SECURITY NATIONAL FINANCIAL CORPORATION (NASDAQ:SNFCA) Files An 8-K Other Events

Acquisition of Kilpatrick Life Insurance Company

On December 13, 2019, Security National Financial Corporation, through its wholly owned subsidiary, Security National Life Insurance Company (“Security Life”) completed a stock purchase transaction with Kilpatrick Life Insurance Company, a Louisiana domiciled life insurance company (“Kilpatrick Life”) and its shareholders, which resulted in the purchase of all the outstanding shares of common stock of Kilpatrick Life. The closing of the transaction was subject to approval by the Louisiana Department of Insurance of the change of control of Kilpatrick Life, which was received on December 12, 2019.

On November 12, 2019, the Company filed Form 8-K disclosing the execution of the Stock Purchase Agreement to acquire Kilpatrick Life. Under the terms of the transaction, the total Purchase Price that Security Life paid for all the shares held by the Kilpatrick shareholders was $23,780,000.

As a condition to the closing of the transaction, the Company will file an audited statement of assets acquired and liabilities assumed of Kilpatrick Life on the basis of the allocation of the purchase price as of December 13, 2019, the closing date of the transaction. The Company anticipates that the amended Form 8-K will be filed with the U.S. Securities and Exchange Commission (SEC) within 71 days from the filing of this Form 8-K report.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

10.1 Stock Purchase Agreement dated October 11, 2019, with Kilpatrick Life Insurance Company, excluding exhibits*

* Incorporated by reference from Report on Form 8-K, as filed on November 12, 2019.

About SECURITY NATIONAL FINANCIAL CORPORATION (NASDAQ:SNFCA)

Security National Financial Corporation is a holding company. The Company operates through three segments: life insurance, cemetery and mortuary, and mortgage loans. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. The cemetery and mortuary segment consists of approximately seven mortuaries and five cemeteries in the state of Utah and a cemetery in the state of California. The mortgage loan segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes and real estate projects. The Company is also engaged in pre-need selling of funeral, cemetery, mortuary and cremation services through its Utah and California operations. It also sells pre-need funeral, cemetery and cremation services.