sale of Stock [Line Items]

Net loan commitments, beginning

^[1]

$ 4,089,856

Loans Held for Sale, Beginning

141,179,620

Fixed Maturity Securities Available for Sale, Beginning

345,858,492

Originations and purchases

2,173,080,584

$ 3,373,554,484

Originations and purchases

70,315,501

151,581,252

Sales, maturities and paydowns

(2,224,454,040)

(3,549,405,402)

Sales, maturities and paydowns

(42,966,901)

(25,163,141)

Transfer to mortgage loans held for investment

(3,017,626)

(51,691,213)

Total gains (losses) included in other comprehensive income

7,853,398

(39,493,861)

Net loan commitments, ending

4,995,486

^[2]

4,089,856

^[1]

Loans Held for Sale, Ending

126,549,190

141,179,620

Fixed Maturity Securities Available for Sale, Ending

381,535,986

345,858,492

Net Derivatives Loan Commitments [Member]

Subsidiary, Sale of Stock [Line Items]

Net loan commitments, beginning

2,706,877

7,015,515

Originations and purchases

Sales, maturities and paydowns

Transfer to mortgage loans held for investment

Total gains (losses) included in earnings

(1,123,615)

^[3]

(4,308,638)

^[4]

Total gains (losses) included in other comprehensive income

Net loan commitments, ending

1,583,262

2,706,877

Loans Held For Sale [Member]

Subsidiary, Sale of Stock [Line Items]

Loans Held for Sale, Beginning

141,179,620

302,776,827

Originations and purchases

2,173,080,584

3,373,554,484

Sales, maturities and paydowns

(2,224,454,040)

(3,549,405,402)

Transfer to mortgage loans held for investment

(3,017,626)

(51,691,213)

Total gains (losses) included in earnings

39,760,652

^[3]

65,944,924

^[4]

Total gains (losses) included in other comprehensive income

Loans Held for Sale, Ending

126,549,190

141,179,620

Fixed Maturity Securities Available For Sale 1 [Member]

Subsidiary, Sale of Stock [Line Items]

Fixed Maturity Securities Available for Sale, Beginning

1,435,519

2,023,348

Originations and purchases

Sales, maturities and paydowns

(129,521)

(528,980)

Transfer to mortgage loans held for investment

Total gains (losses) included in earnings

(108)

^[5]

1,957

^[6]

Total gains (losses) included in other comprehensive income

(67,234)

(60,806)

Fixed Maturity Securities Available for Sale, Ending

$ 1,238,656

$ 1,435,519

[1]	Included in other assets on the consolidated balance sheets
[2]	Included in other assets on the consolidated balance sheets
[3]	As a component of mortgage fee income on the consolidated statements of earnings
[4]	As a component of mortgage fee income on the consolidated statements of earnings
[5]	As a component of net investment income on the consolidated statements of earnings
[6]	As a component of net investment income on the consolidated statements of earnings

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

17) Fair Value of Financial Instruments

GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. Fair value measurements are classified under the following hierarchy:

Level 1: Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Financial assets and financial liabilities whose values are based on the following:

	a)	Quoted prices for similar assets or liabilities in active markets;
	b)	Quoted prices for identical or similar assets or liabilities in non-active markets; or
	c)	Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect the Company’s estimates of the assumptions that market participants would use in valuing financial assets and financial liabilities.

The Company utilizes a combination of third-party valuation service providers, brokers, and internal valuation models to determine fair value.

The following methods and assumptions were used by the Company in estimating the fair value disclosures related to significant financial instruments:

The items shown under Level 1 and Level 2 are valued as follows:

Fixed Maturity Securities Available for Sale: The fair values of fixed maturity securities are based on quoted market prices, when available. For fixed maturity securities not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements (considered Level 3 financial assets), are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit, and maturity of the investments.

Equity Securities: The fair values for equity securities are based on quoted market prices.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

Restricted Assets: A portion of these assets include equity securities and fixed maturity securities available for sale that have quoted market prices that are used to determine fair value. Also included are cash and cash equivalents and participations in mortgage loans. The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values due to their short-term nature.

Cemetery Perpetual Care Trust Investments: A portion of these assets include equity securities and fixed maturity securities available for sale that have quoted market prices that are used to determine fair value. Also included are cash and cash equivalents. The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values due to their short-term nature

Call and Put Options: The Company uses quoted market prices to value its call and put options.

Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy.

The items shown under Level 3 are valued as follows:

Loans Held for Sale: The Company elected the fair value option for loans held for sale. The fair value is based on quoted market prices, when available. When a quoted market price is not readily available, the Company uses the market price from its last sale of similar assets. Fair value is often difficult to determine and may contain significant unobservable inputs.

Loan Commitments and Forward Sale Commitments: The Company’s mortgage segment enters into loan commitments with potential borrowers and forward sale commitments to sell loans to third-party investors. The Company also uses a hedging strategy for these transactions. A loan commitment binds the Company to lend funds to a qualified borrower at a specified interest rate and within a specified period, generally up to 30 days after issuance of the loan commitment. Loan commitments are defined to be derivatives under GAAP and are recognized at fair value on the consolidated balance sheets with changes in their fair values recorded in current earnings.

The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted MBS prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the loan commitment is issued. Following issuance, the value of a mortgage loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will fund within the terms of the commitments.

Impaired Mortgage Loans Held for Investment: The Company believes that the fair value of these nonperforming loans will approximate the unpaid principal balance expected to be recovered based on the fair value of the underlying collateral. For residential and commercial properties, the collateral value is estimated by obtaining an independent appraisal. The appraisal typically considers area comparable properties and property condition as well as potential rental income that could be generated (particularly for commercial properties). For residential construction loans, the collateral is typically incomplete, so fair value is estimated as the replacement cost using data from a provider of building cost information to the real estate construction.

Impaired Real Estate Held for Investment: The Company believes that in an orderly market, fair value will approximate the replacement cost of a home and the rental income provides a cash flow stream for investment analysis. The Company believes the highest and best use of the properties are as income producing assets since it is the Company’s intent to hold the properties as rental properties, matching the income from the investment in rental properties with the funds required for future estimated policy claims.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

It should be noted that for replacement cost, when determining the fair value of real estate held for investment, the Company uses a provider of building cost information to the real estate construction industry. For the investment analysis, the Company used market data based upon its real estate operation experience and projected the present value of the net rental income over seven years. The Company also considers area comparable properties and property condition when determining fair value.

In addition to this analysis performed by the Company, the Company depreciates Real Estate Held for Investment. This depreciation reduces the book value of these properties and lessens the exposure to the Company from further deterioration in real estate values.

Mortgage Servicing Rights: The Company initially recognizes MSRs at their estimated fair values derived from the net cash flows associated with the servicing contracts, where the Company assumes the obligation to service the loan in the sale transaction.

	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturity securities available for sale	$	381,535,986		$	-	$	380,297,330	$	1,238,656
Equity securities		13,636,071			13,636,071		-		-
Loans held for sale		126,549,190			-		-		126,549,190
Restricted assets (1)		1,853,860			-		1,853,860		-
Restricted assets (2)		7,385,203			7,385,203		-		-
Cemetery perpetual care trust investments (1)		641,704			-		641,704		-
Cemetery perpetual care trust investments (2)		4,327,301			4,327,301		-		-
Derivatives - loan commitments (3)		4,995,486			-		-		4,995,486
Total assets accounted for at fair value on a recurring basis	$	540,924,801		$	25,348,575	$	382,792,894	$	132,783,332

Liabilities accounted for at fair value on a recurring basis
Derivatives - loan commitments (4)	$	(3,412,224	)	$	-	$	-	$	(3,412,224	)
Total liabilities accounted for at fair value on a recurring basis	$	(3,412,224	)	$	-	$	-	$	(3,412,224	)

(1)

Fixed maturity securities available for sale

(2)

Equity securities

(3)

Included in other assets on the consolidated balance sheets

(4)

Included in other liabilities and accrued expenses on the consolidated balance sheets

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturity securities available for sale	$	345,858,492		$	-		$	344,422,973	$	1,435,519
Equity securities		11,682,526			11,682,526			-		-
Loans held for sale		141,179,620			-			-		141,179,620
Restricted assets (1)		1,217,308			-			1,217,308		-
Restricted assets (2)		5,348,244			5,348,244			-		-
Cemetery perpetual care trust investments (1)		254,731			-			254,731		-
Cemetery perpetual care trust investments (2)		3,605,162			3,605,162			-		-
Derivatives - loan commitments (3)		4,089,856			-			-		4,089,856
Total assets accounted for at fair value on a recurring basis	$	513,235,939		$	20,635,932		$	345,895,012	$	146,704,995

Liabilities accounted for at fair value on a recurring basis
Derivatives - call options (4)	$	(29,715	)	$	(29,715	)	$	-	$	-
Derivatives - put options (4)		(13,888	)		(13,888	)		-		-
Derivatives - loan commitments (4)		(1,382,979	)		-			-		(1,382,979	)
Total liabilities accounted for at fair value on a recurring basis	$	(1,426,582	)	$	(43,603	)	$	-	$	(1,382,979	)

(1)

Fixed maturity securities available for sale

(2)

Equity securities

(3)

Included in other assets on the consolidated balance sheets

(4)

Included in other liabilities and accrued expenses on the consolidated balance sheets

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

				Significant	Range of Inputs
	Fair Value at		Valuation	Unobservable	Minimum			Maximum			Weighted
	12/31/2023		Technique	Input(s)	Value			Value			Average
Loans held for sale	$	126,549,190	Market approach	Investor contract pricing as a percentage of unpaid principal balance		70.0	%		121.0	%		100.0	%

Derivatives - loan commitments (net)		1,583,262	Market approach	Pull-through rate		70.0	%		99.0	%		86.0	%
				Initial-Value		N/A			N/A			N/A
				Servicing		0 bps			119 bps			49 bps

Fixed maturity securities available for sale		1,238,656	Broker quotes	Pricing quotes	$	98.40		$	102.46		$	99.86

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

				Significant	Range of Inputs
	Fair Value at		Valuation	Unobservable	Minimum			Maximum			Weighted
	12/31/2022		Technique	Input(s)	Value			Value			Average
Loans held for sale	$	141,179,620	Market approach	Investor contract pricing as a percentage of unpaid principal balance		69.9	%		106.1	%		99.8	%

Derivatives - loan commitments (net)		2,706,877	Market approach	Pull-through rate		65.0	%		95.0	%		82.2	%
				Initial-Value		N/A			N/A			N/A
				Servicing		0 bps			153 bps			73 bps

Fixed maturity securities available for sale		1,435,519	Broker quotes	Pricing quotes	$	100.00		$	111.11		$	104.97

