2024 DIG Annual Report

‘24

Annual Report

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TABLE OF CONTENTS

Letter To Our Shareholders..................................................................... 1 Management’s Discussion and Analysis...................................................5 Results of Operations..............................................................................9 Financial Summary...............................................................................36 Balance Sheet........................................................................................37 Statement of Operations.......................................................................38 Shareholders’ Equity.............................................................................39 Cash Flows.......................................................................................... 40 Shareholders......................................................................................... 41 Organizational Structure...................................................................... 48 Board of Directors................................................................................49 Corporate Officers................................................................................50 Our Visionaries.................................................................................... 51

DIRECTORS

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3

F r i e n d s , Pa r t n e r s , and Shareholders As we reflect on our journey and the path ahead, I am inspired by the timeless wisdom of the Apostle Paul, found in 1 Thessalonians 5:16-18.

“Rejoice always, pray continually, give thanks in all circumstances; for this is God’s will for you in Christ Jesus.”

These words resonate deeply with our corporate values and our approach to navigating both the opportunities and challenges of today’s dynamic business landscape. Let’s explore how we have lived the words of 1 Thessalonians throughout DIG: Rejoice Always Throughout the years, we have celebrated every milestone, from technological breakthroughs to the resilience we’ve demonstrated in overcoming market uncertainties. This spirit of joy is not merely about celebrating success but also about recognizing the growth and learning that comes from every experience. We believe that maintaining a positive, joyful outlook is essential for fostering innovation and encouraging bold decision-making.

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Pray Continually This call to continuous prayer inspires us to approach every challenge with a deliberate mindset.

At DIG, we value rigorous analysis and strategic planning as the cornerstones of our operations.

This mindset ensures that every decision we make is weighed carefully, with an awareness of both risk and opportunity. We know that the best-laid plans and the most intricately developed strategies cannot be executed without God’s help, and that’s why prayer is necessary.

Give Thanks in All Circumstances Gratitude is at the heart of all relationships. In every circumstance, whether in times of triumph or trial, we remain profoundly grateful for the trust, support, and commitment of our shareholders, customers, management team, and staff. Confidence in our vision motivates us to strive for excellence and to uphold the highest standards of integrity. We see every challenge as a chance to grow, learn, and emerge stronger together. We always want to be grateful for the opportunity to serve our customers, profession, community, and each other.

In the past year, we have navigated a complex business environment with resilience and optimism, guided by the enduring principles of joy, prayer, and gratitude. Our strategic initiatives continue to yield positive results, reinforcing our belief that a focused approach can transform challenges into opportunities for sustainable and continued growth. Let’s take a look at our accomplishments in 2024:

Parkway Advisors

Directors Investment Group (DIG)

• We provided active credit monitoring for all our clients – the total of fixed income securities managed by Parkway, across all accounts, is in excess of 12,000 holdings.

• A total of 260 employees participated in our Sabbatical program, a 100% increase over the number that participated in 2017.

• We upgraded our DIG U learning management system to enhance functionality and create more engaging digital learning courses, resulting in 60% more courses being completed this year over last year.

• All Texas mortuary schools, along with a number of others in different states, have now been onboarded onto Passare, meaning that over 40% of mortuary school students nationwide are now utilizing Passare in their coursework.

• Net income exceeded the budget by almost 17%!

Passare

• We surpassed 1,200 customers and are now serving over 2,400 funeral home rooftops.

• We now serve 320,000 families through Passare on an annual basis.

• We had record revenue of over $6.4 million.

• We had a retention rate for customers of 97.5%.

• Passare achieved $2.22 million of new annual sales contracts with 247 funeral home accounts (sales volume was up 39% over 2023).

• We represent 67 separate entities with $11.4 billion in assets.

• We developed a partnership to offer private credit/ direct mortgage loans to clients – we closed 13 deals for approximately $20 million, at a yield of 8.1% average.

• We had a 50% increase in trading volume compared to 2023, averaging 9 trades and $3.2 million worth of transactions daily across 23 broker/dealers.

• Net income exceeded the budget by almost 17%!

Funeral Directors Life (FDL) CULTURE

• During our Bahamas sales incentive trip, 130 volunteers worked at the Salvation Army to benefit a school for blind children, a shelter for abused women, and the homeless and hungry populations in Nassau.

• We successfully updated the Virtual Wolfelt Experience program to increase engagement and retention - as a result, more funeral homes are adopting the program.

FDL OPERATIONS

• We implemented Grooper for handwriting recognition in New Business to process paper contracts faster and to gather more data on each handwritten contract.

• We automated multiple processes with Robotic Process Automation (RPA) to speed up claims, new business, and early payoff processes!

DIRECTORS

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DIG DEVELOPMENT

FINANCIAL REPORTING

• We released DIGicon Mobile into beta testing!

• We achieved a $240 million increase in assets during 2024 – total assets grew to $2.4 billion!

• RPAs saved over 10,000 hours of staff time this year!

• We implemented 480 updates, 1,947 new features, and resolved 5,772 support tickets!

• New mortgage loans earned 200 basis points more than new bond purchases – mortgage loan income was up 14.24% over budget and 40.85% over 2023.

