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 Security National Life Insurance Company. Starting with only $543,000 in assets, in a small rented house in Salt Lake City, Utah, Security National has grown into a strong industry leader in several fields of service.
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 turn invests 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.
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, 2023, and invite you to attend the annual Stockholders Meeting to be held Friday June 21, 2024, in Salt Lake City, Utah at the Company's offices.
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 $25,000,000. As death rates stabilized throughout 2023, and as we implemented renewed emphasis on operational efficiencies, our Cemetery and Mortuary Segment had its best year ever earning nearly $8,500,000. Needless to say, we are very pleased with those results.
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 $17,500,000. Despite that loss, I thought our team battled the market conditions extraordinarily well and positioned ourselves to take advantage of a very distraught mortgage market. I think it worthy to remember that in the three years 2020 to 2022 our Mortgage Segment produced $98,000,000 of profit, so we think the goal is worthy of our current efforts.
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,
Scott M. Quist
Chairman, Chief Executive Officer, and President
SNFC Board of Directors and Officers
|
Scott M. Quist |
H. Craig Moody |
Robert G. Hunter M.D. |
||||||||||
|
Chairman of the Board |
President, Moody & Associates |
Past Medical Staff President |
||||||||||
|
President |
Director |
Department Head-Otolaryngology, |
||||||||||
|
Chief Executive Officer |
Executive Committee |
Head and Neck Surgery |
||||||||||
|
Director |
Audit Committee |
Intermountain Medical Center |
||||||||||
|
Executive Committee |
Compensation Committee |
Director |
||||||||||
|
Nominating and Corporate |
Compensation Committee |
|||||||||||
|
Governance Committee |
||||||||||||
|
Nominating and Corporate |
||||||||||||
|
Governance Committee |
||||||||||||
|
Gilbert A. Fuller |
John L. Cook |
S. Andrew Quist |
Jason G. Overbaugh |
||||||
|
Former Executive Vice President, |
Co-Owner & Operator |
Director |
Director |
||||||
|
Chief Financial Officer and Secretary, |
Cook Brothers Painting, Inc. |
President of Mortgage Operations |
Vice President |
||||||
|
USANA Health Sciences, Inc. |
Director |
General Counsel |
National Marketing Director |
||||||
|
Director |
Audit Committee |
Executive Committee |
of Life Insurance |
||||||
|
Executive Committee |
Compensation Committee |
||||||||
|
Audit Committee |
Nominating and Corporate |
||||||||
|
Compensation Committee |
Governance Committee |
||||||||
|
Nominating and Corporate |
|||||||||
|
Governance Committee |
|||||||||
|
Mia B. Love |
Alexandra Mysoor |
Adam G. Quist |
||||||
|
Former Member - U.S. House of Representatives |
Founder and Chairwoman of Mysoor Industries |
Director |
||||||
|
Former Mayor of Saratoga Springs, UT |
Founder and Chief Executive Officer of Alix |
President of Memorial Services |
||||||
|
Former Member - Saratoga Springs City Council |
Director |
President of Life Insurance |
||||||
|
Senior Fellow - U.S. Study Center for Politics (Sydney, AU) |
Audit Committee |
Assistant Secretary |
||||||
|
Regular Political Commentator - CNN |
Compensation Committee |
General Counsel |
||||||
|
Director |
Nominating and Corporate |
|||||||
|
Audit Committee |
Governance Committee |
|||||||
|
Compensation Committee |
||||||||
|
Nominating and Corporate |
||||||||
|
Governance Committee |
||||||||
|
Jeffrey R. Stephens |
Garrett S. Sill |
Diana C. Olson |
Thayne D. Atkinson |
|||||
|
Secretary |
Chief Financial Officer |
Vice President |
Vice President |
|||||
|
Senior General Counsel |
Treasurer |
Finance |
Chief Information Officer |
|||||
|
Richard R. Dahl |
Jeffrey P. Adams |
Matthew G. Bagley |
|
Vice President |
Controller |
General Counsel |
|
Tax |
A History of Growth
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 Western Investors 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
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 Southern Security Life (FL)
1999 - The acquisition of Menlo Life policy block
2000
2000 - The organization of Southern Security 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 Southern Security Life (MS)
2010
2011 - The acquisition of North America Life policy block 2012 - The acquisition of Trans-Western Life 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
2021 - The sale of Memorial Insurance Company of America
2023 - Aquisition and merger of Foxo Life Insurance Company
LEADERSHIP TEAM
Scott Quist
Chief Executive Officer
Adam Quist
President
Jason Overbaugh
Vice President
National Marketing Director
Guy Winstead
Vice President of Sales
Preneed, Final Expense, and Loyalty Sales Divisions
Todd Clendennen
Regional Vice President of Sales
Preneed Division
Jason Richardson
Vice President of Sales
Home Service Division
We specialize in affordable and convenient products that "make sense" for you and your family.
