2022 Annual Report

Scott M. Quist

Chairman of the Board

Chief Executive Officer

President

My Fellow Shareholders:

I am pleased to report on the affairs of our Company for the year ended December 31, 2022, and invite you to attend the annual Stockholders Meeting to be held June 23, 2023, in Salt Lake City, Utah.

2022 represented a year of transition for our Country, the economy, and our Company. The Pandemic "ended", labor markets remained very tight, some workers resisted coming back to the office, mortality rates decreased, and inflation became a problem. Starting in March the Federal Reserve began raising interest rates at an unprecedented pace, replacing mortgage rates that had been in the "3's" to rates that reached the "7's". Against that challenging backdrop, our Company had its third best year ever.

Our Company made a profit of $25.6 million in 2022. Drilling down to some financial metrics, the Company earned a net 1.76% retuon total assets and an 8.7% retuon equity (11.6% pretax). Those are very acceptable overall numbers, surpassed by only 2020 and 2021. Nevertheless, I would characterize 2022 as being a "rugged" year. The rapid rise in interest rates created a decided downdraft on our earnings. For example, included in our earnings are roughly $4 million dollars

in unrealized security losses and roughly $6 million dollars of unrealized losses in loans held on balance sheet. Those unrealized losses relate primarily to interest rate increases in my opinion. Declining mortality rates helped our Insurance Segment but hurt our Memorial Segment. Mortgage loan demand evaporated in March, which resulted in a year-over- year decline in revenues of approximately 32%, with that decline being greater in the later months of the year. For example, in December 2022 our Mortgage Segment experienced a revenue decline of approximately 67% in comparison to December 2021. We did receive a huge earnings boost from our previously announced mortgage servicing rights sale, but the operating environment was and remains very tough.

Despite the environment, we remain committed to the task of growth and improved profitability. We view the current economic uncertainty as a time to expand. For example, even in this tough mortgage lending environment we have increased the number of producing loan officers. In our Life Segment as our direct sales force recovers from Pandemic related restrictions, we have increased premium rates on some of our most popular products and have seen good acceptance of the increase. In our Memorial Segment we have reduced overall head counts but importantly added key personnel who we believe will drive growth and improved operations. To be sure, growth in this environment is expensive, but is nevertheless our goal.

I thank you for your continued support and I hope to see you at our Annual Meeting.

Very truly yours,

Scott M. Quist

Chairman, Chief Executive Officer, and President

SNFC Board of Directors and Officers

1965

1965 - The founding of Security National Life Insurance Company

1966 - The acquisition of Grand Canyon Life

1967 - The acquisition of Bankers Trust Life

1969 - The acquisition of American Alliance Life

1970

1970 - The acquisition of Charter Oak Life & Washington Life Assurance

1972 - The acquisition of Columbia Life

1973 - The acquisition of National Capital Life and Memorial Estates Companies

1979 - The organization of Security National Financial Corporation

1980

1981 -The acquisition of American Home Security Life

1984 - The acquisition of WesteInvestors policy block 1985 - The acquisition of Del Pueblo Life policy block and

Cibola Life policy block

1986 - The acquisition of Investors Equity Life

1987 - IPO of Security National Financial Corporation and the acquisition of Southwest American policy block

1989 - The acquisition of Paradise Chapel Funeral Home

1990

1991 - The sale of Investors Equity Life and the acquisition of Deseret Memorial Group

1993 - The formation of SecurityNational Mortgage Company

1994 - The acquisition of Camelback Sunset Funeral Home and Capital Investors Life

A History of Growth

1995 - The acquisition of Greer Wilson Funeral Home, Tolleson Funeral Home and Civil Service Employees Life

1996 - The dedication of Singing Hills Memorial Park

1997 - The acquisition of Crystal Rose Funeral Home and the formation of Adobe Funeral Home

1998 - The acquisition of SoutheSecurity Life (FL)

1999 - The acquisition of Menlo Life policy block

2000

2000 - The organization of SoutheSecurity Mortgage Company

2002 - The acquisition of Gulf National Life policy block and Acadian Life policy block

2004 - The acquisition of Paramount Security Life

2005 - The acquisition of Memorial Insurance Company of America

2007 - The acquisition of C&J Financial and Capital Reserve Life Insurance Company

2008 - The acquisition of SoutheSecurity Life (MS)

2010

2011 - The acquisition of North America Life policy block 2012 - The acquisition of Trans-WesteLife and the

formation of EverLEND Mortgage Company 2014 - The acquisition of American Funeral Financial 2016 - The acquisition of First Guaranty Insurance

Company

2018 - The acquisition of Beta Capital Corporation

2019 - The acquisition of Probst Family Funeral Homes

2019 - The acquisition of Kilpatrick Life Insurance Company

2020

2021 - The merger of EverLEND Mortgage Company with SecurityNational Mortgage Company

2021 - The acquisition of Rivera Family Funeral Homes and Santa Fe Memorial Gardens

2021 - The acquisition of Holbrook Mortuary

2022 - The sale of Memorial Insurance Company of America