PEOPLE OPERATIONS

DIRECTORS BUSINESS SOLUTIONS

• We built an internal recruitment process for the Leadership Development Academy.

• We incorporated a “Shark Tank”-like program for the Emerging Leaders Program.

• We integrated Select Producer Onboarding with our Home Office Onboarding to increase retention.

• We piloted an approach to recruiting students attending mortuary science programs.

• For the second consecutive year, we exceeded our goal for new funeral home loan originations, reaching over $101 million in 2024 – the total loan portfolio is now more than $360 million.

• We launched enhanced, industry-leading financial reporting for both new and existing clients – these reports harness the combined power of Passare and Power BI. OVERALL SALES

CLAIMCHECK

• We defined the operational structure to create a dedicated verification, collections, and customer care team.

• Due to an increase in our customer base and total assignments, we completed a rewrite of the processing and verification workflow that allows for scalability within the team.

• With a focus on structure, procedures, and technology, Claimcheck had its best year ever.

ACTUARIAL

• We continued to strengthen relationships with key stakeholders.

• We successfully executed updates to enhance data accuracy and workflow efficiency, supporting our commitment to operational excellence.

• We achieved a record annual sales volume of $575 million for 2024 (up 9.5% over 2023).

• We achieved a record monthly sales volume of $56.4 million in October!

• Our Select Producer program achieved a record annual sales volume of $80 million!

• We enrolled 391 new funeral home accounts directly and in partnership with our marketing partners – this is a new record for new accounts signed in one year.

• The overall marketing partner segment finished 2024 with more than $248 million in sales (up 24% over 2023).

OVERALL MARKETING

• We leveraged AI for proofreading, brainstorming, data analysis, and content creation.

• We provided comprehensive startup support for new funeral homes, from logo creation and website design to launch planning and SEO strategies.

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INFORMATION SECURITY

• We achieved a Microsoft Secure Score above 80%, where the industry average is 44.2%.

• Security Awareness rating year over year dropped from 5.49% in 2023 to 2.30% in 2024, which has us beating the industry average of 5.2% ACCOUNTING DEPARTMENT

• We successfully jumpstarted the Model Audit Rule readiness project.

• We fully revamped our corporate governance documents and created the Audit & Risk Committee.

• We were accepted as a member of the Federal Home Loan Bank, which will facilitate borrowing to enhance future investment income.

Conclusion

The achievements we had in 2024 were significant for our company and would have never happened had we not had extraordinary teamwork! I must “give honor where honor is due” (Romans 13:7).

Our management team is extraordinary! Our company continues to flourish due to their dedication, care for our people, and trust in my leadership! You might ask, “What separates DIG’s management team from others?” The answer is simple – they rejoice always, they pray continually, and they give thanks in all circumstances – they are obedient to God’s calling!

Lastly, it is with a grateful heart that I give honor to Tommy Welch and Allan Adams, who are both in Heaven now. Tommy and Allan were esteemed members of our Board of Directors at DIG, whose contributions left a lasting impact on our organization. Tommy, a dedicated funeral director and owner of Nalley-Pickle & Welch Funeral Homes

in Big Spring and Midland, Texas, was known for his unwavering commitment to serving families with compassion and excellence. His leadership and vision were significant in guiding the company towards growth and success. Allan owned funeral homes in Ralls, Crosbyton, and Lorenzo, Texas. A passionate funeral director with nearly 50 years of service, he was deeply involved in his community and the funeral profession. His dedication to helping families and his active participation in DIG reflected his commitment to making a positive difference.

Both men will be remembered for their exceptional service, their leadership, and their profound legacy.

As we move forward, we remain dedicated to not only achieving financial success but also nurturing the values that define us. We thank you, fellow shareholders, for your support. There is no greater responsibility than earning and keeping your trust and confidence. Together, let us continue to embrace a future marked by innovation, integrity, and shared prosperity.

With joy, prayer, and gratitude,

KRIS SEALE

Chairman of the Board President & Chief Executive Officer

DIRECTORS

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4

Management’s Discussion and Analysis 5

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Executive Overview

Directors Investment Group, Inc. (DIG), a Nevada corporation, is the parent company for a diverse group of companies with a focus on two strategic industries – life insurance and financial services.

The combined financial statements of Directors Investment Group, Inc. include all accounts of DIG and its subsidiaries (the Company) accounted for on a Generally Accepted Accounting Principles basis with the exception of the insurance subsidiaries that are accounted for on a Statutory Accounting Principles basis.

As of December 31, 2024, the subsidiaries of DIG include Directors Capital Ventures, Inc. (DCVI), Directors Holding Corporation (DHC), Parkway Advisors Group, Inc. (PAGI), Parkway Advisors Holdings, Inc. (PAHI), and Funeral Agency, Inc. (FAI). Additionally, the limited partnerships owned by the subsidiaries are included in the combined statement. The limited partnerships are Parkway Advisors LP (PALP) and Directors Agency LP (DALP). Effective January 1, 2020, Passare, Inc. was merged into DIG and as a legal entity ceased to exist. Passare operations continue to be reported separately but as a division of DIG. The insurance company subsidiaries include Funeral Directors Life Insurance Company (FDL), Kentucky Funeral Directors Life Insurance Company (KFDLIC), Funeral Directors Life of Louisiana (FDLA), and American Life and Annuity Company (ALAC). On September 15, 2022, FDL purchased 100% of FPA Inc. (FPA), an Arkansas corporation. FPA is the parent company of ALAC, a preneed life insurance company domiciled in the State of Arkansas.

