−Removed: NATIONAL FINANCIAL CORPORATION
−Removed: CONSOLIDATED BALANCE SHEETS
−Removed: March 31, 2024
−Removed: December 31, 2023
−Removed: Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $ 386,405,977 and $ 390,884,441 for 2024 and 2023, respectively;
−Removed: net of allowance for credit losses of $ 410,549 and $ 314,549 for 2024 and 2023, respectively)
+Added: Financial Statements.
+Added: Fixed maturity securities, available for sale, at estimated fair
+Added: (amortized cost of $ 360,599,601
+Added: and $ 390,884,441
+Added: for 2024 and 2023,
+Added: respectively;
+Added: net of allowance for credit losses of $ 394,260
+Added: and $ 314,549
+Added: for 2024 and 2023, respectively)
$ 349,358,027
$ 381,535,986
−Removed: Equity securities at estimated fair value (cost of $ 11,160,744 and $ 10,571,505 for 2024 and 2023, respectively)
−Removed: Mortgage loans held for investment (net of allowance for credit losses of $ 2,921,614 and $ 3,818,653 for 2024 and 2023, respectively)
−Removed: Real estate held for investment (net of accumulated depreciation of $ 27,161,160 and $ 29,307,791 for 2024 and 2023, respectively)
+Added: Equity securities at estimated fair value (cost of $ 11,266,705 and
+Added: $ 10,571,505 for 2024 and 2023, respectively)
+Added: Mortgage loans held for investment (net of allowance for credit losses
+Added: of $ 2,853,852 and $ 3,818,653 for 2024 and 2023, respectively)
+Added: Real estate held for investment (net of accumulated depreciation of
+Added: $ 28,582,113 and $ 29,307,791 for 2024 and 2023, respectively)
Real estate held for sale
−Removed: Other investments and policy loans (net of allowance for credit losses of $ 1,587,525 and $ 1,553,836 for 2024 and 2023, respectively)
+Added: Other investments and policy loans (net of allowance for credit losses
+Added: of $ 1,535,324 and $ 1,553,836 for 2024 and 2023, respectively)
Accrued investment income
2 unchanged sentences
Loans held for sale at estimated fair value
−Removed: Receivables (net of allowance for credit losses of $ 1,755,553 and $ 1,897,887 for 2024 and 2023, respectively)
−Removed: Restricted assets (including $ 10,083,226 and $ 9,239,063 for 2024 and 2023 respectively, at estimated fair value)
−Removed: Cemetery perpetual care trust investments (including $ 5,217,068 and $ 4,969,005 for 2024 and 2023, respectively, at estimated fair value)
+Added: Receivables (net of allowance for credit losses of $ 1,770,911 and $ 1,897,887
+Added: for 2024 and 2023, respectively)
+Added: Restricted assets (including $ 10,107,237 and $ 9,239,063 for 2024 and 2023
+Added: respectively, at estimated fair value)
+Added: Cemetery perpetual care trust investments (including $ 5,197,829 and
+Added: $ 4,969,005 for 2024 and 2023, respectively, at estimated fair value)
Receivable from reinsurers
9 unchanged sentences
CONSOLIDATED BALANCE SHEETS (Continued)
−Removed: March 31, 2024
−Removed: December 31, 2023
Liabilities and Stockholders’ Equity
17 unchanged sentences
40,000,000 shares authorized;
−Removed: 20,048,581 shares issued and outstanding as of March 31, 2024 and 20,048,002 shares issued and outstanding as of December 31, 2023
+Added: 21,085,936 shares issued and outstanding as of June 30, 2024 and
+Added: 20,048,002 shares issued and outstanding as of December 31, 2023
non-voting common stock - $ 1.00 par value;
−Removed: 5,000,000 shares authorized;
+Added: 5,000,000 shares
none issued or outstanding
convertible common stock - $ 2.00 par value;
−Removed: 6,000,000 shares authorized;
−Removed: 2,971,680 shares issued and outstanding as of March 31, 2024 and 2,971,854 shares issued and outstanding as of December 31, 2023
+Added: 6,000,000 shares
+Added: 3,120,166 shares issued and outstanding as of June 30, 2024
+Added: and 2,971,854 shares issued and outstanding as of December 31, 2023
Common stock value
4 unchanged sentences
Retained earnings
−Removed: Treasury stock at cost - 756,386 Class A shares and 35,717 Class C shares as of March 31, 2024;
−Removed: and 806,311 Class A shares and 35,717 Class C shares as of December 31, 2023
+Added: Treasury stock at cost - 966,102 Class A shares and 37,503 Class C shares
+Added: as of June 30, 2024;
+Added: and 806,311 Class A shares and 35,717 Class C
+Added: shares as of December 31, 2023
( 6,671,931 )
7 unchanged sentences
CONSOLIDATED STATEMENTS OF EARNINGS
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
Mortgage fee income
2 unchanged sentences
Net mortuary and cemetery sales
−Removed: Gains on investments and other assets
+Added: Gains (losses) on investments and other assets
Total revenues
3 unchanged sentences
Increase in future policy benefits
−Removed: Amortization of deferred policy and pre-need acquisition costs and value of business acquired
+Added: Amortization of deferred policy and pre-need acquisition
+Added: costs and value of business acquired
Selling, general and administrative expenses:
8 unchanged sentences
( 2,118,044 )
−Removed: Net earnings per Class A Equivalent common share (1)
−Removed: Net earnings per Class A Equivalent common share-assuming
+Added: ( 1,796,627 )
+Added: ( 4,262,833 )
+Added: ( 2,141,343 )
+Added: earnings per Class A Equivalent common share (1)
+Added: earnings per Class A Equivalent common share-assuming dilution (1)
Weighted-average Class A equivalent common shares outstanding (1)
8 unchanged sentences
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
Other comprehensive income:
1 unchanged sentence
$ ( 650,489 )
−Removed: Unrealized gains (losses) on restricted assets (1)
−Removed: Unrealized gains (losses) on cemetery perpetual care trust
−Removed: investments (1)
+Added: ( 4,993,177 )
+Added: ( 1,782,140 )
+Added: Unrealized losses on restricted assets (1)
+Added: Unrealized losses on cemetery perpetual care trust investments
Other comprehensive income (loss), before income tax
( 5,003,104 )
−Removed: Income tax (expense) benefit
( 1,787,548 )
+Added: Income tax (expense) benefit
Other comprehensive income (loss), net of income tax
+Added: ( 3,952,052 )
+Added: ( 1,412,227 )
Comprehensive income
−Removed: (1) Fixed maturity
−Removed: securities available for sale
+Added: maturity securities available for sale
accompanying notes to condensed consolidated financial statements (unaudited).
7 unchanged sentences
Treasury Stock
−Removed: Three Months Ended March 31, 2024
+Added: Six Months Ended June 30, 2024
Class A Common Stock
20 unchanged sentences
$ 320,103,974
−Removed: Three Months Ended March 31, 2023
+Added: Other comprehensive loss
+Added: Stock-based compensation expense
+Added: Exercise of stock options
+Added: Vesting of restricted stock units
+Added: Sale of treasury stock
+Added: Purchase of treasury stock
+Added: ( 1,588,058 )
+Added: ( 1,588,058 )
+Added: Conversion Class C to Class A
+Added: Stock dividends
+Added: ( 8,153,824 )
+Added: June 30, 2024
+Added: $ ( 8,297,785 )
+Added: $ 213,570,620
+Added: $ ( 6,671,931 )
+Added: $ 325,765,993
+Added: Six Months Ended June 30, 2023
Class A Common Stock
9 unchanged sentences
$ 292,786,927
−Removed: Balance, value
+Added: Adoption of ASU 2016-13
+Added: Other comprehensive income
+Added: Stock-based compensation expense
+Added: Exercise of stock options
+Added: Sale of treasury stock
+Added: Purchase of treasury stock
( 1,204,357 )
( 1,204,357 )
+Added: Conversion Class C to Class A
+Added: March 31, 2023
$ ( 8,942,719 )
$ 202,728,972
−Removed: Adoption of ASU 2016-13
−Removed: Other comprehensive income
+Added: $ ( 4,950,357 )
+Added: $ 297,033,642
+Added: $ ( 8,942,719 )
+Added: $ 202,728,972
+Added: $ ( 4,950,357 )
+Added: $ 297,033,642
+Added: Other comprehensive loss
+Added: ( 3,952,052 )
+Added: ( 3,952,052 )
+Added: Other comprehensive income (loss)
+Added: ( 3,952,052 )
+Added: ( 3,952,052 )
Stock-based compensation expense
Exercise of stock options
+Added: Vesting of restricted stock units
Sale of treasury stock
3 unchanged sentences
Conversion Class C to Class A
−Removed: March 31, 2023
+Added: Stock dividends
( 9,002,969 )
+Added: June 30, 2023
$ ( 12,894,771 )
1 unchanged sentence
$ ( 5,841,350 )
−Removed: Balance, value
$ 298,762,757
2 unchanged sentences
$ ( 5,841,350 )
+Added: $ 298,762,757
NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: Three Months Ended March 31,
+Added: Six Months Ended June 30,
Cash flows from operating activities:
−Removed: Net cash provided by (used in) operating activities
−Removed: $ ( 16,073,799 )
+Added: Net cash provided by operating activities
Cash flows from investing activities:
8 unchanged sentences
Purchases of restricted assets
+Added: ( 1,116,336 )
+Added: ( 1,148,199 )
Sales, calls and maturities of restricted assets
20 unchanged sentences
( 1,629,135 )
+Added: ( 2,591,416 )
Repayment of bank loans
3 unchanged sentences
( 1,114,584 )
+Added: ( 55,805,126 )
Net cash used in financing activities
12 unchanged sentences
Transfer of loans held for sale to mortgage loans held for investment
−Removed: Loans held for sale foreclosed into real estate held for sale
Right-of-use assets obtained in exchange for operating lease liabilities
+Added: Loans held for sale foreclosed into real estate held for sale
Benefit plans funded with treasury stock
+Added: Right-of-use assets obtained in exchange for finance lease liabilities
Transfer from mortgage loans held for investment to restricted assets
5 unchanged sentences
flows is presented in the table below:
−Removed: Three Months Ended March 31,
+Added: Six Months Ended June 30,
Cash and cash equivalents
$ 143,632,984
+Added: $ 110,285,941
Restricted assets
21 unchanged sentences
considered necessary for a fair presentation have been included.
