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 utr:sqft

 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 Washington,
D.C. 20549

 FORM

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the fiscal year ended December 31, 2023

 or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the Transition Period from _____ to _____

 Commission
File Number 000-09341

 (Exact
name of registrant as specified in its charter)

 utah

 87-0345941

 (State
 or other jurisdiction of

 incorporation
 or organization)

 (I.R.S.
 Employer

 Identification
 No.)

 West Ascension Way, Salt Lake City, Utah

 84123

 (Address
 of principal executive offices)

 (Zip
 Code)

 Registrant's
 telephone number, including area code:

 (801) 264-1060

 Securities
registered pursuant to Section 12(b) of the Act:

 Title
 of each class

 Trading
 symbol

 Name
 of exchange on which registered

 Class
 A Common Stock

 SNFCA

 The
 Nasdaq Global Select Market

 Securities
registered pursuant to Section 12(g) of the Act: None

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Act.

 Yes No

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

 Yes No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated
 filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 Yes No

 As
of June 30, 2023, the aggregate market value of the registrant's Class A common stock held by non-affiliates of the registrant
was approximately $ 64,000,000 based on the $8.45 closing sale price of the Class A common stock as reported on The Nasdaq Global Select
Market.

 As
of March 26, 2024, there were outstanding 20,048,581 shares of Class A common stock, $2.00 par value per share, and 2,971,680 shares
of Class C common stock, $2.00 par value per share.

 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.

National Financial Corporation

 Form

 For
the Fiscal Year Ended December 31, 2023

 TABLE
OF CONTENTS

 Page

 Item
 1.

 Business

 Item
 1A.

 Risk Factors

 Item
 1B.

 Unresolved Staff Comments

 Item
 2.

 Properties

 Item
 3.

 Legal Proceedings

 Item
 4.

 Mine Safety Disclosures

 Item
 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item
 6.

 [Reserved]

 Item
 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item
 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item
 8.

 Financial Statements and Supplementary Data

 Item
 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item
 9A.

 Controls and Procedures

 Item
 9B.

 Other Information

 Item
 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item
 10.

 Directors, Executive Officers, and Corporate Governance

 Item
 11.

 Executive Compensation

 Item
 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item
 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item
 14.

 Principal Accounting Fees and Services

 Item
 15.

 Exhibits, Financial Statement Schedules

 Item
 16.

 Form 10-K Summary

 Signatures

 Financial Statement Schedules

 PART
I

 Item
1. Business

National Financial Corporation (the "Company") operates 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. These products are marketed in 40 states through a commissioned sales force of independent
licensed insurance agents who may also sell insurance products of other companies. The cemetery and mortuary segment consists of eight
mortuaries and five cemeteries in the state of Utah, one cemetery in the state of California, and one cemetery and four mortuaries in
the state of New Mexico. The Company also engages in pre-need selling of funeral, cemetery, mortuary, and cremation services through
its cemetery and mortuary locations. The mortgage segment originates and underwrites or otherwise purchases residential and commercial
loans for new construction, existing homes, and other real estate projects. The mortgage segment operates through 100 retail offices
in 23 states and is an approved mortgage lender in several other states.

 The
Company's design and structure are that each business segment is related to the other business segments and contributes to the
profitability of the other segments. The Company's cemetery and mortuary segment provides a level of public awareness that assists
in the sales and marketing of insurance and pre-need cemetery and funeral products. The Company's insurance segment invests its
assets (including, in part, pre-need funeral products and services) in investments authorized by the respective insurance departments
of their states of domicile. The Company also pursues growth through acquisitions. The Company's mortgage segment provides mortgage
loans and other real estate investment opportunities.

 The
Company was organized as a holding company in 1979 when Security National Life Insurance Company ("Security National Life")
became a wholly owned subsidiary of the Company, and the former stockholders of Security National Life became stockholders of the Company.
Security National Life was formed in 1965 and has acquired or purchased significant blocks of business which include Capital Investors
Life Insurance Company (1994), Civil Service Employees Life Insurance Company (1995), Southern Security Life Insurance Company (1998),
Menlo Life Insurance Company (1999), Acadian Life Insurance Company (2002), Paramount Security Life Insurance Company (2004), Memorial
Insurance Company of America (2005 and subsequently sold in 2021 to FOXO Life Insurance Company), Capital Reserve Life Insurance Company
(2007), Southern Security Life Insurance Company, Inc. (2008), North America Life Insurance Company (2011, 2015), Trans-Western Life
Insurance Company (2012), Mothe Life Insurance Company (2012), DLE Life Insurance Company (2012), American Republic Insurance Company
(2015), First Guaranty Insurance Company (2016), Kilpatrick Life Insurance Company (2019), and merger with FOXO Life Insurance Company
(2023).

 The
cemetery and mortuary operations have also grown through the acquisition of other cemetery and mortuary companies. The cemetery and mortuary
companies that the Company has acquired are Holladay Memorial Park, Inc. (1991), Cottonwood Mortuary, Inc. (1991), Deseret Memorial,
Inc. (1991), Probst Family Funerals and Cremations L.L.C. (2019), Heber Valley Funeral Home, Inc. (2019), Rivera Funerals, Cremations
and Memorial Gardens (2021), and Holbrook Mortuary (2021).

 In
1993, the Company formed SecurityNational Mortgage Company ("SecurityNational Mortgage") to originate and refinance residential
mortgage loans.

 See
Note 15 of the Notes to Consolidated Financial Statements for additional information regarding the business segments of the Company.

 Life

 The
Company, through Security National Life, First Guaranty Insurance Company ("First Guaranty"), and Kilpatrick Life Insurance
Company ("Kilpatrick"), issues and distributes selected lines of life insurance and annuities. The Company's life insurance
business includes funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and health insurance
products. The Company places specific marketing emphasis on funeral plans through pre-need planning. The Company's insurance subsidiaries,
Southern Security Life Insurance Company, Inc. ("Southern Security") and Trans-Western Life Insurance Company ("Trans-Western"),
do not actively write policies, but service and maintain policies that were purchased prior to their acquisition by Security National
Life.

 A
funeral plan is a small face value life insurance policy that generally has face coverage of up to $30,000. The Company believes that
funeral plans represent a marketing niche that has less competition because most insurance companies do not offer similar coverage. The
purpose of the funeral plan policy is to pay the costs and expenses incurred at the time of a person's death. On a per thousand-dollar
cost of insurance basis, these policies can be more expensive to the policyholder than many types of non-burial insurance due to their
low face amount, requiring the fixed cost of the policy administration to be distributed over a smaller policy size, and the simplified
underwriting practices that result in higher mortality costs.

 The
Company is licensed to sell insurance in 40 states. The Company, in marketing its life insurance products, seeks to locate, develop and
service specific niche markets. The Company's funeral plan policies are sold primarily to people who range in age from 45 to 85
and have low to moderate income. Most of the Company's funeral plan premiums come from the states of Arkansas, California, Florida,
Georgia, Louisiana, Mississippi, Texas, and Utah.

 The
Company sells its life insurance products through direct agents, brokers, and independent licensed agents who may also sell insurance
products of other companies. The commissions on life insurance products range from approximately 50% to 120% of first year premiums.
In those cases where the Company utilizes its direct agents in selling such policies, those agents customarily receive advances against
future commissions.

 In
some instances, funeral plan insurance is marketed in conjunction with the Company's cemetery and mortuary sales force. When it
is marketed by that group, the beneficiary is usually the Company's cemeteries and mortuaries. Thus, death benefits that become
payable under the policy are paid to the Company's cemetery and mortuary subsidiaries to the extent of services performed and products
purchased.

 In
marketing funeral plan insurance, the Company also seeks and obtains third-party endorsements from other cemeteries and mortuaries within
its marketing areas. Typically, these cemeteries and mortuaries will provide letters of endorsement and may share in mailing and other
lead-generating costs since these businesses are usually made the beneficiary of the policy. The following table summarizes the life
insurance business for the five years ended December 31, 2023:

 2023

 2022

 2021

 2020

 2019

 Life Insurance

 Policy/Cert Count as of December 31

 714,953

 646,296

 653,450

 659,237

 669,064

 Insurance in force as of December 31 (in thousands)

 $
 3,552,554

 $
 3,446,836
 (1)

 $
 3,415,368
 (1)

 $
 3,379,921
 (1)

 $
 3,303,061
 (1)

 Premiums Collected (in thousands)

 $
 113,584

 $
 103,304

 $
 99,006

 $
 92,058

 $
 78,253

 (1)
Prior years have been adjusted to include accidental death benefit insurance in force that was inadvertently excluded.

 Underwriting

 The
factors considered in evaluating an application for ordinary life insurance coverage can include the applicant's age, occupation,
general health condition, and medical history. Upon receipt of a satisfactory (non-funeral plan insurance) application, which contains
pertinent medical questions, the Company issues insurance based upon its medical limits and requirements subject to the following general
non-medical limits:

 Age Nearest
 Birthday

 Non-Medical
 Limits

 0-50

 $100,000

 51-up

 Medical information

 required (APS or
 exam)

 When
underwriting life insurance, the Company will sometimes issue policies with higher premium rates for substandard risks.

 The
Company's funeral plan insurance is written on a simplified medical application with underwriting requirements being a completed
application, a phone interview of the applicant, and an intelliscript prescription history inquiry. There are several underwriting classes
in which an applicant can be placed.

 The
Company's annuity business includes single premium deferred annuities, flexible premium deferred annuities, and immediate annuities.
A single premium deferred annuity is a contract where the individual remits a sum of money to the Company, which is retained on deposit
until such time as the individual may wish to annuitize or surrender the contract for cash. A flexible premium deferred annuity gives
the contract holder the right to make premium payments of varying amounts or to make no further premium payments after his initial payment.
These single and flexible premium deferred annuities can have initial surrender charges. The surrender charges act as a deterrent to
individuals who may wish to prematurely surrender their annuity contracts. An immediate annuity is a contract in which the individual
remits a sum of money to the Company in return for the Company's obligation to pay a series of payments on a periodic basis over
a designated period, such as an individual's life, or for such other period as may be designated.

have guaranteed interest rates that range from 1% to 6.5% per annum. Rates above the guaranteed interest rate credited are periodically
modified by the Board of Directors at its discretion. For the Company to make a profit on an annuity product, the Company must maintain
an interest rate spread between its investment income and the interest rate credited to the annuities. Commissions, issuance expenses,
and general and administrative expenses are deducted from this interest rate spread.

 The
general market for the Company's annuities is middle to older age individuals. A major source of annuity sales come from direct
agents and are sold in conjunction with other insurance sales. If an individual does not qualify for a funeral plan, the agent will often
sell that individual an annuity to fund final expenses.

 The
following table summarizes the annuity business for the five years ended December 31, 2023:

 2023

 2022

 2021

 2020

 2019

 Annuities Policy/Cert Count as of December 31

 24,924

 24,225

 24,901

 25,476

 26,565

 Deposits Collected (in thousands)

 $
 10,946

 $
 9,972

 $
 9,719

 $
 9,637

 $
 10,400

 Accident
and Health

 Through
its various acquisitions, the Company occasionally acquires small blocks of accident and health insurance policies, which it continues
to service. The Company offers a low-cost comprehensive diver's accident insurance policy that provides worldwide coverage for
medical expense reimbursement in the event of a diving accident.

 The
Company currently markets its diver's accident insurance policies through the internet.

 The
following table summarizes the accident and health insurance business for the five years ended December 31, 2023:

 2023

 2022

 2021

 2020

 2019

 Accident and Health Policy/Cert
 Count as of December 31

 9,379

 11,132

 12,494

 13,735

 15,133

 Premiums Collected (in thousands)

 $

 $

 $

 $

 $

 The
primary purpose of reinsurance is to enable an insurance company to issue an insurance policy in an amount larger than the risk the insurance
company is willing to assume for itself. The insurance company remains obligated for the amounts reinsured (ceded) in the event the reinsurers
do not meet their obligations.

 The
Company currently cedes and assumes certain risks with various authorized unaffiliated reinsurers pursuant to reinsurance treaties, which
are generally renewed annually. The premiums paid by the Company are based on a number of factors, primarily including the age of the
insured and the risk ceded to the reinsurer.

 It
is the Company's policy to retain no more than $100,000 of ordinary insurance per insured life, with the excess risk being reinsured.
The total policy amount of life insurance reinsured by other companies as of December 31, 2023, was $333,211,000, which represented approximately
9.3% of the Company's total life insurance policy amount in force on that date.

 See
"Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Notes to Consolidated
Financial Statements" for additional disclosure and discussion regarding reinsurance.

 Investments

 The
investments that support the Company's life insurance and annuity obligations are determined by the investment committees of the
Company's subsidiaries and ratified by the full boards of directors of the respective subsidiaries. A significant portion of the
Company's investments must meet statutory requirements governing the nature and quality of permitted investments by its insurance
subsidiaries. The Company maintains a diversified investment portfolio consisting of common stocks, preferred stocks, municipal bonds,
corporate bonds, mortgage loans, real estate, and other securities and investments.

 See
"Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Notes to Consolidated
Financial Statements" for additional disclosure and discussion regarding investments.

and Mortuary

 Through
its cemetery and mortuary segment, the Company markets a variety of products and services both on a pre-need basis (prior to death) and
an at-need basis (at the time of death). The products include plots, interment vaults, mausoleum crypts, markers, caskets, urns, and
other death care related products. These services include professional services of funeral directors, opening and closing of graves,
use of chapels and viewing rooms, and use of automobiles and clothing. The Company has a mortuary at each of its cemeteries, other than
Holladay Memorial Park and Singing Hills Memorial Park, and has six separate stand-alone mortuary facilities.

 The
Company's pre-need cemetery and mortuary sales are marketed to persons of all ages but are generally purchased by persons 45 years
of age and older. The Company is limited in its geographic distribution of these products to areas lying within an approximate 20-mile
radius of its mortuaries and cemeteries. The Company's at-need sales are similarly limited in geographic area.

 The
Company actively seeks to sell its cemetery and funeral products to customers on a pre-need basis. The Company employs cemetery sales
representatives on a commission basis to sell these products. Many of these pre-need cemetery and mortuary sales representatives are
also licensed insurance salesmen and sell funeral plan insurance. In some instances, the Company's cemetery and mortuary facilities
are the named beneficiaries of the funeral plan policies.

 Potential
customers are located via telephone sales prospecting, responses to letters mailed by the pre-planning consultants, billboards and other
outside advertising, referrals, and door-to-door canvassing. The Company trains its sales representatives and helps generate leads for
them.

Loans

 The
Company, through SecurityNational Mortgage, is active in the residential real estate market. SecurityNational Mortgage is approved by
the U.S. Department of Housing and Urban Development (HUD), the Federal National Mortgage Association (Fannie Mae), and other secondary
market investors, to originate a variety of residential mortgage loan products, which are subsequently sold to investors. The Company
uses internal and external funding sources to fund mortgage loans.

National Life originates and funds commercial real estate loans, residential construction loans, and land development loans for internal
investment.

 The
Company's residential mortgage lending services are marketed primarily to real estate brokers, builders and directly to consumers.
The Company has a strong retail origination presence in the Utah, Florida, Texas, Nevada and Arizona markets and many other states across
the country. See "Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Notes
to Consolidated Financial Statements" for additional disclosure and discussion regarding mortgage loans.

 Recent
Acquisitions and Other Business Activities

 Real
Estate Development

 The
Company is capitalizing on the opportunity to develop commercial and residential assets on its existing and recently acquired properties.
The cost to acquire existing for-sale assets currently exceeds the replacement costs, thus creating the opportunity for development and
redevelopment of the land that the Company currently owns. The Company has developed, or is in the process of developing, assets that
have an initial development cost exceeding $100,000,000, primarily relating to the Center53 Development and multiple single family residential
development projects. The Company plans to continue its development endeavors as based upon its assessment of the market demand.

 Center53
Development

 Center53
Development is an office development project comprising nearly 20 acres of land that is currently owned by the Company in the central
valley of Salt Lake City. At final completion, the multi-year, phased development is expected to create a campus atmosphere and include
nearly one million square-feet of office space in five buildings, ranging from four to eleven stories, and will be serviced by three
parking structures with approximately 4,000 stalls. In 2015, the Company broke ground and commenced development on the first phase which
included a six-story building of nearly 200,000 square feet and a parking garage with 748 parking stalls. The first phase of the project
was completed in July 2017 and is currently 93% leased. The second phase of the project began in March 2020 and includes a second six-story
building of nearly 221,000 square feet and a parking garage with approximately 870 stalls. The Company began its occupancy of a portion
of the building in October 2021 and the remainder of the building is currently 100% leased. The Company plans to initiate future phases
of the Center53 Development for additional Class A office space in the central valley of Salt Lake City.