The value of the insurance company subsidiaries is recorded on the books of the Company at

book value in accordance with the methods set forth by the National Association of Insurance Commissioners (NAIC).

The sections that follow provide information about the important aspects of our operations and investments, both at the combined and subsidiary levels, and include discussion of our results of operations. The accounting periods for all of the entities end on December 31.

Earnings Per Share

Basic earnings per share (EPS) is calculated by dividing net income by the average number of common shares issued and outstanding for the current and previous years. Diluted earnings per share is calculated by dividing net income by the average number of common shares issued and outstanding plus stock options issued and outstanding for the current and previous years.

For the purpose of these calculations, shares issued and outstanding do not include treasury shares purchased by the Company.

For 2024, the average number of common shares issued and outstanding, basic and diluted, was 2,555,019 and 2,801,512, respectively. For 2023, the average number of common shares issued and outstanding, basic and diluted, was 2,557,584 and 2,792,026, respectively. The exercise of 15,039 common stock options by employees and directors and the net purchase of 21,938 treasury shares by the Company are reflected in the change in average common shares outstanding.

Basic EPS was $6.04, and diluted EPS was $5.51 for 2024. For 2023, basic and diluted EPS was $4.89 and $4.48, respectively.

DIRECTORS

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Computation of Share Value

DIG’s Share Value was $105.46 for 2024 and $95.51 for 2023 based on the modified book value calculation. This was a 10.42% increase over 2023.

For 2024 and 2023, Share Value is calculated using the modified book value approach that was approved by the shareholders at the April 1996 annual shareholders’ meeting. The calculation is the 1996 book value method plus an additional amount added for the value of FDL’s insurance business and interest maintenance reserve (IMR). For 2024, the equity component was $208,980,869, and the value of FDL’s business and IMR was $60,100,771.

Total actual shares issued and outstanding at the end of 2024 were 2,551,569. For 2023, the equity component was $197,264,723, and the value of FDL’s business and IMR was $47,096,848. Total actual shares issued and outstanding at the end of 2023 were 2,558,468.

Income Taxes

Directors Investment Group, Inc. and its noninsurance subsidiaries file a consolidated U.S. income tax return. All taxes are booked and paid at the DIG level. In 2023, the Company recorded $1.2 million in federal income tax. For 2024, DIG recorded $1.1 million in federal income tax. DIG was able to utilize $1.8 million in loss carryforwards assumed upon the merger of Passare into DIG in 2020. $1.6 million remains in loss carryforwards that expire in 2034.

The insurance subsidiaries - FDL, KFDLIC, and FDLA - file a separate consolidated U.S. income tax return. The method of allocation between the companies is based upon separate return calculations with current credit for net losses.

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Intercompany tax balances are settled annually after the federal income tax return is completed and filed.

ALAC will file a separate tax return but will be eligible for consolidation with the other insurance subsidiaries five years from the date of acquisition.

DALP and FDL are also subject to filing state income tax returns for various states in which they are licensed to conduct business.

The corporate federal income tax rate for DIG and the insurance subsidiaries was 21%.

Liquidity and Cash Flows

Management has set forth strategic objectives to help ensure that we keep a focus on growing our core business and increasing shareholder value and that we are in a position to take advantage of opportunities when they arise. Those objectives include internal investment in our business (e.g. capital expenditures), share repurchases, shareholder dividends, debt reduction and management, and acquisitions of businesses that will complement our core operations. The Company believes that cash generated from operations, together with the Company’s existing financial resources, will adequately finance the Company’s planned 2025 cash requirements.

SUMMARY OF CASH ACTIVITIES

Principal sources of cash were commissions earned at DALP and FAI, investment advisory and consulting fees earned at PALP, subscription and activation fees earned at Passare, principal and interest payments received on business loans, and proceeds for issuance of common stock options and the sale of treasury stock. Our primary uses of cash were for operational expenses, reduction of debt, repurchase of stock, funding of business loans, and payment of shareholder dividends. The net decrease in cash for 2024 was $302.1 thousand.

INVESTING ACTIVITIES

Business loans outstanding at year-end 2024 were $7.4 million compared to $4.5 million at the end of 2023. DIG received principal payments of $889.7 thousand and issued new loans of $3.8 million. Remaining loans to funeral home customers earned interest at an average rate of 10.26%. DIG collected interest payments of $622.0 thousand.

In 2016, DIG initiated a short-term investment strategy with Parkway Advisors as a means to earn investment income on excess cash accumulated from net operating earnings, repayment of business loans, or proceeds from the sale of treasury stock. Previously, investments were short-term in nature and laddered to throw off approximately $500.0 thousand in cash at the end of each month. In order to achieve a higher return, DIG revised its investment plan to invest approximately 20% in either money markets or liquid bonds with a duration inside one year and the remaining 80% invested with a growth and income focus. Total interest collected on investments was $419.2 thousand. At year-end 2024, total invested funds were $10.0 million.