−Removed: Operating results for the three month periods ended March 31, 2024 are
−Removed: not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
+Added: Operating results for the three and six month periods ended June 30,
+Added: 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires
65 unchanged sentences
new guidance on the consolidated financial statements.
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Recent Accounting Pronouncements (Continued)
“Income Taxes (Topic 740):
34 unchanged sentences
30, 2024 (Unaudited)
−Removed: Company’s investments as of March 31, 2024 are summarized as follows:
+Added: Company’s investments as of June 30, 2024 are summarized as follows:
of Investments
4 unchanged sentences
Estimated Fair Value
−Removed: March 31, 2024:
+Added: June 30, 2024:
Fixed maturity securities, available for sale, at estimated fair value:
2 unchanged sentences
$ ( 961,257 )
−Removed: $ ( 1,168,930 )
−Removed: $ 107,126,454
Obligations of states and political subdivisions
42 unchanged sentences
losses are net of allowance for credit losses
−Removed: (2) Includes $ 552,600
−Removed: of Membership stock and $ 1,773,300 of Activity stock attributable to short-term borrowings and letters of credit.
+Added: Includes $ 553,900 of Membership stock and $ 1,796,600 of Activity
+Added: stock attributable to short-term borrowings and letters of credit.
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
1 unchanged sentence
30, 2024 (Unaudited)
+Added: Investments (Continued)
Company’s investments as of December 31, 2023 are summarized as follows:
60 unchanged sentences
30, 2024 (Unaudited)
+Added: Investments (Continued)
were no investments, aggregated by issuer, of more than 10% of shareholders’ equity (before net unrealized gains and losses on
−Removed: equity securities and fixed maturity securities) as of March 31, 2024, other than investments issued or guaranteed by the United States
+Added: equity securities and fixed maturity securities) as of June 30, 2024, other than investments issued or guaranteed by the United States
Maturity Securities
table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as
−Removed: of March 31, 2024 and December 31, 2023.
+Added: of June 30, 2024 and December 31, 2023.
The fair values of fixed maturity securities are based on quoted market prices, when available.
9 unchanged sentences
Combined Fair Value
−Removed: March 31, 2024
+Added: June 30, 2024
Treasury securities and obligations of U.S.
13 unchanged sentences
$ 250,584,924
−Removed: holdings were comprised of 634 securities with fair values aggregating 95.2 % of the aggregate amortized cost as of March 31, 2024.
+Added: holdings were comprised of 646 securities with fair values aggregating 94.8 % of the aggregate amortized cost as of June 30, 2024.
holdings were comprised of 606 securities with fair values aggregating 94.9 % of the aggregate amortized cost as of December 31, 2023.
−Removed: Credit loss provision of $ 96,000 and $ 179,500 have been recognized for the three month periods ended March 31, 2024 and 2023, respectively.
−Removed: Credit losses are included in gains (losses) on investments and other assets on the condensed consolidated statements of earnings.
−Removed: unrealized losses for which no credit loss was recognized are primarily the result of increases in interest rates.
+Added: Credit loss release of $ 16,289 and credit loss provision of $ 44,505 have been recognized for the three month periods ended June 30, 2024
+Added: and 2023, respectively.
+Added: Credit loss provision of $ 79,711 and $ 224,005 have been recognized for the six month periods ended June 30, 2024
+Added: and 2023, respectively.
+Added: Credit losses are included in gains (losses) on investments and other assets on the condensed consolidated statements
+Added: Other unrealized losses for which no credit loss was recognized are primarily the result of increases in interest rates.
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
1 unchanged sentence
30, 2024 (Unaudited)
+Added: Investments (Continued)
of Allowance for Credit Losses
37 unchanged sentences
30, 2024 (Unaudited)
+Added: Investments (Continued)
Quality Indicators
5 unchanged sentences
Based on the NAIC designations, the Company
−Removed: had 98.1 % and 98.2 % of its fixed maturity securities rated investment grade as of March 31, 2024 and December 31, 2023, respectively.
+Added: had 98.1 % and 98.2 % of its fixed maturity securities rated investment grade as of June 30, 2024 and December 31, 2023, respectively.
The following table summarizes the credit quality, by NAIC designation, of the Company’s fixed maturity securities available for
1 unchanged sentence
of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation
−Removed: March 31, 2024
+Added: June 30, 2024
December 31, 2023
11 unchanged sentences
following tables present a roll forward of the Company’s allowance for credit losses on fixed maturity securities available for
+Added: sale for the three month periods ended June 30, 2024:
of Allowance for Credit Losses on Fixed Maturity Securities Available for Sale
−Removed: Three Months Ended March 31, 2024
+Added: Three Months Ended June 30, 2024
Treasury securities and obligations of U.S.
3 unchanged sentences
Mortgage-backed securities
−Removed: Beginning balance - January 1, 2024
+Added: Beginning balance - March 31, 2024
Additions for credit losses not previously recorded
4 unchanged sentences
Recoveries of amounts previously written off
−Removed: Ending Balance - March 31, 2024
+Added: Ending Balance - June 30, 2024
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
1 unchanged sentence
30, 2024 (Unaudited)
−Removed: Three Months Ended March 31, 2023
+Added: Investments (Continued)
+Added: Three Months Ended June 30, 2023
Treasury securities and obligations of U.S.
3 unchanged sentences
Mortgage-backed securities
+Added: Beginning balance - March 31, 2023
+Added: Additions for credit losses not previously recorded
+Added: Change in allowance on securities with previous allowance
+Added: Reductions for securities sold during the period
+Added: Reductions for securities with credit losses due to intent to sell
+Added: Write-offs charged against the allowance
+Added: Recoveries of amounts previously written off
+Added: Ending Balance - June 30, 2023
+Added: following tables present a roll forward of the Company’s allowance for credit losses on fixed maturity securities available for
+Added: sale for the six month periods ended June 30, 2024:
+Added: Six Months Ended June 30, 2024
+Added: Treasury securities and obligations of U.S.
+Added: Government agencies
+Added: Obligations of states and political subdivisions
+Added: Corporate securities including public utilities
+Added: Mortgage-backed securities
Beginning balance - January 1, 2024
5 unchanged sentences
Recoveries of amounts previously written off
−Removed: Ending Balance - March 31, 2023
−Removed: table below presents the amortized cost and the estimated fair value of fixed maturity securities available for sale as of March 31,
+Added: Ending Balance - June 30, 2024
+Added: Six Months Ended June 30, 2023
+Added: Treasury securities and obligations of U.S.
+Added: Government agencies
+Added: Obligations of states and political subdivisions
+Added: Corporate securities including public utilities
+Added: Mortgage-backed securities
+Added: Beginning balance - January 1, 2023
+Added: Additions for credit losses not previously recorded
+Added: Change in allowance on securities with previous allowance
+Added: Reductions for securities sold during the period
+Added: Reductions for securities with credit losses due to intent to sell
+Added: Write-offs charged against the allowance
+Added: Recoveries of amounts previously written off
+Added: Ending Balance - June 30, 2023
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Investments (Continued)
+Added: table below presents the amortized cost and the estimated fair value of fixed maturity securities available for sale as of June 30, 2024,
by contractual maturity.
−Removed: Actual or expected maturities may differ from contractual maturities because certain borrowers may have
−Removed: the right to call or prepay obligations with or without call or prepayment penalties.
+Added: Actual or expected maturities may differ from contractual maturities because certain borrowers may have the
+Added: right to call or prepay obligations with or without call or prepayment penalties.
of Investments Classified by Contractual Maturity Date
10 unchanged sentences
of Major Categories of Net Investment Income
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
Proceeds from sales
4 unchanged sentences
30, 2024 (Unaudited)
+Added: Investments (Continued)
on Deposit, Held in Trust, and Pledged as Collateral
1 unchanged sentence
of Assets on Deposit With Life Insurance
−Removed: March 31, 2024
−Removed: December 31, 2023
−Removed: Fixed maturity securities available for sale
−Removed: at estimated fair value
+Added: Fixed maturity securities available for sale at estimated fair value
Other investments
2 unchanged sentences
held in trust related to third-party reinsurance agreements were as follows:
−Removed: March 31, 2024
−Removed: December 31, 2023
−Removed: Fixed maturity securities available for sale
−Removed: at estimated fair value
+Added: Fixed maturity securities available for sale at estimated fair value
Cash and cash equivalents
4 unchanged sentences
These pledged securities are used as collateral for any FHLB cash advances.
−Removed: December 31, 2023
−Removed: Fixed maturity securities available for sale
−Removed: at estimated fair value
+Added: Fixed maturity securities available for sale at estimated fair value
Total assets pledged as collateral
13 unchanged sentences
30, 2024 (Unaudited)
+Added: Investments (Continued)
Company employs full-time employees to attend to the day-to-day operations of those assets within the greater Salt Lake area and close
4 unchanged sentences
in employment and population and that provide operational efficiencies.
−Removed: Company currently owns and operates seven commercial properties in two states.
−Removed: These properties include office buildings, flex office
−Removed: space, and the redevelopment and expansion of its corporate campus (“Center53”) in Salt Lake City, Utah.
−Removed: The Company uses
−Removed: bank debt in strategic cases, primarily where it is anticipated to improve yields, or facilitate the acquisition of higher quality assets
−Removed: or asset class diversification.
−Removed: aggregated net book value of commercial real estate serving as collateral for bank loans was $ 123,079,008 and $ 124,381,467 as of March
+Added: Company currently owns and operates six commercial properties in two states.
+Added: These properties include office buildings, flex office space,
+Added: and the redevelopment and expansion of its corporate campus (“Center53”) in Salt Lake City, Utah.
+Added: The Company uses bank debt
+Added: in strategic cases, primarily where it is anticipated to improve yields, or facilitate the acquisition of higher quality assets or asset
+Added: class diversification.
+Added: aggregated net book value of commercial real estate serving as collateral for bank loans was $ 121,972,571 and $ 124,381,467 as of June
30, 2024 and December 31, 2023, respectively.
−Removed: The associated bank loan carrying values totaled $ 97,359,494 and $ 97,807,614 as of March
+Added: The associated bank loan carrying values totaled $ 96,911,932 and $ 97,807,614 as of June
30, 2024 and December 31, 2023, respectively.
−Removed: the three month periods ended March 31, 2024 and 2023, the Company did not record any impairment losses on commercial real estate held
−Removed: for investment or held for sale.
−Removed: Impairment losses, if any, are included in gains (losses) on investment and other assets on the condensed
−Removed: consolidated statements of earnings.