The following table is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs:

	Net Derivatives Loan Commitments			Loans Held for Sale			Fixed Maturity Securities Available for Sale

Balance - December 31, 2022	$	2,706,877		$	141,179,620		$	1,435,519
Originations/purchases		-			2,173,080,584			-
Sales, maturities and paydowns		-			(2,224,454,040	)		(129,521	)
Transfer to mortgage loans held for investment		-			(3,017,626	)		-
Total gains (losses):
Included in earnings		(1,123,615	)(1)		39,760,652	(1)		(108	)(2)
Included in other comprehensive income		-			-			(67,234	)

Balance - December 31, 2023	$	1,583,262		$	126,549,190		$	1,238,656

(1)

As a component of mortgage fee income on the consolidated statements of earnings

(2)

As a component of net investment income on the consolidated statements of earnings

The following table is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs:

	Net Derivatives Loan Commitments			Loans Held for Sale			Fixed Maturity Securities Available for Sale

Balance - December 31, 2021	$	7,015,515		$	302,776,827		$	2,023,348
Originations/purchases		-			3,373,554,484			-
Sales, maturities and paydowns		-			(3,549,405,402	)		(528,980	)
Transfer to mortgage loans held for investment		-			(51,691,213	)		-
Total gains (losses):
Included in earnings		(4,308,638	)(1)		65,944,924 (1)			1,957 (2)
Included in other comprehensive income		-			-			(60,806	)

Balance - December 31, 2022	$	2,706,877		$	141,179,620		$	1,435,519

(1)

As a component of mortgage fee income on the consolidated statements of earnings

(2)

As a component of net investment income on the consolidated statements of earnings

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

The Company did not have any financial assets and financial liabilities measured at fair value on a nonrecurring basis as of December 31, 2023.

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a nonrecurring basis
Impaired mortgage loans held for investment	$	794,224	$	-	$	-	$	794,224
Total assets accounted for at fair value on a nonrecurring basis	$	794,224	$	-	$	-	$	794,224

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

Fair Value of Financial Instruments Carried at Other Than Fair Value

ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments whether or not recognized in the balance sheet, for which it is practicable to estimate that value.

The Company uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction as of December 31, 2023 and 2022.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2023:

	Carrying Value			Level 1		Level 2		Level 3			Total Estimated Fair Value
Assets
Mortgage loans held for investment
Residential	$	99,519,750		$	-	$	-	$	96,998,106		$	96,998,106
Residential construction		103,529,896			-		-		103,529,896			103,529,896
Commercial		72,567,191			-		-		72,149,530			72,149,530
Mortgage loans held for investment, net	$	275,616,837		$	-	$	-	$	272,677,532		$	272,677,532
Policy loans		13,264,183			-		-		13,264,183			13,264,183
Insurance assignments, net (1)		44,051,486			-		-		44,051,486			44,051,486
Restricted assets (2)		675,219			-		-		675,219			675,219
Cemetery perpetual care trust investments (2)		246,865			-		-		246,865			246,865
Mortgage servicing rights, net		3,461,146			-		-		4,543,657			4,543,657

Liabilities
Bank and other loans payable	$	(105,555,137	)	$	-	$	-	$	(105,555,137	)	$	(105,555,137	)
Policyholder account balances (3)		(39,245,123	)		-		-		(48,920,691	)		(48,920,691	)
Future policy benefits - annuities (3)		(106,285,010	)		-		-		(102,177,585	)		(102,177,585	)

(1)

Included in other investments and policy loans on the consolidated balance sheets

(2)

Mortgage loans held for investment

(3)

Included in future policy benefits and unpaid claims on the consolidated balance sheets

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2022:

	Carrying Value			Level 1		Level 2		Level 3			Total Estimated Fair Value
Assets
Mortgage loans held for investment
Residential	$	90,290,776		$	-	$	-	$	88,575,293		$	88,575,293
Residential construction		172,139,077			-		-		172,139,077			172,139,077
Commercial		45,694,074			-		-		44,079,537			44,079,537
Mortgage loans held for investment, net	$	308,123,927		$	-	$	-	$	304,793,907		$	304,793,907
Policy loans		13,095,473			-		-		13,095,473			13,095,473
Insurance assignments, net (1)		45,332,585			-		-		45,332,585			45,332,585
Restricted assets (2)		1,731,469			-		-		1,731,469			1,731,469
Cemetery perpetual care trust investments (2)		1,506,517			-		-		1,506,517			1,506,517
Mortgage servicing rights, net		3,039,765			-		-		3,927,877			3,927,877

Liabilities
Bank and other loans payable	$	(161,712,804	)	$	-	$	-	$	(161,712,804	)	$	(161,712,804	)
Policyholder account balances (3)		(41,146,171	)		-		-		(42,181,089	)		(42,181,089	)
Future policy benefits - annuities (3)		(106,637,094	)		-		-		(126,078,031	)		(126,078,031	)

(1)

Included in other investments and policy loans on the consolidated balance sheets

(2)

Mortgage loans held for investment

(3)

Included in future policy benefits and unpaid claims on the consolidated balance sheets

The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows:

Mortgage Loans Held for Investment: The estimated fair value of the Company’s mortgage loans held for investment is determined using various methods. The Company’s mortgage loans are grouped into three categories: Residential, Residential Construction and Commercial. When estimating the expected future cash flows, it is assumed that all loans will be held to maturity, and any loans that are non-performing are evaluated individually for impairment.

Residential — The estimated fair value of mortgage loans is determined through a combination of discounted cash flows (estimating expected future cash flows of payments and discounting them using current interest rates from single family mortgages) and considering pricing of similar loans that were sold recently.

Residential Construction — These loans are primarily short in maturity. Accordingly, the estimated fair value is determined to be the carrying value.

Commercial — The estimated fair value is determined by estimating expected future cash flows of payments and discounting them using current interest rates for commercial mortgages.

Policy Loans: The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values because they are fully collateralized by the cash surrender value of the underlying insurance policies.

Insurance Assignments, Net: These investments are short in maturity. Accordingly, the carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

17) Fair Value of Financial Instruments (Continued)

Bank and Other Loans Payable: The carrying amounts reported in the accompanying consolidated balance sheet for the warehouse lines of credit approximate their fair values due to their relatively short-term maturities and variable interest rates. The carrying amounts reported in the accompanying consolidated balance sheet for the bank loans collateralized by real estate approximate their fair values due to the non-assumable fixed rates.

Policyholder Account Balances and Future Policy Benefits-Annuities: Future policy benefit reserves for interest-sensitive insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period more than related policy account balances. Interest credit rates for interest-sensitive insurance products ranged from 1.5% to 6.5%. The fair values for these investment-type insurance contracts are estimated based on the present value of liability cash flows. The fair values for the Company’s insurance contracts other than investment-type contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Schedule of Aggregate Fair Value Loans Held for Sale (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Loans Held For Sale
Aggregate fair value	$ 126,549,190	$ 141,179,620
Unpaid principal balance	127,185,867	141,337,811
Unrealized loss	$ (636,677)	$ (158,191)

Summary of Unpaid Principal Balances of the Servicing Portfolio (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Servicing unpaid principal balance	$ 414,147,436	$ 360,023,384

Receivables (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Schedule of Receivables

Receivables consist of the following:

Schedule of Receivables

	2023			2022
	December 31,
	2023			2022
Contracts with customers	$	6,321,573		$	5,392,779
Receivables from sales agents		3,252,840			2,209,185
Other		7,658,789			23,200,919
Total receivables		17,233,202			30,802,883
Allowance for credit losses		(1,897,887	)		(2,229,791	)
Net receivables	$	15,335,315		$	28,573,092

Schedule of Allowance Credit Losses

The following table presents a roll forward of the allowance for credit losses:

Schedule of Allowance Credit Losses

	Allowance
Beginning balance - January 1, 2023	$	2,229,791
Change in provision for credit losses (1)		(110,935	)
Charge-offs		(220,969	)
Ending balance - December 31, 2023	$	1,897,887

Beginning balance - January 1, 2022	$	1,800,725
Change in provision for credit losses (1)		799,888
Charge-offs		(370,822	)
Ending balance - December 31, 2022	$	2,229,791

(1)

Included in other expenses on the condensed consolidated statements of earnings

Schedule of Accrued Investment Income (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Total accrued investment income	$ 10,170,790	$ 10,299,826
Fixed Maturity Securities Available For Sale [Member]
Financing Receivable, Past Due [Line Items]
Total accrued investment income	3,984,695	3,563,767
Equity Securities [Member]
Financing Receivable, Past Due [Line Items]
Total accrued investment income	20,451	14,496
Mortgage Loans Held for Investment [Member]
Financing Receivable, Past Due [Line Items]
Total accrued investment income	2,661,092	3,220,709
Real Estate Held For Investment [Member]
Financing Receivable, Past Due [Line Items]
Total accrued investment income	3,486,115	3,455,305
Policy Loans [Member]
Financing Receivable, Past Due [Line Items]
Total accrued investment income		37,951
Cash and Cash Equivalents [Member]
Financing Receivable, Past Due [Line Items]
Total accrued investment income	$ 18,437	$ 7,598

Receivables

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Receivables

4) Receivables

Receivables consist of the following:

Schedule of Receivables

	2023			2022
	December 31,
	2023			2022
Contracts with customers	$	6,321,573		$	5,392,779
Receivables from sales agents		3,252,840			2,209,185
Other		7,658,789			23,200,919
Total receivables		17,233,202			30,802,883
Allowance for credit losses		(1,897,887	)		(2,229,791	)
Net receivables	$	15,335,315		$	28,573,092

The Company records an allowance for credit losses for its receivables in accordance with GAAP. See Note 1 regarding the adoption of ASU 2016-13.