FINANCING ACTIVITIES

DIG’s debt was comprised of borrowings from FDL. These loans originated in 2007 and were used to facilitate the funding of the funeral home business loans in conjunction with mortgage loans extended by FDL. The loans pay interest at the rate of 8.75% and mature in April 2027. DIG paid FDL $651.5 thousand in principal and $185.3 thousand in interest in 2024. At year-end 2024, outstanding borrowings on the loans from FDL were $1.8 million.

During 2024, the Company offered options on 301,089 shares of common stock at a price range of $62.57 to $107.50. Options on 15,039 shares were exercised at a price range of $62.57 to $86.94, providing $1.0 million in cash resources. 24,003 shares at a price of $62.57 were not exercised and forfeited, leaving 262,047 shares exercisable in 2025, 2026, 2027, 2028, and 2029 at a price range of $68.14 to $107.50. During the year, DIG also repurchased 37,329 shares of common stock for $3.6 million. In July 2010, the Board of Directors approved the annual sale of a limited number of treasury shares. In 2023, DIG sold 33,416 shares of treasury stock for $2.9 million, and in 2024, DIG sold 15,391 shares for $1.5 million.

The Board of Directors approved the payment of quarterly dividends averaging $0.253 per share during 2024 for a total of $2.6 million. DIG paid $2.3 million in dividends in 2023.

Shareholder List & Beneficial Ownership

The table beginning on page 41 sets forth certain information as of March 1, 2025, with respect to each person who owns the Company’s Common Stock, each director of the Company, and all directors and officers of the Company as a group.

Except as otherwise indicated, the persons named in the table have sole voting and investment power with respect to the shares of Common Stock shown.

Each Common share is entitled to one vote per share. The Company does have authorized Preferred Stock; however, none of the Preferred Stock was issued or outstanding as of December 31, 2024.

DIREC TORS

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8

R E S U LT S O F O P E R AT I O N S

Funeral Directors Life Insurance Company ........................................ 10 Kentucky Funeral Directors Life Insurance Company...........................13 Funeral Directors Life Insurance Company of Louisiana.......................15 American Life and Annuity Company ..................................................17 Directors Agency, LP ......................................................................... 19 Directors Holding Corporation ...........................................................21 Directors Capital Ventures, Inc. .......................................................... 23 Parkway Advisors, LP......................................................................... 25 Parkway Advisors Group, Inc. ............................................................ 27 Parkway Advisors Holdings, Inc. ........................................................29 Funeral Agency, Inc. ...........................................................................31 Passare ............................................................................................... 33

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F U N E R A L D I R E CTO R S L I F E I N S U R A N C E CO M PA N Y FDL is the primary investment and income source for DIG. FDL is in the business of funding prepaid funerals with life insurance and annuities. A simplified financial statement is included herein.

In 2024, FDL’s assets grew to $2.35 billion, up $240.1 million or 11.37% over 2023 assets of $2.11 billion. Invested assets are the largest component of assets for an insurance company. FDL’s investments were $2.31 billion for 2024, an increase of 11.37% over 2023 investments of $2.08 billion. The primary investment held by FDL was bonds - government, agency, and corporate - representing 81.55% of invested assets or $1.9 billion. FDL’s total common stock portfolio was $26.3 million, comprised of $20.8 million for investments in KFDLIC, FDLA, and FPA, Inc., as well as $5.5 million invested in the Monteagle Select Value Fund managed by PALP and the Federal Home Loan Bank. During 2024, FDL’s mortgage loan portfolio increased by $72.8 million for the financing of funeral home locations for a total of $352.8 million. Real estate holdings of $22.6 million are primarily related to Home Office property. Other invested assets consisted of loans to parent of $1.8 million, surplus debentures of $3.2 million, construction loans of $8.1 million, and cash and short-term investments of $11.8 million.

Other assets exceeded 2023 by approximately $3.9 million and consisted largely of accrued investment income of $21.4 million, $5.7 million in deferred tax assets, and $5.5 million in insurance assignment receivables.

FDL’s primary liability is its reserves for policyholders. For 2024, reserves were $2.1 billion,

an increase of 12.02% over reserves of $1.9 billion in 2023. Asset valuation reserve (AVR) increased $4.3 million or 20.06% compared to a $4.5 million increase from year-end 2022 to year-end 2023.

The $26.0 million in this account represents a loss reserve mandated by the NAIC to offset potential defaults of any of the company’s invested assets.

Claims liabilities and premiums received in advance were $3.8 million and $6.4 million, respectively, for a total of $10.2 million. The interest maintenance reserve of $6.7 million decreased by $637.9 thousand from year-end 2023 for net realized capital losses of $369.5 thousand and amortization of $268.4 thousand. Statutory reporting requirements mandate that gains or losses from the sale of bonds with a future maturity date must be held as a liability and amortized into income over the remaining life of disposed bonds. Commissions due to agents exceeded 2023 by $894.2 thousand. Dividends to policyholders decreased to $700.0 thousand.