−Removed: the three month periods ended March 31, 2024 and 2023, the Company recorded depreciation expense on commercial real estate held for investment
−Removed: of $ 1,527,793 and $ 1,565,927 , respectively.
−Removed: Commercial real estate held for investment is stated at cost and is depreciated over the
−Removed: estimated useful life, primarily using the straight-line method.
−Removed: Depreciation is included in net investment income on the consolidated
−Removed: statements of earnings.
+Added: the three and six month periods ended June 30, 2024 and 2023, the Company did not record any impairment losses on commercial real estate
+Added: held for investment or held for sale.
+Added: Impairment losses, if any, are included in gains (losses) on investment and other assets on the
+Added: condensed consolidated statements of earnings.
+Added: the three month periods ended June 30, 2024 and 2023, the Company recorded depreciation expense on commercial real estate held for investment
+Added: of $ 1,418,301 and $ 1,576,901 , respectively, and of $ 2,946,094 and $ 3,142,828 during the six month periods ended June 30, 2024 and 2023,
+Added: respectively.
+Added: Commercial real estate held for investment is stated at cost and is depreciated over the estimated useful life, primarily
+Added: using the straight-line method.
+Added: Depreciation is included in net investment income on the consolidated statements of earnings.
Company’s commercial real estate held for investment is summarized as follows as of the respective dates indicated:
2 unchanged sentences
Total Square Footage
−Removed: March 31, 2024
December 31, 2023
−Removed: March 31, 2024
December 31, 2023
7 unchanged sentences
30, 2024 (Unaudited)
+Added: Investments (Continued)
Company’s commercial real estate held for sale is summarized as follows as of the respective dates indicated:
8 unchanged sentences
of approximately $ 250,000 .
−Removed: (2) Sold in April 2024
−Removed: for a gain of approximately $ 3,000
property is being marketed with the assistance of commercial real estate brokers in Mississippi.
9 unchanged sentences
residential property portfolio.
−Removed: the three month periods ended March 31, 2024 and 2023 the Company did no t record any impairment losses on residential real estate held
−Removed: for sale or held for investment.
−Removed: Impairment losses, if any, are included in gains (losses) on investment and other assets on the condensed
−Removed: consolidated statements of earnings.
−Removed: the three month periods ended March 31, 2024 and 2023, the Company recorded depreciation expense on residential real estate held for
−Removed: investment of $ 2,653 and $ 2,648 , respectively.
−Removed: Residential real estate held for investment is stated at cost and is depreciated over
−Removed: the estimated useful life, primarily using the straight-line method.
−Removed: Depreciation is included in net investment income on the consolidated
−Removed: statements of earnings.
+Added: the three and six month periods ended June 30, 2024 and 2023 the Company did no t record any impairment losses on residential real estate
+Added: held for sale or held for investment.
+Added: Impairment losses, if any, are included in gains (losses) on investment and other assets on the
+Added: condensed consolidated statements of earnings.
+Added: the three month periods ended June 30, 2024 and 2023, the Company recorded depreciation expense on residential real estate held for investment
+Added: of $ 2,653 and $ 2,648 , respectively, and $ 5,305 and $ 5,296 during the six month periods ended June 30, 2024 and 2023, respectively.
+Added: real estate held for investment is stated at cost and is depreciated over the estimated useful life, primarily using the straight-line
+Added: Depreciation is included in net investment income on the consolidated statements of earnings.
Company’s residential real estate held for investment is summarized as follows as of the respective dates indicated:
1 unchanged sentence
Net Book Value
−Removed: March 31, 2024
−Removed: December 31, 2023
(1) Includes multiple
3 unchanged sentences
30, 2024 (Unaudited)
+Added: Investments (Continued)
following table presents additional information regarding the Company’s residential subdivision development in Utah:
−Removed: March 31, 2024
−Removed: December 31, 2023
Lots developed
2 unchanged sentences
Net Book Value
−Removed: March 31, 2024
−Removed: December 31, 2023
−Removed: net book value of foreclosed residential real estate included in residential real estate held for sale was $ 859,599 and nil as of March
+Added: net book value of foreclosed residential real estate included in residential real estate held for sale was $ 858,977 and nil as of June
30, 2024 and December 31, 2023, respectively.
1 unchanged sentence
primary business units of the Company occupy a portion of the real estate owned by the Company.
−Removed: As of March 31, 2024, real estate owned
+Added: As of June 30, 2024, real estate owned
and occupied by the Company is summarized as follows:
7 unchanged sentences
Life Insurance Operations
−Removed: 909 Foisy Street, Alexandria, LA (2) (3)
−Removed: Life Insurance Sales
812 Sheppard Street, Minden, LA (2) (3)
Life Insurance Sales
−Removed: (1) Included in real estate held for investment on the condensed consolidated balance sheets
−Removed: (2) Included in property and equipment on the condensed consolidated balance sheets
−Removed: (3) Sold in April 2024 for a loss of approximately $ 39,000
+Added: (1) Included in real
+Added: estate held for investment on the condensed consolidated balance sheets
+Added: (2) Included in property
+Added: and equipment on the condensed consolidated balance sheets
(3) Listed for sale
3 unchanged sentences
maturity dates range from nine months to 30 years and the loans are secured by real estate.
−Removed: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: to Condensed Consolidated Financial Statements
−Removed: 31, 2024 (Unaudited)
Concentrations
5 unchanged sentences
of the geographic region in which the debtors do business or are employed.
−Removed: As of March 31, 2024, the Company had 43 %, 11 %, 8 %, 8 % and
−Removed: 7 %, of its mortgage loans from borrowers located in the states of Utah, Florida, California, Texas, and Arizona, respectively.
+Added: As of June 30, 2024, the Company had 47 %, 10 %, 8 %, 7 % and
+Added: 7 %, of its mortgage loans from borrowers located in the states of Utah, Texas, Florida, California, and Arizona, respectively.
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.
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Investments (Continued)
loans held for investment are carried at their unpaid principal balances adjusted for net deferred fees, charge-offs, premiums, discounts,
29 unchanged sentences
Interest not accrued
−Removed: on these loans totaled approximately $ 328,000 and $ 237,000 as of March 31, 2024 and December 31, 2023, respectively.
+Added: on these loans totaled approximately $ 274,000 and $ 237,000 as of June 30, 2024 and December 31, 2023, respectively.
Company measures expected credit losses based on the fair value of the collateral when the Company determines that foreclosure is probable.
11 unchanged sentences
guarantor’s) ability to repay.
−Removed: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: to Condensed Consolidated Financial Statements
−Removed: 31, 2024 (Unaudited)
loans are evaluated for credit loss by analyzing common metrics that are predictors for future credit losses such as debt service coverage
8 unchanged sentences
the allowance for credit losses.
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Investments (Continued)
— These loans are secured by first and second mortgages on single-family dwellings.
29 unchanged sentences
at least annually or as loan losses or market trends require.
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Investments (Continued)
following table presents a roll forward of the allowance for credit losses as of the dates indicated:
2 unchanged sentences
Residential Construction
+Added: Beginning balance - March 31, 2024
+Added: Adoption of ASU 2016-13 (1)
+Added: Change in provision for credit losses
+Added: Ending balance - June 30, 2024
+Added: Beginning balance - March 31, 2023
+Added: Change in provision for credit losses (2)
+Added: Ending balance - June 30, 2023
+Added: Six Months Ended
+Added: Residential Construction
Beginning balance - January 1, 2024
Change in provision for credit losses (2)
−Removed: Ending balance - March 31, 2024
+Added: Ending balance - June 30, 2024
Beginning balance - January 1, 2023
1 unchanged sentence
Change in provision for credit losses (2)
−Removed: Ending balance - March 31, 2023
+Added: Ending balance - June 30, 2023
(1) See Note 2 of the
8 unchanged sentences
of Aging of Mortgage Loans
−Removed: March 31, 2024
+Added: June 30, 2024
30-59 days past due
14 unchanged sentences
$ 111,709,170
+Added: $ 284,343,531
December 31, 2023
28 unchanged sentences
aggregate unpaid principal balance of commercial mortgage loans by credit quality indicator and origination year was as follows as of
−Removed: March 31, 2024:
+Added: June 30, 2024:
of Commercial Mortgage Loans By Credit Quality Indicator
−Removed: Credit Quality Indicator LTV:
+Added: Credit Quality Indicator
Less than 65%
3 unchanged sentences
December 31, 2023:
−Removed: Quality Indicator LTV:
+Added: Credit Quality Indicator
Less than 65%
12 unchanged sentences
aggregate unpaid principal balance of residential mortgage loans by credit quality indicator and origination year was as follows as of
−Removed: March 31, 2024:
+Added: June 30, 2024:
Credit Quality Indicator
Performance Indicators:
−Removed: $ 102,067,810
Non-performing (1)
25 unchanged sentences
aggregate unpaid principal balance of residential construction mortgage loans by credit quality indicator and origination year was as
−Removed: follows as of March 31, 2024:
+Added: follows as of June 30, 2024:
Schedule of Residential Construction Mortgage Loans
1 unchanged sentence
Performance Indicators:
+Added: $ 112,571,713
Non-performing
+Added: $ 112,571,713
Less than 65%
Greater than 80%
+Added: $ 112,571,713
aggregate unpaid principal balance of residential construction mortgage loans by credit quality indicator and origination year was as
15 unchanged sentences
of Aging of Insurance Assignments
−Removed: March 31, 2024
−Removed: December 31, 2023
+Added: As of June 30,
+Added: As of December 31,
30-59 days past due
14 unchanged sentences
Three Months Ended
+Added: Beginning balance - March 31, 2024
+Added: Change in provision for credit losses (1)
+Added: Ending balance - June 30, 2024
+Added: Beginning balance - March 31, 2023
+Added: Change in provision for credit losses (1)
+Added: Ending balance - June 30, 2023
+Added: Six Months Ended
Beginning balance - January 1, 2024
Change in provision for credit losses (1)
−Removed: Ending balance - March 31, 2024
+Added: Ending balance - June 30, 2024
Beginning balance - January 1, 2023
Change in provision for credit losses (1)
−Removed: Ending balance - March 31, 2023
+Added: Ending balance - June 30, 2023
(1) Included in other
8 unchanged sentences
of Gain (Loss) on Investments
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
Fixed maturity securities:
1 unchanged sentence
Gross realized losses
−Removed: Net credit loss provision
+Added: Net credit loss release (provision)
Equity securities:
−Removed: Losses on securities sold
−Removed: Unrealized gains on securities held at the end of the period
+Added: Gains (losses) on securities sold
+Added: Unrealized gains (losses) on securities held at the end of the period
Real estate held for investment and sale:
4 unchanged sentences
Gross realized losses
+Added: $ ( 377,239 )
realized gains and losses on the sale of securities are recorded on the trade date, and the cost of the securities sold is determined
1 unchanged sentence
realized gains and losses includes gains and losses by the restricted assets and cemetery perpetual care trust investments of the cemeteries
−Removed: and mortuaries of $ 582,172 in net gains and $ 53,931 in net gains for the three month periods ended March 31, 2024 and 2023, respectively.
