SECURITY NATIONAL FINANCIAL CORP 10-K

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, 2022 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, 2022. Based on that assessment management believes that at December 31, 2022, 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 2022 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. Item 9B. Other Information None Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable 119 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 2023 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, 2022, 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. Reinsurance V. Valuation and Qualifying Accounts 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) 14 Code of Business Conduct and Ethics (6) 21 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 Inline XBRL Instance Document 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) (1) Incorporated by reference from Registration Statement on Form S-1, as filed on June 29, 1987 (2) Incorporated by reference from Report on Form 10-Q, as filed on November 13, 2015 (3) Incorporated by reference from Report on Form 10-Q, as filed on August 15, 2016 (4) Incorporated by reference from Report on Form 10-K, as filed on March 31, 2017 (5) Incorporated by reference from Report on Form 10-Q, as filed on November 13, 2018 (6) Incorporated by reference from Report on Form 10-Q, as filed on May 15, 2019 (7) Incorporated by reference from Report on Form 10-Q, as filed on August 14, 2020 Item 16. Form 10-K Summary Not applicable 120 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. SECURITY NATIONAL FINANCIAL CORPORATION Dated: March 31, 2023 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, and Chief Executive Scott M. Quist Officer (Principal Executive Officer) March 31, 2023 /s/ Garrett S. Sill Chief Financial Officer and Treasurer Garrett S. Sill (Principal Financial and Accounting Officer) March 31, 2023 /s/ Jason G. Overbaugh Vice President and Director March 31, 2023 Jason G. Overbaugh /s/ S. Andrew Quist Vice President and Director March 31, 2023 S. Andrew Quist /s/ Adam G. Quist Vice President and Director March 31, 2023 Adam G. Quist /s/ John L. Cook Director March 31, 2023 John L. Cook /s/ Gilbert A. Fuller Director March 31, 2023 Gilbert A. Fuller /s/ Robert G. Hunter Director March 31, 2023 Robert G. Hunter /s/ Ludmya B. Love Director March 31, 2023 Ludmya B. Love /s/ Shital A. Mehta Director March 31, 2023 Shital A. Mehta /s/ H. Craig Moody Director March 31, 2023 H. Craig Moody 121 Schedule IV SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Reinsurance Percentage Ceded to Assumed of Amount Direct Other from Other Net Assumed Amount Companies Companies Amount to Net 2022 Life Insurance in force ($000) $ 2,741,183 $ 346,749 $ 124,774 $ 2,519,208 5.0 % Premiums: Life Insurance $ 105,697,658 $ 2,004,925 $ 766,529 $ 104,459,262 0.7 % Accident and Health Insurance 542,370 - 8 542,378 0.0 % Total premiums $ 106,240,028 $ 2,004,925 $ 766,537 $ 105,001,640 0.7 % 2021 Life Insurance in force ($000) $ 2,734,592 $ 364,471 $ 129,166 $ 2,499,287 5.2 % Premiums: Life Insurance $ 101,448,883 $ 2,074,552 $ 527,702 $ 99,902,033 0.5 % Accident and Health Insurance 352,528 - 12 352,540 0.0 % Total premiums $ 101,801,411 $ 2,074,552 $ 527,714 $ 100,254,573 0.5 % 122 Schedule V SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Additions Deductions Balance at Charged to Disposals Balance Beginning Costs and and Other Items and at End of of Year Expenses Write-offs Reclassifications Year For the Year Ended December 31, 2022 Accumulated depreciation on real estate held for investment $ 17,692,038 $ 6,101,166 $ - $ - $ 23,793,204 Allowance for losses on mortgage loans held for investment 1,699,902 270,409 - - 1,970,311 Accumulated depreciation on property and equipment 19,814,110 2,496,906 (8,776,960 ) - 13,534,056 Allowance for doubtful accounts on receivables 1,800,725 171,998 (370,820 ) 627,888 2,229,791 Allowance for doubtful accounts on other investments 1,686,218 889,480 (965,747 ) - 1,609,951 For the Year Ended December 31, 2021 Accumulated depreciation on real estate held for investment $ 13,800,973 $ 3,605,059 $ (246,068 ) $ 532,074 $ 17,692,038 Allowance for losses on mortgage loans held for investment 2,005,127 (305,225 ) - - 1,699,902 Accumulated depreciation on property and equipment 19,179,139 1,935,613 (742,252 ) (558,390 ) 19,814,110 Allowance for doubtful accounts on receivables 1,685,382 327,905 (212,562 ) - 1,800,725 Allowance for doubtful accounts on other investments 1,645,475 943,055 (902,312 ) - 1,686,218 123