The following table presents a roll forward of the allowance for credit losses:

Schedule of Allowance Credit Losses

	Allowance
Beginning balance - January 1, 2023	$	2,229,791
Change in provision for credit losses (1)		(110,935	)
Charge-offs		(220,969	)
Ending balance - December 31, 2023	$	1,897,887

Beginning balance - January 1, 2022	$	1,800,725
Change in provision for credit losses (1)		799,888
Charge-offs		(370,822	)
Ending balance - December 31, 2022	$	2,229,791

(1)

Included in other expenses on the condensed consolidated statements of earnings

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($)

Dec. 31, 2023

Dec. 31, 2022

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

$ 381,535,986

$ 345,858,492

Equity securities

13,636,071

11,682,526

Loans held for sale

126,549,190

141,179,620

Restricted assets

1,853,860

^[1]

1,217,308

^[2]

Restricted assets

7,385,203

^[3]

5,348,244

^[4]

Cemetery perpetual care trust investments

641,704

^[1]

254,731

^[2]

Cemetery perpetual care trust investments

4,327,301

^[3]

3,605,162

^[4]

Derivatives - loan commitments

4,995,486

^[5]

4,089,856

^[6]

Total assets accounted for at fair value on a recurring basis

540,924,801

513,235,939

Derivatives - loan commitments

(3,412,224)

^[7]

(1,382,979)

^[8]

Total liabilities accounted for at fair value on a recurring basis

(3,412,224)

(1,426,582)

Derivatives - call options

^[8]

(29,715)

Derivatives - put options

^[8]

(13,888)

Fair Value, Inputs, Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Equity securities

13,636,071

11,682,526

Loans held for sale

Restricted assets

^[1]

^[2]

Restricted assets

7,385,203

^[3]

5,348,244

^[4]

Cemetery perpetual care trust investments

^[1]

^[2]

Cemetery perpetual care trust investments

4,327,301

^[3]

3,605,162

^[4]

Derivatives - loan commitments

^[5]

^[6]

Total assets accounted for at fair value on a recurring basis

25,348,575

20,635,932

Derivatives - loan commitments

^[7]

^[8]

Total liabilities accounted for at fair value on a recurring basis

(43,603)

Derivatives - call options

^[8]

(29,715)

Derivatives - put options

^[8]

(13,888)

Fair Value, Inputs, Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

380,297,330

344,422,973

Equity securities

Loans held for sale

Restricted assets

1,853,860

^[1]

1,217,308

^[2]

Restricted assets

^[3]

^[4]

Cemetery perpetual care trust investments

641,704

^[1]

254,731

^[2]

Cemetery perpetual care trust investments

^[3]

^[4]

Derivatives - loan commitments

^[5]

^[6]

Total assets accounted for at fair value on a recurring basis

382,792,894

345,895,012

Derivatives - loan commitments

^[7]

^[8]

Total liabilities accounted for at fair value on a recurring basis

Derivatives - call options

^[8]

Derivatives - put options

^[8]

Fair Value, Inputs, Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

1,238,656

1,435,519

Equity securities

Loans held for sale

126,549,190

141,179,620

Restricted assets

^[1]

^[2]

Restricted assets

^[3]

^[4]

Cemetery perpetual care trust investments

^[1]

^[2]

Cemetery perpetual care trust investments

^[3]

^[4]

Derivatives - loan commitments

4,995,486

^[5]

4,089,856

^[6]

Total assets accounted for at fair value on a recurring basis

132,783,332

146,704,995

Derivatives - loan commitments

(3,412,224)

^[7]

(1,382,979)

^[8]

Total liabilities accounted for at fair value on a recurring basis

$ (3,412,224)

(1,382,979)

Derivatives - call options

^[8]

Derivatives - put options

^[8]

[1]	Fixed maturity securities available for sale
[2]	Fixed maturity securities available for sale
[3]	Equity securities
[4]	Equity securities
[5]	Included in other assets on the consolidated balance sheets
[6]	Included in other assets on the consolidated balance sheets
[7]	Included in other liabilities and accrued expenses on the consolidated balance sheets
[8]	Included in other liabilities and accrued expenses on the consolidated balance sheets

Value of Business Acquired, Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Value of Business Acquired, Goodwill and Other Intangible Assets

5) Value of Business Acquired, Goodwill and Other Intangible Assets

Information regarding value of business acquired was as follows:

Schedule of Value of Business Acquired

	2023			2022
	December 31,
	2023			2022
Balance at beginning of year	$	9,803,736		$	8,421,432
Value of business acquired		-			2,136,085
Imputed interest at 7% included in earnings		626,666	(1)		642,919	(1)
Amortization included in earnings		(1,926,668	)(1)		(1,907,250	)(1)
Shadow amortization included in other comprehensive income		(36,121	)		510,550
Net amortization		(1,336,123	)		(753,781	)
Balance at end of year	$	8,467,613		$	9,803,736

(1)

Included in Amortization of deferred policy and pre-need acquisition costs and value of business acquired on the consolidated statements of earnings

Presuming no additional acquisitions, net amortization charged to income is expected to approximate the following:


2024	$	1,219,496
2025		1,112,965
2026		1,030,635
2027		957,074
2028		833,216
Thereafter		3,314,227
Total	$	8,467,613

Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2023, value of business acquired is being amortized over a weighted average life of 5.1 years.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

5) Value of Business Acquired, Goodwill and Other Intangible Assets (Continued)

Information regarding goodwill by segment was as follows:

Schedule of Goodwill by Segment

	Life Insurance		Cemetery/ Mortuary		Total
Balance at January 1, 2022:
Goodwill	$	2,765,570	$	2,488,213	$	5,253,783
Accumulated impairment		-		-		-
Total goodwill, net		2,765,570		2,488,213		5,253,783

Acquisition		-		-		-

Balance at December 31, 2022:
Goodwill		2,765,570		2,488,213		5,253,783
Accumulated impairment		-		-		-
Total goodwill, net		2,765,570		2,488,213		5,253,783

Acquisition		-		-		-

Balance at December 31, 2023:
Goodwill		2,765,570		2,488,213		5,253,783
Accumulated impairment		-		-		-
Total goodwill, net	$	2,765,570	$	2,488,213	$	5,253,783

Goodwill is not amortized but is tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill for 2023 and 2022.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

5) Value of Business Acquired, Goodwill and Other Intangible Assets (Continued)

The carrying value of the Company’s other intangible assets were as follows which is included in other assets:

		December 31,
	Useful Life	2023			2022
Intangible asset - trade name (1)	15 years	$	2,100,000		$	2,100,000
Intangible assets - other (1)	15 years		210,000			210,000
Intangible asset - trade name (2)	15 years		610,000			610,000
Intangible asset - customer lists (3)	15 years		890,000			890,000
Less accumulated amortization			(807,333	)		(553,333	)
Balance at end of year		$	3,002,667		$	3,256,667

(1)

Rivera Funerals, Cremations and Memorial Gardens

(2)

Kilpatrick Life

(3)

Beta Capital Corp

Amortization expense for 2023 and 2022 was $254,000 and $256,000, respectively, and is included in other expenses on the consolidated statements of earnings.

The following table summarizes the Company’s estimate of future amortization for the other intangible assets:


2024	$	254,000
2025		254,000
2026		254,000
2027		254,000
2028		254,000
Thereafter		1,732,667
Total	$	3,002,667

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds (Details) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

$ 390,884,441

$ 362,750,511

Available for sale securities, unrecognized holding gain

4,550,214

2,282,842

Available for sale securities, unrecognized holding loss

(13,584,120)

^[1]

(19,174,861)

Available for sale securities, estimated fair value

381,535,986

345,858,492

Real estate held for investment: Residential

(183,419,292)

(191,328,616)

Available-for-sale securities, amortized cost basis

10,571,505

9,942,265

Available-for-sale securities, gross unrealized gain

13,636,071

11,682,526

Mortgage loans on real estate and construction

281,382,873

Mortgage loans on real estate and construction

275,616,837

308,123,927

Cash and cash equivalents

139,923,399

133,483,817

$ 141,414,282

Total restricted assets

20,028,976

18,935,055

Cemetery Perpectual Care Obligation [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

647,261

263,205

Available for sale securities, unrecognized holding gain

302

Available for sale securities, unrecognized holding loss

(5,859)

(8,516)

Available for sale securities, estimated fair value

641,704

254,731

Cash and cash equivalents

2,867,047

1,925,978

Restricted Assets [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

1,860,195

1,234,818

Available for sale securities, unrecognized holding gain

1,947

866

Available for sale securities, unrecognized holding loss

(8,282)

(18,376)

Available for sale securities, estimated fair value

1,853,860

1,217,308

Available-for-sale securities, amortized cost basis

6,516,044

4,955,360

Cash and cash equivalents

10,114,694

^[2]

10,638,034

^[3]

Total restricted assets

20,028,976

18,935,055

US Government Corporations and Agencies Securities [Member] | Cemetery Perpectual Care Obligation [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

53,672

Available for sale securities, unrecognized holding gain

Available for sale securities, unrecognized holding loss

(171)

Available for sale securities, estimated fair value

53,501

Residential Construction [Member] | Cemetery Perpectual Care Obligation [Member]

Impairment Effects on Earnings Per Share [Line Items]

Mortgage loans on real estate and construction

(495)

Real estate held for investment: Residential

(16,178)

Mortgage loans on real estate and construction

247,360

1,506,517

Residential Construction [Member] | Restricted Assets [Member]

Impairment Effects on Earnings Per Share [Line Items]

Mortgage loans on real estate and construction

676,572

1,731,469

Fair value allowance for credit losses

(1,353)

Mortgage loans on real estate and construction

675,219

US Treasury Securities [Member] | Cemetery Perpectual Care Obligation [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

477,797

89,004

Available for sale securities, unrecognized holding gain

302

Available for sale securities, unrecognized holding loss

(574)

(38)

Available for sale securities, estimated fair value

477,525

89,008

US Treasury Securities [Member] | Restricted Assets [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

932,737

Available for sale securities, unrecognized holding gain

1,433

Available for sale securities, unrecognized holding loss

(1,000)

Available for sale securities, estimated fair value

933,170

US States and Political Subdivisions Debt Securities [Member] | Cemetery Perpectual Care Obligation [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

115,792

174,201

Available for sale securities, unrecognized holding gain

Available for sale securities, unrecognized holding loss

(5,114)

(8,478)

Available for sale securities, estimated fair value

110,678

165,723

US States and Political Subdivisions Debt Securities [Member] | Restricted Assets [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

652,770

1,033,047

Available for sale securities, unrecognized holding gain

305

866

Available for sale securities, unrecognized holding loss

(4,542)

(15,360)

Available for sale securities, estimated fair value

648,533

1,018,553

Corporate Debt Securities [Member] | Restricted Assets [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, amortized cost

274,688

201,771

Available for sale securities, unrecognized holding gain

209

Available for sale securities, unrecognized holding loss

(2,740)

(3,016)

Available for sale securities, estimated fair value

272,157

198,755

Industrial Miscellaneous and All Other [Member] | Cemetery Perpectual Care Obligation [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available-for-sale securities, amortized cost basis

3,614,392

3,195,942

Available for sale securities, unrecognized holding gain

859,680

584,383

Available for sale securities, unrecognized holding loss

(146,771)

(175,163)

Available-for-sale securities, gross unrealized gain

4,327,301

3,605,162

Industrial Miscellaneous and All Other [Member] | Restricted Assets [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available for sale securities, unrecognized holding gain

1,117,155

703,049

Available for sale securities, unrecognized holding loss

(247,996)

(310,165)

Available-for-sale securities, gross unrealized gain

7,385,203

5,348,244

Equity Securities One [Member] | Cemetery Perpectual Care Obligation [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available-for-sale securities, amortized cost basis

3,614,392

3,195,942

Available for sale securities, unrecognized holding gain

859,680

584,383

Available for sale securities, unrecognized holding loss

(146,771)

(175,163)

Available-for-sale securities, gross unrealized gain

4,327,301

3,605,162

Mortgage loans on real estate and construction

246,865

Equity Securities One [Member] | Restricted Assets [Member]

Impairment Effects on Earnings Per Share [Line Items]

Available-for-sale securities, amortized cost basis

6,516,044

4,955,360

Available for sale securities, unrecognized holding gain

1,117,155

703,049

Available for sale securities, unrecognized holding loss

(247,996)

(310,165)

Available-for-sale securities, gross unrealized gain

$ 7,385,203

$ 5,348,244

[1]	Gross unrealized losses are net of allowance for credit losses
[2]	Including cash and cash equivalents of $6,930,933 for the life insurance and mortgage segments.
[3]	Including cash and cash equivalents of $8,527,620 for the life insurance and mortgage segments.

Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds (Details) (Parenthetical) - USD ($)

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year

$ 139,923,399

$ 133,483,817

$ 141,414,282

Restricted Assets [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year

10,114,694

^[1]

10,638,034

^[2]

Restricted Assets [Member] | Security National Life Insurance [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year

$ 6,930,933

$ 8,527,620

[1]	Including cash and cash equivalents of $6,930,933 for the life insurance and mortgage segments.
[2]	Including cash and cash equivalents of $8,527,620 for the life insurance and mortgage segments.

Stock Compensation Plans (Details Narrative) - USD ($)	12 Months Ended
Stock Compensation Plans (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation expense	$ 601,362	$ 929,692
Unrecognized compensation expense	677,948
Intrinsic value stock options exercised	657,354	619,064
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation expense	304	371
Unrecognized compensation expense	3,263
Stock Option Plans [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation expense	$ 601,058	$ 929,321

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Stock Compensation Plans

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Compensation Plans

13) Stock Compensation Plans

The Company has equity incentive plans (the “2013 Plan”, the “2014 Director Plan” and the “2022 Plan”).

Stock Options

Stock based compensation expense for stock options issued of $601,058 and $929,321 has been recognized under these plans for 2023 and 2022, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2023, the total unrecognized compensation expense related to the stock options issued was $677,948, which is expected to be recognized over the remaining vesting period.

The fair value of each stock option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant.

The following table summarizes the assumptions used in estimating the fair value of each stock option granted along with the weighted-average fair value of the stock options granted.

Schedule of Assumptions Used

				Assumptions
Grant Date	Plan	Weighted-Average Fair Value of Each Option		Expected Dividend Yield (1)			Underlying stock FMV		Weighted-Average Volatility			Weighted-Average Risk-Free Interest Rate			Weighted-Average Expected Life (years)
December 1, 2023	All Plans	$	1.88		5	%	$	7.99		36.76	%		4.14	%		4.9

January 30, 2023	All Plans	$	1.65		5	%	$	7.10		36.73	%		3.64	%		5.31

January 18, 2023	All Plans	$	1.70		5	%	$	7.37		36.79	%		3.40	%		5.31

December 2, 2022	All Plans	$	1.48		5	%	$	6.48		37.03	%		3.69	%		4.88

(1)

Stock dividend

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

13) Stock Compensation Plans (Continued)

Activity of the stock option plans is summarized as follows:

	Number of Class A Shares			Weighted Average Exercise Price		Number of Class C Shares		Weighted Average Exercise Price
Outstanding at January 1, 2022		1,024,351		$	4.38		821,146	$	5.26
Adjustment for the effect of stock dividends		47,780					41,057
Granted		82,500					295,000
Exercised		(176,435	)				-
Cancelled		(1,591	)				-

Outstanding at December 31, 2022		976,605		$	4.56		1,157,203	$	5.31
Adjustment for the effect of stock dividends		38,266					57,859
Granted		106,500					305,000
Exercised		(286,965	)				-
Cancelled		(836	)				-

Outstanding at December 31, 2023		833,570		$	5.22		1,520,062	$	5.86

Exercisable at end of year		739,070		$	4.87		1,215,062	$	5.31

Available options for future grant		92,820					529,750

Weighted average contractual term of options outstanding at December 31, 2023		5.25 years					6.50 years

Weighted average contractual term of options exercisable at December 31, 2023		4.66 years					5.90 years

Aggregated intrinsic value of options outstanding at December 31, 2023 (1)	$	3,149,704				$	4,765,559

Aggregated intrinsic value of options exercisable at December 31, 2023 (1)	$	3,049,987				$	4,483,509

(1)

The Company used a stock price of $9.00 as of December 31, 2023 to derive intrinsic value.

The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during 2023 and 2022 was $657,354 and $619,064, respectively.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

13) Stock Compensation Plans (Continued)

Restricted Stock Units (“RSUs”)

Stock based compensation expense for RSUs issued of $304 and $371 has been recognized under these plans for the 2023 and 2022, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2023, the total unrecognized compensation expense related to the RSUs issued was $3,263, which is expected to be recognized over the remaining vesting period.

Activity of the RSUs is summarized as follows:

	Number of Class A Shares			Weighted Average Grant Date Fair Value
Non-vested at December 31, 2022		1,620		$	6.48
Granted		1,840
Vested		(1,215	)

Non-vested at December 31, 2023		2,245		$	7.72

Available RSUs for future grant		16,540

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

The following table shows the fair value and notional amounts of derivative instruments.

		December 31, 2023						December 31, 2022
	Balance Sheet Location	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives not designated as hedging instruments:
Loan commitments	Other assets and Other liabilities	$	161,832,250	$	4,995,486	$	3,412,224	$	453,371,808	$	4,089,856	$	1,382,979
Call options	Other liabilities		-		—		-		868,600		—		29,715
Put options	Other liabilities		-		—		-		654,500		—		13,888
Total		$	161,832,250	$	4,995,486	$	3,412,224	$	454,894,908	$	4,089,856	$	1,426,582

Schedule of Gains and Losses on Derivatives

		Years ended December 31,
Derivative	Classification	2023			2022
Loan commitments	Mortgage fee income	$	(1,123,615	)	$	(4,308,638	)

Call and put options	Gains on investments and other assets	$	49,963		$	202,886

Reinsurance, Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Percentage of concentration credit risk	100.00%
Payment for other liabilities	$ 146,953,000
Other commitments	$ 104,977,000
Loan interest rate	7.00%	7.00%
Insurance Receivable [Member] \| Credit Concentration Risk [Member] \| Single Reinsurer [Member]
Loss Contingencies [Line Items]
Percentage of concentration credit risk	94.00%	93.70%
Insurance Receivable [Member] \| Credit Concentration Risk [Member] \| Single Reinsurer [Member] \| Whole Life Insurance [Member]
Loss Contingencies [Line Items]
Percentage of concentration credit risk	8.80%	11.30%
Minimum [Member]
Loss Contingencies [Line Items]
Reinsurance payable	$ 25,000
Minimum [Member] \| Loans [Member]
Loss Contingencies [Line Items]
Loan commitment ranges	50.00%
Loan interest rate	5.25%
Maximum [Member]
Loss Contingencies [Line Items]
Reinsurance payable	$ 100,000
Maximum [Member] \| Loans [Member]
Loss Contingencies [Line Items]
Loan commitment ranges	80.00%
Loan interest rate	8.50%

Summary of Bank Loans Payable (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total bank and other loans	$ 105,555,137	$ 161,712,804
Finance lease liabilities	15,550	31,082
Current Installment	(9,543,052)	(65,560,608)
Bank and other loans, excluding current installments	96,012,085	96,152,196
Note Payable 1 [Member]
Debt Instrument [Line Items]
Total bank and other loans		1,690,892
Note Payable 2 [Member]
Debt Instrument [Line Items]
Total bank and other loans	50,129,255	48,613,833
Note Payable 3 [Member]
Debt Instrument [Line Items]
Total bank and other loans	38,478,359	39,298,298
Note Payable 4 [Member]
Debt Instrument [Line Items]
Total bank and other loans	9,200,000	9,200,000
Note Payable 5 [Member]
Debt Instrument [Line Items]
Total bank and other loans		17,978,527
Note Payable 6 [Member]
Debt Instrument [Line Items]
Total bank and other loans	114,518	29,768,762
Note Payable 7 [Member]
Debt Instrument [Line Items]
Total bank and other loans		15,131,410
Note Payable 8 [Member]
Debt Instrument [Line Items]
Total bank and other loans	$ 7,617,455

Schedule of Commercial Real Estate Investment (Details)

Dec. 31, 2023

USD ($)

ft²

Dec. 31, 2022

USD ($)

ft²

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

$ 183,419,292

$ 191,328,616

Real estate held for sale

3,028,973

11,161,582

Commercial Real Estate 1 [Member]

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

$ 142,494,427

$ 152,890,656

Total square footage | ft²

627,542

677,392

Real estate held for sale

$ 3,028,973

$ 151,553

Real estate Square footage | ft²

19,694

UTAH | Commercial Real Estate 1 [Member]

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

^[1]

$ 142,475,177

$ 147,627,946

Total square footage | ft²

^[1]

625,920

LOUISIANA | Commercial Real Estate 1 [Member]

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

$ 19,250

$ 2,380,847

Total square footage | ft²

1,622

31,778

MISSISSIPPI | Commercial Real Estate 1 [Member]

Marketable Securities [Line Items]

Real estate held for investment (net of accumulated depreciation)

^[2]

$ 2,881,863

Total square footage | ft²

^[2]

19,694

Real estate held for sale

^[3]

$ 3,028,973

$ 151,553

Real estate Square footage | ft²

^[3]

19,694

[1]	Includes Center53
[2]	This property was moved to held for sale
[3]	Consists of approximately 93 acres of undeveloped land for $151,553 for 2023 and 2022. The remaining property for $2,877,420 was sold in February 2024 for a gain of approximately $250,000.

Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions

16) Related Party Transactions

The Company’s Board of Directors has a written procedure, which requires disclosure to the Board of any material interest or any affiliation on the part of any of its officers, directors or employees that is in conflict or may conflict with the interests of the Company. The Company and its Board of Directors are unaware of any related party transactions that require disclosure as of December 31, 2023.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Tables)

12 Months Ended

Dec. 31, 2023

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Schedule of Investments

The Company’s investments as of December 31, 2023 are summarized as follows:

Schedule of Investments

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses (1)			Allowance for Credit Losses			Estimated Fair Value
December 31, 2023:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	111,450,753		$	344,425	$	(1,416,448	)	$	-		$	110,378,730

Obligations of states and political subdivisions		6,524,083			500		(319,260	)		-			6,205,323

Corporate securities including public utilities		232,299,727			3,688,642		(7,145,507	)		(308,500	)		228,534,362

Mortgage-backed securities		40,359,878			506,647		(4,702,905	)		(6,049	)		36,157,571

Redeemable preferred stock		250,000			10,000		-			-			260,000

Total fixed maturity securities available for sale	$	390,884,441		$	4,550,214	$	(13,584,120	)	$	(314,549	)	$	381,535,986

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous and all other	$	10,571,505		$	3,504,141	$	(439,575	)				$	13,636,071

Total equity securities at estimated fair value	$	10,571,505		$	3,504,141	$	(439,575	)				$	13,636,071

Mortgage loans held for investment at amortized cost:
Residential	$	103,153,587
Residential construction		104,052,748
Commercial		74,176,538
Less: Unamortized deferred loan fees, net		(1,623,226	)
Less: Allowance for credit losses		(3,818,653	)
Less: Net discounts		(324,157	)

Total mortgage loans held for investment	$	275,616,837

Real estate held for investment - net of accumulated depreciation:
Residential	$	40,924,865
Commercial		142,494,427

Total real estate held for investment	$	183,419,292

Real estate held for sale:
Residential	$	-
Commercial		3,028,973

Total real estate held for sale	$	3,028,973

Other investments and policy loans at amortized cost:
Policy loans	$	13,264,183
Insurance assignments		45,605,322
Federal Home Loan Bank stock (2)		2,279,800
Other investments		9,809,148
Less: Allowance for credit losses		(1,553,836	)

Total policy loans and other investments	$	69,404,617

Accrued investment income	$	10,170,790

Total investments	$	936,812,566

(1)

Gross unrealized losses are net of allowance for credit losses

(2)

Includes $530,900 of Membership stock and $1,748,900 of Activity stock due to short-term advances and letters of credit.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The Company’s investments as of December 31, 2022 are summarized as follows:

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2022:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	93,182,210		$	180,643	$	(2,685,277	)	$	90,677,576

Obligations of states and political subdivisions		6,675,071			13,869		(458,137	)		6,230,803

Corporate securities including public utilities		229,141,544			1,909,630		(11,930,773	)		219,120,401

Mortgage-backed securities		33,501,686			168,700		(4,100,674	)		29,569,712

Redeemable preferred stock		250,000			10,000		-			260,000

Total fixed maturity securities available for sale	$	362,750,511		$	2,282,842	$	(19,174,861	)	$	345,858,492

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous and all other	$	9,942,265		$	2,688,375	$	(948,114	)	$	11,682,526

Total equity securities at estimated fair value	$	9,942,265		$	2,688,375	$	(948,114	)	$	11,682,526

Mortgage loans held for investment at amortized cost:
Residential	$	93,355,623
Residential construction		172,516,125
Commercial		46,311,955
Less: Unamortized deferred loan fees, net		(1,746,605	)
Less: Allowance for loan losses		(1,970,311	)
Less: Net discounts		(342,860	)

Total mortgage loans held for investment	$	308,123,927

Real estate held for investment - net of accumulated depreciation:
Residential	$	38,437,960
Commercial		152,890,656

Total real estate held for investment	$	191,328,616

Real estate held for sale:
Residential	$	11,010,029
Commercial		151,553

Total real estate held for sale	$	11,161,582

Other investments and policy loans at amortized cost:
Policy loans	$	13,095,473
Insurance assignments		46,942,536
Federal Home Loan Bank stock (1)		2,600,300
Other investments		9,479,798
Less: Allowance for doubtful accounts		(1,609,951	)

Total policy loans and other investments	$	70,508,156

Accrued investment income	$	10,299,826

Total investments	$	948,963,125

(1)

Includes $938,500 of Membership stock and $1,661,800 of Activity stock due to short-term advances and letters of credit.

Schedule of Fair Value of Fixed Maturity Securities

	Unrealized Losses for Less than Twelve Months		Fair Value		Unrealized Losses for More than Twelve Months		Fair Value		Total Unrealized Loss		Fair Value
At December 31, 2023
U.S. Treasury securities and obligations of U.S. Government agencies	$	29,394	$	9,436,090	$	1,387,054	$	70,885,403	$	1,416,448	$	80,321,493
Obligations of states and political subdivisions		11,105		470,325		308,155		5,284,498		319,260		5,754,823
Corporate securities including public utilities		529,660		32,507,773		6,615,847		107,556,216		7,145,507		140,063,989
Mortgage and other asset-backed securities		29,799		2,260,445		4,673,106		22,184,174		4,702,905		24,444,619
Total unrealized losses	$	599,958	$	44,674,633	$	12,984,162	$	205,910,291	$	13,584,120	$	250,584,924

At December 31, 2022
U.S. Treasury securities and obligations of U.S. Government agencies	$	2,685,277	$	79,400,753	$	-	$	-	$	2,685,277	$	79,400,753
Obligations of states and political subdivisions		378,067		5,467,910		80,070		429,020		458,137		5,896,930
Corporate securities including public utilities		10,935,114		162,995,969		995,659		5,781,822		11,930,773		168,777,791
Mortgage and other asset-backed securities		2,884,731		19,909,907		1,215,943		6,978,745		4,100,674		26,888,652
Total unrealized losses	$	16,883,189	$	267,774,539	$	2,291,672	$	13,189,587	$	19,174,861	$	280,964,126

Schedule of Investments Classified by Contractual Maturity Date

	Amortized		Estimated Fair
	Cost		Value
Due in 1 year	$	-	$	-
Due in 2-5 years		168,831,608		166,186,132
Due in 5-10 years		95,804,878		95,031,727
Due in more than 10 years		85,638,077		83,900,556
Mortgage-backed securities		40,359,878		36,157,571
Redeemable preferred stock		250,000		260,000
Total	$	390,884,441	$	381,535,986

Restricted Assets [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Schedule of Fair Value of Fixed Maturity Securities

	Unrealized Losses for Less than Twelve Months		Fair Value		Unrealized Losses for More than Twelve Months		Fair Value		Total Unrealized Loss		Fair Value
At December 31, 2023
U.S. Treasury securities and obligations of U.S. Government agencies	$	1,000	$	249,877	$	-	$	-	$	1,000	$	249,877
Obligations of states and political subdivisions		-		-		4,542		451,985		4,542		451,985
Corporate securities including public utilities		-		-		2,740		221,334		2,740		221,334
Total unrealized losses	$	1,000	$	249,877	$	7,282	$	673,319	$	8,282	$	923,196

At December 31, 2022
Obligations of states and political subdivisions	$	11,891	$	760,255	$	3,469	$	58,072	$	15,360	$	818,327
Corporate securities including public utilities		3,016		198,755		-		-		3,016		198,755
Total unrealized losses	$	14,907	$	959,010	$	3,469	$	58,072	$	18,376	$	1,017,082

Schedule of Investments Classified by Contractual Maturity Date

	Amortized		Estimated Fair
	Cost		Value
Due in 1 year	$	681,860	$	683,293
Due in 2-5 years		462,189		457,618
Due in 5-10 years		147,422		147,121
Due in more than 10 years		568,724		565,828
Total	$	1,860,195	$	1,853,860

Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

Restricted assets as of December 31, 2023 are summarized as follows:

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2023:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	932,737		$	1,433	$	(1,000	)	$	933,170
Obligations of states and political subdivisions		652,770			305		(4,542	)		648,533
Corporate securities including public utilities		274,688			209		(2,740	)		272,157
Total fixed maturity securities available for sale	$	1,860,195		$	1,947	$	(8,282	)	$	1,853,860

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$	6,516,044		$	1,117,155	$	(247,996	)	$	7,385,203
Total equity securities at estimated fair value	$	6,516,044		$	1,117,155	$	(247,996	)	$	7,385,203

Mortgage loans held for investment at amortized cost:
Residential construction	$	676,572
Less: Allowance for credit losses		(1,353	)
Total mortgage loans held for investment	$	675,219

Cash and cash equivalents (1)	$	10,114,694

Total restricted assets	$	20,028,976

(1)

Including cash and cash equivalents of $6,930,933 for the life insurance and mortgage segments.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Continued)

Restricted assets as of December 31, 2022 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2022:
Fixed maturity securities, available for sale, at estimated fair value:
Obligations of states and political subdivisions	$	1,033,047	$	866	$	(15,360	)	$	1,018,553
Corporate securities including public utilities		201,771		-		(3,016	)		198,755
Total fixed maturity securities available for sale	$	1,234,818	$	866	$	(18,376	)	$	1,217,308

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$	4,955,360	$	703,049	$	(310,165	)	$	5,348,244
Total equity securities at estimated fair value	$	4,955,360	$	703,049	$	(310,165	)	$	5,348,244

Mortgage loans held for investment at amortized cost:
Residential construction	$	1,731,469
Cash and cash equivalents (1)	$	10,638,034

Total restricted assets	$	18,935,055

(1)

Including cash and cash equivalents of $8,527,620 for the life insurance and mortgage segments.

