2023 Annual Report
2023
ANNUAL REPORT
S E C U R I T Y N ATI O N A L FINANCIAL CORPORATION
Who We Are...
The roots of our company were planted deep in 1965 with the founding of
Over the past five decades we have grown consistently through new sales and investment opportunities, and through the acquisition of life insurance companies, funeral homes and cemeteries, as well as the formation and growth of our mortgage operations.
Profile
Our company operates three main business segments: life insurance, funeral service and mortgage lending. Our company is designed and structured so each segment relates to the others, and contributes to the profitability of the whole. For example, our cemetery and mortuary operations enjoy a high level of public awareness, assisting in the sales and marketing of our insurance and preneed cemetery and funeral products. Our life insurance company in tuinvests its assets in high quality mortgage loans.Thus, while each segment is a stand-alone profit center, this horizontal integration is strategically planned to improve profitability. Additionally, our company actively pursues growth through acquisitions of life insurance companies and mortuaries, and through expanding our mortgage operations.
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
2023 was a year where the financial balance of our company demonstrated itself. With the increasing interest rates and improving premium margins our Insurance Segment had its best operational year ever earning
However, the increased interest rates continued to have a devastating effect on our mortgage business with volumes falling roughly an additional 35% below 2022's already decreased markets with the
net result being that our Mortgage Segment lost
We remain committed to the task of growth and improved profitability. We view this current economic uncertainty as a time to improve and expand in all our segments. In this tough mortgage loan environment we have necessarily greatly slimmed down our office staffs, both pruned and increased our number of producing loan officers, while emphasizing cost efficiencies and metrics. In our Insurance Segment we have increased premium rates and have initiated better measurement metrics for mortality, persistency, and acquisition costs. In our Memorial Segment we have added key personnel who we believe will drive growth and improve 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,
Chairman, Chief Executive Officer, and President
SNFC Board of Directors and Officers
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Chairman of the Board |
President, |
Past Medical Staff President |
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President |
Director |
Department Head-Otolaryngology, |
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Chief Executive Officer |
Executive Committee |
Head and Neck Surgery |
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Director |
Audit Committee |
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Executive Committee |
Compensation Committee |
Director |
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Nominating and Corporate |
Compensation Committee |
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Governance Committee |
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Nominating and Corporate |
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Governance Committee |
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Former Executive Vice President, |
Co-Owner & Operator |
Director |
Director |
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Chief Financial Officer and Secretary, |
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President of Mortgage Operations |
Vice President |
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Director |
General Counsel |
National Marketing Director |
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Director |
Audit Committee |
Executive Committee |
of Life Insurance |
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Executive Committee |
Compensation Committee |
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Audit Committee |
Nominating and Corporate |
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Compensation Committee |
Governance Committee |
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Nominating and Corporate |
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Governance Committee |
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Alexandra Mysoor |
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Former Member - |
Founder and Chairwoman of |
Director |
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Former Mayor of |
Founder and Chief Executive Officer of Alix |
President of Memorial Services |
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Former Member - |
Director |
President of Life Insurance |
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Senior Fellow - |
Audit Committee |
Assistant Secretary |
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Regular Political Commentator - |
Compensation Committee |
General Counsel |
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Director |
Nominating and Corporate |
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Audit Committee |
Governance Committee |
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Compensation Committee |
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Nominating and Corporate |
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Governance Committee |
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Secretary |
Chief Financial Officer |
Vice President |
Vice President |
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Senior General Counsel |
Treasurer |
Finance |
Chief Information Officer |
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Vice President |
Controller |
General Counsel |
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Tax |
A History of Growth
1965
1965 - The founding of
1966 - The acquisition of Grand
1967 - The acquisition of Bankers Trust Life
1969 - The acquisition of American Alliance Life
1970
1970 - The acquisition of
1972 - The acquisition of
1973 - The acquisition of
1979 - The organization of
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
1989 - The acquisition of
1990
1991 - The sale of Investors Equity Life and the acquisition of
1993 - The formation of
1994 - The acquisition of
1995 - The acquisition of
1996 - The dedication of
1997 - The acquisition of
1998 - The acquisition of SoutheSecurity Life (FL)
1999 - The acquisition of
2000
2000 - The organization of
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
2007 - The acquisition of
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
Company
2018 - The acquisition of
2019 - The acquisition of
2019 - The acquisition of
2020
2021 - The merger of
2021 - The acquisition of
2021 - The acquisition of Holbrook Mortuary
2021 - The sale of
2023 - Aquisition and merger of
LEADERSHIP TEAM
Chief Executive Officer
President
Vice President
National Marketing Director
Vice President of Sales
Preneed, Final Expense, and Loyalty Sales Divisions
Regional Vice President of Sales
Preneed Division
Vice President of Sales
Home Service Division
We specialize in affordable and convenient products that "make sense" for you and your family.
Let
Many of life's big moments are curated events with careful planning and preparation such as birthdays, graduations, or weddings.Yet, there is one major life event, the loss of a loved one, where the date or time cannot be predicted. While time and place are uncertain, we can still make preparations for this inevitable event.
Funerals and memorial services can seem like extravagant ceremonies with little benefit. In truth, they are important for those left behind as they give a chance for closure, a chance to start the grieving process, and a way to find understanding and meaning during difficult times. Making arrangements for yourself or a loved one is a gift that alleviates both financial and emotional burdens on those you love most.