Borrowed funds of $258.7 thousand represent a grant from the Development Corporation of Abilene that was based upon the Company’s expansion of the Home Office and its commitment to create 70 new jobs over a 5-year period. Other liabilities of FDL included amounts due to affiliates, general expenses payable, premium taxes and fees, and other miscellaneous liabilities for a total of $4.9 million.

Total capital and surplus increased by $10.0 million for 2024 compared to the increase of $8.2 million in 2023. The increase in 2024 consisted of net income of $12.6 million, a $2.7 million increase in net deferred income tax, and unrealized gains of $318.6

DIRECTORS

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thousand, offset by a $4.3 million increase in asset valuation reserve, and a $1.3 million increase in non-admitted assets. The majority of non-admitted assets relate to non-admitted deferred income tax.

The ratio of capital and surplus to total assets was 7.81% at year-end 2024 compared to 8.23% at yearend 2023.

Revenues for FDL were primarily premium collections and investment income totaling $626.6 million. When compared to the previous year, 2024 revenues increased 12.62% or $70.2 million.

New business issued for 2024 was approximately 10.1% higher than 2023 production and 96.0% of projected. Net investment income reflects a $13.4 million increase due to strong investment yields and additional funds for investment.

Policyholder benefits increased significantly due to the increase in new business sales. Death and annuity benefits paid during the year exceeded 2023 by $26.0 million and were $12.5 million above expected. Monthly claims expense averaged $20.4

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million in 2024 compared to $18.4 million in 2023.

With the year-over-year increase in new business sales, aggregate reserves from year to year were up $29.3 million or 14.9%. General insurance expenses exceeded 2023 by $11.5 million and included commissions paid to agents of $77.3 million, general operating expenses of $47.8 million, and taxes licenses and fees of $7.2 million.

Net gain from operations was $19.2 million compared to $15.7 million for 2023. Policyholder dividends were consistent with 2023. Federal income taxes were $6.2 million compared to $5.4 million in 2023 due to increased taxable income.

FDL realized net capital gains of $516.9 thousand compared to capital gains of $328.5 thousand in 2023. For 2024, the company posted net income of $12.6 million compared to $9.7 million 2023.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Investments

$

2,312,808.6

$

2,076,692.9

Premiums & Investment Income Receivable

23,179.0

21,903.2

Other Assets

15,455.3

12,778.4

Total Assets

$

2,351,442.9

$

2,111,374.5

$

2,111,007.5 10,173.0 25,998.3 7,966.0 6,664.7 700.0 258.7 4,926.1

$

1,884,458.2 8,797.2 21,654.2 7,071.8 7,302.6 800.0 517.5 7,045.3

Liabilities and Capital & Surplus Reserves Claims & Premiums Liabilities Asset Valuation Reserve Commissions to Agents Interest Maintenance Reserve Dividends to Policyholders Borrowed Funds Other Liabilities Total Liabilities

2,167,694.3

1,937,646.8

Capital & Surplus

183,748.6

173,727.7

Total Liabilities and Capital & Surplus

$

STATEMENT OF OPERATIONS

2,111,374.5

Twelve Months Ended December 31,

(Dollars in thousands) Premiums, Investment Income, & Other

$

2,351,442.9

2023

2024 $

626,565.3

$

556,346.8

Policyholder Benefits

474,902.1

419,712.6

General & Administrative Expenses

132,449.1

120,955.2

Operating Income

19,214.1

15,679.0

Dividends to Policyholders

927.5

908.5

Earnings Before Federal Income Tax Federal Income Tax Provision

18,286.6 6,220.5

14,770.5 5,438.1

Net Gain Before Realized Capital Gains (Losses) Net Realized Capital Gains (Losses)

12,066.1 516.9

9,332.4 328.5

Net Income

$

DIREC TORS

12,583.0

$

INVESTM ENT

9,660.9

GROUP

12

K E N TU C KY F U N E R A L D I R E CTO R S L I F E I N S U R A N C E CO M PA N Y Kentucky Funeral Directors Life Insurance Company (KFDLIC), a wholly owned stock life insurance company of FDL, was incorporated in the state of Kentucky in 2001. KFDLIC is in the business of funding prepaid funerals with life insurance and annuities, similar to FDL. For 2024, KFDLIC’s new business sales volume exceeded 2023 by 78.8%. Approximately 52% of new business was generated by a third-party marketing partner. KFDLIC’s financial performance is reflective of the significant increase in insurance sales and the related costs, resulting in a net loss for the year.

The total assets of KFDLIC increased $3.4 million or 11.41% during 2024 compared to $1.9 million or 6.70% during 2023.

As of December 31, 2024, 98.37% of KFDLIC’s total assets were invested assets. The majority of this account was government and corporate bonds, representing 98.9% of investments. The remaining investments consisted of cash and short-term investments. KFDLIC continues its long-term investment strategy with the goal of matching estimated policy liabilities/maturities with investment maturities. As the company grows, this investment strategy will shape the company’s conservative investment portfolio.