 Regulation

 The
Company's insurance subsidiaries are subject to comprehensive regulation in the jurisdictions in which they do business under statutes
and regulations administered by state insurance commissioners. Such regulation relates to, among other things, prior approval of the
acquisition of a controlling interest in an insurance company; standards of solvency which must be met and maintained; licensing of insurers
and their agents; nature of and limitations on investments; deposits of securities for the benefit of policyholders; approval of policy
forms and premium rates; periodic examinations of the affairs of insurance companies; annual and other reports required to be filed on
the financial condition of insurers or for other purposes; and requirements regarding aggregate reserves for life policies and annuity
contracts, policy claims, unearned premiums, and other matters. The Company's insurance subsidiaries are subject to this type of
regulation in any state in which they conduct relevant business. Such regulation may cause unforeseen costs and operational restrictions,
and delay implementation of the Company's business plans.

 The
Company's life insurance subsidiaries are currently subject to regulation in Utah, Louisiana, Mississippi and Texas under insurance
holding company legislation, and other states where applicable. Generally, intercompany transfers of assets and dividend payments from
insurance subsidiaries are subject to prior notice of approval from the relevant state insurance department where they are deemed "extraordinary"
under relevant state law. The insurance subsidiaries are required, under state insurance laws, to file detailed annual reports with the
supervisory agencies in each of the states in which they do business. Their business and accounts are also subject to examination by
these agencies. The Company was last examined in 2021 (First Guaranty Insurance), 2022 (Security National Life, Southern Security and
Trans-Western) and 2021 (Kilpatrick Life). Its most recent final examination reports have been approved by the insurance departments
and are public records.

 The
Texas Department of Banking also audits pre-need insurance policies that are issued in the state of Texas. Pre-need policies include
the life and annuity products sold as the funding mechanism for funeral plans through funeral homes by Security National agents. The
Company is required to send the Texas Department of Banking an annual report that summarizes the number of policies in force and the
face amount or death benefit for each policy. This annual report is also required to indicate the number of new policies issued for that
year, all death claims paid that year, and all premiums received.

 The
Company's cemetery and mortuary subsidiaries are subject to the Federal Trade Commission's comprehensive funeral industry
rules and to state regulations in the various states where such operations are domiciled. The morticians must be licensed by the respective
state in which they provide their services. Similarly, the mortuaries and cemeteries are governed and licensed by state statutes and
city ordinances in Utah, California, and New Mexico. The subsidiaries are required to keep annual reports on file including financial
information concerning the number of spaces sold and, where applicable, funds provided to the Endowment Care Trust Fund. Licenses are
issued annually based on such reports. The cemeteries maintain city or county licenses where they conduct business.

 The
Company's mortgage subsidiaries are subject to the rules and regulations of the U.S. Department of Housing and Urban Development
(HUD), and to various state licensing acts and regulations and the Consumer Financial Protection Bureau (CFPB). These regulations, among
other things, specify minimum capital requirements; procedures for loan origination and underwriting, licensing of brokers and loan officers
and quality review audits and specify the fees that can be charged to borrowers. Each year, the Company is required to have an audit
completed for each mortgage subsidiary by an independent registered public accounting firm to verify compliance with the relevant regulations.
In addition to the government regulations, the Company must meet loan requirements, and underwriting guidelines of various investors
who purchase the loans.

Taxes

 The
Company's insurance subsidiaries, Security National Life, First Guaranty and Kilpatrick are taxed under the Life Insurance Company
Tax Act of 1984. Under the act, life insurance companies are taxed at standard corporate rates on life insurance company taxable income.
Life insurance company taxable income is gross income less general business deductions and reserves for future policyholder benefits
(with modifications). Under The Tax Cuts and Jobs Act (the "Tax Act"), December 31, 2017 policyholder surplus account balances
result in taxable income over a period of eight years.

National Life, First Guaranty and Kilpatrick calculate their life insurance taxable income after establishing a provision representing
a portion of the costs of acquisition of such life insurance business. The effect of the provision is that a certain percentage of the
Company's premium income is characterized as deferred expenses and recognized over a five or ten-year period. The Tax Act changed
this recognition period for amounts deferred after December 31, 2017 to a five or fifteen-year period.

 The
Company's non-life insurance company subsidiaries are taxed in general under the regular corporate tax provisions. The Company's
subsidiaries Southern Security and Trans-Western are regulated as life insurance companies but do not meet the Internal Revenue Code
definition of a life insurance company, so they are taxed as insurance companies other than life insurance companies.

 Competition

 The
life insurance industry is highly competitive. There are approximately 800 legal reserve life insurance companies in business in the
United States. These insurance companies differentiate themselves through marketing techniques, product features, pricing, and customer
service. The Company's insurance subsidiaries compete with a large number of insurance companies, many of which have greater financial
resources, longer business histories, and more diversified lines of insurance products than the Company. In addition, such companies
generally have larger sales forces. Further, the Company competes with mutual insurance companies which may have a competitive advantage
because all profits accrue to policyholders. Because the Company is smaller by industry standards and lacks broad diversification of
risk, it may be more vulnerable to losses than larger, better-established companies. The Company believes that its policies and rates
for the markets it serves are generally competitive.

 The
cemetery and mortuary industry is highly competitive. In the Utah, California, and New Mexico markets where the Company competes, there
are several cemeteries and mortuaries which have longer business histories, more established positions in the community, and stronger
financial positions than the Company. In addition, some of the cemeteries with which the Company must compete for sales are owned by
municipalities and, as a result, can offer lower prices than can the Company. The Company bears the cost of a pre-need sales program
that is not incurred by those competitors which do not have a pre-need sales force. The Company believes that its products and prices
are generally competitive with those in the industry.

 The
mortgage industry is highly competitive with many mortgage companies and banks in the same geographic area in which the Company is operating.
The mortgage industry in general is sensitive to changes in interest rates and the refinancing market is particularly vulnerable to changes
in interest rates.

 Seasonality

 The
Company's business is generally not subject to seasonal fluctuations.

 Human
Capital Management

 As
of December 31, 2023, the Company employed 1,227 full-time and 246 part-time employees. Of the full-time employees, 729 were employed
by the mortgage segment, 373 by the life insurance segment, and 125 by the cemetery and mortuary segment. The Company requires monthly
acknowledgement of its anti-discrimination and anti-harassment policies and communicates to its employees how to report concerns that
relate to their employment experience.

 Employee
Benefits

 All
eligible employees may elect coverage under the Company's group health (including health savings and flexible spending), retirement,
supplemental life and voluntary benefit programs. As of December 31, 2023, 756 employees had elected to participate in the Company's
group health insurance plans.

 The
Company has an employee safe harbor retirement plan for each business segment. The retirement plans qualify under section 401(k) of the
Internal Revenue Code and, if approved by the board of directors, the Company makes a matching contribution in Company stock based on
the employee's contribution amount.

 The
Company provides other time off benefits such as paid sick and paid vacation time. The Company provides discounts on certain services
provided by the Company to its employees. Additionally, the Company offers an employee assistance program that provides 24/7 counseling
services for employees who may be facing challenges outside of the workplace.

 Available

 The
Company's internet address is www.securitynational.com. The Company's investor relations website is www.investor.securitynational.com
and the Company promptly makes available on this website, free of charge, the reports that it files or furnishes with the Securities
and Exchange Commission.

 Item
1A. Risk Factors

 As
a smaller reporting company, the Company is not required to provide information typically disclosed under this item.

 Item
1B. Unresolved Staff Comments

 None.
As a smaller reporting company, the Company is not required to provide information typically disclosed under this item.

 Item
1C. Cybersecurity

 The
Company maintains a strong information security program and systems ("Cybersecurity System") to guard against unauthorized
access, malicious software, corruption of data, disruption of its networks and systems and unauthorized release of confidential information.
The Company's Cybersecurity System is comprised of multiple layers of controls to reduce the risk of cybersecurity incidents.

 Risk
Management and Strategy

 The
Company's Cybersecurity System includes administrative, technical, and physical safeguards and is designed to provide an appropriate
level of protection to maintain the confidentiality, integrity and availability of the Company's and its customers' information.
This includes protecting against known and evolving threats to the security of the Company's systems and information, and against
unauthorized access, compromise, or loss of data. The Cybersecurity System is managed centrally, so the same security controls, policies
and procedures are implemented across the organization. The Company maintains cybersecurity policies including an Acceptable Use Policy
that all system users sign to acknowledge that they understand their security responsibilities. All system users receive security awareness
training which includes phishing attack simulation testing.

 A
key element of the Company's Cybersecurity System is to mature the program to align with the Center for Internet Security
(CIS) Critical Security Controls security framework. The CIS controls are designed based on real-world data about cyber-attacks, to
ensure that the measures are effective against current threats. The framework provides a prioritized set of actions, which enables
the Company to focus its efforts on the most effective defensive measures first. This prioritization helps in optimizing the use of
resources for maximum impact on security. This strategy provides a structured and effective approach to cybersecurity, helping the
Company to protect its assets, comply with regulations, manage risks, and improve its overall security posture.

 The
Company maintains cyber insurance coverage that may, subject to policy terms, conditions, and limitations, cover certain aspects of cybersecurity
risks; however, such insurance coverage may be unavailable or insufficient to cover all losses or all types of claims that may arise
in the continually evolving area of cyber risk.

 Governance

 The
Company has established controls and procedures to escalate enterprise-level issues, including cybersecurity matters, to the appropriate
management levels within its organization and to its Board of Directors, or members or committees thereof, as appropriate. The Company's
Board of Directors has oversight for enterprise risk management, including its approach to managing cybersecurity risk, and has delegated
oversight responsibility of information security risks to its Audit Committee. Matters determined to present potential material impacts to the Company's financial
results, operations, and/or reputation are reported by management to the Company's Board of Directors or its Audit
Committee, as appropriate, in accordance with its escalation framework.

 In
addition, the Company has established procedures to ensure that management personnel are informed in a timely manner of known
cybersecurity risks and incidents that may materially impact the Company's operations and that timely public disclosure is
made as appropriate. The Company's Cybersecurity System is led by the Chief Information Officer ("CIO") in
collaboration with a third-party virtual Chief Information Security Officer ("vCISO") and other third-party
cybersecurity service providers which in turn assist in monitoring the Company's exposure from significant information
technology suppliers, significant software as service providers and major vendors with access to the Company's information
technology systems. The Company's CIO has 10 years of cybersecurity industry experience. Further, team members who support the
Company's cybersecurity program have relevant educational and industry experience through various roles involving information
technology, security, auditing, compliance, systems, and programming, as well as cybersecurity certifications such as a Certified
Information Systems Security Professional (CISSP) and Certified Information Security Manager (CISM). During the last three years, the Company has not experienced a material security breach and, as a
result, the Company has not incurred any material expenses from such a breach. Furthermore, during such time, the Company has not
been penalized or paid any amount under any information security breach settlement.

 Item
2. Properties

 The
tables below set forth the location of the Company's office facilities and certain other information relating to these properties.

 Street

 City

 State

 Function

 Owned
 / Leased

 Approximate Square Footage

 Lease

 Expiration

 Ascension Way, Floors 4, 5 and 6

 Salt
 Lake City

 UT

 Headquarters, Insurance Operations, Cemetery and Mortuary Operations, Mortgage Operations and Sales

 Owned

 221,000

 N/A

 N/A

 1044
 River Oaks Dr. (1)

 Flowood

 MS

 Owned

 5,522

 N/A

 N/A

 1818
 Marshall St.

 Shreveport

 LA

 Owned

 12,274

 N/A

 N/A

 Sheppard St.

 Minden

 LA

 Sales

 Owned

 1,560

 N/A

 N/A

 Foisy Ave. (2)

 Alexandria

 LA

 Sales

 Owned

 8,059

 N/A

 N/A

 1550
 N. Third St. (1)

 Jena

 LA

 Sales

 Owned

 1,737

 N/A

 N/A

 Sanctuary Blvd. Suite 302A

 Mandeville

 LA

 Sales

 1,335

 $

 2,400

 /

 mo

 6/30/2024

 E. Main Street

 Midway

 UT

 Funeral
 Service Sales

 4,476

 $

 6,233

 /

 mo

 10/31/2025

 4387
 S. 500 W.

 Salt
 Lake City

 UT

 Funeral
 Service Sales

 2,168

 $

 1,895

 /

 mo

 7/31/2025

 1627A
 Central Ave.

 Los
 Alamos

 NM

 Funeral
 Service Sales

 1,400

 $

 1,600

 /

 mo

 12/30/2024

 Market Way

 Rainbow
 City

 AL

 Fast
 Funding Operations

 12,850

 $

 10,490

 /

 mo

 1/31/2025

 5100
 N. 99th Ave., Suite 101/103

 Phoenix

 AZ

 Sales

 3,940

 $

 3,369

 /

 mo

 month

 10609
 N. Hayden Rd., Suite 100

 Scottsdale

 AZ

 Sales

 3,585

 $

 8,650

 /

 mo

 month

 1490
 S. Price Road, Suite 318

 Chandler

 AZ

 Sales

 1,600

 $

 3,050

 /

 mo

 6/30/2024

 5100
 N. 99th Ave., Suite 111

 Phoenix

 AZ

 Sales

 $

 2,382

 /

 mo

 month

 1951
 West Camelback Rd, Ste 200

 Phoenix

 AZ

 Sales

 2,446

 $

 3,771

 /

 mo

 month

 2636
 Hwy 95 Suite 2

 Bullhead
 City

 AZ

 Sales

 1,000

 $

 1,225

 /

 mo

 month

 2220
 S. Country Club Drive Suite 101

 Mesa

 AZ

 Sales

 3,274

 $

 5,339

 /

 mo

 2/14/2028

 West 16th Street #209

 Yum

 AZ

 Sales

 1,731

 $

 4,284

 /

 mo

 6/30/2024

 North Cortez St.