Let SNL show you a better way.
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, Final Expense Insurance can provide the safety net to take care of those unexpected items that will allow you to tell your loved ones "It is all taken care of."
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 $1,000 in most states and going up to $30,000, our plans assure that our customers will have the dignity to bury their loved ones without worrying about the costs.
Kilpatrick Life Insurance Company
Security National Life acquired Kilpatrick Life Insurance Company in 2019. Kilpatrick is based in Shreveport, LA with roots dating back to 1932. Through three generations, the Kilpatrick family oversaw tremendous company growth and expansion.The addition of Kilpatrick Life Insurance to Security National Life was an easy fit with its priority and focus on family.With award winning service, we are proud to join in one mission to serve families across the nation.
LEADERSHIP TEAM
Marty Rich
Vice President
Marketing & Sales Support
Jon Meredith
Director
Policy Administration
Wendi Beauchaine
Chief Underwriter
Sara McCulley
Director
Marketing and Lead Development
Jo Clark
Director
Kilpatrick Life Policy Administration
LEADERSHIP TEAM
We're Turning Houses into Homes®
Scott Quist
Chief Executive Officer
Andrew Quist
President
Joel Harward
Senior Vice President, Mortgage Production
Jacob Banks
Chief Financial Officer
Mike Brumble
Vice President, Risk Management
Jeff Orme
Chief Compliance Officer
We're SecurityNational Mortgage
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 $2.2 billion in residential mortgage loan originations in 2023, which was our lowest origination volume since 2014. That origination low resulted in only our second annual loss in the past 12 years for the Company. As disappointing as this loss was, much of it can be attributed to investments made to strengthen our position in the industry.
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 Federal Reserve began its recent cycle of interest rate hikes.This increase is in the face of approximately 90,000 loan officers exiting the mortgage loan profession entirely during that same time period. In this time of market contraction SecurityNational has maintained strong recruiting results and we are growing.
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 Fannie Mae, Freddie Mac, FHA,VA, USDA, and many other secondary market investors, and tailored portfolio products provided by its affiliated companies, ensure that SecurityNational can provide a full complement of mortgage loan products at competitive prices. These products include unique loan offerings to home builders - a specialty of SecurityNational.The Company's unparalleled marketing and business support group helps keep our sales team front-and- center in a very competitive marketplace.These qualities are just a few of the reasons why mortgage loan professionals are joining SecurityNational each month, sustaining our growth into the future.
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.
Michael Muirbrook
Vice President, Servicing & Audits
Karie Wakefield
Vice President, Mortgage Fulfillment
Tim Yates
Vice President, Capital Markets
Austin Jacks
Chief Marketing Officer
Rob Coke
Vice President, Appraisal
Mark Pasternak
Vice President, Operations
|
REGIONAL MANAGERS |
2023 STATISTICS |
Svetlana Marinkovic
Executive Regional Manager,
Summit Region
Lisa Newman
Executive Regional Manager,
East Coast Region
Cristie North
Executive Regional Manager,
Midvale Region
398 Loan Officers
SNMC Funding Comparison Year-Over-Year
$3.0B
$2.5B
$2.0B
|
$1.5B |
|||||||||||
|
$1.0B |
|||||||||||
|
$500M |
2.662B |
||||||||||
|
694M |
|||||||||||
|
$0 |
1.963B |
211.5M |
|||||||||
|
Purchase |
Refinance |
||||||||||
|
2022 |
2023 |
||||||||||
Attachments
Disclaimer
SNFC - Security National Financial Corporation published this content on 22 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2024 16:15:22 UTC.