Other assets consisted largely of investment income due and accrued of $403.2 thousand and a net deferred tax asset of $100.8 thousand.

On December 31, 2024, KFDLIC’s liabilities were distributed as follows: 97.92% in aggregate reserves for life contracts, 0.77% in asset valuation reserve, 0.35% in commissions to agents, 0.34% in premiums received in advance, 0.27% in interest maintenance reserve, and 0.35% in all other liabilities.

The policy reserves are calculated on a conservative basis in order to provide more than adequate reserves.

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The company was capitalized with $1.0 million of common capital stock and $2.3 million of gross paid in and contributed surplus in 2001. For 2024, the capital and surplus of KFDLIC decreased $87.2 thousand. The decrease consisted of net loss of $37.2 thousand plus deferred income tax of $20.8 thousand, offset by a $26.0 thousand increase in non-admitted assets, and $44.8 thousand increase in asset valuation reserve. Despite the year-over-year decrease, the ratio of capital and surplus to assets remains very high.

Premium income was $7.0 million compared to $4.1 million for 2023. 2024 preneed sales production was $7.8 million, 116.6% of projected and up 78.8% from 2023 production. Net investment income was $1.4 million, up approximately $137.1 thousand from 2023. Virtually all the company’s expenses were variable based on the level of new business production. For 2024, death and annuity benefits increased by $470.3 thousand, while aggregate reserves for life policies increased by $1.9 million compared to the $390.3 thousand decrease between 2022 and 2023.

Commission expenses increased $871.6 thousand for the year-over-year increase in sales. General insurance expenses were up approximately $92.8 thousand from 2023 due to an increase in administrative service fees paid to FDL and sales-related expenses.

Federal income tax expense reflected a year-over-year decrease of $66.9 thousand based upon taxable income of $65.6 thousand. Net loss for 2024 was $37.2 thousand compared to a gain of $281.6 thousand for 2023.

The only demands for cash flow will come from death benefits and normal administrative expenses caused by the increasing number of policyholders. The premium income and investment income should more than offset the effects of increased death benefits. Total premium income and investment income will allow KFDLIC to meet all obligations and invest a remainder amount.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Investments

$

32,792.3

$

29,464.4

Premiums & Investment Income Receivable

408.5

358.8

Other Assets

133.3

96.1

Total Assets

$

33,334.1

$

29,919.3

$

25,882.4

$

22,387.3

Liabilities and Capital & Surplus Reserves Claims & Premiums Liabilities

93.6

117.6

Commissions to Agents

92.4

47.1

Asset Valuation Reserve

204.1

159.3

Interest Maintenance Reserve

72.1

87.3

Other Liabilities

86.6

130.6

Total Liabilities

26,431.2

22,929.2

Capital & Surplus

6,902.9

6,990.1

Total Liabilities and Capital & Surplus

$

STATEMENT OF OPERATIONS

$

29,919.3

Twelve Months Ended December 31,

(Dollars in thousands) Premiums, Investment Income, & Other

33,334.1

2023

2024 $

8,372.6

$

5,378.8

Policyholder Benefits

6,430.2

4,004.2

General & Administrative Expenses

1,963.7

1,010.3

Operating Income

(21.3)

364.3

15.9

82.7

(37.2)

281.6

-

-

Federal Income Tax Provision Net Gain Before Realized Capital Gains (Losses) Net Realized Capital Gains (Losses) Net Income (Loss)

$

DIRECTORS

(37.2)

$

INVESTM ENT

281.6

GROUP

14

F U N E R A L D I R E CTO R S L I F E I N S U R A N C E CO M PA N Y O F LO U I S I A N A Funeral Directors Life Insurance Company of Louisiana (FDLA) was incorporated on June 6, 2019. On June 25, 2019, FDLA issued Funeral Directors Life Insurance Company 100% (100,000 shares) of its outstanding stock in exchange for $4.5 million in cash. FDLA commenced business on August 1, 2019, and was created in response to unfavorable regulations in Louisiana related to agent licensing requirements for foreign corporations only.

The company was capitalized with $100.0 thousand of common capital stock and $4.4 million of gross paid in and contributed surplus in 2019. For 2024, the capital and surplus of FDLA increased $267.0 thousand. The increase consisted of net income of $324.7 thousand plus deferred income tax of $19.9 thousand, offset by a $51.0 thousand increase in asset valuation reserve and $26.5 thousand increase in non-admitted assets.

For 2024, FDLA’s new business sales volume increased by $1.1 million as the company continues to grow its presence in Louisiana. FDLA’s financial performance remains strong through its growth. In its fifth full year since inception, FDLA increased assets by 24.54%, increased unassigned surplus by 35.54% and achieved a positive net income of $324.7 thousand.

Premium income was $13.7 million for the year ended December 31, 2024, compared to $12.2 million for 2023.

The majority of FDLA’s new business was individual life. During 2024, there was a significant shift to multipay vs. single-pay business. Net investment income of $1.3 million exceeded 2023 by 42.32%. Virtually all the company’s expenses are variable based on the level of new business production. For 2024, death and annuity benefits increased by $907.7 thousand or 23.69% over 2023, while aggregate reserves for life policies increased by $694.4 thousand. Commission expenses were $1.3 million, up 6.22% from 2023. General insurance expenses were $1.1 million and consisted largely of administrative service fees paid to Funeral Directors Life Insurance Company and sales-related expenses. Insurance taxes, license, and fees were $302.2 thousand.