 Prescott

 AZ

 Sales

 $

 /

 mo

 month

 15169
 North Scottsdale Road, #205 - office 3012 & 3013

 Scottsdale

 AZ

 Sales

 Unknown

 $

 3,400

 /

 mo

 month

 10265
 W. Camelback Road, #100

 Phoenix

 AZ

 Sales

 1,647

 $

 3,817

 /

 mo

 2/27/2024

 40977
 Oak Dr.

 Forest
 Falls

 CA

 Sales

 $

 -

 /

 mo

 month

 2934
 E. Garvey Ave. South, Suite 250

 West
 Covina

 CA

 Sales

 $

 1,100

 /

 mo

 month

 7398
 Fox Trail Unit B

 Yucca
 Valley

 CA

 Sales

 $

 /

 mo

 month

 S. Highway 101 Suite 7

 Solana
 Beach

 CA

 Sales

 2,000

 $

 7,426

 /

 mo

 7/31/2026

 44441
 West 16th Street #101

 Lancaster

 CA

 Sales

 2,115

 $

 2,057

 /

 mo

 1/31/2024

 1420
 Magnolia Ave

 Oxnard

 CA

 Sales

 $

 6,392

 /

 mo

 3/30/2024

 The City Drive, Suite 450

 Orange

 CA

 Sales

 2,485

 $

 6,655

 /

 mo

 Main St., Suite C-104B

 Edwards

 CO

 Sales

 $

 1,950

 /

 mo

 month

 4501
 Mohawk Dr.

 Larkspur

 CO

 Sales

 $

 /

 mo

 month

 7800
 E. Union Ave., Suite 550

 Denver

 CO

 Sales

 4,656

 $

 11,640

 /

 mo

 2/28/2026

 5982
 s Zeno Ct

 Aurora

 CO

 Sales

 $

 -

 /

 mo

 month

 5475
 Tech Center Drive #201-A

 Colorado
 Springs

 CO

 Sales

 $

 1,218

 /

 mo

 9/30/2024

 1145
 Town Park Ave., Suite 2215

 Lake
 Mary

 FL

 Sales

 5,901

 $

 12,294

 /

 mo

 2/29/2024

 8191
 College Parkway, Suite 201

 Ft
 Myers

 FL

 Sales

 4,676

 $

 4,505

 /

 mo

 8/21/2024

 2350
 Fruitville Rd Ste, Ste 101

 Sarasota

 FL

 Sales

 2,455

 $

 5,266

 /

 mo

 3/14/2026

 Club House Blvd, New Smyrna Beach,

 FL

 Sales

 $

 -

 /

 mo

 month

 9123
 N. Military Trail, #104B

 Palm
 Beach Gardens

 FL

 Sales

 $

 /

 mo

 month

 Island Grove Drive

 Deland

 FL

 Sales

 $

 -

 /

 mo

 month

 10293
 61st Ct N

 Pinellas
 Park

 FL

 Sales

 $

 -

 /

 mo

 month

 5666
 Seminole Blvd, Suite 106 & 111

 Seminole

 FL

 Sales

 $

 1,170

 /

 mo

 7/31/2024

 2033
 Main Street, Suite 407

 Sarasota

 FL

 Sales

 2,410

 $

 2,812

 /

 mo

 10/31/2024

 E Marion Ave

 Punta
 Gorda

 FL

 Sales

 -

 $

 /

 mo

 month

 Cricle 75 Parkway, Ste 175

 Atlanta

 GA

 Sales

 3,020

 $

 6,341

 /

 mo

 6/30/2026

 6600
 Peachtree Dunwoody Rd, Ste 135

 Atlanta

 GA

 Sales

 2,129

 $

 4,988

 /

 mo

 3/31/2026

 4370
 Kukui Grove St., Suite 201

 Lihue

 HI

 Sales

 $

 1,542

 /

 mo

 2/28/2025

 1001
 Kamokila Blvd.

 Kapolei

 HI

 Sales

 $

 1,813

 /

 mo

 12/31/2025

 Kinoole St. Suite 101, Hilo HI

 Hilo

 HI

 Sales

 $

 2,373

 /

 mo

 5/31/2024

 1885
 Main Street #108

 Wailuku

 HI

 Sales

 1,092

 $

 1,602

 /

 mo

 5/14/2024

 Ala Moana Blvd. Suite 609

 Honolulu

 HI

 Sales

 $

 2,141

 /

 mo

 1/31/2024

 No Kalaheo Ave, Kailua, Suite A307, HI 96734

 Kailua

 HI

 Sales

 $

 1,245

 /

 mo

 5/31/2024

 Kanoa Street Suite #140

 Wailuku

 HI

 Sales

 Unknown

 $

 /

 mo

 month

 Cece Way

 Mccall

 ID

 Sales

 $

 -

 /

 mo

 month

 West Bartlett Road

 Bartlett

 IL

 Sales

 2,300

 $

 6,000

 /

 mo

 Greenluster Dr.

 Covington

 LA

 Sales

 $

 /

 mo

 month

 Boulder Drive,

 Elizabethtown

 KY

 Sales

 $

 -

 /

 mo

 month

 8684
 Veterans Hwy, Ste 101

 Millersville

 MD

 Sales

 4,018

 $

 6,927

 /

 mo

 7/31/2026

 Blue Gentian Road Suite 205

 Eagan

 NM

 Sales

 $

 /

 mo

 month

 Item
2. Properties (Continued)

 Street

 City

 State

 Function

 Owned
 / Leased

 Approximate Square Footage

 Lease

 Expiration

 4987
 Fall Creek Rd. Suite 1

 Branson

 MO

 Sales

 $

 1,000

 /

 mo

 month

 4700
 Homewood Ct #260

 Raleigh

 NC

 Sales

 2,339

 $

 5,353

 /

 mo

 2/28/2025

 North Center Street, Suite 203

 Hickory

 NC

 Sales

 $

 /

 mo

 5/14/2024

 2015
 Ayrsley Town Blvd, Suite 247

 Charlotte

 NC

 Sales

 $

 1,644

 /

 mo

 month

 1980
 Festival Plaza Dr., Suite 850

 Las
 Vegas

 NV

 Sales

 12,866

 $

 46,446

 /

 mo

 3/31/2027

 Pinnacle Ct., Suite 3

 Mesquite

 NV

 Sales

 $

 /

 mo

 3/12/2022

 2635
 St. Rose Pkwy, Suites D 100, 110, 120

 Hendeson

 NV

 Sales

 5,788

 $

 12,649

 /

 mo

 9/30/2025

 2250
 East Postal Drive, Suite 1

 Pahrump

 NV

 Sales

 1,500

 $

 1,743

 /

 mo

 month

 2546
 Findlater

 Henderson

 NV

 Sales

 $

 -

 /

 mo

 month

 Meridian Way, Suite 146

 Westerville

 OH

 Sales

 $

 /

 mo

 month

 10365
 SE Sunnyside Rd., Suite 310

 Clackamus

 OR

 Sales

 1,288

 $

 2,899

 /

 mo

 11/30/2024

 11592
 SW Roundup Place

 Terrebonne

 OR

 Sales

 $

 -

 /

 mo

 month

 Pacific Ave

 Tillamook

 OR

 Sales

 $

 -

 /

 mo

 month

 Alf Taylor Rd.

 Johnson
 City

 TN

 Sales

 1,521

 $

 /

 mo

 month

 4646
 Poplar Avenue, #317

 Memphis

 TN

 Sales

 $

 /

 mo

 3/31/2024

 W. New Street

 Kingsport

 TN

 Sales

 $

 /

 mo

 month

 11550
 Fuqua, Suite 200

 Houston

 TX

 Sales

 1,865

 $

 3,341

 /

 mo

 4/30/2024

 17347
 Village Green Dr., Suite 102

 Houston

 TX

 Sales

 3,300

 $

 5,995

 /

 mo

 12/1/2024

 9737
 Great Hills Trail, Suites 150, 200, 220

 Austin

 TX

 Sales

 19,891

 $

 40,196

 /

 mo

 month

 1213
 East Alton Gloor Blvd., Suite H

 Brownsville

 TX

 Sales

 2,000

 $

 2,310

 /

 mo

 2/28/2024

 5020
 Collinwood Ave., Suite 100

 Fort
 Worth

 TX

 Sales

 2,687

 $

 5,500

 /

 mo

 1/31/2025

 Kiowa Dr. West

 Lake
 Kiowa

 TX

 Sales

 $

 /

 mo

 month

 23227
 Red River Drive

 Katy

 TX

 Sales

 $

 /

 mo

 month

 5707
 Cold Springs Drive

 San
 Antonio

 TX

 Sales

 $

 -

 /

 mo

 month

 4500
 1-40 West, Suite B

 Amarillo

 TX

 Sales

 1,238

 $

 1,700

 /

 mo

 30417
 Fifth Street Suite B

 Fulshear

 TX

 Sales

 1,000

 $

 1,273

 /

 mo

 month

 4908
 North Midkiff Road

 Midland

 TX

 Sales

 1,550

 $

 2,500

 /

 mo

 month

 Mid Cities Boulevard

 Hurst

 TX

 Sales

 1,640

 $

 2,500

 /

 mo

 month

 18525
 West Lake Houston Parkway, Suite 222

 Humble

 TX

 Sales

 1,390

 $

 2,612

 /

 mo

 9/30/2025

 2600
 South Shore Boulevard, Suite 300

 League
 City

 TX

 Sales

 $

 /

 mo

 4/24/2024

 Decker Court Suite 310

 Irving

 TX

 Sales

 1,664

 $

 4,160

 /

 mo

 4/24/2024

 1600
 Lee Travino, Suite A-1

 El
 Paso

 TX

 Sales

 1,535

 $

 2,110

 /

 mo

 month

 23702
 IH-10 West, Suite 105-D

 San
 Antonio

 TX

 Sales

 $

 /

 mo

 month

 1777
 NE Loop 410, Suite 600

 San
 Antonio

 TX

 Sales

 $

 1,070

 /

 mo

 month

 South Columbia,

 Stephenville

 TX

 Sales

 3,417

 $

 5,700

 /

 mo

 month

 18756
 Stone Oak Parkway Ste 200

 San
 Antonio

 TX

 Sales

 $

 1,908

 /

 mo

 month

 10000
 Central Expressway Ste 428

 Dallas

 TX

 Sales

 $

 1,400

 /

 mo

 S Main St

 Weatherford

 TX

 Sales

 1,250

 $

 1,282

 /

 mo

 5757
 Flewellen Oaks Ln #104

 Fulshear

 TX

 Sales

 $

 /

 mo

 month

 W. Sego Lily Dr., Suite 126

 Sandy

 UT

 Sales

 2,794

 $

 6,933

 /

 mo

 1/31/2027

 S. Main

 Ephraim

 UT

 Sales

 1,884

 $

 1,600

 /

 mo

 4/30/2025

 11240
 S. River Heights Dr.

 South
 Jordan

 UT

 Sales

 3,403

 $

 8,458

 /

 mo

 11/30/2024

 East Village Blvd.

 Stansbury
 Park

 UT

 Sales

 1,950

 $

 3,475

 /

 mo

 10/31/2024

 1350
 E. 300 S. 3rd Floor

 Lehi

 UT

 Sales

 15,446

 $

 38,396

 /

 mo

 12/22/2026

 2455
 E. Parleys Way, Suites 120 & 150

 Salt
 Lake City

 UT

 Sales

 5,256

 $

 8,962

 /

 mo

 7/31/2030

 W South Jordan Pkwy, Suite 101,

 South
 Jordan

 UT

 Sales

 3,376

 $

 6,175

 /

 mo

 5/30/2025

 S. 1600 W., Suite B

 Mapleton

 UT

 Sales

 1,500

 $

 4,120

 /

 mo

 month

 UT
 () 998 N 1200 W, Suite 104 Orem

 Orem

 UT

 Sales

 2,162

 $

 5,648

 /

 mo

 month

 21430
 Cedar Dr., Suite 200-202

 Sterling

 VA

 Sales

 6,850

 $

 16,360

 /

 mo

 3/9/2024

 15650
 NE Fourth Blvd Ste 101

 Vancouver

 WA

 Sales

 $

 /

 mo

 11/30/2024

 1508
 24th Ave., Suite 23

 Kenosha

 WI

 Sales

 $

 /

 mo

 month

 27903
 99th St.

 Trevor

 WI

 Sales

 $

 /

 mo

 month

 (1)
These two properties were sold during the first quarter of 2024.

 (2)
This property is currently listed for sale and under contract.

 The
Company believes the office facilities it occupies are in good operating condition and adequate for current operations. The Company plans
to enter into additional leases or modify existing leases based on its assessments of market demand. Those leases are expected to be
month to month where possible. As leases expire, the Company plans to either renew or find comparable leases or acquire additional office
space.

 Item
2. Properties (Continued)

 The
following table summarizes the location and acreage of the seven Company owned cemeteries, each of which includes one or more mausoleums.
The acreage represents estimates of acres that are based upon survey reports, title reports, appraisal reports, or the Company's
inspection of the cemeteries. The Company estimates that there are approximately 1,200 spaces per developed acre.

 Net
 Saleable Acreage

 Name
 of Cemetery

 Location

 Date
 Acquired

 Developed
 Acreage

 Total
 Acreage

 Acres
 Sold as Cemetery Spaces (1)

 Total
 Available Acreage

 Memorial
 Estates, Inc.
 Lakeview Cemetery

 1640
 East Lakeview Drive
 Bountiful, Utah

 1973

 Memorial
 Estates, Inc.
 Mountain View Cemetery

 3115
 East 7800 South
 Salt Lake City, Utah

 1973

 Memorial
 Estates, Inc.
 Redwood Cemetery

 6500
 South Redwood Road
 West Jordan, Utah

 1973

 Deseret
 Memorial Inc.
 Lake Hills Cemetery

 10055
 South State Street
 Sandy, Utah

 1991

 Holladay
 Memorial Park, Inc.
 Holladay Memorial Park

 4900
 South Memory Lane
 Holladay, Utah

 1991

 California
 Memorial Estates, Inc.
 Singing Hills Memorial Park

 2800
 Dehesa Road
 El Cajon, California

 1995

 (2)

 SNR-SF
 Cemetery LLC Santa Fe Memorial Gardens

 Rodeo Rd
 Santa Fe, New Mexico

 2021

 (3)

 (1)
 Includes
 both reserved and occupied spaces.

 (2)
 Includes
 an open easement with a total acreage of approximately 62 acres.

 (3)
 Includes
 five main columbariums that can hold approximately 6,000 inurnments.

 Item
2. Properties (Continued)

 The
following table summarizes the location, square footage and the number of viewing rooms and chapels of the twelve Company owned mortuaries:

 Date

 Viewing

 Square

 Name of

 Location

 Acquired

 Room(s)

 Chapel(s)

 Footage

 Memorial Mortuary, Inc.
 Memorial

 5850 South 900 East, Murray,
 Utah

 1973

 20,000

 Affordable Funerals and
 Cremations,
 St. George

 157 East Riverside Dr., No. 3A, St. George,
 Utah

 2016

 2,360

 Memorial Estates, Inc.
 Redwood Mortuary
 (1)

 6500 South Redwood Rd., West Jordan, Utah

 1973

 10,000

 Memorial Estates, Inc.
 Mountain View Mortuary
 (1)

 3115 East 7800 South, Salt Lake City, Utah

 1973

 16,000

 Memorial Estates, Inc.
 Lakeview Mortuary
 (1)

 1640 East Lakeview Dr., Bountiful, Utah

 1973

 5,500

 Deseret Memorial Inc.
 Lakehills Mortuary
 (1)

 10055 South State St., Sandy, Utah

 1991

 18,000

 Cottonwood Mortuary, Inc.
 Cottonwood Mortuary

 4670 South Highland Dr., Holladay, Utah

 1991

 14,500

 SN Probst LLC
 Heber Valley Funeral Home

 288 North Main St., Heber City, Utah

 2019

 5,900

 SN Holbrook LLC
 Milcreek Funeral Home

 3251 S 2300 E, Millcreek, Utah

 2021

 6,300

 SNR-SF Mortuary LLC
 Rivera Family Funeral
 Home Santa Fe (1)

 417 Rodeo RD, Santa Fe, New Mexico

 2021

 7,700

 SNR-Espanola LLC
 Rivera Family Funeral
 Home Espa ola

 305 Calle Salazar, Espa ola, New
 Mexico

 2021

 10,400

 SNR-Taos LLC
 Rivera Family Funeral Home
 Taos

 818 Paseo Del Pueblo Sur, Taos, New Mexico

 2021

 9,600

 (1)
 These
 funeral homes also provide burial niches at their respective locations.

 Item
3. Legal Proceedings

 The
Company is not a party to any material legal proceedings outside the ordinary course of business or to any other legal proceedings, which
if adversely determined, would be expected to have a material adverse effect on its financial condition or results of operation.

 Item
4. Mine Safety Disclosures

 Not
applicable.

 PART
II

 Item
5. Market for the Registrant's Common Stock, Related Stockholder Matters, and Issuer Purchases of Equity Securities

 The
Company's Class A common stock trades on The Nasdaq Global Select Market under the symbol "SNFCA." As of March 26,
2024, the closing stock price of the Class A common stock was $7.62 per share. As of March 26, 2024, there were 1,747 registered stockholders
of record of the Company's Class A common stock and 42 registered stockholders of record of the Company's Class C common
stock. Because many of the Company's shares of Class A common stock are held by brokers and other institutions on behalf of the
stockholders, the Company is unable to estimate the total number of stockholders represented by these record holders.

 The
following were the high and low market closing stock prices for the Class A common stock by quarter as reported by NASDAQ since January
1, 2022:

 Price
 Range (1)

 High

 Low

 Period (Calendar Year)

 2022

 First Quarter

 $
 9.39

 $
 8.13

 Second Quarter

 $
 9.40

 $
 7.46

 Third Quarter

 $
 8.20

 $
 5.93

 Fourth Quarter

 $
 7.21

 $
 5.81

 2023

 First Quarter

 $
 7.19

 $
 5.71

 Second Quarter

 $
 8.45

 $
 6.03

 Third Quarter

 $
 8.83

 $
 7.58

 Fourth Quarter

 $
 9.60

 $
 6.89

 2024

 First Quarter (through March 26, 2024)

 $
 9.04

 $
 7.62

 (1)
Stock prices have been adjusted retroactively for the effect of annual stock dividends.

 The
Class C common stock is not registered or traded on a national exchange. See Note 12 of the Notes to Consolidated Financial Statements.