+Added: and mortuaries of $ 202,800 in net losses and $ 197,580 in net gains for the three month periods ended June 30, 2024 and 2023, respectively,
+Added: and of $ 379,363 and $ 251,510 in net gains for the six month periods ended June 30, 2024 and 2023, respectively.
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
3 unchanged sentences
categories of net investment income were as follows:
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
Fixed maturity securities available for sale
9 unchanged sentences
( 4,140,085 )
+Added: ( 7,998,286 )
+Added: ( 8,256,256 )
Net investment income
−Removed: investment income includes income earned by the restricted assets of the cemeteries and mortuaries of $ 933,551 and $ 633,527 for the three
−Removed: month periods ended March 31, 2024 and 2023, respectively.
+Added: investment income includes income earned by the restricted assets of the cemeteries and mortuaries of $ 470,808 and $ 1,250,861 for the
+Added: three month periods ended June 30, 2024 and 2023, respectively, and of $ 1,404,359 and $ 1,852,352 for the six month periods ended June
+Added: 30, 2024 and 2023, respectively.
investment income on real estate consists primarily of rental revenue.
4 unchanged sentences
of Accrued Investment Income
+Added: As of June 30,
+Added: As of December 31,
Fixed maturity securities available for sale
14 unchanged sentences
Included in loans held for sale are loans in the process of foreclosure with an aggregate unpaid principal balance of $ 311,117
−Removed: and $ 1,636,090 as of March 31, 2024 and December 31, 2023, respectively.
+Added: and $ 1,636,090 as of June 30, 2024 and December 31, 2023, respectively.
See Note 8 to the condensed consolidated financial statements
2 unchanged sentences
of Aggregate Fair Value Loans Held for Sale
−Removed: March 31, 2024
−Removed: December 31, 2023
+Added: As of June 30,
+Added: As of December 31,
Aggregate fair value
2 unchanged sentences
Unpaid principal balance
−Removed: Unrealized loss
+Added: Unrealized gain (loss)
fee income consists of origination fees, processing fees, interest income and other income related to the origination and sale of mortgage
2 unchanged sentences
of Mortgage Fee Income for Loans Held for Sale
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
Interest income
2 unchanged sentences
Change in fair value of loans held for sale
+Added: ( 1,401,738 )
Provision for loan loss reserve
14 unchanged sentences
of Loan Loss Reserve Included in Other Liabilities and Accrued Expenses
−Removed: As of March 31, 2024
+Added: As of June 30,
As of December 31,
6 unchanged sentences
Company maintains reserves for estimated losses on current production volumes.
−Removed: For the three month period ended March 31, 2024, $ 163,476
+Added: For the six month period ended June 30, 2024, $ 475,601
in reserves were added at a rate of 4.4 basis points per loan, the equivalent of $ 440 per $ 1,000,000 in loans originated.
This is a decrease
−Removed: over the three month period ended March 31, 2023, when reserves of $ 239,801 were added at a rate of 4.5 basis points per loan originated,
+Added: over the six month period ended June 30, 2023, when reserves of $ 513,431 were added at a rate of 4.5 basis points per loan originated,
the equivalent of $ 450 per $ 1,000,000 in loans originated.
7 unchanged sentences
based compensation expense for stock options issued of $ 183,184 and $ 142,696 has been recognized for these plans for the three month
−Removed: periods ended March 31, 2024 and 2023, respectively, and is included in personnel expenses on the condensed consolidated statements of
−Removed: As of March 31, 2024, the total unrecognized compensation expense related to the options issued was $ 512,854 , which is expected
−Removed: to be recognized over the remaining vesting period.
+Added: periods ended June 30, 2024 and 2023, respectively, and $ 382,182 and $ 284,883 has been recognized for these plans for the six month periods
+Added: ended June 30, 2024 and 2023, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings.
+Added: As of June 30, 2024, the total unrecognized compensation expense related to the options issued was $ 329,670 , which is expected to be
+Added: recognized over the remaining vesting period.
fair value of each option granted is estimated on the date of grant using the Black Scholes Option Pricing Model.
5 unchanged sentences
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.
−Removed: of the stock option plans during the three month period ended March 31, 2024, is summarized as follows:
+Added: of the stock option plans during the six month period ended June 30, 2024, is summarized as follows:
Schedule of Activity of Stock Option Plans
4 unchanged sentences
Outstanding at January 1, 2024
−Removed: Outstanding at March 31, 2024
−Removed: As of March 31, 2024:
+Added: Adjustment for the effect of stock dividends
+Added: Outstanding at June 30, 2024
+Added: As of June 30, 2024:
Options exercisable
−Removed: As of March 31, 2024:
+Added: As of June 30, 2024:
Available options for future grant
−Removed: Weighted average contractual term of options outstanding at March 31, 2024
−Removed: Weighted average contractual term of options exercisable at March 31, 2024
−Removed: Aggregated intrinsic value of options outstanding at March 31, 2024 (1)
−Removed: Aggregated intrinsic value of options exercisable at March 31, 2024 (1)
+Added: Weighted average contractual term of options outstanding at June 30, 2024
+Added: Weighted average contractual term of options exercisable at June 30, 2024
+Added: Aggregated intrinsic value of options outstanding at June 30, 2024 (1)
+Added: Aggregated intrinsic value of options exercisable at June 30, 2024 (1)
(1) The Company used
−Removed: a stock price of $ 7.91 as of March 31, 2024 to derive intrinsic value.
+Added: a stock price of $ 7.61 as of June 30, 2024 to derive intrinsic value.
(2) Adjusted for the
3 unchanged sentences
30, 2024 (Unaudited)
−Removed: Stock Compensation Plans
−Removed: of the stock option plans during the three month period ended March 31, 2023, is summarized as follows:
+Added: Stock Compensation Plans (Continued)
+Added: of the stock option plans during the six month period ended June 30, 2023, is summarized as follows:
Class A Shares
3 unchanged sentences
Outstanding at January 1, 2023
−Removed: Outstanding at March 31, 2023
−Removed: As of March 31, 2023:
+Added: Adjustment for the effect of stock dividends
+Added: Outstanding at June 30, 2023
+Added: As of June 30, 2023:
Options exercisable
−Removed: As of March 31, 2023:
+Added: As of June 30, 2023:
Available options for future grant
−Removed: Weighted average contractual term of options outstanding at March 31, 2023
−Removed: Weighted average contractual term of options exercisable at March 31, 2023
−Removed: Aggregated intrinsic value of options outstanding at March 31, 2023 (1)
−Removed: Aggregated intrinsic value of options exercisable at March 31, 2023 (1)
+Added: Weighted average contractual term of options outstanding at June 30, 2023
+Added: Weighted average contractual term of options exercisable at June 30, 2023
+Added: Aggregated intrinsic value of options outstanding at June 30, 2023 (1)
+Added: Aggregated intrinsic value of options exercisable at June 30, 2023 (1)
(1) The Company used
−Removed: a stock price of $ 6.23 as of March 31, 2023 to derive intrinsic value.
+Added: a stock price of $ 8.45 as of June 30, 2023 to derive intrinsic value.
(2) Adjusted for the
1 unchanged sentence
total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on
−Removed: the exercise date) of stock options exercised during the three month periods ended March 31, 2024 and 2023 was nil and $ 176,935 , respectively.
+Added: the exercise date) of stock options exercised during the six month periods ended June 30, 2024 and 2023 was $ 142,210 and $ 387,561 , respectively.
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
1 unchanged sentence
30, 2024 (Unaudited)
−Removed: Stock Compensation Plans
+Added: Stock Compensation Plans (Continued)
Stock Units (“RSUs”)
−Removed: based compensation expense for RSUs issued of $ 889 and $ 742 has been recognized under these plans for each of the three month periods
−Removed: ended March 31, 2024 and 2023, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings.
−Removed: As of March 31, 2024, the total unrecognized compensation expense related to the RSUs issued was $ 2,375 , which is expected to be recognized
−Removed: over the remaining vesting period.
−Removed: of the RSUs during the three month period ended March 31, 2024 is summarized as follows:
+Added: based compensation expense for RSUs issued of $ 882 and nil has been recognized under these plans for the three month periods ended June
+Added: 30, 2024 and 2023, respectively, and of $ 1,771 and $ 742 has been recognized under these plans for the six month periods ended June 30,
+Added: 2024 and 2023, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings.
+Added: The fair value
+Added: of each RSU granted is determined by the Company’s stock price on the date of the grant.
+Added: As of June 30, 2024, the total unrecognized
+Added: compensation expense related to the RSUs issued was $ 1,493 , which is expected to be recognized over the remaining vesting period.
+Added: of the RSUs during the six month period ended June 30, 2024 is summarized as follows:
Schedule of Activity Restricted Stock Units
2 unchanged sentences
Non-vested at January 1, 2024
−Removed: Non-vested at March 31, 2024
+Added: Non-vested at June 30, 2024
Available RSUs for future grant
−Removed: of the RSUs during the three month period ended March 31, 2023 is summarized as follows:
+Added: of the RSUs during the six month period ended June 30, 2023 is summarized as follows:
Class A Shares
12 unchanged sentences
Three Months Ended
+Added: Six Months Ended
Basic weighted-average shares outstanding
4 unchanged sentences
Diluted net earnings per share
−Removed: the three month periods ended March 31, 2024 and 2023, there were 467,125 and 730,270 anti-dilutive stock option shares, respectively,
−Removed: that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive.
−Removed: diluted earnings per share amounts are the same for each class of common stock.
+Added: the six month periods ended June 30, 2024 and 2023, there were 143,456 and 55,125 anti-dilutive stock option shares, respectively, that
+Added: were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive.
+Added: Basic and diluted
+Added: earnings per share amounts are the same for each class of common stock.
following table summarizes the activity in shares of capital stock.