Cemetery Perpectual Care Oblication [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Schedule of Investments

The components of the cemetery perpetual care investments and obligation as of December 31, 2023 are as follows:

Schedule of Investments

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2023:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	477,797		$	302	$	(574	)	$	477,525
Obligations of states and political subdivisions		115,792			-		(5,114	)		110,678
Corporate securities including public utilities		53,672			-		(171	)		53,501
Total fixed maturity securities available for sale	$	647,261		$	302	$	(5,859	)	$	641,704

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$	3,614,392		$	859,680	$	(146,771	)	$	4,327,301
Total equity securities at estimated fair value	$	3,614,392		$	859,680	$	(146,771	)	$	4,327,301

Mortgage loans held for investment at amortized cost:
Residential construction	$	247,360
Less: Allowance for credit losses		(495	)
Total mortgage loans held for investment	$	246,865

Cash and cash equivalents	$	2,867,047

Total cemetery perpetual care trust investments	$	8,082,917

Cemetery perpetual care obligation	$	(5,326,196	)

Trust investments in excess of trust obligations	$	2,756,721

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Continued)

The components of the cemetery perpetual care investments and obligation as of December 31, 2022 are as follows:

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2022:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	89,004		$	42	$	(38	)	$	89,008
Obligations of states and political subdivisions		174,201			-		(8,478	)		165,723
Total fixed maturity securities available for sale	$	263,205		$	42	$	(8,516	)	$	254,731

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$	3,195,942		$	584,383	$	(175,163	)	$	3,605,162
Total equity securities at estimated fair value	$	3,195,942		$	584,383	$	(175,163	)	$	3,605,162

Mortgage loans held for investment at amortized cost:
Residential construction	$	1,506,517

Real estate held for investment: Residential	$	(16,178	)

Cash and cash equivalents	$	1,925,978

Total cemetery perpetual care trust investments	$	7,276,210

Cemetery perpetual care obligation	$	(5,099,542	)

Trust investments in excess of trust obligations	$	2,176,668

Schedule of Fair Value of Fixed Maturity Securities

	Unrealized Losses for Less than Twelve Months		Fair Value		Unrealized Losses for More than Twelve Months		Fair Value		Total Unrealized Loss		Fair Value
At December 31, 2023
U.S. Treasury securities and obligations of U.S. Government agencies	$	574	$	143,448	$	-	$	-	$	574	$	143,448
Obligations of states and political subdivisions		-		-		5,114		110,678		5,114		110,678
Corporate securities including public utilities		-		-		171		53,501		171		53,501
Total unrealized losses	$	574	$	143,448	$	5,285	$	164,179	$	5,859	$	307,627

At December 31, 2022
U.S. Treasury securities and obligations of U.S. Government agencies	$	38	$	59,392	$	-	$	-	$	38	$	59,392
Obligations of states and political subdivisions		1,845		94,612		6,633		71,112		8,478		165,724
Total unrealized losses	$	1,883	$	154,004	$	6,633	$	71,112	$	8,516	$	225,116

Schedule of Investments Classified by Contractual Maturity Date

	Amortized		Estimated Fair
	Cost		Value
Due in 1 year	$	333,775	$	334,077
Due in 2-5 years		259,814		254,126
Due in 5-10 years		-		-
Due in more than 10 years		53,672		53,501
Total	$	647,261	$	641,704

Schedule of Activity of Stock Option Plans (Details) (Parenthetical)	Dec. 31, 2023 $ / shares
Share-Based Payment Arrangement [Abstract]
Share price	$ 9.00

Investments (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Investments

The Company’s investments as of December 31, 2023 are summarized as follows:

Schedule of Investments

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses (1)			Allowance for Credit Losses			Estimated Fair Value
December 31, 2023:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	111,450,753		$	344,425	$	(1,416,448	)	$	-		$	110,378,730

Obligations of states and political subdivisions		6,524,083			500		(319,260	)		-			6,205,323

Corporate securities including public utilities		232,299,727			3,688,642		(7,145,507	)		(308,500	)		228,534,362

Mortgage-backed securities		40,359,878			506,647		(4,702,905	)		(6,049	)		36,157,571

Redeemable preferred stock		250,000			10,000		-			-			260,000

Total fixed maturity securities available for sale	$	390,884,441		$	4,550,214	$	(13,584,120	)	$	(314,549	)	$	381,535,986

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous and all other	$	10,571,505		$	3,504,141	$	(439,575	)				$	13,636,071

Total equity securities at estimated fair value	$	10,571,505		$	3,504,141	$	(439,575	)				$	13,636,071

Mortgage loans held for investment at amortized cost:
Residential	$	103,153,587
Residential construction		104,052,748
Commercial		74,176,538
Less: Unamortized deferred loan fees, net		(1,623,226	)
Less: Allowance for credit losses		(3,818,653	)
Less: Net discounts		(324,157	)

Total mortgage loans held for investment	$	275,616,837

Real estate held for investment - net of accumulated depreciation:
Residential	$	40,924,865
Commercial		142,494,427

Total real estate held for investment	$	183,419,292

Real estate held for sale:
Residential	$	-
Commercial		3,028,973

Total real estate held for sale	$	3,028,973

Other investments and policy loans at amortized cost:
Policy loans	$	13,264,183
Insurance assignments		45,605,322
Federal Home Loan Bank stock (2)		2,279,800
Other investments		9,809,148
Less: Allowance for credit losses		(1,553,836	)

Total policy loans and other investments	$	69,404,617

Accrued investment income	$	10,170,790

Total investments	$	936,812,566

(1)

Gross unrealized losses are net of allowance for credit losses

(2)

Includes $530,900 of Membership stock and $1,748,900 of Activity stock due to short-term advances and letters of credit.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The Company’s investments as of December 31, 2022 are summarized as follows:

	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2022:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$	93,182,210		$	180,643	$	(2,685,277	)	$	90,677,576

Obligations of states and political subdivisions		6,675,071			13,869		(458,137	)		6,230,803

Corporate securities including public utilities		229,141,544			1,909,630		(11,930,773	)		219,120,401

Mortgage-backed securities		33,501,686			168,700		(4,100,674	)		29,569,712

Redeemable preferred stock		250,000			10,000		-			260,000

Total fixed maturity securities available for sale	$	362,750,511		$	2,282,842	$	(19,174,861	)	$	345,858,492

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous and all other	$	9,942,265		$	2,688,375	$	(948,114	)	$	11,682,526

Total equity securities at estimated fair value	$	9,942,265		$	2,688,375	$	(948,114	)	$	11,682,526

Mortgage loans held for investment at amortized cost:
Residential	$	93,355,623
Residential construction		172,516,125
Commercial		46,311,955
Less: Unamortized deferred loan fees, net		(1,746,605	)
Less: Allowance for loan losses		(1,970,311	)
Less: Net discounts		(342,860	)

Total mortgage loans held for investment	$	308,123,927

Real estate held for investment - net of accumulated depreciation:
Residential	$	38,437,960
Commercial		152,890,656

Total real estate held for investment	$	191,328,616

Real estate held for sale:
Residential	$	11,010,029
Commercial		151,553

Total real estate held for sale	$	11,161,582

Other investments and policy loans at amortized cost:
Policy loans	$	13,095,473
Insurance assignments		46,942,536
Federal Home Loan Bank stock (1)		2,600,300
Other investments		9,479,798
Less: Allowance for doubtful accounts		(1,609,951	)

Total policy loans and other investments	$	70,508,156

Accrued investment income	$	10,299,826

Total investments	$	948,963,125

(1)

Includes $938,500 of Membership stock and $1,661,800 of Activity stock due to short-term advances and letters of credit.

Schedule of Fair Value of Fixed Maturity Securities

	Unrealized Losses for Less than Twelve Months		Fair Value		Unrealized Losses for More than Twelve Months		Fair Value		Total Unrealized Loss		Fair Value
At December 31, 2023
U.S. Treasury securities and obligations of U.S. Government agencies	$	29,394	$	9,436,090	$	1,387,054	$	70,885,403	$	1,416,448	$	80,321,493
Obligations of states and political subdivisions		11,105		470,325		308,155		5,284,498		319,260		5,754,823
Corporate securities including public utilities		529,660		32,507,773		6,615,847		107,556,216		7,145,507		140,063,989
Mortgage and other asset-backed securities		29,799		2,260,445		4,673,106		22,184,174		4,702,905		24,444,619
Total unrealized losses	$	599,958	$	44,674,633	$	12,984,162	$	205,910,291	$	13,584,120	$	250,584,924

At December 31, 2022
U.S. Treasury securities and obligations of U.S. Government agencies	$	2,685,277	$	79,400,753	$	-	$	-	$	2,685,277	$	79,400,753
Obligations of states and political subdivisions		378,067		5,467,910		80,070		429,020		458,137		5,896,930
Corporate securities including public utilities		10,935,114		162,995,969		995,659		5,781,822		11,930,773		168,777,791
Mortgage and other asset-backed securities		2,884,731		19,909,907		1,215,943		6,978,745		4,100,674		26,888,652
Total unrealized losses	$	16,883,189	$	267,774,539	$	2,291,672	$	13,189,587	$	19,174,861	$	280,964,126

Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation

	December 31, 2023				December 31, 2022
NAIC Designation	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
1	$	221,933,425	$	216,975,288	$	197,753,818	$	189,691,540
2		161,062,016		157,346,803		156,261,804		148,073,873
3		6,418,829		5,953,542		7,080,305		6,635,786
4		982,290		948,478		1,377,541		1,157,454
5		236,648		51,875		25,736		39,155
6		1,233		-		1,307		684
Total	$	390,634,441	$	381,275,986	$	362,500,511	$	345,598,492

Schedule of Allowance for Credit Losses on Fixed Maturity Securities Available for Sale

The following tables presents a roll forward of the Company’s allowance for credit losses on fixed maturity securities available for sale:


	Year Ended December 31, 2023
	U.S. Treasury Securities And Obligations of U.S. Government Agencies		Obligations of states and political subdivisions		Corporate securities including public utilities			Mortgage-backed securities		Total

Beginning balance - December 31, 2022	$	-	$	-	$	-		$	-	$	-

Additions for credit losses not previously recorded		-		-		261,500			6,049		267,549
Change in allowance on securities with previous allowance		-		-		57,764			-		57,764
Reductions for securities sold during the period		-		-		(10,764	)		-		(10,764	)
Reductions for securities with credit losses due to intent to sell		-		-		-			-		-
Write-offs charged against the allowance		-		-		-			-		-
Recoveries of amounts previously written off		-		-		-			-		-

Ending Balance - December 31, 2023	$	-	$	-	$	308,500		$	6,049	$	314,549

Schedule of Earnings on Fixed Maturity Securities

	2022
Balance of credit-related OTTI at January 1	$	264,977

Additions for credit impairments recognized on:
Securities not previously impaired		-
Securities previously impaired		-

Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period (realized)		(39,502	)
Securities due to an increase in expected cash flows		-

Balance of credit-related OTTI at December 31	$	225,475

Schedule of Investments Classified by Contractual Maturity Date

	Amortized		Estimated Fair
	Cost		Value
Due in 1 year	$	-	$	-
Due in 2-5 years		168,831,608		166,186,132
Due in 5-10 years		95,804,878		95,031,727
Due in more than 10 years		85,638,077		83,900,556
Mortgage-backed securities		40,359,878		36,157,571
Redeemable preferred stock		250,000		260,000
Total	$	390,884,441	$	381,535,986

Schedule of Major Categories of Net Investment Income

Information regarding sales of fixed maturity securities available for sale is presented as follows.