 The
Company has never paid a cash dividend on its Class A or Class C common stock. The Company currently anticipates that all its earnings
will be retained for use in the operation and expansion of its business and does not intend to pay any cash dividends on its Class A
or Class C common stock in the foreseeable future. Any future determination as to cash dividends will depend upon the earnings and financial
position of the Company and such other factors as the Board of Directors may deem appropriate. The Company paid a 5% stock dividend on
Class A and Class C common stock each year from 1990 through 2019, a 7.5% stock dividend for the year 2020, and a 5.0% stock dividend
for the years 2021 through 2023.

 On
December 27, 2022, the Company executed a 10b5-1 agreement with a broker to repurchase shares of the Company's Class A Common Stock.
Under the terms of the agreement, the broker is permitted to repurchase up to 1,000,000 shares of the Company's Class A Common
Stock. The agreement is subject to the daily time, price, and volume conditions of Rule 10b-18. The agreement expired December 31, 2023.

 The
following table shows the Company's repurchase activity of its common stock during the three-month period ended December 31, 2023
under the 10b5-1 agreement.

 Period

 (a)
 Total Number of Class A Shares Purchased

 (b)
 Average Price Paid per Class A Share (1)

 (c)
 Total Number of Class A Shares Purchased as Part of Publicly Announced Plan or Program

 (d)
 Maximum Number of Class A Shares that May Yet Be Purchased Under the Plan or Program (2)

 10/1/2023-10/31/2023

 -

 $
 -

 -

 318,043

 11/1/2023-11/30/2023

 -

 $
 -

 -

 318,043

 12/1/2023-12/31/2023

 -

 $
 -

 -

 318,043

 Total

 -

 $
 -

 -

 318,043

 (1)
 Includes
 fees and commissions paid on stock repurchases.

 (2)
 In
 September 2018, the Board of Directors of the Company approved a Stock Repurchase Plan that
 authorized the repurchase of 300,000 shares of the Company's Class A Common Stock in
 the open market. The Company amended the Stock Repurchase Plan on December 4, 2020. The amendment
 authorized the repurchase of a total of 1,000,000 shares of the Company's Class A Common
 Stock in the open market. Any repurchased shares of Class A common stock are to be held as
 treasury shares to be used as the Company's employer matching contribution to the Employee
 401(k) Retirement Savings Plan and for shares held in the Deferred Compensation Plan.

 The
graph below compares the cumulative total stockholder return of the Company's Class A common stock with the cumulative total return
on the Standard & Poor's 500 Stock Index and the Standard & Poor's Insurance Index for the period from December 31,
2019 through December 31, 2023. The graph assumes that the value of the investment in the Company's Class A common stock and in
each of the indexes was $100 as of December 31, 2019 and that all dividends were reinvested.

 The
comparisons in the graph below are based on historical data and are not intended to forecast the possible future performance of the Company's
Class A common stock.

 12/31/19

 12/31/20

 12/31/21

 12/31/22

 12/31/23

 SNFC

 S & P 500

 S & P Insurance

 The
stock performance graph set forth above is required by the Securities and Exchange Commission and shall not be deemed to be incorporated
by reference by any general statement incorporating by reference this Form 10-K into any filing under the Securities Act of 1933, as
amended, or under the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates this
information by reference, and shall not otherwise be deemed soliciting material or filed under such acts.

 Item
6. [Reserved]

 As
a smaller reporting company, the Company is not required to provide information typically disclosed under this item.

 Item
7. Management's Discussion and Analysis of Financial Condition and Results of Operations

 Overview

 The
Company's operations over the last several years generally reflect three strategies which the Company expects to continue: (i)
increased attention to "niche" insurance products, such as the Company's funeral plan policies and traditional whole
life products; (ii) increased emphasis on cemetery and mortuary business; and (iii) capitalizing on an improving housing market by originating
mortgage loans.

 The
following table shows the condensed financial results for the Company's insurance operations for 2023 and 2022. See Note 15 of
the Notes to Consolidated Financial Statements.

 Years
 ended December 31
 (in thousands of dollars)

 2023

 2022

 2023
 vs 2022 % Increase (Decrease)

 Revenues from external customers:

 Insurance premiums

 $
 114,658

 $
 105,002

 %

 67,812

 62,565

 %

 Mortgage fee income

 (46
 %)

 Gains (losses) on investments and other assets

 (459
)

 %

 Other

 1,666

 1,932

 (14
 %)

 Total

 $
 185,176

 $
 169,183

 %

 Intersegment revenue

 $
 8,203

 $
 6,601

 %

 Earnings before income
 taxes

 $
 25,272

 $
 14,196

 %

 Profitability
for 2023 increased due to (a) a $9,656,000 increase in insurance premiums and other considerations, (b) a $5,247,000 increase in net
investment income, (c) a $1,602,000 increase in intersegment revenue, (d) a $1,422,000 increase in gains on investments and other assets
primarily due to an increase in the fair value of equity securities, and (e) a $987,000 decrease in selling, general and administrative
expenses, which were partially offset by (i) a $5,150,000 increase in future policy benefits, (ii) a $1,936,000 increase in death, surrenders
and other policy benefits, (iii) a $266,000 decrease in other revenues, (iv) a $176,000 increase in intersegment interest expense and
other expenses, (v) a $133,000 increase in amortization of deferred policy acquisition costs primarily due to an increase in the average
outstanding balance of deferred policy and pre-need acquisition costs, (vi) a $111,000 increase in interest expense, and (vii) a $66,000
decrease in mortgage fee income.

and Mortuary Operations

 The
following table shows the condensed financial results for the Company's cemetery and mortuary operations for 2023 and 2022. See
Note 15 of the Notes to Consolidated Financial Statements.

 Years
 ended December 31
 (in thousands of dollars)

 2023

 2022

 2023
 vs 2022 % Increase (Decrease)

 Revenues from external customers:

 Cemetery revenues

 $
 15,189

 $
 13,871

 %

 Mortuary revenues

 12,676

 13,123

 (3
 %)

 2,952

 2,445

 %

 Gains (losses) on investments and other assets

 (796
)

 %

 Other

 %

 Total

 $
 31,938

 $
 28,948

 %

 Earnings before income
 taxes

 $
 8,445

 $
 6,094

 %

 Profitability
in 2023 increased due to (a) a $2,196,000 increase in cemetery pre-need sales, (b) a $1,513,000 increase in gains on investments and
other assets (primarily attributable to an increase in the fair value of equity securities classified as restricted assets and cemetery
perpetual care trust investments), (c) a $507,000 increase in net investment income, (d) a $99,000 increase in other revenues, (e) a
$59,000 decrease in amortization of deferred policy acquisition costs, and (f) a $44,000 decrease in intersegment interest expense and
other expenses, which were partially offset by (i) a $878,000 decrease in cemetery at-need sales, (ii) a $546,000 increase in selling,
general and administrative expenses, (iii) a $447,000 decrease in mortuary at-need sales, (iv) a $111,000 decrease in intersegment revenues,
and (v) a $85,000 increase in costs of goods sold.

 The
Company's wholly owned subsidiary, SecurityNational Mortgage, is a mortgage lender incorporated under the laws of the State of
Utah and approved and regulated by the Federal Housing Administration (FHA), a department of the U.S. Department of Housing and Urban
Development (HUD), which originates mortgage loans that qualify for government insurance in the event of default by the borrower, in
addition to various conventional mortgage loan products. SecurityNational Mortgage originates and refinances mortgage loans on a retail
basis. Mortgage loans originated or refinanced by SecurityNational Mortgage are funded through loan purchase agreements with Security
National Life, Kilpatrick Life and unaffiliated financial institutions.

 SecurityNational
Mortgage receives fees from borrowers that are involved in mortgage loan originations and refinancings, and secondary fees earned from
third party investors that purchase the mortgage loans. Mortgage loans are generally sold with mortgage servicing rights ("MSRs")
released to third-party investors or retained by SecurityNational Mortgage. SecurityNational Mortgage currently retains the MSRs on approximately
4% of its loan origination volume. These mortgage loans are serviced by either SecurityNational Mortgage or an approved third-party sub-servicer.
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.

rates have followed the US Treasury yields up in response to the higher-than-expected inflation and the expectation that the Federal
Reserve will continue to raise rates in the near term. As expected, the rapid increase in mortgage rates has resulted in a decrease in
loan originations classified as 'refinance'. Higher mortgage rates have also had a negative effect on loan originations classified
as 'purchases', although not as significant as those in the refinance classification.

 For
2023 and 2022, SecurityNational Mortgage originated 7,185 loans ($2,173,081,000 total volume) and 10,663 loans ($3,373,554,000 total
volume), respectively.

 The
following table shows the condensed financial results for the Company's mortgage operations for 2023 and 2022. See Note 15 of the
Notes to Consolidated Financial Statements.

 Years
 ended December 31
 (in thousands of dollars)

 2023

 2022

 2023
 vs 2022 % Increase (Decrease)

 Revenues from external customers:

 Secondary gains
 from investors

 $
 68,428

 $
 153,728

 (55
 %)

 Income from loan originations

 31,245

 32,772

 (5
 %)

 Change in fair value of
 loans held for sale

 (478
)

 (8,835
)

 (95
 %)

 Change in fair value of loan commitments

 (1,124
)

 (4,309
)

 (74
 %)

 1,580

 1,188

 %

 Gains on investments and other assets

 (61
 %)

 Other

 1,576

 16,580

 (90
 %)

 Total

 $
 101,384

 $
 191,522

 (47
 %)

 Earnings (loss) before
 income taxes

 $
 (17,416
)

 $
 14,088

 (224
 %)

 Included
in other revenues is service fee income. Profitability in 2023 decreased due to (a) an $85,300,000 decrease in secondary gains from investors,
(b) a $15,004,000 decrease in other revenues due to the sale of certain MSRs in October 2022, (c) a $1,535,000 increase in intersegment
interest expense and other expenses, (d) a $1,527,000 decrease in income from loan originations, and (e) a $241,000 decrease in gains
on investments and other assets, which were partially offset by (i) a $23,662,000 decrease in commissions, (ii) a $17,871,000 decrease
in personnel expenses, (iii) a $13,180,000 decrease in other expenses, (iv) an $8,356,000 increase in the fair value of loans held for
sale, (v) a $3,185,000 increase in the fair value of loan commitments, (vi) a $3,077,000 decrease in interest expense, (vii) a $1,100,000
decrease in costs related to funding mortgage loans, (viii) a $1,011,000 decrease in advertising expenses, (ix) a $392,000 increase in
net investment income, (x) a $175,000 increase in intersegment revenues, (xi) a $42,000 decrease in depreciation on property and equipment,
and (xii) a $52,000 decrease in rent and rent related expenses.

 Critical
Accounting Policies and Estimates

 The
following is a summary of the Company's significant accounting policies and a review of the Company's most critical accounting
estimates. See Note 1 of the Notes to Consolidated Financial Statements.

 In
accordance with generally accepted accounting principles in the United States of America ("GAAP"), premiums and other considerations
received for interest sensitive products are reflected as increases in liabilities for policyholder account balances and not as revenues.
Revenues reported for these products consist of policy charges for the cost of insurance, administration charges, amortization of policy
initiation fees and surrender charges assessed against policyholder account balances. Surrender benefits paid relating to these products
are reflected as decreases in liabilities for policyholder account balances and not as expenses.

 The
Company receives investment income earned from the funds deposited into account balances, a portion of which is passed through to the
policyholders in the form of interest credited. Interest credited to policyholder account balances and benefit claims more than policyholder
account balances are reported as expenses in the consolidated financial statements.

 Premiums
and other considerations received for traditional life insurance products are recognized as revenues when due. Future policy benefits
are recognized as expenses over the life of the policy by means of the provision for future policy benefits.

 The
costs related to acquiring new business, including certain costs of issuing policies and other variable selling expenses (principally
commissions), defined as deferred policy acquisition costs, are capitalized, and amortized into expenses. For nonparticipating traditional
life products, these costs are amortized over the premium paying period of the related policies, in proportion to the ratio of annual
premium revenues to total anticipated premium revenues. Such anticipated premium revenues are estimated using the same assumptions used
for computing liabilities for future policy benefits and are generally "locked in" at the date the policies are issued. For
interest sensitive products, these costs are amortized generally in proportion to expected gross profits from surrender charges and investment,
mortality, and expense margins. This amortization is adjusted when the Company revises the estimate of current or future gross profits
or margins. For example, deferred policy acquisition costs are amortized earlier than originally estimated when policy terminations are
higher than originally estimated or when investments backing the related policyholder liabilities are sold at a gain prior to their anticipated
maturity.

 Death
and other policyholder benefits reflect exposure to mortality risk and fluctuate from year to year on the level of claims incurred under
insurance retention limits. The profitability of the Company is primarily affected by fluctuations in mortality, other policyholder benefits,
expense levels, interest spreads (i.e., the difference between interest earned on investments and interest credited to policyholders)
and persistency. The Company can mitigate adverse experiences through sound underwriting, asset and liability duration matching, sound
actuarial practices, adjustments to credited interest rates, policyholder dividends and cost of insurance charges.

and Mortuary Operations

sales of funeral services and caskets, including revenue and costs associated with the sales of pre-need funeral services and caskets,
are deferred until the services are performed or the caskets are delivered.

sales of cemetery interment rights (cemetery burial property), including revenue and costs associated with the sales of pre-need cemetery
interment rights, are recognized in accordance with the retail land sales provisions of GAAP. Under GAAP, recognition of revenue and
associated costs from constructed cemetery property must be deferred until a minimum percentage of the sales price has been collected.
Revenues related to the pre-need sale of unconstructed cemetery property will be deferred until such property is constructed and meets
the criteria of GAAP, described above.

sales of cemetery merchandise (primarily markers and vaults), including revenue and costs associated with the sales of pre-need cemetery
merchandise, are deferred until the merchandise is delivered, fulfilling the performance obligation.

sales of cemetery services (primarily merchandise delivery and installation fees and burial opening and closing fees), including 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 obtaining costs, including costs incurred related to obtaining new pre-need cemetery and prearranged
funeral business are accounted for under the guidance of the provisions of GAAP. Obtaining costs, which include only costs that vary
with and are primarily related to the acquisition of new pre-need cemetery and prearranged funeral business, are deferred until the merchandise
is delivered or services are performed.

 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 company obligations remaining.

fee income consists of origination fees, processing fees, interest income and certain other income related to the origination and sale
of mortgage loans. The Company has elected to use fair value accounting for all mortgage loans that are held for sale. Accordingly, all
revenues and costs are now recognized when the mortgage loan is funded and any changes in fair value are shown as a component of mortgage
fee income.

 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 mortgage loans held for investment at the lower of cost or fair value and the previously recorded
sales revenue that was to be received from a third-party investor is written off against the loan loss reserve. Any loan that later becomes
delinquent is evaluated by the Company at that time and any impairment is adjusted accordingly.

 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. Market value, while often difficult to determine and may contain significant unobservable inputs, is based on the following
guidelines:

 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.

 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 loan interest
 rate.

 The
appraised value of the real estate underlying the original mortgage loan adds significance 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 risk. 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.

 Use
of Significant Accounting Estimates

 The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported
amounts and disclosures. It is reasonably possible that actual experience could differ from the estimates and assumptions utilized which
could have a material impact on the financial statements. The following is a summary of our significant accounting estimates, and critical
issues that impact them:

 Loan
Commitments

 The
Company estimates the fair value of a mortgage loan commitment based on the change in estimated fair value of the underlying mortgage
loan, quoted mortgage-backed security ("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 net of estimated commission expense. The change
in fair value of the underlying mortgage loan is measured from the date the mortgage loan commitment is issued and is shown net of related
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 be funded within the terms of the commitments.

Acquisition Costs

 Amortization
of deferred policy acquisition costs ("DAC") for interest sensitive products is dependent upon estimates of current and future
gross profits or margins on this business. Key assumptions used include the following: yield on investments supporting the liabilities,
amount of interest or dividends credited to the policies, amount of policy fees and charges, amount of expenses necessary to maintain
the policies, amount of death and surrender benefits, and the length of time the policies will stay in force.

 For
nonparticipating traditional life products, these costs are amortized over the premium paying period of the related policies in proportion
to the ratio of annual premium revenues to total anticipated premium revenues. Such anticipated premium revenues are estimated using
the same assumption used for computing liabilities for future policy benefits and are generally "locked in" at the date the
policies are issued.

 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 acquisition costs. The critical issues explained for deferred acquisition costs would also apply for value of business
acquired.