1 unchanged sentence
Outstanding shares at December 31, 2022
−Removed: Stock dividends
Exercise of stock options
Vesting of restricted stock units
+Added: Stock dividends
Conversion of Class C to Class A
−Removed: Outstanding shares at March 31, 2023
+Added: Outstanding shares at June 30, 2023
Outstanding shares at December 31, 2023
2 unchanged sentences
Vesting of restricted stock units
+Added: Stock dividends
Conversion of Class C to Class A
−Removed: Outstanding shares at March 31, 2024
+Added: Outstanding shares at June 30, 2024
Common stock, outstanding shares, ending
8 unchanged sentences
segment consists of life insurance premiums and operating expenses from the sale of insurance products sold by the Company’s independent
−Removed: agency force and net investment income derived from investing policyholder and segment surplus funds.
+Added: agency force and net investment income derived from investing policyholders and segment surplus funds.
The Company’s cemetery and
3 unchanged sentences
The Company’s mortgage segment consists of fee income and expenses from
−Removed: the originations of residential mortgage loans and interest earned and interest expenses from warehousing loans held for sale.
+Added: the origination of residential mortgage loans and interest earned and interest expenses from warehousing loans held for sale.
of Segment Profit or Loss and Segment Assets
8 unchanged sentences
to determine when other business segments may need to be reported.
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Business Segment Information (Continued)
Schedule of Revenues and Expenses by Reportable Segment
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, 2024
+Added: June 30, 2024
Revenues from external customers
2 unchanged sentences
Segment profit (loss) before income taxes
+Added: For the Six Months Ended
+Added: June 30, 2024
+Added: Revenues from external customers
$ 166,979,534
+Added: Intersegment revenues
+Added: ( 3,746,678 )
+Added: Segment profit (loss) before income taxes
+Added: ( 1,829,261 )
Identifiable Assets
6 unchanged sentences
$ ( 98,929,803 )
+Added: $ 1,460,724,521
For the Three Months Ended
−Removed: March 31, 2023
+Added: June 30, 2023
Revenues from external customers
3 unchanged sentences
( 3,837,012 )
+Added: For the Six Months Ended
+Added: June 30, 2023
+Added: Revenues from external customers
+Added: $ 163,346,893
+Added: Intersegment revenues
+Added: ( 4,455,627 )
+Added: Segment profit (loss) before income taxes
+Added: ( 7,720,451 )
Identifiable Assets
18 unchanged sentences
value measurements are classified under the following hierarchy:
−Removed: Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or
−Removed: liabilities in an active market that the Company can access.
+Added: Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities
+Added: in an active market that the Company can access.
Financial assets and financial liabilities whose values are based on the following:
−Removed: Quoted prices for similar assets or liabilities in active markets.
−Removed: Quoted prices for identical or similar assets or liabilities
−Removed: in non-active markets;
−Removed: models whose inputs are observable, directly or indirectly, for substantially the full term
−Removed: of the asset or liability.
−Removed: Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that
−Removed: are both unobservable and significant to the overall fair value measurement.
−Removed: These inputs may reflect the Company’s estimates
−Removed: of the assumptions that market participants would use in valuing financial assets and financial liabilities.
+Added: prices for similar assets or liabilities in active markets.
+Added: prices for identical or similar assets or liabilities in non-active markets;
+Added: models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.
+Added: Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are
+Added: both unobservable and significant to the overall fair value measurement.
+Added: These inputs may reflect the Company’s estimates of the
+Added: assumptions that market participants would use in valuing financial assets and financial liabilities.
Company utilizes a combination of third-party valuation service providers, brokers, and internal valuation models to determine fair value.
23 unchanged sentences
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: Notes to Condensed Consolidated Financial Statements
−Removed: March 31, 2024 (Unaudited)
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
Fair Value of Financial Instruments (Continued)
31 unchanged sentences
For residential
−Removed: construction loans, the collateral is typically incomplete, so fair value is estimated as the replacement cost using data from a provider
−Removed: of building cost information to the real estate construction.
+Added: construction loans, the collateral is typically incomplete, so the fair value is estimated as the replacement cost using data from a
+Added: provider of building cost information to the real estate construction.
Real Estate Held for Investment :
9 unchanged sentences
The Company also
−Removed: considers area comparable properties and property condition when determining fair value.
+Added: considers area comparable properties and property conditions when determining fair value.
addition to this analysis performed by the Company, the Company depreciates Real Estate Held for Investment.
6 unchanged sentences
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: Notes to Condensed Consolidated Financial Statements
−Removed: March 31, 2024 (Unaudited)
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
Fair Value of Financial Instruments (Continued)
following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by
−Removed: their classification in the condensed consolidated balance sheet as of March 31, 2024:
+Added: their classification in the condensed consolidated balance sheet as of June 30, 2024:
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis
−Removed: Quoted Prices in Active Markets for Identical Assets
+Added: Quoted Prices in Active Markets for Identical
Significant Observable Inputs
Significant Unobservable Inputs
−Removed: Assets accounted for at fair value on a recurring basis
+Added: Assets accounted for at fair value on a
+Added: recurring basis
Fixed maturity securities available for sale
8 unchanged sentences
Derivatives - loan commitments (3)
−Removed: Total assets accounted for at fair value on a recurring basis
+Added: Total assets accounted for at fair value on a
+Added: recurring basis
$ 535,502,200
1 unchanged sentence
$ 157,057,397
−Removed: Liabilities accounted for at fair value on a recurring basis
+Added: Liabilities accounted for at fair value on a
+Added: recurring basis
Derivatives - loan commitments (4)
1 unchanged sentence
( 3,048,649 )
−Removed: Total liabilities
−Removed: accounted for at fair value on a recurring basis
+Added: Total liabilities accounted for at fair value
+Added: on a recurring basis
$ ( 3,048,649 )
8 unchanged sentences
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: Notes to Condensed Consolidated Financial Statements
−Removed: March 31, 2024 (Unaudited)
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
Fair Value of Financial Instruments (Continued)
1 unchanged sentence
their classification in the condensed consolidated balance sheet as of December 31, 2023:
−Removed: Quoted Prices in Active Markets for Identical Assets
+Added: Quoted Prices in Active Markets for Identical
Significant Observable Inputs
Significant Unobservable Inputs
−Removed: Assets accounted for at fair value on a recurring basis
+Added: Assets accounted for at fair value on a
+Added: recurring basis
Fixed maturity securities available for sale
8 unchanged sentences
Derivatives - loan commitments (3)
−Removed: Total assets accounted for at fair value on a recurring basis
+Added: Total assets accounted for at fair value on a
+Added: recurring basis
$ 540,924,801
1 unchanged sentence
$ 132,783,332
−Removed: Liabilities accounted for at fair value on a recurring basis
+Added: Liabilities accounted for at fair value on a
+Added: recurring basis
Derivatives - loan commitments (4)
1 unchanged sentence
$ ( 3,412,224 )
−Removed: Total liabilities accounted for at fair value on a recurring basis
+Added: Total liabilities accounted for at fair value
+Added: on a recurring basis
$ ( 3,412,224 )
8 unchanged sentences
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: Notes to Condensed Consolidated Financial Statements
−Removed: March 31, 2024 (Unaudited)
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
Fair Value of Financial Instruments (Continued)
−Removed: Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2024, the significant unobservable inputs
−Removed: used in the fair value measurements were as follows:
+Added: Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 2024, the significant unobservable inputs used
+Added: in the fair value measurements were as follows:
of Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis
1 unchanged sentence
Fair Value at
−Removed: March 31, 2024
+Added: June 30, 2024
Loans held for sale
26 unchanged sentences
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: Notes to Condensed Consolidated Financial Statements
−Removed: March 31, 2024 (Unaudited)
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
Fair Value of Financial Instruments (Continued)
following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the
−Removed: three month period ended March 31, 2024:
+Added: three month period ended June 30, 2024:
Schedule of Changes in Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs
−Removed: Loan Commitments
−Removed: Held for Sale
−Removed: Maturity Securities Available for Sale
+Added: Net Loan Commitments
+Added: Loans Held for Sale
+Added: Fixed Maturity Securities Available for Sale
+Added: Balance - March 31, 2024
+Added: $ 112,678,958
+Added: Originations and purchases
+Added: Sales, maturities and paydowns
+Added: ( 599,685,654 )
+Added: Total gains (losses):
+Added: Included in earnings
+Added: 12,984,711 (1)
+Added: Included in other comprehensive income
+Added: Balance - June 30, 2024
+Added: $ 150,196,416
+Added: (1) As a component
+Added: of Mortgage fee income on the condensed consolidated statements of earnings
+Added: (2) As a component
+Added: of Net investment income on the condensed consolidated statements of earnings
+Added: following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the
+Added: three month period ended June 30, 2023:
+Added: Net Loan Commitments
+Added: Loans Held for Sale
+Added: Fixed Maturity Securities Available for Sale
+Added: Balance - March 31, 2023
+Added: $ 173,015,404
+Added: Originations and purchases
+Added: Sales, maturities and paydowns
+Added: ( 628,567,681 )
+Added: Transfer to mortgage loans held for investment
+Added: ( 1,150,074 )
+Added: Total gains (losses):
+Added: Included in earnings
+Added: ( 151,382 )(1)
+Added: 10,144,966 (1)
+Added: Included in other comprehensive income
+Added: Balance - June 30, 2023
+Added: $ 161,310,060
+Added: (1) As a component
+Added: of Mortgage fee income on the condensed consolidated statements of earnings
+Added: (2) As a component
+Added: of Net investment income on the condensed consolidated statements of earnings
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Fair Value of Financial Instruments (Continued)
+Added: following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the
+Added: six month period ended June 30, 2024:
+Added: Net Loan Commitments
+Added: Loans Held for Sale
+Added: Fixed Maturity Securities Available for Sale
Balance - December 31, 2023
1 unchanged sentence
Originations and purchases
+Added: 1,089,823,515
Sales, maturities and paydowns
2 unchanged sentences
( 1,867,552 )
−Removed: Foreclosed into real estate held for sale
+Added: Loans held for sale foreclosed into real estate held for sale
Total gains (losses):
Included in earnings
−Removed: Included in other comprehensive
−Removed: Balance - March 31, 2024
22,286,832 (1)
+Added: Included in other comprehensive income
+Added: Balance - June 30, 2024
+Added: $ 150,196,416
(1) As a component
3 unchanged sentences
following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the
−Removed: three month period ended March 31, 2023:
+Added: six month period ended June 30, 2023:
Net Loan Commitments
4 unchanged sentences
Originations and purchases
+Added: 1,139,735,241
Sales, maturities and paydowns
( 1,140,477,623 )
+Added: Transfer to mortgage loans held for investment
+Added: ( 1,150,074 )
Total gains (losses):
2 unchanged sentences
Included in other comprehensive income
−Removed: Balance - March 31, 2023
+Added: Balance - June 30, 2023
$ 161,310,060
3 unchanged sentences
of Net investment income on the condensed consolidated statements of earnings
−Removed: Company did not have any financial assets and financial liabilities measured at fair value on a nonrecurring basis as of March 31, 2024
+Added: Company did not have any financial assets and financial liabilities measured at fair value on a nonrecurring basis as of June 30, 2024
and as of December 31, 2023.