What is Preneed?
A celebration of life. A tribute to family. A treasured memory for loved ones.Your funeral is an expression of your life and a gift to the friends and family you leave behind. By pre-funding this tribute with life insurance from Security National Life you are assured your wishes will be honored. Preneed is the pre-planning and funding of a funeral before one's passing.
What is Final Expense?
It is an act of caring, and of preparation; ultimately it is an expression of compassion and responsibility for those you leave behind. New responsibilities arise when a life ends. Final Expense insurance provides an affordable and convenient solution to ease your family's stress. The passing of a loved one can be a traumatic event for those left
behind. Final Expense insurance provides a way to manage the financial burdens associated with the end of life. Even if you have fully prepared,
What is Home Service?
Home Service is a family-oriented organization that cares for and is committed to serving our clients with integrity and respect.We offer a combination of sales and on-going service within the home, including insurance review and premium collections, to provide peace of mind to individuals and families through an affordable funeral plan. The Home Service Division partners with almost 1,000 agents and funeral homes-together serving over 320,000 policyholders. With coverage amounts starting at
Security National Life acquired
LEADERSHIP TEAM
Vice President
Marketing & Sales Support
Director
Chief Underwriter
Director
Marketing and
Director
LEADERSHIP TEAM
We're Turning Houses into Homes®
Chief Executive Officer
President
Senior Vice President, Mortgage Production
Chief Financial Officer
Vice President, Risk Management
Chief Compliance Officer
We're
A mortgage company with a rock-solid reputation
2023 presented an extremely difficult environment for the mortgage loan industry. There is no other way of stating it. Interest rates were elevated throughout 2023, but peaked in October at highs not seen since 2000. Furthermore, at the end of the third quarter, over 78% of existing residential mortgage loans had an interest rate below 5%, well below prevailing lending rates. This resulted in a "lock-in" effect which led to the fewest number of existing homes being sold in at least 28 years. Given this backdrop, total industry loan originations decreased 29% in 2023 from 2022 volumes. This was on the heels of a 48% decrease in total industry loan originations from 2021 to 2022, making a 63% decrease over that two-year period. During that same period SecurityNational's total loan originations decreased 61%, slightly less than the industry-wide decline. SecurityNational funded
We believe that SecurityNational's foundation of financial stability, market transparency, and expertise in and focus on purchase transactions, provides a perfect platform to expand our presence in the industry in such unsettled and difficult environments. With many competitors retreating from the market or exiting entirely, SecurityNational's strengths shine more brightly and provide opportunities that few other companies can. Mortgage loan sales professionals are looking for the security and stability that SecurityNational provides and our results attest to this.The Company has more loan officers now than when the
In 2023 we celebrated SecurityNational's 30-year anniversary. It is a milestone we are proud of. Three decades in the industry highlights SecurityNational's ability to thrive in both favorable and difficult economic and interest rate environments. The Company's longevity demonstrates our dedication to the mortgage loan industry and allows our team of exceptional loan officers to focus on providing a better experience for our borrowers.
LEADERSHIP TEAM
LOAN VOLUME IN 2023
In 2023 SecurityNational also continued its trend of adding significant talent to its leadership team. The Company hired a new Chief Marketing Officer, a new Director of Strategic Growth (national recruiting) and new leadership for the Company's technology team which oversees our origination platform. These individuals chose to join SecurityNational from established competitors because of the strength of the SecurityNational brand, adding veteran industry experience with fresh, new perspectives to a long-tenured existing leadership team with a deep understanding of what makes SecurityNational special.This strategic balance allows the Company to combine world-class technology with production processes in crafting an exceptional customer experience from first point-of-contact through loan closing. Strong relationships with
Although the Company's reach is nationwide, each branch office is a part of its local community. SecurityNational's suite of available loan products covers most every residential mortgage loan need, but our employees take extra satisfaction in helping our customers purchase a home, especially their first home. Home ownership is one of the most important financial decisions most people will make during their lifetimes.The process of financing a home purchase is unfamiliar and complicated for many people. SecurityNational is expert in originating mortgage loans for low-to-moderate-income buyers and can match qualifications with a mortgage loan program and resources specifically designed for each applicant's specific needs. Beyond originating loans, many of the Company's employees are actively engaged in their cities, towns and neighborhoods feeding the hungry, sheltering the needy or adding a splash of color along with a kind word while cleaning up after a disaster. SecurityNational has industry leading products, processes and financial strength, all of which contribute to the
most important result for us - Turning Houses Into Homes.
Vice President, Servicing & Audits
Vice President, Mortgage Fulfillment
Vice President, Capital Markets
Chief Marketing Officer
Vice President, Appraisal
Vice President, Operations
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REGIONAL MANAGERS |
2023 STATISTICS |
Executive Regional Manager,
Executive Regional Manager,
Executive Regional Manager,
398 Loan Officers
SNMC Funding Comparison Year-Over-Year
$3.0B
$2.5B
$2.0B
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$1.5B |
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$1.0B |
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$500M |
2.662B |
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694M |
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1.963B |
211.5M |
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Purchase |
Refinance |
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2022 |
2023 |
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Attachments
Disclaimer
SNFC -
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