FDLA ended 2024 with $37.0 million in total assets compared to $29.7 million at the end of 2023. As of December 31, 2024, 98.29% of FDLA’s total assets were invested assets. The majority of this account was government and corporate bonds, representing 95.07% of the investments. The remaining investments consisted of a participation loan and cash and short-term investments.

FDLA’s goal is to follow a long-term investment strategy and focus on high credit quality, diversification in terms of capital and surplus, and the company’s asset liability matching. Other assets consisted largely of investment income due and accrued of $359.0 thousand and a net deferred tax asset of $209.8 thousand.

On December 31, 2024, FDLA’s liabilities were distributed as follows: 96.14% in aggregate reserves for life contracts, 1.55% in claims and premiums and annuity considerations received in advance, 0.96% in commissions due to agents, 0.58% in asset valuation reserve, 0.44% in taxes, licenses, and fees, and 0.33% in all other liabilities.

The policy reserves are calculated on a conservative basis in order to provide more than adequate reserves.

15

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2024

Gain from operations of $465.8 thousand was offset by federal income taxes of $141.1 thousand. Net income reflects a gain of $324.7 thousand for 2024 compared to a gain of $97.9 thousand in 2023 due largely to improved investment income.

The invested assets of FDLA are structured to generate cash flows sufficient to provide for the cash needs of the company. These cash needs include the expected claims and all operating needs of the insurer caused by the increasing number of policyholders. The premium income and investment income should more than offset the effects of increased death benefits. Total premium income and investment income will allow FDLA to meet all obligations and invest any remaining amount.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Investments

$

36,340.7

$

29,159.3

Premiums & Investment Income Receivable

360.8

276.9

Other Assets

272.2

251.1

Total Assets

$

36,973.7

$

29,687.3

$

30,241.8

$

23,049.3

Liabilities and Capital & Surplus Reserves Claims & Premiums Liabilities

488.9

571.4

Commissions to Agents

301.3

250.5

Taxes, Licenses, and Fees

139.9

142.5

Asset Valuation Reserve

181.9

130.9

Other Liabilities

101.6

291.5

Total Liabilities

31,455.4

24,436.1

Capital & Surplus

5,518.3

5,251.2

Total Liabilities and Capital & Surplus

$

STATEMENT OF OPERATIONS

$

29,687.3

Twelve Months Ended December 31,

(Dollars in thousands) Premiums, Investment Income, & Other

36,973.7

2023

2024 $

15,051.0

$

13,118.9

Policyholder Benefits

11,942.2

10,354.4

General & Administrative Expenses

2,643.0

2,606.2

Operating Income

465.8

158.3

Federal Income Tax Provision

141.1

60.4

Net Gain before Realized Capital Gains (Losses)

324.7

97.9

-

-

Net Realized Capital Gains (Losses) Net Income

$

DIRECTORS

324.7

$

INVESTM ENT

97.9

GROUP

16

A M E R I CA N L I F E A N D A N N U I T Y CO M PA N Y American Life and Annuity Company (ALAC) is an Arkansas-domiciled preneed insurance company and wholly owned subsidiary of FPA, Inc. FPA’s only asset is its investment in ALAC. ALAC was originally incorporated on October 1, 1920, but was purchased

by FPA on July 3, 1989. ALAC joined DIG’s holding company system on September 15, 2022, through FDL’s acquisition of FPA. Funeral home customers of ALAC were transitioned to FDL, but existing business on the books of ALAC continues to be administered as existing policies mature over time.

The total assets of ALAC decreased $1.4 million during 2024, consistent with the $1.1 million decrease for 2023 as the company is no longer selling new business.

As of December 31, 2024, 98.29% of ALAC’s total assets were invested assets. The majority of this account was government and corporate bonds, representing 96.13% of investments. The remaining investments consisted of common stock, policy loans, and cash and short-term investments. ALAC continues its long-term investment strategy with the goal of matching estimated policy liabilities/maturities with investment maturities.

Other assets consisted largely of investment income due and accrued of $451.4 and interest maintenance reserve of $286.5 thousand.

On December 31, 2024, ALAC’s liabilities were distributed as follows: 98.72% in aggregate reserves for life contracts, 1.13% in asset valuation reserve, and .15% in all other liabilities.

The policy reserves are calculated on a conservative basis in order to provide more than adequate reserves.

The company was capitalized with $100.0 thousand of common capital stock and $337.0 thousand of gross

17

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2024

paid in and contributed surplus. For 2024, the capital and surplus of ALAC increased $516.0 thousand. The increase consisted of net income of $342.4 thousand plus a $221.4 thousand change in net unrealized capital gains, a $40.6 thousand decrease in non-admitted assets, and an increase in net deferred income tax of $6.0 thousand offset by a $94.5 thousand increase in asset valuation reserve.