	2023			2022
	Years Ended December 31,
	2023			2022
Proceeds from sales	$	2,557,074		$	3,091,105
Gross realized gains		11,508			24,281
Gross realized losses		(57,861	)		(32,976	)

	2023			2022
	Years Ended December 31
	2023			2022
Fixed maturity securities available for sale	$	16,871,558		$	12,395,764
Equity securities		616,989			511,118
Mortgage loans held for investment		33,242,094			34,949,763
Real estate held for investment and sale		14,786,017			14,563,269
Policy loans		816,711			932,362
Insurance assignments		18,118,391			18,112,840
Other investments		617,420			518,865
Cash and cash equivalents		4,250,029			1,666,945
Gross investment income		89,319,209			83,650,926
Investment expenses		(16,976,162	)		(17,453,334	)
Net investment income	$	72,343,047		$	66,197,592

Schedule of Assets on Deposit With Life Insurance

Assets on deposit with life insurance regulatory authorities as required by law were as follows:

	2023		2022
	Years Ended December 31,
	2023		2022
Fixed maturity securities available for sale at estimated fair value	$	6,206,650	$	8,817,959
Other investments		400,000		-
Cash and cash equivalents		1,909,215		2,214,206
Total assets on deposit	$	8,515,865	$	11,032,165

Assets held in trust related to third-party reinsurance agreements were as follows:

	Years Ended December 31,
	2023		2022
Fixed maturity securities available for sale at estimated fair value	$	27,903,952	$	27,955,297
Cash and cash equivalents		2,101,052		1,866,453
Total assets on deposit	$	30,005,004	$	29,821,750

	Years Ended December 31,
	2023		2022
Fixed maturity securities available for sale at estimated fair value	$	93,903,089	$	93,034,880
Total assets pledged as collateral	$	93,903,089	$	93,034,880

Schedule of Commercial Real Estate Investment

The Company’s commercial real estate held for investment is summarized as follows:

	Net Book Value				Total Square Footage
	December 31,				December 31,
	2023		2022		2023		2022
Utah (1)	$	142,475,177	$	147,627,946		625,920		625,920
Louisiana		19,250		2,380,847		1,622		31,778
Mississippi (2)		-		2,881,863		-		19,694

	$	142,494,427	$	152,890,656		627,542		677,392

(1)

Includes Center53

(2)

This property was moved to held for sale

The Company’s commercial real estate held for sale is summarized as follows:

	Net Book Value				Total Square Footage
	December 31,				December 31,
	2023		2022		2023		2022
Mississippi (1)	$	3,028,973	$	151,553		19,694		-

	$	3,028,973	$	151,553		19,694		-

(1)

Consists of approximately 93 acres of undeveloped land for $151,553 for 2023 and 2022. The remaining property for $2,877,420 was sold in February 2024 for a gain of approximately $250,000.

Schedule of Annual Undiscounted Cash Flows of Operating Lease Payments

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease payments expected to be received.


2024	$	11,816,339
2025		11,843,124
2026		10,695,017
2027		9,198,450
2028		9,009,534
Thereafter		46,371,762
Total	$	98,934,226

Schedule of Residential Real Estate Investment

The Company’s residential real estate held for investment is summarized as follows:

	Net Book Value
	December 31,
	2023		2022
Utah (1)	$	40,924,865	$	38,437,960
	$	40,924,865	$	38,437,960

(1)

Includes multiple residential subdivision development projects

The following table presents additional information regarding the Company’s residential subdivision development in Utah.

	December 31,
	2023		2022
Lots available for sale		42		80
Lots to be developed		1,145		1,131
Ending Balance	$	40,739,201	$	38,241,705

The Company’s residential real estate held for sale is summarized as follows:

	Net Book Value
	December 31,
	2023		2022
Utah	$	-	$	11,010,029	(1)
	$	-	$	11,010,029

(1)

All sold in 2023

Schedule of Real Estate Owned and Occupied by the Company

Location	Business Segment	Approximate Square Footage		Square Footage Occupied by the Company
433 Ascension Way, Floors 4, 5 and 6, Salt Lake City, UT - Center53 Building 2 (1)	Corporate Offices, Life Insurance, Cemetery/Mortuary Operations, and Mortgage Operations and Sales		221,000		50	%
1044 River Oaks Dr., Flowood, MS (1) (3)	Life Insurance Operations		19,694		28	%
1818 Marshall Street, Shreveport, LA (2)	Life Insurance Operations		12,274		100	%
909 Foisy Street, Alexandria, LA (2) (4)	Life Insurance Sales		8,059		100	%
812 Sheppard Street, Minden, LA (2) (5)	Life Insurance Sales		1,560		100	%
1550 N 3rd Street, Jena, LA (2) (3)	Life Insurance Sales		1,737		100	%

(1)

Included in real estate held for investment on the consolidated balance sheets

(2)

Included in property and equipment on the consolidated balance sheets

(3)

Listed for sale and sold during the first quarter of 2024

(4)

Listed for sale and currently under contract

(5)

Listed for sale

Schedule of Allowance for Loan Losses

The following table presents a roll forward of the allowance for credit losses as of the dates indicated:

Schedule of Allowance for Loan Losses

	Commercial		Residential			Residential Construction			Total
December 31, 2023
Allowance for credit losses:
Beginning balance - January 1, 2023	$	187,129	$	1,739,980		$	43,202		$	1,970,311
Adoption of ASU 2016-13 (1)		555,807		(192,607	)		301,830			665,030
Change in provision for credit losses (2)		476,717		843,521			(136,926	)		1,183,312
Charge-offs		-		-			-			-
Ending balance - December 31, 2023	$	1,219,653	$	2,390,894		$	208,106		$	3,818,653

December 31, 2022
Allowance for credit losses:
Beginning balance - January 1, 2022	$	187,129	$	1,469,571		$	43,202		$	1,699,902
Change in provision for credit losses (2)		-		270,409			-			270,409
Charge-offs		-		-			-			-
Ending balance - December 31, 2022	$	187,129	$	1,739,980		$	43,202		$	1,970,311

(1)

See Note 1 of the notes to the consolidated financial statements

(2)

Included in other expenses on the consolidated statements of earnings

Schedule of Aging of Mortgage Loans

The following table presents the aging of mortgage loans held for investment by loan type.

Schedule of Aging of Mortgage Loans

	Commercial			Residential			Residential Construction			Total
December 31, 2023
30-59 days past due	$	-		$	3,387,673		$	-		$	3,387,673
60-89 days past due		-			3,472,760			-			3,472,760
Over 90 days past due (1)		405,000			3,480,931			-			3,885,931
In process of foreclosure (1)		1,241,508			1,021,790			-			2,263,298
Total past due		1,646,508			11,363,154			-			13,009,662
Current		72,530,030			91,790,433			104,052,748			268,373,211
Total mortgage loans		74,176,538			103,153,587			104,052,748			281,382,873
Allowance for credit losses		(1,219,653	)		(2,390,894	)		(208,106	)		(3,818,653	)
Unamortized deferred loan fees, net		(172,989	)		(1,135,491	)		(314,746	)		(1,623,226	)
Unamortized discounts, net		(216,705	)		(107,452	)		-			(324,157	)
Net mortgage loans held for investment	$	72,567,191		$	99,519,750		$	103,529,896		$	275,616,837

December 31, 2022
30-59 days past due	$	1,000,000		$	3,553,390		$	-		$	4,553,390
60-89 days past due		-			814,184			-			814,184
Over 90 days past due (1)		-			1,286,211			-			1,286,211
In process of foreclosure (1)		405,000			876,174			-			1,281,174
Total past due		1,405,000			6,529,959			-			7,934,959
Current		44,906,955			86,825,664			172,516,125			304,248,744
Total mortgage loans		46,311,955			93,355,623			172,516,125			312,183,703
Allowance for credit losses		(187,129	)		(1,739,980	)		(43,202	)		(1,970,311	)
Unamortized deferred loan fees, net		(199,765	)		(1,212,994	)		(333,846	)		(1,746,605	)
Unamortized discounts, net		(230,987	)		(111,873	)		-			(342,860	)
Net mortgage loans held for investment	$	45,694,074		$	90,290,776		$	172,139,077		$	308,123,927

(1)

Interest income is not recognized on loans which are more than 90 days past due or in foreclosure.

Schedule of Commercial Mortgage Loans By Credit Quality Indicator

The aggregate unpaid principal balance of commercial mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2023:

Credit Quality Indicator	2023		2022			2021		2020		2019		Prior		Total		% of Total
LTV:
Less than 65%	$	34,304,954	$	13,555,737		$	3,778,248	$	-	$	2,964,740	$	6,565,389	$	61,169,068		82.46	%
65% to 80%		1,523,926		5,115,231			1,050,000		4,913,313		-		-		12,602,470		16.99	%
Greater than 80%		-		-			405,000		-		-		-		405,000		0.55	%

Total	$	35,828,880	$	18,670,968		$	5,233,248	$	4,913,313	$	2,964,740	$	6,565,389	$	74,176,538		100.00	%

DSCR
>1.20x	$	20,990,000	$	1,000,000		$	700,000	$	4,913,313	$	2,964,740	$	2,612,625	$	33,180,678		44.73	%
1.00x - 1.20x		8,338,880		8,496,127			3,483,248		-		-		3,952,764		24,271,019		32.72	%
<1.00x		6,500,000		9,174,841⁽¹⁾	(1)		1,050,000		-		-		-		16,724,841		22.55	%

Total	$	35,828,880	$	18,670,968		$	5,233,248	$	4,913,313	$	2,964,740	$	6,565,389	$	74,176,538		100.00	%

(1)

Commercial construction loan

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

2) Investments (Continued)

The aggregate unpaid principal balance of residential mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2023:

Credit Quality Indicator	2023		2022		2021		2020		2019		Prior		Total		% of Total
Performance Indicators:
Performing	$	15,337,828	$	53,875,389	$	7,156,934	$	7,453,796	$	2,786,562	$	12,040,357	$	98,650,866		95.63	%
Non-performing (1)		-		2,202,114		365,061		613,101		-		1,322,445		4,502,721		4.37	%

Total	$	15,337,828	$	56,077,503	$	7,521,995	$	8,066,897	$	2,786,562	$	13,362,802	$	103,153,587		100.00	%

(1)

Includes residential mortgage loans in the process of foreclosure of $1,021,790

	2023		2022		2021		2020		2019		Prior		Total		% of Total
LTV:
Less than 65%	$	3,280,144	$	7,049,522	$	1,843,286	$	1,746,970	$	446,675	$	5,206,095	$	19,572,692		18.97	%
65% to 80%		10,962,770		44,371,320		4,269,894		4,222,170		2,339,887		5,711,440		71,877,481		69.68	%
Greater than 80%		1,094,914		4,656,661		1,408,815		2,097,757		-		2,445,267		11,703,414		11.35	%

Total	$	15,337,828	$	56,077,503	$	7,521,995	$	8,066,897	$	2,786,562	$	13,362,802	$	103,153,587		100.00	%

Schedule of Residential Construction Mortgage Loans

The aggregate unpaid principal balance of residential construction mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2023:

Credit Quality Indicator	2023		2022		2021		Total		% of Total
Performance Indicators:
Performing	$	60,311,679	$	16,624,182	$	27,116,887	$	104,052,748		100.00	%
Non-performing		-		-		-		-		0.00	%