Loans Foreclosed to Real Estate Held for Investment or Sale

 These
properties are recorded at the lower of cost or fair value upon foreclosure. The Company believes that in an orderly market, fair value
approximates 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 estimated future policy
benefits. Accordingly, the fair value determination is generally weighted more heavily toward the rental analysis. The fair value is
also estimated by obtaining an independent appraisal, which typically considers area comparable properties and property condition.

Policy Benefits

 Reserves
for future policy benefits for traditional life insurance products requires the use of many assumptions, including the duration of the
policies, mortality experience, expenses, investment yield, lapse rates, surrender rates, and dividend crediting rates.

 These
assumptions are made based upon historical experience, industry standards and a best estimate of future results and, for traditional
life products, include a provision for adverse deviation. For traditional life insurance, once established for a particular series of
products, these assumptions are generally held constant.

 Unearned
Premium Reserve

 The
universal life products the Company sells have significant policy initiation fees (front-end load) that are deferred and amortized into
revenues over the estimated expected gross profits from surrender charges and investment, mortality, and expense margins. The same issues
that impact deferred acquisition costs apply to unearned revenue.

 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.

Pre-need Cemetery and Funeral Contracts Revenues and Estimated Future Cost of Pre-need Sales

 The
revenue and cost associated with the sales of pre-need cemetery merchandise and funeral services are deferred until the merchandise is
delivered or the service is performed.

 The
Company, through its cemetery and mortuary operations, provides a guaranteed funeral arrangement 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 or
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.

Servicing Rights

Service 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 the 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 Company initially accounts for MSRs at fair value and subsequently accounts for them using
the amortization method. 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. The Company periodically assesses MSRs accounted for using the amortization
method for impairment.

Allowance for Credit Losses and Loan Loss Reserve

 The
Company provides for losses on its mortgage loans held for investment through an allowance for credit losses (a contra-asset account)
and through the mortgage loan loss reserve (a liability account).

 The
mortgage 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. When a loan becomes delinquent, the Company proceeds to
foreclose on the real estate and all expenses for foreclosure are expensed as incurred. Once foreclosed, an adjustment for the lower
of cost or fair value is made, if necessary, and the amount is classified as real estate held for investment. The Company will rent the
properties until it is deemed desirable to sell them.

 The
mortgage loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on
mortgage loans sold to third-party investors. 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 in the event of defects in the representations and warranties made
at loan sale. 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. The estimated liability
for indemnification losses is included in other liabilities and accrued expenses.

Tax Assets and Liabilities

tax assets and liabilities require various estimates and judgments and may be affected favorably or unfavorably by various internal and
external factors. These estimates and judgments occur in the calculation of certain deferred tax assets and liabilities that arise from
temporary differences in the recognition of revenues and expenses for tax and financial reporting purposes and in estimating the ultimate
amount of deferred tax assets recoverable in future periods. Factors affecting the deferred tax assets and liabilities include, but are
not limited to, changes in tax laws, regulations and/or rates, changing interpretations of existing tax laws or regulations, and changes
to overall levels of pre-tax earnings. Changes in these estimates, judgments or factors may result in an increase or decrease to the
Company's deferred tax assets and liabilities with a related increase or decrease in the Company's provision for income taxes.

 Results
of Consolidated Operations

 2023
Compared to 2022

 Total
revenues decreased by $71,155,000, or 18.3%, to $318,497,000 for 2023 from $389,652,000 for 2022. Contributing to this decrease in total
revenues was primarily a $75,352,000 decrease in mortgage fee income and a $15,171,000 decrease in other revenues. This decrease in total
revenues was offset by a $9,657,000 increase in insurance premiums and other considerations, a $6,145,000 increase in net investment
income, a $2,695,000 increase in gains on investments and other assets, and an $871,000 increase in net cemetery and mortuary sales.

fee income decreased by $75,352,000, or 43.4%, to $98,148,000 for 2023, from $173,500,000 for 2022. This decrease was primarily due to
an $85,366,000 decrease in secondary gains from mortgage loans sold to third-party investors into the secondary market, and a $2,579,000
decrease in loan fees and interest income. This decrease in mortgage fee income was partially offset by a $11,541,000 increase in the
fair value of loans held for sale and loan commitments and a $1,052,000 decrease in the provision for loan loss reserve.

premiums and other considerations increased by $9,657,000, or 9.2%, to $114,658,000 for 2023, from $105,002,000 for 2022. This increase
was due to an increase of $9,238,000 in first year premiums because of increased preneed insurance sales and an increase of $419,000
in renewal premiums due to the growth of the Company in recent years, particularly in whole life products, which resulted in more premium
paying policies in force.

 Net
investment income increased by $6,145,000, or 9.3%, to $72,343,000 for 2023, from $66,198,000 for 2022. This increase was primarily attributable
to a $4,476,000 increase in fixed maturity securities income, a $2,583,000 increase in interest on cash and cash equivalents, a $477,000
decrease in investment expenses, a $223,000 increase in rental income from real estate held for investment, a $106,000 increase in equity
securities income, a $99,000 increase in income in other investments, and a $5,000 increase in insurance assignment income. This increase
was partially offset by a $1,708,000 decrease in mortgage loan interest and a $116,000 decrease in policy loan income.

 Net
mortuary and cemetery sales increased by $871,000, or 3.2%, to $27,865,000 for 2023, from $26,994,000 for 2022. This increase was primarily
due to a $2,196,000 increase in cemetery pre-need sales. This increase was partially offset by a $878,000 decrease in cemetery at-need
sales and a $447,000 decrease in mortuary at-need sales.

 Gains
on investments and other assets increased by $2,695,000, or 314.3%, to $1,837,000 in gains for 2023, from $858,000 in losses for 2022.
This increase in gains on investments and other assets was primarily due to a $4,157,000 increase in gains on equity securities mostly
attributable to increases in the fair value of these equity securities. This increase was partially offset by a $527,000 decrease in
gains on fixed maturity securities, a $485,000 decrease in gains on other assets, and a $450,000 decrease in gains on real estate held
for investment.

 Other
revenues decreased by $15,171,000, or 80.6%, to $3,646,000 for 2023 from $18,817,000 for 2022. This decrease was primarily attributable
to a decrease in servicing fee revenue because of the sale of certain mortgage servicing rights in October 2022.

 Total
benefits and expenses were $302,197,000, or 94.9% of total revenues for 2023, as compared to $355,275,000, or 91.2% of total revenues
for 2022.

 Death
benefits, surrenders and other policy benefits, and future policy benefits increased by an aggregate of $7,086,000, or 7.6%, to $100,012,000
for 2023, from $92,926,000 for 2022. This increase was primarily the result of a $5,150,000 increase in future policy benefits and a
$2,012,000 increase in death benefits. This increase was partially offset by a $76,000 decrease in surrender and other policy benefits.

 Amortization
of deferred policy and pre-need acquisition costs and value of business acquired increased by $74,000, or 0.4%, to $18,024,000 for 2023,
from $17,950,000 for 2022. This increase was primarily due to an increase in the average outstanding balance of deferred policy and pre-need
acquisition costs.

 Selling,
general and administrative expenses decreased by an aggregate of $57,358,000, or 24.7%, to $174,490,000 for 2023, from $231,848,000 for
2022. This decrease was primarily the result of a $23,391,000 decrease in commissions, a $16,970,000 decrease in personnel expenses,
a $13,739,000 decrease in other expenses, a $1,987,000 decrease in advertising expenses, a $1,100,000 decrease in costs related to funding
mortgage loans, a $145,000 decrease in depreciation on property and equipment, and a $26,000 decrease in rent and rent related expenses.

expense decreased by $2,965,000, or 37.9%, to $4,865,000 for 2023, from $7,830,000 for 2022. This decrease was primarily due to a decrease
of $3,077,000 in interest expense on mortgage warehouse lines of credit for loans held for sale, which was partially offset by a $112,000
increase in interest expense on bank loans.

 Cost
of goods and services sold of the cemeteries and mortuaries increased by $85,000, or 1.8%, to $4,806,000 for 2023, from $4,721,000 for
2022. This increase was primarily due to a $218,000 increase in cemetery at-need sales and a $40,000 increase in cemetery pre-need sales,
which was partially offset by a $173,000 decrease in mortuary at-need sales.

tax expense decreased by $6,881,000, or 79.2%, to $1,805,000 for 2023, from $8,687,000 for 2022. This decrease was primarily due to
a decrease in earnings before income taxes for 2023 compared to 2022. The Company's overall effective tax rate decreased from
25.3% for 2022 to 11.1% in 2023, a 14.2% decrease in the effective tax rate or a 56.1% change.

 Risks

 The
following is a description of the material risks facing the Company and how it mitigates those risks:

 Legal
and Regulatory Risks. Changes in the legal or regulatory environment in which the Company operates may create additional expenses
and risks not anticipated by the Company in developing and pricing its products. Regulatory initiatives designed to reduce insurer profits,
new legal theories or insurance company insolvencies through guaranty fund assessments may create costs for the insurer beyond those
recorded in the consolidated financial statements. In addition, changes in tax law with respect to mortgage interest deductions or other
public policy or legislative changes may affect the Company's mortgage sales. Also, the Company may be subject to further regulations
in the cemetery and mortuary business. The Company aims to mitigate these risks by offering a wide range of products and by diversifying
its operations, thus reducing its exposure to any single product or jurisdiction, and also by employing underwriting practices that identify
and minimize the adverse impact of such risks.

Industry Risks. Developments in the mortgage industry and credit markets can adversely affect the Company's ability to sell
its mortgage loans to investors, which can impact the Company's financial results by requiring it to assume the risk of holding
and servicing any unsold loans.

 The
mortgage loan loss reserve is an estimate of probable losses at the balance sheet date that the Company could realize in the future on
mortgage loans sold to third-party investors. The Company's mortgage subsidiary may be required to reimburse third-party investors
for costs associated with early payoff of loans within the first six months 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.

2023 and 2022 the Company decreased its loan loss reserve by $1,178,000 and increased its loan loss reserve by $1,079,000, respectively,
for loan originations, and the charges have been included in mortgage fee income. The estimated liability for indemnification losses
is included in other liabilities and accrued expenses and, as of December 31, 2023 and 2022, the balances were $547,000 and $1,726,000,
respectively. The Company believes the loan loss reserve represents probable loan losses incurred as of December 31, 2023. There is a
risk, however, that future loan losses may exceed the loan loss reserve.

 As
of December 31, 2023, the Company's mortgage loans held for investment portfolio consisted of mortgage loans in an aggregate principal
amount of $6,149,000 with delinquencies exceeding 90 days. Of this amount, loans with an aggregate principal amount of $2,263,000 were
in foreclosure proceedings. The Company has not received or recognized any interest income on the $6,149,000 in mortgage loans with delinquencies
exceeding 90 days. During 2023 and 2022, the Company increased its allowance for credit losses by $1,184,000 and by $270,000, respectively,
which was charged to bad debt expense and included in selling, general and administrative expenses for the period. The Company also increased
its allowance for credit losses by $665,000 at the beginning of 2023 due to the adoption of the new accounting standard (Refer to Note
1 of the Notes to the Consolidated Financial Statements). The allowances for credit losses on the Company's mortgage loans held
for investment portfolio as of December 31, 2023 and 2022 were $3,819,000 and $1,970,000, respectively.

Rate Risk. Fluctuations in interest rates may cause a decrease in the value of the Company's investments or impair the ability
of the Company to market its mortgage and cemetery and mortuary products. This change in rates may cause certain interest-sensitive products
to become uncompetitive or may cause disintermediation. The Company aims to mitigate this risk by charging fees for non-conformance with
certain policy provisions, by offering products that transfer this risk to the purchaser, and by attempting to match the maturity schedule
of its assets with the expected payouts of its liabilities. To the extent that liabilities come due more quickly than assets mature,
the Company might have to borrow funds or sell assets prior to maturity and potentially recognize a loss on the sale.

 Mortality
and Morbidity Risks. The Company's actuarial assumptions differing from actual mortality and morbidity experienced may mean
that the Company's relevant products sold were underpriced, may require the Company to liquidate insurance or other claims earlier
than planned, and have other potentially adverse consequences to the business. The Company aims to minimize this risk through sound underwriting
practices, asset and liability duration matching, and sound actuarial practices.

 Banking
Environment.

 On
March 10, 2023, and March 12, 2023, Silicon Valley Bank and Signature Bank were placed in receivership with the Federal Deposit Insurance
Corporation (FDIC). Normal banking activities resumed shortly thereafter. On May 1, 2023, First Republic Bank was placed in receivership
with the FDIC and was immediately purchased by a national bank.

 The
Company does not maintain any deposit or other accounts or credit facilities with Silicon Valley Bank, Signature Bank or First Republic
Bank. The Company may periodically transfer funds to these banks to pay for services rendered by third party vendors that continue to
maintain banking relationships with these banks. The Company continues to monitor the banking industry and its relationships with regional
and community banks.

 Estimates.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the
amounts reported in the consolidated financial statements and accompanying notes. 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.

 Liquidity
and Capital Resources

 The
Company's life insurance subsidiaries and cemetery and mortuary subsidiaries realize cash flow from premiums, contract payments
and sales on personal services rendered for cemetery and mortuary business, from interest and dividends on invested assets, and from
the proceeds from the sale or maturity of investments. The mortgage subsidiaries realize cash flow from fees generated by originating
and refinancing mortgage loans and fees on mortgage loans held for sale that are sold to investors into the secondary market. It should
be noted that current conditions in the financial markets and economy may affect the realization of these expected cash flows. The Company
considers these sources of cash flow to be adequate to fund future policyholder and cemetery and mortuary liabilities, which generally
are long-term, and adequate to pay current policyholder claims, annuity payments, expenses related to the issuance of new policies, the
maintenance of existing policies, debt service, and to meet current operating expenses.

 As
of December 31, 2023, the Company's subsidiary SecurityNational Mortgage was not in compliance with the net income covenants under
its 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 from the warehouse banks. In the unlikely event SecurityNational Mortgage
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, SecurityNational Mortgage 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 done an internal analysis of the 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.

2023 and 2022, the Company's operations provided cash of $54,008,000 and of $130,450,000, respectively. The decrease in cash provided
by operations was due primarily to decreased proceeds from the sale of loans held for sale.

 The
Company expects to pay out liabilities under its funeral plans over the long term given the nature of those plans. Funeral plans are
small face value life insurance policies that payout upon a person's death to cover funeral burial costs; policyholders generally
keep these policies in force until, and do not surrender prior to, death. Because of the long-term nature of these liabilities, the Company
can hold to maturity or for the targeted investment period its corresponding bond, real estate, and mortgage loan investments, thus reducing
the risk of liquidating these long-term investments because of any sudden changes in their fair values.

 The
Company attempts to match the duration of invested assets with its policyholder and cemetery and mortuary liabilities. The Company may
sell investments other than those held to maturity in the portfolio to help in this timing matching. The Company purchases short-term
investments on a temporary basis to meet the expected short-term requirements of the Company's insurance products. The Company's
investment philosophy is intended to provide a rate of return for the expected duration of its cemetery and mortuary policies that will
exceed the accruing of liabilities under those policies regardless of future interest rate movements.

 The
Company's investment policy is also to invest predominantly in fixed maturity securities, real estate, mortgage loans, and warehousing
of mortgage loans held for sale. The warehoused mortgage loans are typically held for sale on a short-term basis before selling the loans
to investors in accordance with the requirements and laws governing the Company's life insurance subsidiaries. Bonds owned by the
insurance subsidiaries amounted to $362,663,000 (at estimated fair value) and $345,598,000 (at estimated fair value) as of December 31,
2023 and 2022, respectively. This represented 38.7% and 36.4% of the total investments of the Company as of December 31, 2023, and 2022,
respectively. Generally, all bonds owned by the life insurance subsidiaries are rated by the National Association of Insurance Commissioners.
Under this rating system, there are six categories used for rating bonds. As of December 31, 2023, 1.8% (or $6,954,000) and as of December
31, 2022, 2.2% (or $7,833,000) of the insurance subsidiaries' total bond investments were invested in bonds in rating categories
three through six, which are considered non-investment grade.

 See
Note 2 of the Notes to Consolidated Financial Statements for the schedule of the maturity of fixed maturity securities available for
sale and for the schedule of principal payments for mortgage loans held for investment.

 See
Note 7 of the Notes to Consolidated Financial Statements for a description of the Company's sources of liquidity.