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: Notes to Condensed Consolidated Financial Statements
−Removed: March 31, 2024 (Unaudited)
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
Fair Value of Financial Instruments (Continued)
6 unchanged sentences
Therefore, for substantially all financial instruments, the fair value estimates presented herein
−Removed: are not necessarily indicative of the amounts the Company could have realized in a sales transaction as of March 31, 2024 and December
+Added: are not necessarily indicative of the amounts the Company could have realized in a sales transaction as of June 30, 2024 and December
carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy,
−Removed: are summarized as follows as of March 31, 2024:
+Added: are summarized as follows as of June 30, 2024:
Schedule of Financial Instruments Carried at Other Than Fair Value
3 unchanged sentences
$ 100,537,622
−Removed: $ 100,743,889
−Removed: $ 100,743,889
Residential construction
26 unchanged sentences
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: Notes to Condensed Consolidated Financial Statements
−Removed: March 31, 2024 (Unaudited)
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
Fair Value of Financial Instruments (Continued)
107 unchanged sentences
30, 2024 (Unaudited)
−Removed: Instruments (Continued)
+Added: Derivative Instruments (Continued)
Sale Commitments
9 unchanged sentences
Schedule of Derivative Assets at Fair Value
−Removed: Sheet Location
−Removed: not designated as hedging instruments:
−Removed: assets and Other liabilities
+Added: June 30, 2024
+Added: December 31, 2023
+Added: Balance Sheet Location
+Added: Notional Amount
+Added: Asset Fair Value
+Added: Liability Fair Value
+Added: Notional Amount
+Added: Asset Fair Value
+Added: Liability Fair Value
+Added: Derivatives not designated as hedging instruments:
+Added: Loan commitments
+Added: Other assets and Other liabilities
$ 229,458,247
6 unchanged sentences
Schedule of Gains and Losses on Derivatives
−Removed: Months Ended March 31,
+Added: Net Amount Gain (Loss)
+Added: Net Amount Gain (Loss)
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
Classification
+Added: Loan commitments
+Added: Mortgage fee income
+Added: $ ( 151,382 )
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
17 unchanged sentences
Covenants for Mortgage Warehouse Lines of Credit
−Removed: Company, through its subsidiary SecurityNational Mortgage, has a line of credit with Texas Capital Bank N.A.
−Removed: This agreement allows SecurityNational
−Removed: Mortgage to borrow up to $ 100,000,000 for the sole purpose of funding mortgage loans (the “Texas Capital Bank Warehouse Line of
−Removed: The agreement charges interest at the 1-Month SOFR rate plus 2.0% and matures on November 30, 2024 .
−Removed: The Company is required
−Removed: to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax income (excluding any
−Removed: changes in the fair value of mortgage servicing rights) of at least $ 1.00 on a rolling four-quarter basis.
+Added: Company, through its subsidiary SecurityNational Mortgage Company (“SecurityNational Mortgage”), has a line of credit with
+Added: Texas Capital Bank N.A.
+Added: This agreement allows SecurityNational Mortgage to borrow up to $ 100,000,000 for the sole purpose of funding
+Added: mortgage loans (the “Texas Capital Bank Warehouse Line of Credit”).
+Added: The agreement charges interest at the 1-Month SOFR rate
+Added: plus 2.0% and matures on November 30, 2024 .
+Added: The Company is required to comply with covenants for adjusted tangible net worth, unrestricted
+Added: cash balance, and minimum combined pre-tax income (excluding any changes in the fair value of mortgage servicing rights) of at least
+Added: $ 1.00 on a rolling four-quarter basis.
Company through its subsidiary SecurityNational Mortgage, has a line of credit with U.S Bank.
4 unchanged sentences
The agreement charges
−Removed: 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 .
−Removed: The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax
−Removed: income (excluding any changes in the fair value of mortgage servicing rights) of at least $ 1.00 on a rolling twelve months.
+Added: 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 June 20,
+Added: The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined
+Added: pre-tax income (excluding any changes in the fair value of mortgage servicing rights) of at least $ 1.00 on a rolling twelve months.
+Added: Company, through its subsidiary SecurityNational Mortgage, has a line of credit with Western Alliance Bank.
+Added: This agreement allows SecurityNational
+Added: Mortgage to borrow up to $ 35,000,000 for the sole purpose of funding mortgage loans (the “Western Alliance Bank Warehouse Line
+Added: The agreement charges interest at the 1-Month SOFR rate plus 2.0% and matures on June 20, 2025 .
+Added: The Company is required
+Added: to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax income of at least
+Added: $ 1.00 on a quarterly basis.
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Reinsurance, Commitments and Contingencies (Continued)
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.
−Removed: As of March 31, 2024, the Company was
−Removed: not in compliance with the net income covenant of the warehouse lines of credit and its operating cash flow covenant for its standby
−Removed: letter of credit with its primary bank.
+Added: As of June 30, 2024, the Company was not
+Added: in compliance with the net income covenant of the warehouse lines of credit and its operating cash flow covenant for its standby letter
+Added: of credit with its primary bank.
SecurityNational Mortgage has received or is in the process of receiving waivers under the warehouse
7 unchanged sentences
The Company continues to negotiate other warehouse lines of credit with other lenders.
−Removed: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: to Condensed Consolidated Financial Statements
−Removed: 31, 2024 (Unaudited)
−Removed: Commitments and Contingencies (Continued)
Covenants for Revolving Lines of Credit and Bank Loans
54 unchanged sentences
following table presents the MSR activity:
−Removed: of Mortgage Servicing Rights
−Removed: before valuation allowance at beginning of year
−Removed: additions resulting from loan sales ( 1 )
−Removed: of valuation allowance to write down MSRs with other than temporary impairment
−Removed: before valuation allowance at end of period
−Removed: allowance for impairment of MSRs:
−Removed: at beginning of year
−Removed: of valuation allowance to write down MSRs with other than temporary impairment
−Removed: at end of period
−Removed: servicing rights, net
−Removed: fair value of MSRs at end of period
−Removed: (1) Included in mortgage fee income
−Removed: on the condensed consolidated statements of earnings
−Removed: (2) Included in other expenses on the
−Removed: condensed consolidated statements of earnings
+Added: Schedule of Mortgage Servicing Rights
+Added: As of June 30,
+Added: As of December 31,
+Added: Amortized cost:
+Added: Balance before valuation allowance at beginning of year
+Added: MSR additions resulting from loan sales (1)
+Added: Amortization (2)
+Added: Application of valuation allowance to write down MSRs with other than temporary
+Added: Balance before valuation allowance at end of period
+Added: Valuation allowance for impairment of MSRs:
+Added: Balance at beginning of year
+Added: Application of valuation allowance to write down MSRs with other than temporary
+Added: Balance at end of period
+Added: Mortgage servicing rights, net
+Added: Estimated fair value of MSRs at end of period
+Added: (1) Included in mortgage
+Added: fee income on the condensed consolidated statements of earnings
+Added: (2) Included in other
+Added: expenses on the condensed consolidated statements of earnings
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
1 unchanged sentence
30, 2024 (Unaudited)
−Removed: Servicing Rights (Continued)
+Added: Mortgage Servicing Rights (Continued)
table below summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost.
This projection
−Removed: was developed using the Company’s assumptions in its March 31, 2024 valuation of MSRs.
+Added: was developed using the Company’s assumptions in its June 30, 2024 valuation of MSRs.
The assumptions used in the following table
2 unchanged sentences
of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights
−Removed: MSR Amortization
+Added: Estimated MSR Amortization
Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the condensed consolidated
1 unchanged sentence
of Other Revenues
−Removed: servicing fees
+Added: Three Months Ended
+Added: Six Months Ended
+Added: Contractual servicing fees
following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio.
of Unpaid Principal Balances of the Servicing Portfolio
−Removed: of December 31, 2023
+Added: As of June 30,
+Added: As of December 31, 2023
+Added: Servicing UPB
$ 396,558,128
2 unchanged sentences
of Assumptions Used in Determining MSR Value
+Added: June 30, 2024
+Added: December 31, 2023
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
1 unchanged sentence
30, 2024 (Unaudited)
−Removed: 12) Income Taxes
−Removed: Company’s overall effective tax rate for the three month periods ended March 31, 2024 and 2023 was 22.3 % and 21.8 %, respectively,
−Removed: which resulted in a provision for income taxes of $ 2,144,789 and $ 344,716 , respectively.
−Removed: The Company’s effective tax rate is higher
−Removed: than the U.S.
−Removed: federal statutory rate of 21 % due to, among other factors, state income taxes as offset by certain state income tax benefits,
−Removed: along with certain permanent tax adjustments such as meals and entertainment and stock-based compensation.
−Removed: The increase in the effective
−Removed: tax rate when compared to the prior year was primarily due to the Company’s state income tax provision.
+Added: Company’s overall effective tax rate for the three month periods ended June 30, 2024 and 2023 was 22.6 % and 22.0 %, respectively,
+Added: which resulted in a provision for income taxes of $ 2,118,044 and $ 1,796,627 , respectively, and for the six month periods ended June 30,
+Added: 2024 and 2023 was 22.4 % and 22.0 %, respectively, which resulted in a provision for income taxes of $ 4,262,833 and $ 2,141,343 , respectively.
+Added: The Company’s effective tax rate is higher than the U.S.
+Added: federal statutory rate of 21 % due to, among other factors, state income
+Added: taxes as offset by certain state income tax benefits, along with certain permanent tax adjustments such as meals and entertainment and
+Added: stock-based compensation.
