Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Revenues and Expenses by Reportable Segment


	For the Three Months Ended March 31, 2026
	Life		Funeral Home
	Insurance		and Cemetery			Mortgage			Total
Revenues:
From external sources:
Revenue from external customers	$	28,855,254	$	7,733,823		$	23,489,659		$	60,078,736
Net investment income		17,717,277		652,531			131,540			18,501,348
Gains (losses) on investments and other assets		382,514		(74,328	)		42,562			350,748
Other revenues		375,052		160,642			262,254			797,948
Intersegment revenues		1,523,146		83,836			72,306			1,679,288
Total segment revenues		48,853,243		8,556,504			23,998,321			81,408,068

Elimination of intersegment revenues										(1,679,288	)
Total consolidated revenues										79,728,780

Less:
Policyholder benefits and claims		24,539,397		-			-
Amortization of deferred policy and pre-need acquisition costs and value of business acquired		2,689,374		289,944			-
Selling, general and administrative expenses:
Commissions		472,826		238,209			8,082,825
Personnel		8,738,857		2,733,070			9,129,709
Advertising		90,904		101,937			544,222
Rent and rent related		94,375		37,903			689,999
Depreciation on property and equipment		213,559		241,226			125,305
Cost related to funding mortgage loans		-		-			1,673,977
Data processing and IT related (1)		354,819		88,667			1,031,269
Premium taxes on insurance premiums and other considerations (1)		659,615		-			-
Other segment items (1)(2)		2,349,313		1,362,050			1,873,463
Intersegment expenses (3)		156,141		80,089			1,443,058
Interest expense		892,777		708			102,714
Costs of goods and services sold-mortuaries and cemeteries		-		1,233,449			-
Income tax expense (benefit)		1,663,288		518,697			(131,093	)
Segment net earnings (loss)		5,937,998		1,630,555			(567,127	)		7,001,426

Net earnings									$	7,001,426

Segment assets	$	1,412,106,259	$	108,161,913		$	81,768,909		$	1,602,037,081

Elimination of intersegment assets										(21,253,140	)
Total consolidated assets									$	1,580,783,941

Expenditures for long-lived assets	$	31,477,400	$	182,707		$	-		$	31,660,107

(1)	Included in other expenses on the condensed consolidated statements of earnings. Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support and storage fees.
(2)	For each reportable segment, other segment items includes:

Life Insurance - bad debt, insurance expenses, professional service expenses, state insurance department fees, amortization of intangible assets, and certain overhead expenses.

Funeral Home and Cemetery - bad debt, insurance expenses, professional service expenses, maintenance and utility expenses, property taxes, amortization of intangible assets, and certain overhead expenses.

Mortgage - bad debt, insurance expenses, professional service expenses, business license and registration fees, dues and subscriptions, amortization expense of mortgage servicing rights, and certain overhead expenses.

(3)	For each reportable segment, intersegment expenses includes:

Life Insurance - mortgage servicing fees and interest expense.

Funeral Home and Cemetery - rent expense, data processing and IT related expenses, and interest expense.
Mortgage - rent expense and interest expense.

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2026 (Unaudited)

16) Business Segment Information (Continued)


	For the Three Months Ended March 31, 2025
	Life		Funeral Home
	Insurance		and Cemetery		Mortgage			Total
Revenues:
From external sources:
Revenue from external customers	$	29,779,525	$	7,300,221	$	24,809,241		$	61,888,987
Net investment income		18,630,945		421,253		150,426			19,202,624
Gains on investments and other assets		290,534		209,970		85,517			586,021
Other revenues		585,598		187,850		288,643			1,062,091
Intersegment revenues		1,319,923		83,836		121,868			1,525,627
Total segment revenues		50,606,525		8,203,130		25,455,695			84,265,350

Elimination of intersegment revenues									(1,525,627	)
Total consolidated revenues									82,739,723

Less:
Policyholder benefits and claims		25,455,174		-		-
Amortization of deferred policy and pre-need acquisition costs and value of business acquired		2,623,034		173,965		-
Selling, general and administrative expenses:
Commissions		862,343		208,420		9,367,618
Personnel		8,526,188		2,538,026		11,118,194
Advertising		99,976		151,609		572,360
Rent and rent related		99,790		38,038		850,783
Depreciation on property and equipment		242,812		212,361		159,962
Cost related to funding mortgage loans		-		-		1,415,252
Data processing and IT related (1)		235,788		70,526		878,110
Premium taxes on insurance premiums and other considerations (1)		718,071		-		-
Other segment items (1)(2)		2,624,538		1,231,210		1,642,444
Intersegment expenses (3)		205,558		87,441		1,232,628
Interest expense		906,447		163		212,918
Costs of goods and services sold-mortuaries and cemeteries		-		1,253,270		-
Income tax expense (benefit)		1,785,207		534,844		(483,453	)
Segment net earnings (loss)		6,221,599		1,703,257		(1,511,121	)		6,413,735

Net earnings								$	6,413,735

Segment assets	$	1,360,748,004	$	100,073,999	$	100,755,930		$	1,561,577,933

Elimination of intersegment assets									(30,644,368	)
Total consolidated assets								$	1,530,933,565

Expenditures for long-lived assets	$	16,717,670	$	257,933	$	109,134		$	17,084,737

(1)	Included in other expenses on the condensed consolidated statements of earnings. Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support and storage fees.
(2)	For each reportable segment, other segment items includes:

Life Insurance - bad debt, insurance expenses, professional service expenses, state insurance department fees, amortization of intangible assets, and certain overhead expenses.

(3)	For each reportable segment, intersegment expenses includes:

Life Insurance - mortgage servicing fees and interest expense.

Funeral Home and Cemetery - rent expense, data processing and IT related expenses, and interest expense.
Mortgage - rent expense and interest expense.

SECURITY NATIONAL FINANCIAL CORP 10-Q