 If
market conditions were to cause interest rates to change, the fair value of the Company's fixed income portfolio (of approximately
$657,153,000), which includes bonds, preferred stocks and mortgage loans held for investment, could change by the following amounts based
on the respective basis point swing (the change in the fair values were calculated using a modeling technique):

 -200
 bps

 -100
 bps

 +100
 bps

 +200
 bps

 Change in

 $
 44,352

 $
 20,873

 $
 (19,034
)

 $
 (39,027
)

 (in
 thousands)

 The
Company's life insurance subsidiaries are subject to risk-based capital guidelines established by statutory regulators requiring
minimum capital levels based on the perceived risk of assets, liabilities, disintermediation, and business risk. As of December 31, 2023
and 2022, the life insurance subsidiaries were in compliance with the regulatory criteria.

 The
Company's total capitalization of stockholders' equity, and bank loans and other loans payable was $418,450,000 as of December
31, 2023, as compared to $454,499,000 as of December 31, 2022. This decrease was primarily due to a decrease of $56,158,000 in bank loans
and other loans payable which was partially offset by a $20,108,000 increase in stockholders' equity. Stockholders' equity
as a percent of total capitalization was 74.8% and 64.4% as of December 31, 2023 and 2022, respectively.

 Lapse
rates measure the amount of insurance terminated during a particular period. The Company's lapse rate for life insurance was 4.4%
for 2023 as compared to a rate of 4.3% for 2022.

 The
combined statutory capital and surplus of the Company's life insurance subsidiaries was $107,385,000 and $94,254,000 as of December
31, 2023 and 2022, respectively. The life insurance subsidiaries cannot pay a dividend to their parent company without the approval of
state insurance regulatory authorities.

 Forward-Looking
Statements

 The
Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements to encourage companies to provide
prospective information about their businesses without fear of litigation so long as those statements are identified as forward-looking
and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially
from those projected in such statements. The Company desires to take advantage of the "safe harbor" provisions of the act.

 This
Annual Report on Form 10-K contains forward-looking statements, together with related data and projections, about the Company's
projected financial results and its plans and strategies. However, the actual results and needs of the Company may vary materially from
forward-looking statements and projections made from time to time by the Company based on management's then-current expectations.
The business in which the Company is engaged involves changing and competitive markets, which may involve a high degree of risk, and
there can be no assurance that forward-looking statements and projections will prove accurate.

 Factors
that may cause the Company's actual results to differ materially from those contemplated or projected, forecast, estimated or budgeted
in such forward looking statements include among others, the following possibilities: (i) heightened competition, including the intensification
of price competition, the entry of new competitors, and the introduction of new products by new and existing competitors; (ii) adverse
state and federal legislation or regulation, including decreases in rates, limitations on premium levels, increases in minimum capital
and reserve requirements, benefit mandates and tax treatment of insurance products; (iii) fluctuations in interest rates causing a reduction
of investment income or increase in interest expense and in the market value of interest rate sensitive investment; (iv) failure to obtain
new customers, retain existing customers or reductions in policies in force by existing customers; (v) higher service, administrative,
or general expenses due to the need for additional advertising, marketing, administrative or management information systems expenditures;
(vi) loss or retirement of key executives or employees; (vii) increases in medical costs; (viii) changes in the Company's liquidity
due to changes in asset and liability matching; (ix) restrictions on insurance underwriting based on genetic testing and other criteria;
(x) adverse changes in the ratings obtained by independent rating agencies; (xi) failure to maintain adequate reinsurance; (xii) possible
claims relating to sales practices for insurance products and claim denials; (xiii) adverse trends in mortality and morbidity; (xiv)
deterioration of real estate markets; and (xv) lawsuits in the ordinary course of business.

 Off-Balance
Sheet Agreements

 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.

 Contractual

 In
the ordinary course of the Company's operations, the Company enters into certain contractual obligations. Such obligations include
operating leases for office space, agreements with respect to borrowed funds and future policy benefits. See Notes 7, 22, 24 of the Notes
to Consolidated Financial Statements for more information about these obligations.

 Captive
Insurance Participation

 The
Company has a limited equity interest in a captive insurance entity (the "Captive') that provides workers compensation, general
liability and automobile insurance. This program permits the Company to pool insurance risks and resources with like-minded companies
in order to obtain more competitive pricing for claims administration, stop loss insurance premiums and to limit its risk of loss in
any particular year. The Captive also provides access to a wide array of safety-related services and regular safety training to help
the Company control claims. The maximum exposure to a loss related to the Company's involvement in the Captive is limited to approximately
$443,758, which is collateralized under a standby letter of credit issued on the insurance entity's behalf. See Note 10, "Reinsurance,
Commitments and Contingencies," for additional discussion of commitments associated with the insurance program. The Company has
been a member of the Captive since 2006 and does not expect any material losses to result from the issuance of the standby letter of
credit given the Company's past performance.

 Item
7A. Quantitative and Qualitative Disclosures about Market Risk

 As
a smaller reporting company, the Company is not required to provide information typically disclosed under this item.

 Item
8. Financial Statements and Supplementary Data

 TO CONSOLIDATED FINANCIAL STATEMENTS

 Page
 No.

 Financial
 Statements:

 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)

 Consolidated Balance Sheets, December 31, 2023 and 2022

 Consolidated Statements of Earnings for the Years Ended December 31, 2023 and 2022

 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023 and 2022

 Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2023 and 2022

 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022

 Notes to Consolidated Financial Statements

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To
the Stockholders and the Board of Directors of Security National Financial Corporation:

 Opinion
on the Financial Statements

 We
have audited the accompanying consolidated balance sheets of Security National Financial Corporation and subsidiaries (the "Company")
as of December 31, 2023 and 2022, the related consolidated statements of earnings, comprehensive income, stockholders' equity,
and cash flows for each of the years then ended, and the related notes and the schedules listed in the Index at Item 15 (collectively
referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects,
the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each
of the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 Basis
for Opinion

 These
financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.

 Critical
Audit Matter

 The
critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated
or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Policy Benefits for Life Insurance Contracts and Amortization of Deferred Policy Acquisition Costs for Insurance Contracts and Value
of Business Acquired - Refer to Notes 1 and 21 to the financial statements

 Critical
Audit Matter Description

 The
Company's management sets assumptions in (1) estimating a liability for life insurance policy benefit payments that will be
made in the future (future policy benefits for life insurance contracts), (2) determining amortization of deferred policy acquisition costs for
insurance contracts and value of business acquired and (3) performing premium deficiency tests. The most significant assumptions
include mortality, lapse, and projected investment yield. Assumptions are determined based upon analysis of Company specific
experience, industry standards, adjusted for changes in exposure and other relevant factors. Given the inherent uncertainty of these
significant assumptions, auditing the development of such assumptions involved especially subjective judgment.

 How
the Critical Audit Matter Was Addressed in the Audit

 Our
audit procedures related to management's judgments regarding the mortality, lapse and projected investment yield assumptions
used in the development of future policy benefits for life insurance contracts and the amortization of deferred policy acquisition
costs for insurance contracts and value of business acquired, included the following, among others:

 With the assistance of our actuarial specialists, we:

 evaluated
 these actuarial assumptions, including testing the accuracy and completeness of the supporting experience studies,

 evaluated
 management's judgments regarding these assumptions used in the development of future policy benefits for life insurance
 contracts and the amortization of deferred policy acquisition costs and value of business acquired,

 evaluated
 the results of the Company's annual premium deficiency tests.

 /s/
 Deloitte & Touche LLP

 Salt
Lake City, UT

 March

 We
have served as the Company's auditor since 2017.

 AND

 CONSOLIDATED
BALANCE SHEETS

 2023

 2022

 2023

 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)

 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

 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

 126,941,658

 120,919,805

 Loans held for sale at estimated fair value

 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

 Property and equipment, net

 19,175,099

 20,579,649

 Value of business acquired

 8,467,613

 9,803,736

 Other

 20,072,195

 23,798,512

 Total Assets

 $
 1,430,552,275

 $
 1,461,112,892

 See

 AND

 CONSOLIDATED
BALANCE SHEETS (Continued)

 2023

 2022

 2023

 2022

 Liabilities and Stockholders' Equity

 Future policy benefits and unpaid claims

 $
 916,038,616

 $
 889,327,303

 Unearned premium reserve

 2,543,822

 2,773,616

 105,555,137

 161,712,804

 Deferred pre-need cemetery and mortuary contract revenues

 18,237,246

 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:

 Preferred stock - non-voting-$ 1.00 par value; 5,000,000 shares authorized;
 none issued or outstanding

 -

 -

 Common Stock:

 Class A: common stock - $ 2.00 par value; 40,000,000 shares authorized;
 20,048,002 shares issued and outstanding as of December 31, 2023 and
 18,758,031 shares issued and outstanding as of December 31, 2022

 40,096,004

 37,516,062

 Class B: non-voting common stock - $ 1.00 par value; 5,000,000 shares authorized; none issued or outstanding

 -

 -

 Class C: convertible common stock - $ 2.00 par value; 6,000,000 shares
 authorized; 2,971,854 shares issued and outstanding as
 of December 31, 2023 and 2,889,859 shares issued and outstanding as of December 31, 2022

 5,943,708

 5,779,718

 Common stock value

 5,943,708

 5,779,718

 Additional paid-in capital

 72,424,429

 64,767,769

 Accumulated other comprehensive loss, net of taxes

 ( 6,885,558
)

)

 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

 See

 AND

Statements of Earnings

 2023

 2022

 Years

 2023

 2022

 Revenues:

 Mortgage fee income

 $
 98,147,972

 $
 173,499,681

 Insurance premiums and other considerations

 114,658,436

 105,001,640

 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

 $

 $

 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)
 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.

 See

 AND

Statements of comprehensive income

 2023

 2022

 Years

 2023

 2022

 Net
 earnings

 $

 $

 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
)

 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
)

 tax benefit (expense)

 ( 1,643,697
)

 8,282,444

 Other
 comprehensive income (loss), net of income tax

)

 Comprehensive
 income (loss)

 $
 20,679,777

 $
 ( 5,450,423
)

 See

 AND

Statements of Stockholders' Equity

 Class
 A Common Stock

 Class
 C Common Stock

 Additional
 Paid-in Capital

 Accumulated
 Other Comprehensive Income (Loss)

 Retained
 Earnings

 Treasury
 Stock

 Total

 Balance at December 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

 -

 -

 -

 -

 -

 Other comprehensive loss

 -

 -

 -

)

 -

 -

)

 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 at December 31, 2022

 37,516,062

 5,779,718

 64,767,769

)

 202,160,306

 ( 4,366,651
)

 292,786,927

 Balance, value

 37,516,062

 5,779,718

 64,767,769

)

 202,160,306

 ( 4,366,651
)

 292,786,927

 Adoption
 of
 ASU 2016-13

 -

 -

 -

 -

 ( 671,506
)

 -

 ( 671,506
)

 Net earnings

 -

 -

 -

 -

 -

 Other comprehensive income

 -

 -

 -

 -

 -

 Stock based compensation expense

 -

 -

 601,362

 -

 -

 -

 601,362

 Exercise of stock options

 558,354

 -

 ( 423,967
)

 -

 -

 -

 134,387

 Vesting of restricted stock units

 2,430

 -

 ( 2,430
)

 -

 -

 -

 -

 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
)

 -

 -

 -

 -

 -

 Balance at December
 31, 2023

 $
 40,096,004

 $
 5,943,708

 $
 72,424,429

 $
 ( 6,885,558
)

 $
 206,978,373

 $
 ( 5,661,737
)

 $
 312,895,219

 Balance, value

 $
 40,096,004

 $
 5,943,708

 $
 72,424,429

 $
 ( 6,885,558
)

 $
 206,978,373

 $
 ( 5,661,737
)

 $
 312,895,219

 See

 AND

Statements of Cash Flows

 2023

 2022

 Years

 2023

 2022

 Cash flows from operating
 activities:

 Net earnings

 $

 $

 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

 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

 ( 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

 ( 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

 ( 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
)

 AND

Statements of Cash Flows (Continued)

 Years

 2023

 2022

 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

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

 $
 139,923,399

 $
 133,483,817

 Supplemental
 Disclosure of Cash Flow Information:

 Cash
 paid during the year for:

 $
 5,136,747

 $
 7,697,921

 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

 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

 -

 Reconciliation
of cash, cash equivalents, restricted cash and restricted cash equivalents as shown in the consolidated statements of cash flows is presented
in the table below:

 Years

 2023

 2022

 $
 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

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

 $
 139,923,399

 $
 133,483,817

 See

 AND

 Notes

 Years

 1)
 Significant Accounting Policies

 General
Overview of Business

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.

 AND

 Notes

 Years

 1)

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.

 AND

 Notes

 Years

 1)

Fee Income

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

 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.

 AND

 Notes

 Years

 1)

 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.

 AND

 Notes

 Years

 1)

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.

Perpetual Care Trust Investments

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.

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.

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.

 AND

 Notes

 Years

 1)

 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.

Servicing Rights

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.

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.

 AND

 Notes

 Years

 1)

 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

 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

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.

 AND

 Notes

 Years

 1)

 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.

Policy Benefits and Unpaid Claims

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.

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.

 AND

 Notes

 Years

 1)

 Participating

 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.

 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.

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.

Sales and Costs

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.

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.

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.

 AND

 Notes

 Years

 1)

 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.

 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.

Taxes

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.

 AND

 Notes

 Years

 1)

 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.

 AND

 Notes

 Years

 1)

 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.

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

 Mortgage loans held for investment:

 $
 ( 192,607
)

 301,830

 555,807

 Total

 665,030

 Restricted assets - mortgage loans held for
 investment:

 construction

 3,463

 Cemetery perpetual care trust investments -
 mortgage loans held for investment:

 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.

 AND

 Notes

 Years

 2)
 Investments

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

of Investments

 Cost

 Gross

 Gross
 Unrealized Losses (1)

 Allowance
 for Credit Losses

 2023:

 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

 ( 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

 $
 390,884,441

 $
 4,550,214

 $
 ( 13,584,120
)

 $
 ( 314,549
)

 $
 381,535,986

 $
 10,571,505

 $
 3,504,141

 $
 ( 439,575
)

 $

 Total

 $
 10,571,505

 $
 3,504,141

 $
 ( 439,575
)

 $

 Mortgage loans held for investment at amortized
 cost:

 $

 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

 $
 275,616,837

 Real estate held for investment - net of
 accumulated depreciation:

 $
 40,924,865

 142,494,427

 Total real estate

 $
 183,419,292

 Real estate held for sale:

 $
 -

 Total real estate
 held for sale

 $

 Other investments and policy loans at amortized
 cost:

 $
 13,264,183

 Insurance assignments

 45,605,322

 Federal Home Loan Bank
 stock (2)

 2,279,800

 Other investments

 9,809,148

 Less:

 ( 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.

 AND

 Notes

 Years

 2)

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

 Cost

 Gross

 Gross

 2022:

 U.S. Treasury securities and obligations
 of U.S. Government agencies

 $
 93,182,210

 $
 180,643

 $
 ( 2,685,277
)

 $
 90,677,576

 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

 $
 362,750,511

 $
 2,282,842

 $
 ( 19,174,861
)

 $
 345,858,492

 $
 9,942,265

 $
 2,688,375

 $
 ( 948,114
)

 $

 Total equity securities
 at estimated fair value

 $
 9,942,265

 $
 2,688,375

 $
 ( 948,114
)

 $

 Mortgage loans held for investment at amortized
 cost:

 $
 93,355,623

 172,516,125

 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

 $
 308,123,927

 Real estate held for investment - net of
 accumulated depreciation:

 $
 38,437,960

 152,890,656

 Total real estate

 $
 191,328,616

 Real estate held for sale:

 $
 11,010,029

 151,553

 Total real estate
 held for sale

 $
 11,161,582

 Other investments and policy loans at amortized
 cost:

 $
 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.

 AND

 Notes

 Years

 2)

 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.

of Fair Value of Fixed Maturity Securities

 Losses for Less than Twelve Months

 Fair
 Value

 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

 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

 29,799

 2,260,445

 4,673,106

 22,184,174

 4,702,905

 24,444,619

 $
 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

 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

 2,884,731

 19,909,907

 1,215,943

 6,978,745

 4,100,674

 26,888,652

 $
 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.

 AND

 Notes

 Years

 2)

 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.