+Added: The increase in the effective tax rate when compared to the prior year was primarily due to the Company’s
+Added: state income tax provision.
income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete
36 unchanged sentences
30, 2024 (Unaudited)
−Removed: from Contracts with Customers (Continued)
+Added: Revenues from Contracts with Customers (Continued)
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
−Removed: (January 1, 2024)
−Removed: (March 31, 2024)
+Added: Contract Balances
+Added: Receivables (1)
+Added: Contract Asset
+Added: Contract Liability
+Added: Opening (January 1, 2024)
+Added: Closing (June 30, 2024)
Increase/(decrease)
−Removed: (January 1, 2023)
−Removed: (December 31, 2023)
+Added: Contract Balances
+Added: Receivables (1)
+Added: Contract Asset
+Added: Contract Liability
+Added: Opening (January 1, 2023)
+Added: Closing (December 31, 2023)
Increase/(decrease)
−Removed: (1) Included in Receivables, net on
−Removed: the condensed consolidated balance sheets
−Removed: amount of revenue recognized and included in the opening contract liability balance for the three month periods ended March 31, 2024
−Removed: and 2023 was $ 1,506,114 and $ 1,119,898 , respectively.
+Added: (1) Included in Receivables,
+Added: net on the condensed consolidated balance sheets
+Added: amount of revenue recognized and included in the opening contract liability balance for the three month periods ended June 30, 2024 and
+Added: 2023 was $ 1,429,381 and $ 1,116,566 , respectively, and for the six month periods ended June 30, 2024 and 2023 was $ 2,935,495 and $ 2,236,898 ,
+Added: respectively.
difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results
3 unchanged sentences
of Revenues of the Cemetery and Mortuary Contracts
−Removed: goods/service lines
+Added: Three Months Ended
+Added: Six Months Ended
+Added: Major goods/service lines
Net mortuary and cemetery sales
−Removed: of Revenue Recognition
−Removed: transferred at a point in time
−Removed: transferred at a point in time
+Added: Timing of Revenue Recognition
+Added: Goods transferred at a point in time
+Added: Services transferred at a point in time
Net mortuary and cemetery
2 unchanged sentences
30, 2024 (Unaudited)
−Removed: from Contracts with Customers (Continued)
+Added: Revenues from Contracts with Customers (Continued)
following table reconciles revenues from cemetery and mortuary contracts to Note 7 – Business Segment Information for the Cemetery/Mortuary
1 unchanged sentence
of Reconciliation of Revenues from Cemetery and Mortuary Contracts to Business Segment Information
−Removed: mortuary and cemetery sales
−Removed: on investments and other assets
−Removed: investment income
−Removed: from external customers
−Removed: 14) Receivables
+Added: Three Months Ended
+Added: Six Months Ended
+Added: Net mortuary and cemetery sales
+Added: Gains on investments and other assets
+Added: Net investment income
+Added: Other revenues
+Added: Revenues from external customers
consist of the following:
Schedule of Receivables
−Removed: March 31, 2024
−Removed: December 31, 2023
−Removed: with customers
−Removed: from sales agents
−Removed: for credit losses
+Added: As of June 30, 2024
+Added: As of December 31, 2023
+Added: Contracts with customers
+Added: Receivables from sales agents
+Added: Total receivables
+Added: Allowance for credit losses
( 1,770,911 )
( 1,897,887 )
+Added: Net receivables
Company records an allowance for credit losses for its receivables in accordance with GAAP.
See Note 2 regarding the adoption of ASU
−Removed: following table presents a roll forward of the allowance for credit losses:
+Added: following table presents a roll forward of the allowance for credit losses as of the dates indicated:
of Allowance Credit Losses
−Removed: balance - January 1, 2024
−Removed: in provision for credit losses (1)
−Removed: balance - March 31, 2024
−Removed: balance - January 1, 2023
−Removed: in provision for credit losses (1)
−Removed: balance - March 31, 2023
−Removed: (1) Included in other expenses on the
−Removed: condensed consolidated statements of earnings
+Added: Three Months Ended
+Added: Beginning balance - March 31, 2024
+Added: Change in provision for credit losses (1)
+Added: Ending balance - June 30, 2024
+Added: Beginning balance - March 31, 2023
+Added: Change in provision for credit losses (1)
+Added: Ending balance - June 30, 2023
+Added: (1) Included in other
+Added: expenses on the condensed consolidated statements of earnings
+Added: following table presents a roll forward of the allowance for credit losses as of the dates indicated:
+Added: Six Months Ended
+Added: Beginning balance - January 1, 2024
+Added: Change in provision for credit losses (1)
+Added: Ending balance - June 30, 2024
+Added: Beginning balance - January 1, 2023
+Added: Change in provision for credit losses (1)
+Added: Ending balance - June 30, 2023
+Added: (1) Included in other
+Added: expenses on the condensed consolidated statements of earnings
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
10 unchanged sentences
Care Obligation in the accompanying consolidated balance sheets .
−Removed: components of the cemetery perpetual care investments and obligation as of March 31, 2024, are as follows:
+Added: components of the cemetery perpetual care investments and obligation as of June 30, 2024, are as follows:
of Investments
−Removed: Unrealized Gains
−Removed: Unrealized Losses
−Removed: for Credit Losses
−Removed: maturity securities, available for sale, at estimated fair value:
+Added: Amortized Cost
+Added: Gross Unrealized Gains
+Added: Gross Unrealized Losses
+Added: Allowance for Credit Losses
+Added: Estimated Fair Value
+Added: June 30, 2024:
+Added: Fixed maturity securities, available for sale, at estimated fair value:
Treasury securities and obligations of U.S.
Government agencies
−Removed: of states and political subdivisions
−Removed: fixed maturity securities available for sale
−Removed: securities at estimated fair value:
−Removed: miscellaneous and all other
−Removed: $ ( 147,635 )
+Added: Obligations of states and political subdivisions
+Added: Total fixed maturity securities available for sale
Equity securities at estimated fair value:
+Added: Common stock:
+Added: Industrial, miscellaneous and all other
$ ( 204,627 )
−Removed: loans held for investment at amortized cost:
+Added: Total equity securities at estimated fair value
+Added: $ ( 204,627 )
+Added: Mortgage loans held for investment at amortized cost:
+Added: Residential construction
Allowance for credit losses
−Removed: mortgage loans held for investment
−Removed: investment income
−Removed: and cash equivalents
−Removed: cemetery perpetual care trust investments
−Removed: perpetual care obligation
+Added: Total mortgage loans held for investment
+Added: Accrued investment income
+Added: Cash and cash equivalents
+Added: Total cemetery perpetual care trust investments
+Added: Cemetery perpetual care obligation
$ ( 5,487,676 )
−Removed: investments in excess of trust obligations
+Added: Trust investments in excess of trust obligations
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
1 unchanged sentence
30, 2024 (Unaudited)
−Removed: Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
+Added: Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
components of the cemetery perpetual care investments and obligation as of December 31, 2023, are as follows:
−Removed: Unrealized Gains
−Removed: Unrealized Losses
−Removed: maturity securities, available for sale, at estimated fair value:
+Added: Amortized Cost
+Added: Gross Unrealized Gains
+Added: Gross Unrealized Losses
+Added: Estimated Fair Value
+Added: December 31, 2023:
+Added: Fixed maturity securities, available for sale, at estimated fair value:
Treasury securities and obligations of U.S.
Government agencies
−Removed: of states and political subdivisions
−Removed: securities including public utilities
−Removed: fixed maturity securities available for sale
−Removed: securities at estimated fair value:
−Removed: miscellaneous and all other
−Removed: $ ( 146,771 )
+Added: Obligations of states and political subdivisions
+Added: Corporate securities including public utilities
+Added: Total fixed maturity securities available for sale
Equity securities at estimated fair value:
+Added: Common stock:
+Added: Industrial, miscellaneous and all other
$ ( 146,771 )
−Removed: loans held for investment at amortized cost:
+Added: Total equity securities at estimated fair value
+Added: $ ( 146,771 )
+Added: Mortgage loans held for investment at amortized cost:
+Added: Residential construction
Allowance for credit losses
−Removed: mortgage loans held for investment
−Removed: and cash equivalents
−Removed: cemetery perpetual care trust investments
−Removed: perpetual care obligation
+Added: Total mortgage loans held for investment
+Added: Cash and cash equivalents
+Added: Total cemetery perpetual care trust investments
+Added: Cemetery perpetual care obligation
$ ( 5,326,196 )
−Removed: investments in excess of trust obligations
+Added: Trust investments in excess of trust obligations
Maturity Securities
table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as
−Removed: of March 31, 2024 and December 31, 2023.
−Removed: The tables set forth unrealized losses by duration with the fair value of the related fixed
−Removed: maturity securities:
+Added: of June 30, 2024 and December 31, 2023.
+Added: The tables set forth unrealized losses by duration with the fair value of the related fixed maturity
Schedule of Fair Value of Fixed Maturity Securities
−Removed: Losses for Less than Twelve Months
−Removed: Losses for More than Twelve Months
−Removed: Unrealized Loss
+Added: Unrealized Losses for Less than Twelve Months
+Added: Unrealized Losses for More than Twelve Months
+Added: Total Unrealized Loss
+Added: June 30, 2024
Treasury securities and obligations of U.S.
Government agencies
−Removed: of states and political subdivisions
+Added: Obligations of states and political subdivisions
+Added: December 31, 2023
Treasury securities and obligations of U.S.
Government agencies
−Removed: of states and political subdivisions
−Removed: securities including public utilities
+Added: Obligations of states and political subdivisions
+Added: Corporate securities including public utilities
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
1 unchanged sentence
30, 2024 (Unaudited)
−Removed: Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
−Removed: holdings were comprised of four securities with fair values aggregating 97.8 % of the aggregate amortized cost as of March 31, 2024.
+Added: Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
+Added: holdings were comprised of three securities with fair values aggregating 96.7 % of the aggregate amortized cost as of June 30, 2024.
holdings were comprised of four securities with fair values aggregating 98.1 % of aggregate amortized cost as of December 31, 2023.
−Removed: credit losses have been recognized for the three month periods ended March 31, 2024 and 2023, since the increase in unrealized losses
−Removed: is primarily a result of increases in interest rates.
+Added: credit losses have been recognized for the three and six month periods ended June 30, 2024 and 2023, since the increase in unrealized
+Added: 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.
−Removed: table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of March 31, 2024,
+Added: table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of June 30, 2024,
by contractual maturity.