Total	$	60,311,679	$	16,624,182	$	27,116,887	$	104,052,748		100.00	%

LTV:
Less than 65%	$	40,215,360	$	8,732,500	$	20,442,302	$	69,390,162		66.69	%
65% to 80%		20,096,319		7,891,682		6,674,585		34,662,586		33.31	%
Greater than 80%		-		-		-		-		0.00	%

Total	$	60,311,679	$	16,624,182	$	27,116,887	$	104,052,748		100.00	%

Schedule of Mortgage loans Held for Investment

			Principal		Principal		Principal
			Amounts		Amounts		Amounts
			Due in		Due in		Due
	Total		1 Year		2-5 Years		Thereafter
Residential	$	103,153,587	$	2,554,380	$	9,231,545	$	91,367,662
Residential Construction		104,052,748		88,880,893		15,171,855		-
Commercial		74,176,538		39,562,489		19,457,975		15,156,074
Total	$	281,382,873	$	130,997,762	$	43,861,375	$	106,523,736

Schedule of Aging of Insurance Assignments

The following table presents the aging of insurance assignments, included in other investments and policy loans on the condensed consolidated balance sheets:

	Years Ended December 31,
	2023			2022
30-59 days past due	$	10,829,629		$	10,621,443
60-89 days past due		3,709,754			3,997,484
Over 90 days past due		4,329,468			5,813,013
Total past due		18,868,851			20,431,941
Current		26,736,471			26,510,594
Total insurance assignments		45,605,322			46,942,536
Allowance for credit losses		(1,553,836	)		(1,609,951	)
Net insurance assignments	$	44,051,486		$	45,332,585

Schedule of Allowance for Credit Losses

The following table presents a roll forward of the allowance for credit losses for insurance assignments:

Schedule of Allowance for Credit Losses

	Allowance
Beginning balance - January 1, 2023	$	1,609,951
Change in provision for credit losses (1)		891,959
Charge-offs		(948,074	)
Ending balance - December 31, 2023	$	1,553,836

Beginning balance - January 1, 2022	$	1,686,218
Change in provision for credit losses (1)		889,480
Charge-offs		(965,747	)
Ending balance - December 31, 2022	$	1,609,951

(1)

Included in other expenses on the consolidated statements of earnings

Schedule of Gain (Loss) on Investments

The following table presents the net realized gains and losses from sales, calls, and maturities, unrealized gains and losses on equity securities from investments and other assets.

Schedule of Gain (Loss) on Investments

	2023			2022
	Years Ended December 31
	2023			2022
Fixed maturity securities available for sale:
Gross realized gains	$	67,686		$	205,949
Gross realized losses		(106,760	)		(43,776	)
Net credit loss (provision) release		(325,314	)		-

Equity securities:
Gains (losses) on securities sold		254,917			(10,519	)
Unrealized gains (losses) on securities held at the end of the period		1,782,219			(2,109,556	)

Real estate held for investment and sale:
Gross realized gains		197,194			1,239,332
Gross realized losses		(71,792	)		(825,593	)

Other assets, including call and put option derivatives:
Gross realized gains		214,349			686,703
Gross realized losses		(175,157	)		-
Total	$	1,837,342		$	(857,460	)

Schedule of Accrued Investment Income

Accrued investment income consists of the following:

Schedule of Accrued Investment Income

	2023		2022
	Years Ended December 31,
	2023		2022
Fixed maturity securities available for sale	$	3,984,695	$	3,563,767
Equity securities		20,451		14,496
Mortgage loans held for investment		2,661,092		3,220,709
Real estate held for investment		3,486,115		3,455,305
Policy Loans		-		37,951
Cash and cash equivalents		18,437		7,598
Total accrued investment income	$	10,170,790	$	10,299,826

Value of Business Acquired, Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Finite-Lived Intangible Assets [Line Items]

Schedule of Value of Business Acquired

Information regarding value of business acquired was as follows:

Schedule of Value of Business Acquired

	2023			2022
	December 31,
	2023			2022
Balance at beginning of year	$	9,803,736		$	8,421,432
Value of business acquired		-			2,136,085
Imputed interest at 7% included in earnings		626,666	(1)		642,919	(1)
Amortization included in earnings		(1,926,668	)(1)		(1,907,250	)(1)
Shadow amortization included in other comprehensive income		(36,121	)		510,550
Net amortization		(1,336,123	)		(753,781	)
Balance at end of year	$	8,467,613		$	9,803,736

(1)

Included in Amortization of deferred policy and pre-need acquisition costs and value of business acquired on the consolidated statements of earnings

Schedule of Acquisitions Net Amortization Charged to Income

Presuming no additional acquisitions, net amortization charged to income is expected to approximate the following:


2024	$	1,219,496
2025		1,112,965
2026		1,030,635
2027		957,074
2028		833,216
Thereafter		3,314,227
Total	$	8,467,613

Schedule of Goodwill by Segment

Information regarding goodwill by segment was as follows:

Schedule of Goodwill by Segment

	Life Insurance		Cemetery/ Mortuary		Total
Balance at January 1, 2022:
Goodwill	$	2,765,570	$	2,488,213	$	5,253,783
Accumulated impairment		-		-		-
Total goodwill, net		2,765,570		2,488,213		5,253,783

Acquisition		-		-		-

Balance at December 31, 2022:
Goodwill		2,765,570		2,488,213		5,253,783
Accumulated impairment		-		-		-
Total goodwill, net		2,765,570		2,488,213		5,253,783

Acquisition		-		-		-

Balance at December 31, 2023:
Goodwill		2,765,570		2,488,213		5,253,783
Accumulated impairment		-		-		-
Total goodwill, net	$	2,765,570	$	2,488,213	$	5,253,783

Schedule of Carrying Value of Intangible Asset

The carrying value of the Company’s other intangible assets were as follows which is included in other assets:

		December 31,
	Useful Life	2023			2022
Intangible asset - trade name (1)	15 years	$	2,100,000		$	2,100,000
Intangible assets - other (1)	15 years		210,000			210,000
Intangible asset - trade name (2)	15 years		610,000			610,000
Intangible asset - customer lists (3)	15 years		890,000			890,000
Less accumulated amortization			(807,333	)		(553,333	)
Balance at end of year		$	3,002,667		$	3,256,667

(1)

Rivera Funerals, Cremations and Memorial Gardens

(2)

Kilpatrick Life

(3)

Beta Capital Corp

Schedule of Estimate of Future Amortization for Other Intangible Assets

	Estimated MSR Amortization
2024	$	390,131
2025		342,170
2026		306,597
2027		271,773
2028		242,596
Thereafter		1,907,879
Total	$	3,461,146

Other Intangible Assets [Member]

Finite-Lived Intangible Assets [Line Items]

Schedule of Estimate of Future Amortization for Other Intangible Assets

The following table summarizes the Company’s estimate of future amortization for the other intangible assets:


2024	$	254,000
2025		254,000
2026		254,000
2027		254,000
2028		254,000
Thereafter		1,732,667
Total	$	3,002,667

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

Bank and Other Loans Payable (Details Narrative) - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Debt Instrument [Line Items]

$ 381,535,986

$ 345,858,492

Federal home loan bank stock

2,279,800

^[1]

2,600,300

^[2]

Repayment of outstanding advances

7,732,000

Interest Expense

4,865,327

7,830,443

Bank [Member]

Debt Instrument [Line Items]

Line of credit, maximum borrowing capacity

2,000,000

Line of credit

$ 0

Line of credit, maturity date

Mar. 31, 2024

Bank [Member] | Prime Rate [Member]

Debt Instrument [Line Items]

Interest rate

0.75%

Debt instrument basis spread variable rate

3.00%

Bank 1 [Member]

Debt Instrument [Line Items]

Line of credit, maximum borrowing capacity

$ 2,500,000

Line of credit

$ 0

Debt instrument basis spread variable rate

2.35%

Line of credit, maturity date

Mar. 31, 2024

Texas Capital Bank N.A. [Member]

Debt Instrument [Line Items]

Line of credit, maximum borrowing capacity

$ 100,000,000

Line of credit, maturity date

Nov. 30, 2024

Line of credit, maturity date

The agreement charges interest at the 1-Month SOFR rate plus 2.0% and matures on November 30, 2024

Adjustment of debt

$ 1.00

U.S. Bank [Member]

Debt Instrument [Line Items]

Line of credit, maximum borrowing capacity

$ 15,000,000

Line of credit, maturity date

May 26, 2024

Line of credit, maturity date

The agreement charges interest at 2.10% plus the greater of (i) 0%

Adjustment of debt

$ 1.00

Letter of Credit [Member]

Debt Instrument [Line Items]

Letter of credit conitingent cover amount

$ 443,758

Letter of credit

5,379,738

Letter of Credit [Member] | Bank [Member]

Debt Instrument [Line Items]

Letter of credit

38,290

Letter of Credit [Member] | Bank 1 [Member]

Debt Instrument [Line Items]

Letter of credit

1,250,000

Maximum [Member] | Letter of Credit [Member]

Debt Instrument [Line Items]

Letter of credit

5,823,496

Federal Home Loan Bank of Des Moines [Member]

Debt Instrument [Line Items]

Line of credit, maximum borrowing capacity

77,324,238

80,312,445

88,400,026

86,338,880

Line of credit

Federal home loan bank stock

453,600

856,800

Federal Home Loan Bank of Dallas [Member]

Debt Instrument [Line Items]

Line of credit, maximum borrowing capacity

5,104,610

5,719,671

5,503,063

6,696,100

Line of credit

Federal home loan bank stock

$ 1,826,200

$ 1,743,500

[1]	Includes $530,900 of Membership stock and $1,748,900 of Activity stock due to short-term advances and letters of credit.
[2]	Includes $938,500 of Membership stock and $1,661,800 of Activity stock due to short-term advances and letters of credit.

Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

6) Property and Equipment

Property and equipment is summarized below:

Schedule of Property and Equipment

	2023			2022
	December 31,
	2023			2022
Land and buildings	$	16,567,819		$	16,545,799
Furniture and equipment		16,315,061			17,567,906
Property and equipment, gross		32,882,880			34,113,705
Less accumulated depreciation		(13,707,781	)		(13,534,056	)
Total	$	19,175,099		$	20,579,649

Depreciation expense for 2023 and 2022 was $2,351,661 and $2,496,906, respectively. Property and equipment are stated at cost and are depreciated over their estimated useful lives, primarily using the straight-line method. The Company recognized an impairment loss of $122,229 in 2023 on a property held by the life segment. This property is listed for sale and currently under contract. Impairment losses are included in gains (losses) on the consolidated statements of earnings.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022