 AND

 Notes

 Years

 2)

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.

of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation

 31, 2023

 31, 2022

 NAIC Designation

 Cost

 Fair
 Value

 Cost

 Fair
 Value

 $
 221,933,425

 $
 216,975,288

 $
 197,753,818

 $
 189,691,540

 161,062,016

 157,346,803

 156,261,804

 148,073,873

 6,418,829

 5,953,542

 7,080,305

 6,635,786

 982,290

 948,478

 1,377,541

 1,157,454

 236,648

 51,875

 25,736

 39,155

 1,233

 -

 1,307

 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:

of 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

 of states and political subdivisions

 including public utilities

 Mortgage-backed

 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

 AND

 Notes

 Years

 2)

 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:

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

 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.

of Investments Classified by Contractual Maturity Date

 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

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

of Major Categories of Net Investment Income

 2023

 2022

 Years

 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
)

 AND

 Notes

 Years

 2)

on Deposit, Held in Trust, and Pledged as Collateral

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

of Assets on Deposit With Life Insurance

 2023

 2022

 Years

 2023

 2022

 Fixed maturity securities available
 at estimated fair value

 $
 6,206,650

 $
 8,817,959

 Other investments

 400,000

 -

 1,909,215

 2,214,206

 Total
 assets on deposit

 $
 8,515,865

 $
 11,032,165

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

 Years

 2023

 2022

 Fixed maturity securities available
 at estimated fair value

 $
 27,903,952

 $
 27,955,297

 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

 2023

 2022

 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.

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.

 AND

 Notes

 Years

 2)

 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.

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.

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:

of Commercial Real Estate Investment

 Net Book Value

 Total Square Footage

 31,

 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

 (1)
 Consists of approximately
93 acres of undeveloped land for $ 151,553. The remaining property for $2,877,420 was sold in February 2024.

 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.

 AND

 Notes

 Years

 2)

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

 Schedule of Annual Undiscounted Cash Flows of Operating Lease Payments

 2024

 $
 11,816,339

 2025

 11,843,124

 2026

 10,695,017

 2027

 9,198,450

 2028

 9,009,534

 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

 31,

 31,

 2023

 2022

 2023

 2022

 Mississippi (1)

 $

 $
 151,553

 19,694

 -

 $

 $
 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.

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.

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.

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.

 AND

 Notes

 Years

 2)

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

of Residential Real Estate Investment

 Net Book Value

 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.

 31,

 2023

 2022

 Lots available for sale

 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

 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.

 AND

 Notes

 Years

 2)

 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:

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

 %

 1044 River Oaks Dr., Flowood, MS (1) (3)

 Life Insurance Operations

 19,694

 %

 1818 Marshall Street, Shreveport, LA (2)

 Life Insurance Operations

 12,274

 %

 909 Foisy Street, Alexandria, LA (2) (4)

 Life Insurance Sales

 8,059

 %

 812 Sheppard Street, Minden, LA (2) (5)

 Life Insurance Sales

 1,560

 %

 1550 N 3rd Street, Jena, LA (2) (3)

 Life Insurance Sales

 1,737

 %

 (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

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.

 AND

 Notes

 Years

 2)

 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:

 - 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.

 — 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.

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.

 AND

 Notes

 Years

 2)

 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:

of Allowance for Loan Losses

 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

 credit losses (2)

 476,717

 843,521

 ( 136,926
)

 1,183,312

 -

 -

 -

 -

 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

 credit losses (2)

 -

 270,409

 -

 270,409

 -

 -

 -

 -

 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)
expenses on the consolidated statements of earnings

 AND

 Notes

 Years

 2)

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

of Aging of Mortgage Loans

 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

 72,530,030

 91,790,433

 268,373,211

 Total
 mortgage loans

 281,382,873

 ( 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

 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

 ( 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.

 AND

 Notes

 Years

 2)

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:

of Commercial Mortgage Loans By Credit Quality Indicator

 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

 $

 %

 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

 $

 %

 (1)
 Commercial construction loan

 AND

 Notes

 Years

 2)

 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:

 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

 $

 %

 (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

 $

 %

 AND

 Notes

 Years

 2)

 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:

 Schedule of Residential Construction Mortgage Loans

 Quality Indicator

 2023

 2022

 2021

 Total

 %
 of Total

 Performance Indicators:

 Performing

 $
 60,311,679

 $
 16,624,182

 $
 27,116,887

 $

 %

 Non-performing

 -

 -

 -

 -

 0.00
 %

 Total

 $
 60,311,679

 $
 16,624,182

 $
 27,116,887

 $

 %

 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

 $

 %

 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.

of Mortgage loans Held for Investment

 Principal

 Principal

 Principal

 Amounts

 Amounts

 Amounts

 Due in

 Due in

 Due

 Total

 Year

 2-5
 Years

 $

 $
 2,554,380

 $
 9,231,545

 $
 91,367,662

 Residential Construction

 88,880,893

 15,171,855

 -

 39,562,489

 19,457,975

 15,156,074

 Total

 $
 281,382,873

 $
 130,997,762

 $
 43,861,375

 $
 106,523,736

 AND

 Notes

 Years

 2)

Assignments

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

of Aging of Insurance Assignments

 Years

 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

 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:

of Allowance for Credit Losses

 Allowance

 Beginning balance - January 1, 2023

 $
 1,609,951

 credit losses (1)

 891,959

 ( 948,074
)

 Ending balance - December 31, 2023

 $
 1,553,836

 Beginning balance - January 1, 2022

 $
 1,686,218

 credit losses (1)

 889,480

 ( 965,747
)

 Ending balance - December 31, 2022

 $
 1,609,951

 (1)
 Included in other expenses on the
consolidated statements of earnings

 AND

 Notes

 Years

 2)

 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.

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.

 AND

 Notes

 Years

 2)

 Major categories of net investment income were as follows:

 2023

 2022

 Years
 Ended December 31

 2023

 2022

 Fixed maturity securities available

 $
 16,871,558

 $
 12,395,764

 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

 816,711

 932,362

 Insurance assignments

 18,118,391

 18,112,840

 Other investments

 617,420

 518,865

 4,250,029

 1,666,945

 Gross investment income

 89,319,209

 83,650,926

 Investment expenses

 ( 16,976,162
)

 ( 17,453,334
)

 $
 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:

of Accrued Investment Income

 2023

 2022

 Years

 2023

 2022

 $
 3,984,695

 $
 3,563,767

 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

 18,437

 7,598

 Total accrued investment income

 $
 10,170,790

 $
 10,299,826

 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.

 AND

 Notes

 Years

 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.

of Aggregate Fair Value Loans Held for Sale

 2023

 2022

 31,

 2023

 2022

 Aggregate fair value

 $

 $

 Unpaid principal balance

 127,185,867

 141,337,811

 Unrealized loss

 ( 636,677
)

 ( 158,191
)

Fee Income

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:

of Mortgage Fee Income for Loans Held for Sale

 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

 AND

 Notes

 Years

 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:

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

 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.

 AND

 Notes

 Years

 4)
 Receivables

 Receivables
consist of the following:

 Schedule of Receivables

 2023

 2022

 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:

of Allowance Credit Losses

 Allowance

 Beginning balance - January 1, 2023

 $
 2,229,791

 credit losses (1)

 ( 110,935
)

 ( 220,969
)

 Ending balance - December 31, 2023

 $
 1,897,887

 Beginning balance - January 1, 2022

 $
 1,800,725

 credit losses (1)

 799,888

 ( 370,822
)

 Ending balance - December 31, 2022

 $
 2,229,791

 (1)
expenses on the condensed consolidated statements of earnings

 AND

 Notes

 Years

 5)
 Value of Business Acquired, Goodwill and Other Intangible Assets

regarding value of business acquired was as follows:

 Schedule of Value of Business Acquired

 2023

 2022

 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:

of Acquisitions Net Amortization Charged to Income

 2024

 $
 1,219,496

 2025

 1,112,965

 2026

 1,030,635

 2027

 957,074

 2028

 833,216

 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.

 AND

 Notes

 Years

 5)
 Value of Business Acquired, Goodwill and Other Intangible Assets (Continued)

regarding goodwill by segment was as follows:

 Schedule of Goodwill by Segment

 Life

 Cemetery/

 Total

 Balance at January 1, 2022:

 $

 $

 $

 Accumulated impairment

 -

 -

 -

 Total goodwill, net

 Acquisition

 -

 -

 -

 Balance at December 31, 2022:

 Accumulated impairment

 -

 -

 -

 Total goodwill, net

 Acquisition

 -

 -

 -

 Balance at December 31, 2023:

 Accumulated impairment

 -

 -

 -

 Total
 goodwill, net

 $

 $

 $

is not amortized but is tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill for 2023 and
2022.

 AND

 Notes

 Years

 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:

 Schedule of Carrying Value of Intangible Asset

 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:

 Schedule of Estimate of Future Amortization for Other Intangible

 2024

 $

 2025

 2026

 2027

 2028

 1,732,667

 Total

 $
 3,002,667

 AND

 Notes

 Years

 6)
 Property and Equipment

 Property
and equipment is summarized below:

 Schedule of Property and Equipment

 2023

 2022

 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.

 AND

 Notes

 Years

 7)
 Bank and Other Loans Payable

 Bank
and other loans payable are summarized as follows:

 Summary of Bank Loans Payable

 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

 AND

 Notes

 Years

 7)
 Bank and Other Loans Payable (Continued)

 Sources
of Liquidity

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.

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.

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.

 AND

 Notes

 Years

 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.

 AND

 Notes

 Years

 7)
 Bank and Other Loans Payable (Continued)

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

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

 2024

 $
 9,543,052

 2025

 1,881,631

 2026

 1,952,430

 2027

 2,026,547

 2028

 11,296,737

 78,854,740

 Total

 $
 105,555,137

expense in 2023 and 2022 was $ 4,865,327 and $ 7,830,443,
respectively.

 AND

 Notes

 Years

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

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:

of Investments

 Cost

 Gross

 Gross

 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

 $

 $
 ( 574
)

 $
 477,525

 of states and political subdivisions

 115,792

 -

 ( 5,114
)

 110,678

 securities including public utilities

 53,672

 -

 ( 171
)

 53,501

 Total

 $
 647,261

 $

 $
 ( 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

 $
 3,614,392

 $
 859,680

 $
 ( 146,771
)

 $
 4,327,301

 loans held for investment at amortized cost:

 construction

 $
 247,360

 Less:

 ( 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

 perpetual care obligation

 $
 ( 5,326,196
)

 Trust
 investments in excess of trust obligations

 $
 2,756,721

 AND

 Notes

 Years

 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:

 Cost

 Gross

 Gross

 31, 2022:

 U.S. Treasury
 securities and obligations of U.S. Government agencies

 $
 89,004

 $

 $
 ( 38
)

 $
 89,008

 of states and political subdivisions

 174,201

 -

 ( 8,478
)

 165,723

 Total

 $
 263,205

 $

 $
 ( 8,516
)

 $
 254,731

 $
 3,195,942

 $
 584,383

 $
 ( 175,163
)

 $
 3,605,162

 Total

 $
 3,195,942

 $
 584,383

 $
 ( 175,163
)

 $
 3,605,162

 Mortgage loans held for investment at amortized
 cost:

 $
 1,506,517

 Real estate held
 for investment: Residential

 $
 ( 16,178
)

 $
 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:

of Fair Value of Fixed Maturity Securities

 Losses for Less than Twelve Months

 Fair
 Value

 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

 $

 $
 143,448

 $
 -

 $
 -

 $

 $
 143,448

 -

 -

 5,114

 110,678

 5,114

 110,678

 Corporate securities
 including public utilities

 -

 -

 53,501

 53,501

 $

 $
 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

 $

 $
 59,392

 $
 -

 $
 -

 $

 $
 59,392

 Obligations of states
 and political subdivisions

 1,845

 94,612

 6,633

 71,112

 8,478

 165,724

 $
 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.

 AND

 Notes

 Years

 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.

 Schedule of Investments Classified by Contractual
Maturity Date

 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

 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.

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.

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

 Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

 Cost

 Gross

 Gross

 31, 2023:

 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

 ( 4,542
)

 648,533

 securities including public utilities

 274,688

 ( 2,740
)

 272,157

 Total

 $
 1,860,195

 $
 1,947

 $
 ( 8,282
)

 $
 1,853,860

 $
 6,516,044

 $
 1,117,155

 $
 ( 247,996
)

 $
 7,385,203

 Total

 $
 6,516,044

 $
 1,117,155

 $
 ( 247,996
)

 $
 7,385,203

 Mortgage loans held for investment at amortized
 cost:

 $
 676,572

 Less:

 ( 1,353
)

 Total mortgage loans

 $
 675,219

 (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.

 AND

 Notes

 Years

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

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

 Cost

 Gross

 Gross

 2022:

 of states and political subdivisions

 $
 1,033,047

 $

 $
 ( 15,360
)

 $
 1,018,553

 securities including public utilities

 201,771

 -

 ( 3,016
)

 198,755

 Total

 $
 1,234,818

 $

 $
 ( 18,376
)

 $
 1,217,308

 $
 4,955,360

 $
 703,049

 $
 ( 310,165
)

 $
 5,348,244

 Total

 $
 4,955,360

 $
 703,049

 $
 ( 310,165
)

 $
 5,348,244

 Mortgage loans held for investment at amortized cost:

 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

 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.

of Fair Value of Fixed Maturity Securities

 Losses for Less than Twelve Months

 Fair
 Value

 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

 -

 -

 4,542

 451,985

 4,542

 451,985

 Corporate securities
 including public utilities

 -

 -

 2,740

 221,334

 2,740

 221,334

 $
 1,000

 $
 249,877

 $
 7,282

 $
 673,319

 $
 8,282

 $
 923,196

 At December 31, 2022

 $
 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

 $
 14,907

 $
 959,010

 $
 3,469

 $
 58,072

 $
 18,376

 $
 1,017,082

 AND

 Notes

 Years

 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.

 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.

 Schedule of Investments Classified by Contractual
Maturity Date

 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.

 AND

 Notes

 Years

 9)
 Income Taxes

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

 Summary of Income Tax Liability

 2023

 2022

 31,

 2023

 2022

 $
 246,437

 $
 16,352,190

 13,506,544

 14,358,337

 Total

 $
 13,752,981

 $
 30,710,527

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

 Schedule of Deferred Tax Assets and Liabilities

 2023

 2022

 31,

 2023

 2022

 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

 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.

 AND

 Notes

 Years

 9)
 Income Taxes (Continued)

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

 Schedule of Components of Income Tax Expense (Benefit)

 2023

 2022

 31,

 2023

 2022

 $
 4,091,306

 $
 15,346,331

 State

 209,537

 3,294,234

 Total Current Income Tax Expense (Benefit)

 4,300,843

 18,640,565

 ( 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

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

 Schedule of Effective Income Tax Rate Reconciliation

 2023

 2022

 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

 AND

 Notes

 Years

 10)
 Reinsurance, Commitments and Contingencies

 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.

Loan Loss Settlements

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.

 AND

 Notes

 Years

 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.

 AND

 Notes

 Years

 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.

 Summary of Activities 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

 AND

 Notes

 Years

 12)
 Capital Stock (Continued)

 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:

 Schedule of Earnings Per Share, Basic and Diluted

 2023

 2022

 Years

 2023

 2022

 Numerator:

 Net
 earnings

 $

 $

 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

 -

 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.

 AND

 Notes

 Years

 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

 %

 $
 7.99

 36.76
 %

 4.14
 %

 4.9

 January 30, 2023

 All Plans

 $
 1.65

 %

 $
 7.10

 36.73
 %

 3.64
 %

 5.31

 January 18, 2023

 All Plans

 $
 1.70

 %

 $
 7.37

 36.79
 %

 3.40
 %

 5.31

 December 2, 2022

 All Plans

 $
 1.48

 %

 $
 6.48

 37.03
 %

 3.69
 %

 4.88

 (1)
 Stock dividend

 AND

 Notes

 Years

 13)
 Stock Compensation Plans (Continued)

 Activity
of the stock option plans is summarized as follows:

 Schedule of Activity of Stock Option Plans

 Number
 of
 Class A Shares

 Average Exercise Price

 Number
 of
 Class C Shares

 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.

 AND

 Notes

 Years

 13)
 Stock Compensation Plans (Continued)

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:

 Schedule of Activity Restricted Stock Units

 Number
 of
 Class A Shares

 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

 AND

 Notes

 Years

 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:

 Schedule of Statutory Accounting Practices

 Statutory Net Income

 Statutory Capital and Surplus

 Years

 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.

 ( 2,691
)

 1,578,322

 1,579,971

 Trans-Western Life Insurance
 Company

 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.

 AND

 Notes

 Years

 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.