3 unchanged sentences
Maturity Date
−Removed: in 5-10 years
−Removed: in more than 10 years
+Added: Estimated Fair
+Added: Due in 1 year
+Added: Due in 2-5 years
+Added: Due in 5-10 years
+Added: Due in more than 10 years
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
Company has also established certain restricted assets to provide for future merchandise and service obligations incurred in connection
5 unchanged sentences
These restricted cash items are for the Company’s life insurance and mortgage segments.
−Removed: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: to Condensed Consolidated Financial Statements
−Removed: 31, 2024 (Unaudited)
−Removed: Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
−Removed: assets as of March 31, 2024, are summarized as follows:
+Added: assets as of June 30, 2024, are summarized as follows:
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds
−Removed: Unrealized Gains
−Removed: Unrealized Losses
−Removed: for Credit Losses
−Removed: maturity securities, available for sale, at estimated fair value:
+Added: Amortized Cost
+Added: Gross Unrealized Gains
+Added: Gross Unrealized Losses
+Added: Allowance for Credit Losses
+Added: Estimated Fair Value
+Added: June 30, 2024:
+Added: Fixed maturity securities, available for sale, at estimated fair value:
Treasury securities and obligations of U.S.
Government agencies
−Removed: of states and political subdivisions
−Removed: securities including public utilities
−Removed: fixed maturity securities available for sale
−Removed: securities at estimated fair value:
−Removed: miscellaneous and all other
−Removed: $ ( 251,408 )
+Added: Obligations of states and political subdivisions
+Added: Corporate securities including public utilities
+Added: Total fixed maturity securities available for sale
Equity securities at estimated fair value:
+Added: Common stock:
+Added: Industrial, miscellaneous and all other
$ ( 376,325 )
−Removed: loans held for investment at amortized cost:
+Added: Total equity securities at estimated fair value
+Added: $ ( 376,325 )
+Added: Mortgage loans held for investment at amortized cost:
+Added: Residential construction
Allowance for credit losses
−Removed: mortgage loans held for investment
−Removed: investment income
−Removed: and cash equivalents (1)
−Removed: restricted assets
+Added: Total mortgage loans held for investment
+Added: Accrued investment income
+Added: Cash and cash equivalents (1)
+Added: Total restricted assets
(1) Including cash
and cash equivalents of $ 8,178,110 for the life insurance and mortgage segments.
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
assets as of December 31, 2023, are summarized as follows:
−Removed: Unrealized Gains
−Removed: Unrealized Losses
−Removed: maturity securities, available for sale, at estimated fair value:
+Added: Amortized Cost
+Added: Gross Unrealized Gains
+Added: Gross Unrealized Losses
+Added: Estimated Fair Value
+Added: December 31, 2023:
+Added: Fixed maturity securities, available for sale, at estimated fair value:
Treasury securities and obligations of U.S.
Government agencies
−Removed: of states and political subdivisions
−Removed: securities including public utilities
−Removed: fixed maturity securities available for sale
−Removed: securities at estimated fair value:
−Removed: miscellaneous and all other
−Removed: $ ( 247,996 )
+Added: Obligations of states and political subdivisions
+Added: Corporate securities including public utilities
+Added: Total fixed maturity securities available for sale
Equity securities at estimated fair value:
+Added: Common stock:
+Added: Industrial, miscellaneous and all other
$ ( 247,996 )
−Removed: loans held for investment at amortized cost:
+Added: Total equity securities at estimated fair value
+Added: $ ( 247,996 )
+Added: Mortgage loans held for investment at amortized cost:
+Added: Residential construction
Allowance for credit losses
−Removed: mortgage loans held for investment
−Removed: and cash equivalents (1)
−Removed: restricted assets
−Removed: (1) Including cash
−Removed: and cash equivalents of $ 6,930,930 for the life insurance and mortgage segments.
−Removed: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: to Condensed Consolidated Financial Statements
−Removed: 31, 2024 (Unaudited)
−Removed: Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
+Added: Total mortgage loans held for investment
+Added: Cash and cash equivalents (1)
+Added: Total restricted assets
+Added: (1) Including cash and cash equivalents of $ 6,930,930 for the life insurance and mortgage segments.
Maturity Securities
table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as
−Removed: of March 31, 2024 and December 31, 2023.
−Removed: The tables set forth unrealized losses by duration with the fair value of the related fixed
−Removed: maturity securities.
+Added: of June 30, 2024 and December 31, 2023.
+Added: The tables set forth unrealized losses by duration with the fair value of the related fixed maturity
of Fair Value of Fixed Maturity Securities
−Removed: Losses for Less than Twelve Months
−Removed: Losses for More than Twelve Months
−Removed: Unrealized Loss
+Added: Unrealized Losses for Less than Twelve Months
+Added: Unrealized Losses for More than Twelve Months
+Added: Total Unrealized Loss
+Added: June 30, 2024
Treasury securities and obligations of U.S.
Government agencies
−Removed: of states and political subdivisions
−Removed: securities including public utilities
+Added: Obligations of states and political subdivisions
+Added: Corporate securities including public utilities
+Added: December 31, 2023
Treasury securities and obligations of U.S.
Government agencies
−Removed: of states and political subdivisions
−Removed: securities including public utilities
−Removed: holdings were comprised of 15 securities with fair values aggregating 98.7 % of the aggregate amortized cost as of March 31, 2024.
+Added: Obligations of states and political subdivisions
+Added: Corporate securities including public utilities
+Added: NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
+Added: to Condensed Consolidated Financial Statements
+Added: 30, 2024 (Unaudited)
+Added: Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)
+Added: holdings were comprised of 14 securities with fair values aggregating 98.7 % of the aggregate amortized cost as of June 30, 2024.
holdings were comprised of 12 securities with fair values aggregating 99.1 % of the aggregate amortized cost as of December 31, 2023.
−Removed: No credit losses have been recognized for the three month periods ended March 31, 2024 and 2023, since the increase in unrealized losses
−Removed: is primarily a result of increases in interest.
−Removed: See Note 3 for additional information regarding the Company’s evaluation of the
−Removed: allowance for credit losses for fixed maturity securities available for sale.
−Removed: table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of March 31, 2024,
+Added: No credit losses have been recognized for the three and six month periods ended June 30, 2024 and 2023, since the increase in unrealized
+Added: losses is primarily a result of increases in interest.
+Added: See Note 3 for additional information regarding the Company’s evaluation
+Added: of the allowance for credit losses for fixed maturity securities available for sale.
+Added: table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of June 30, 2024,
by contractual maturity.
3 unchanged sentences
Maturity Date
−Removed: in 5-10 years
−Removed: in more than 10 years
+Added: Estimated Fair
+Added: Due in 1 year
+Added: Due in 2-5 years
+Added: Due in 5-10 years
+Added: Due in more than 10 years
Notes 3 and 8 for additional information regarding restricted assets and cemetery perpetual care trust investments.
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
−Removed: to Condensed Consolidated Financial Statements
−Removed: 31, 2024 (Unaudited)
+Added: Notes to Condensed Consolidated Financial Statements
+Added: June 30, 2024 (Unaudited)
Accumulated Other Comprehensive Income (loss)
1 unchanged sentence
Schedule of Changes in Accumulated Other Comprehensive Income
−Removed: Months Ended March 31,
−Removed: gains (losses) on fixed maturity securities available for sale
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
+Added: Unrealized gains (losses) on fixed maturity securities available for
$ ( 654,164 )
−Removed: reclassified into net earnings
−Removed: unrealized gains (losses) before taxes
$ ( 4,913,327 )
−Removed: (expense) benefit
$ ( 1,689,264 )
−Removed: gains (losses) on restricted assets (1)
−Removed: (expense) benefit
−Removed: gains (losses) on cemetery perpetual care trust investments (1)
−Removed: (expense) benefit
−Removed: comprehensive income (loss) changes
+Added: Amounts reclassified into net earnings
+Added: Net unrealized gains (losses) before taxes
( 4,993,177 )
+Added: ( 1,782,140 )
+Added: Tax (expense) benefit
+Added: ( 3,944,610 )
+Added: ( 1,408,167 )
+Added: Unrealized losses on restricted assets (1)
+Added: Unrealized losses on cemetery perpetual care
+Added: trust investments (1)
+Added: Other comprehensive income (loss) changes
+Added: $ ( 517,129 )
+Added: $ ( 3,952,052 )
+Added: $ ( 1,412,227 )
(1) Fixed maturity
securities available for sale
−Removed: following table presents the accumulated balances of other comprehensive income (loss) as of March 31, 2024:
+Added: following table presents the accumulated balances of other comprehensive income (loss) as of June 30, 2024:
Schedule of Accumulated Balances of Other Comprehensive Income
−Removed: Balance December 31, 2023
−Removed: for the period
−Removed: Balance March 31,
−Removed: losses on fixed maturity securities available for sale
+Added: Beginning Balance December 31, 2023
+Added: Change for the period
+Added: Ending Balance June 30,
+Added: Unrealized losses on fixed maturity securities available for sale
$ ( 6,876,629 )
1 unchanged sentence
$ ( 8,284,796 )
−Removed: losses on restricted assets (1)
−Removed: losses on cemetery perpetual care trust investments (1)
−Removed: comprehensive loss
+Added: Unrealized losses on restricted assets (1)
+Added: Unrealized losses on cemetery perpetual care trust investments (1)
+Added: Other comprehensive loss
$ ( 6,885,558 )
1 unchanged sentence
$ ( 8,297,785 )
−Removed: (1) Fixed maturity
−Removed: securities available for sale
+Added: (1) Fixed maturity securities available for sale
following table presents the accumulated balances of other comprehensive income (loss) as of December 31, 2023:
−Removed: Balance December 31, 2022
−Removed: for the period
−Removed: Balance December 31,
−Removed: gains (losses) on fixed maturity securities
−Removed: available for sale
+Added: Beginning Balance December 31, 2022
+Added: Change for the period
+Added: Ending Balance December 31,
+Added: Unrealized gains (losses) on fixed maturity securities available for sale
$ ( 13,050,767 )
$ ( 6,876,629 )
−Removed: gains (losses) on restricted assets (1)
−Removed: gains (losses) on cemetery perpetual
−Removed: care trust investments (1)
−Removed: comprehensive income (loss)
+Added: Unrealized gains (losses) on restricted assets (1)
+Added: Unrealized gains (losses) on cemetery perpetual care trust investments (1)
+Added: Other comprehensive income (loss)
$ ( 13,070,277 )
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.