 AND

 Notes

 Years

 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.

 AND

 Notes

 Years

 15) Business
Segment Information (Continued)

 Schedule of Revenues and Expenses by Reportable Segment

 Eliminations

 Year Ended December 31, 2023

 Life

 Cemetery/

 Intercompany

 Eliminations

 Revenues:

 From external sources:

 Revenue from customers

 $
 114,735,304

 $
 27,864,811

 $
 98,071,104

 -

 $
 240,671,219

 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:

 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

 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
)

 $
 -

 $

 Identifiable assets

 $
 1,325,287,933

 $
 95,059,724

 $
 97,018,754

 $
 ( 93,063,440
)

 $
 1,424,302,971

 $

 $

 $
 -

 $
 -

 $

 AND

 Notes

 Years

 15) Business
Segment Information (Continued)

 Eliminations

 Year Ended December 31, 2022

 Life

 Cemetery/

 Intercompany

 Eliminations

 Revenues:

 From external sources:

 Revenue from customers

 $
 105,144,646

 $
 26,993,855

 $
 173,356,675

 -

 $
 305,495,176

 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:

 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

 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

 $
 -

 $

 Identifiable assets

 $
 1,246,840,586

 $
 82,320,929

 $
 219,872,163

 $
 ( 93,174,569
)

 $
 1,455,859,109

 $

 $

 $
 -

 $
 -

 $

 AND

 Notes

 Years

 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.

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.

 AND

 Notes

 Years

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.

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.

 AND

 Notes

 Years

 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.

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.

 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.

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

 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

 $
 381,535,986

 $
 -

 $
 380,297,330

 $
 1,238,656

 -

 -

 Loans held for sale

 -

 -

 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

 $
 540,924,801

 $
 25,348,575

 $
 382,792,894

 $
 132,783,332

 Liabilities accounted for at fair value on a

 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)

 (2)

 (3)
assets on the consolidated balance sheets

 (4)
liabilities and accrued expenses on the consolidated balance sheets

 AND

 Notes

 Years

 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, 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

 $
 345,858,492

 $
 -

 $
 344,422,973

 $
 1,435,519

 -

 -

 Loans held for sale

 -

 -

 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

 $
 513,235,939

 $
 20,635,932

 $
 345,895,012

 $
 146,704,995

 Liabilities accounted for at fair value on a

 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)

 (2)

 (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:

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

 Range of Inputs

 Fair Value at

 Valuation

 Unobservable

 Minimum

 Maximum

 12/31/2023

 Technique

 Input(s)

 Value

 Value

 Average

 Loans held for sale

 $

 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

 1,238,656

 Broker quotes

 Pricing quotes

 $
 98.40

 $
 102.46

 $
 99.86

 AND

 Notes

 Years

 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:

 Range of Inputs

 Fair Value at

 Valuation

 Unobservable

 Minimum

 Maximum

 12/31/2022

 Technique

 Input(s)

 Value

 Value

 Average

 Loans held for sale

 $

 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

 1,435,519

 Broker quotes

 Pricing quotes

 $

 $
 111.11

 $
 104.97

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

 Schedule 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

 $

 $
 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

 $

 $
 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

 $

 $
 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

 AND

 Notes

 Years

 The
Company did not have any financial assets and financial liabilities measured at fair value on a nonrecurring basis as of December 31,
2023.

 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.

 Schedule of Fair Value Assets Measured on a Nonrecurring Basis

 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

 AND

 Notes

 Years

 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:

 Schedule of Financial Instruments Carried at Other Than Fair Value

 Carrying Value

 Level 1

 Level 2

 Level 3

 Total Estimated Fair Value

 Mortgage loans held for investment

 $
 99,519,750

 $
 -

 $
 -

 $
 96,998,106

 $
 96,998,106

 103,529,896

 -

 -

 103,529,896

 103,529,896

 72,567,191

 -

 -

 72,149,530

 72,149,530

 Mortgage loans held for investment, net

 $
 275,616,837

 $
 -

 $
 -

 $
 272,677,532

 $
 272,677,532

 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

 -

 -

 4,543,657

 4,543,657

 $
 ( 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)
investments and policy loans on the consolidated balance sheets

 (2)
 Mortgage loans

 (3)
 Included in future
policy benefits and unpaid claims on the consolidated balance sheets

 AND

 Notes

 Years

 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

 Mortgage loans held for investment

 $
 90,290,776

 $
 -

 $
 -

 $
 88,575,293

 $
 88,575,293

 172,139,077

 -

 -

 172,139,077

 172,139,077

 45,694,074

 -

 -

 44,079,537

 44,079,537

 Mortgage loans held for investment, net

 $
 308,123,927

 $
 -

 $
 -

 $
 304,793,907

 $
 304,793,907

 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

 -

 -

 3,927,877

 3,927,877

 $
 ( 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)
investments and policy loans on the consolidated balance sheets

 (2)
 Mortgage loans

 (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:

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.

— 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.

Construction — These loans are primarily short in maturity. Accordingly, the estimated fair value is determined to be the carrying
value.

— 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.

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.

 AND

 Notes

 Years

 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.

 18)
 Accumulated Other Comprehensive Income (loss)

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

 Schedule of Changes in Accumulated Other Comprehensive Income

 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

 $

 $
)

 (1)

 AND

 Notes

 Years

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

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

 Schedule of Accumulated Balances of Other Comprehensive Income

 Beginning Balance December 31, 2022

 Change for the period

 Ending Balance

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)

 $
)

 $

 $
 ( 6,885,558
)

 (1)

 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

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

 $
)

 $
)

 (1)

 AND

 Notes

 Years

 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.

of Derivative Assets at Fair Value

 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.

 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

 AND

 Notes

 Years

 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.

of Mortgage Servicing Rights

 2023

 2022

 2023

 2022

 Amortized cost:

 Balance before valuation allowance at beginning of year

 $

 $
 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

 $

 $

 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

 $

 $

 Estimated fair value of MSRs at year end

 $
 4,543,657

 $
 3,927,877

 (1)
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.

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

 1,907,879

 Total

 $

 AND

 Notes

 Years

 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.

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.

 Summary
of Unpaid Principal Balances of the Servicing Portfolio

 2023

 2022

 Servicing UPB

 $
 414,147,436

 $
 360,023,384

 The
following key assumptions were used in determining MSR value.

of Assumptions 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.

 AND

 Notes

 Years

 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.

 Schedule of Liability for Future Policy Benefits, by Product Segment

 2023

 2022

 Life

 $
 756,936,902

 $
 726,462,594

 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

 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.

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

 Life

 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

 AND

 Notes

 Years

 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

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:

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.

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.

 AND

 Notes

 Years

 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:

 Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities

 Contract Balances

 Receivables (1)

 Contract Asset

 Contract Liability

 Opening (1/1/2023)

 $
 5,392,779

 $
 -

 $

 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

 -

 Increase/(decrease)

 94,143

 -

 1,718,814

 (1)
 Included in Receivables,
net on the consolidated balance sheets

 AND

 Notes

 Years

 22)
 Revenues from Contracts with Customers (Continued)

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

 Schedule of Opening and Closing Balances of the Assets and Liabilities

 Contract Balances

 Contract Asset

 Contract Liability

 $
 -

 $
 15,289,901

 -

 936,935

 -

 -

 Opening (1/1/2023)

 $
 -

 $

 $
 -

 $
 17,424,764

 -

 812,482

 -

 -

 Closing (12/31/2023)

 $
 -

 $
 18,237,246

 Contract Balances

 Contract Asset

 Contract Liability

 $
 -

 $
 13,722,348

 -

 785,674

 -

 -

 Opening (1/1/2022)

 $
 -

 $
 14,508,022

 $
 -

 $
 15,289,901

 -

 936,935

 -

 -

 Closing (12/31/2022)

 $
 -

 $

 AND

 Notes

 Years

 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.

of Revenues of the Cemetery and Mortuary Contracts

 2023

 2022

 Years Ended December 31

 2023

 2022

 Major goods/service lines

 At-need

 $
 19,957,735

 $
 21,283,237

 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

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.

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.

 AND

 Notes

 Years

 22)
 Revenues from Contracts with Customers (Continued)

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.

of Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information

 2023

 2022

 Years Ended December 31

 2023

 2022

 $
 3,951,267

 $
 3,780,173

 23,090

 35,371

 -

 -

 Deferred policy and pre-need
 contract acquisition costs

 $
 3,974,357

 $
 3,815,544

 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.

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.

 AND

 Notes

 Years

 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.

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.

 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

 AND

 Notes

 Years

 23)
 Leases (Continued)

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

of Future Minimum Rental Payments for Finance Leases and Operating Leases

 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

 -

 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.

 Schedule of Right-of-Use Assets and Lease

 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

 $
 15,550

 $
 31,082

 Lease liabilities

 $
 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.

 Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 None

 Item
9A. Controls and Procedures

 Under
the supervision and with the participation of the Company's management, including the Chief Executive Officer and Chief Financial
Officer, the Company has evaluated the effectiveness of its disclosure controls and procedures as required by Exchange Act Rule 13a-15(b)
as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer
have concluded that these disclosure controls and procedures are effective.

 (a)
Management's annual report on internal control over financial reporting.

 Management
is responsible for establishing and maintaining adequate internal control over financial reporting. The Company's internal control
over financial reporting is a process that is designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles ("GAAP"),
and includes those policies and procedures that:

 Pertain
 to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
 transactions and dispositions of assets of the Company,

 Provide
 reasonable assurance that transactions are recorded as necessary to permit preparation of
 financial statements in accordance with GAAP, and that receipts and expenditures are being
 made only in accordance with authorizations of management and the Board of Directors of the
 Company, and provide reasonable assurance regarding prevention or timely detection of unauthorized
 acquisition, use, or disposition of the Company's assets that could have a material
 effect on the financial statements.

 Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies and procedures may deteriorate.

 Management
performed an assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2023
based on the framework in "Internal Control-Integrated Framework (2013)" issued by the Committee of Sponsoring Organizations
of the Treadway Commission. The objective of this assessment was to determine whether the Company's internal control over financial
reporting was effective as of December 31, 2023. Based on that assessment management believes that as of December 31, 2023, the Company's
internal control over financial reporting was effective.

 This
annual report on internal control over financial reporting does not include an attestation report of the Company's registered public
accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the
Company's registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company
to provide only management's report in this annual report.

 (b)
Changes in internal control over financial reporting.

 There
was no change in the Company's internal control over financial reporting that occurred in the fourth quarter 2023 that has materially
affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

 Item
9B. Other Information

 A
portion of the Company's directors' and officers' compensation is in the form of equity awards and, from time to time,
they may engage in open-market transactions with respect to their Company securities for diversification or other personal reasons. All
such transactions in Company securities by directors and officers must comply with the Company's Insider Trading Policy, which
requires that transactions be in accordance with applicable U.S. federal securities laws that prohibit trading while in possession of
material nonpublic information. Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables directors and officers
to prearrange transactions in the Company's securities in a manner that avoids concerns about initiating transactions while in
possession of material nonpublic information. During the three months ended December 31, 2023, no directors or officers adopted or terminated
a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement", as each term is defined in Item
408(a) of Regulation S-K.

 Item
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Not
applicable

 PART
III

 Items
10, 11, 12, 13 and 14.

 The
information required by these items is incorporated by reference to the Company's definitive proxy statement relating to its 2024
Annual Meeting of Shareholders. The Company currently anticipates that its definitive proxy statement will be filed with the SEC not
later than 120 days after December 31, 2023, pursuant to Regulation 14A of the Securities and Exchange Act of 1934, as amended.

 PART
IV

 Item
15. Exhibits, Financial Statement Schedules

 (a)(1)
 Financial Statements

 See
"Index to Consolidated Financial Statements" under Item 8 above.

 (a)(2)
 Financial Statement Schedules

 IV.

 All
other schedules to the consolidated financial statements required by Article 7 of Regulation S-X are not required under the related instructions
or are inapplicable and therefore have been omitted.

 (a)(3)
 Exhibits

 The
following Exhibits are filed herewith pursuant to Rule 601 of Regulation S-K or are incorporated by reference to previous filings.

 3.1

 Amended and Restated Articles of Incorporation (4)

 3.2

 Amended and Restated Bylaws (6)

 4.1

 Specimen
 Class A Stock Certificate (1)

 4.2

 Specimen
 Class C Stock Certificate (1)

 4.3

 Specimen
 Preferred Stock Certificate and Certificate of Designation of Preferred Stock (1)

 10.1

 Employee
 Stock Ownership Plan, as amended and restated (ESOP) and Trust Agreement (1)

 10.2

 Amended and Restated 2013 Stock Option and Other Equity Incentive Awards Plan (3)

 10.3

 Amended and Restated 2014 Director Stock Option Plan (7)

 10.4

 Employment Agreement with Scott M. Quist (2)

 10.5

 Stock Repurchase Plan (5)

 10.6

 2022 Equity Incentive Plan

 Code of Business Conduct and Ethics (6)

 Insider Trading Policy

 Clawback Policy

 Subsidiaries of the Registrant

 31.1

 Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002

 31.2

 Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002

 32.1

 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 32.2

 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 Cover

 (1)

 by reference from Registration Statement on Form S-1, as filed on June 29, 1987

 (2)

 by reference from Report on Form 10-Q, as filed on November 13, 2015

 (3)

 by reference from Report on Form 10-Q, as filed on August 15, 2016

 (4)

 by reference from Report on Form 10-K, as filed on March 31, 2017

 (5)

 by reference from Report on Form 10-Q, as filed on November 13, 2018

 (6)

 by reference from Report on Form 10-Q, as filed on May 15, 2019

 (7)

 by reference from Report on Form 10-Q, as filed on August 14, 2020

 Item
16. Form 10-K Summary

 Not
applicable

 SIGNATURES

 Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

 Dated:
 March 29, 2024

 By:

 /s/
 Scott M. Quist

 Scott
 M. Quist

 Chairman
 of the Board, President, and Chief Executive Officer

 Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated:

 SIGNATURE

 TITLE

 DATE

 /s/
 Scott M. Quist

 Chairman
 of the Board, President,

 Scott
 M. Quist

 and
 Chief Executive Officer

 (Principal
 Executive Officer)

 March

 /s/
 Garrett S. Sill

 Chief
 Financial Officer and

 Garrett
 S. Sill

 Treasurer
 (Principal Financial

 and
 Accounting Officer)

 March

 /s/
 Jason G. Overbaugh

 Vice
 President and Director

 March

 Jason
 G. Overbaugh

 /s/
 S. Andrew Quist

 Vice
 President and Director

 March

 S.
 Andrew Quist

 /s/
 Adam G. Quist

 Vice
 President and Director

 March

 Adam
 G. Quist

 /s/
 John L. Cook

 March

 John
 L. Cook

 /s/
 Gilbert A. Fuller

 March

 Gilbert
 A. Fuller

 /s/
 Robert G. Hunter

 March

 Robert
 G. Hunter

 /s/
 Ludmya B. Love

 March

 Ludmya
 B. Love

 /s/
 Shital A. Mehta

 March

 Shital
 A. Mehta

 /s/
 H. Craig Moody

 March

 H.
 Craig Moody

IV

 AND

 Percentage

 Ceded to

 Assumed

 of Amount

 Direct

 Other

 from Other

 Net

 Assumed

 Companies

 Companies

 to Net

 2023

 Life Insurance in force ($000)

 $
 3,517,812

 $
 333,211

 $
 34,742

 $
 3,219,343

 1.1
 %

 Premiums:

 Life Insurance

 $
 116,141,852

 $
 1,938,610

 $
 239,744

 $
 114,442,986

 0.2
 %

 Accident and Health Insurance

 215,442

 -

 215,450

 0.0
 %

 Total premiums

 $
 116,357,294

 $
 1,938,610

 $
 239,752

 $
 114,658,436

 0.2
 %

 2022

 Life Insurance in force ($000)

 $
 3,322,062
 (1)

 $
 346,749

 $
 124,774

 $
 3,100,087
 (1)

 4.0
 %

 Premiums:

 Life Insurance

 $
 105,697,658

 $
 2,004,925

 $
 766,529

 $
 104,459,262

 0.7
 %

 Accident and Health Insurance

 542,370

 -

 542,378

 0.0
 %

 Total premiums

 $
 106,240,028

 $
 2,004,925

 $
 766,537

 $
 105,001,640

 0.7
 %

 (1)
 The prior year
has been adjusted to include accidental death benefit insurance in force that was inadvertently excluded.