Premium income was $830.8 thousand compared to $980.9 thousand for 2023. Preneed sales production discontinued upon acquisition in September of 2022 as ALAC customers were transitioned to FDL. Yearover-year net investment income was down due to the use of cash to pay death and annuity benefits. For 2024, death and annuity benefits were down $328.2 thousand, while aggregate reserves for life policies increased by $212.8 thousand compared to the $1.8 million decrease between 2022 and 2023. General insurance expenses were consistent with 2023 and consisted largely of administrative service fees paid to FDL. Gain from operations before federal income tax expense was down $214.9 thousand due largely to the decrease in investment income. Federal income tax expense reflected a year-over-year increase of $23.5 thousand for increase in taxable income. Capital gains reflected in 2023 were related to the sale of common stock. Net income for 2024 was $342.4 thousand compared to $774.1 thousand for 2023.

The only demands for cash flow will come from death benefits and normal administrative expenses. The premium income and investment income should more than offset the effects of death benefits. Total premium income and investment income will allow ALAC to meet all obligations and invest the remaining amount.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Investments

$

50,790.5

$

52,086.3

Premiums & Investment Income Receivable

525.9

536.3

Other Assets

359.0

448.9

Total Assets

$

51,675.4

$

53,071.5

$

45,640.0

$

47,501.9

Liabilities and Capital & Surplus Reserves

25.0

25.0

Commissions to Agents

-

51.9

Taxes, Licenses, and Fees

4.0

0.4

Asset Valuation Reserve

524.6

430.1

Other Liabilities

38.7

135.1

Total Liabilities

46,232.3

48,144.4

Capital & Surplus

5,443.1

4,927.1

Claims & Premiums Liabilities

Total Liabilities and Capital & Surplus

$

STATEMENT OF OPERATIONS

$

53,071.5

Twelve Months Ended December 31,

(Dollars in thousands) Premiums, Investment Income, & Other

51,675.4

2023

2024 $

2,731.7

$

3,091.7

2,100.0

2,244.5

General & Administrative Expenses

193.3

193.9

Operating Income

438.4

653.3

Federal Income Tax Provision

95.9

72.4

Net Gain before Realized Capital Gains (Losses)

342.5

580.9

Net Realized Capital Gains (Losses)

(0.1)

193.2

Policyholder Benefits

Net Income

$

DIRECTORS

342.4

$

INVESTM ENT

774.1

GROUP

18

DIRECTORS AGENCY, LP DALP is a Delaware limited partnership formed on February 1, 2002, and owned 1% by DCVI and 99% by DHC, both wholly owned subsidiaries of DIG. DALP provides strategic sales and marketing support for the sale of FDL’s insurance products. At year-end 2024, DALP employed 68 sales professionals, called Select Producers, across the United States to support FDL’s active sales program.

For 2024, total assets were $1.5 million compared to $2.0 million at year-end 2023. The net year-over-year decrease was due largely to a decrease in cash due to distributions to partners and, ultimately, DIG. Liabilities decreased by $61.2 thousand for the reduction in accrued commissions. Capital accounts ended the year at $1.1 million after partner distributions of $3.7 million.

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2024

Revenues consisted largely of commissions earned from FDL and FAI and were $12.5 million compared to $12.1 million in 2023. Commission income from the active sales program was $10.0 million compared to $9.6 million in 2023. Expenses in 2024 consisted primarily of salaries and benefits for insurance agents hired to actively sell preneed.

Employment-related expenses totaled $6.4 million.

The remaining expenses were mainly related to training, recruiting, and lead generation. Net income for 2024 was $3.2 million – approximately $75.0 thousand better than 2023.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Cash

$

1,170.6

$

1,617.6

Investments

76.9

100.3

Other Assets

213.8

291.4

Total Assets

$

1,461.3

$

2,009.3

$

386.7

$

447.9

Liabilities & Capital Accounts Payables and Other Liabilities Total Liabilities Capital Accounts Total Liabilities & Capital Accounts

$

STATEMENT OF OPERATIONS

447.9

1,074.6

1,561.4

1,461.3

$

2,009.3

Twelve Months Ended December 31,

(Dollars in thousands) Revenue

386.7

2023

2024 $

Expenses

12,527.8

$

12,121.7

9,314.6 Net Income

$

DIRECTORS

3,213.2

8,983.8 $

INVESTM ENT

3,137.9

GROUP

20

DIRECTORS HOLDING CORPORATION DHC ended 2024 with assets of $188.8 million compared to 2023 assets of $180.1 million. The primary increase in DHC’s assets was in its investments. DHC’s Investment in Subsidiary FDL increased $9.2 million to $187.7 million. As of December 31, 2024, DHC owned a 99% limited partner’s interest in DALP. DHC’s investment in DALP decreased $481.9 thousand after distributions from DALP of $3.66 million. Total investments in subsidiaries and partnerships for DHC increased $8.7 million.

21

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2024

DHC’s equity increased 4.84% to $188.8 million.

During 2024, DHC declared and paid dividends to DIG in the amount of $3.66 million.

DHC’s operating expenses consisted primarily of corporate residency costs. DHC derived its earnings from equity increases in FDL and partnership interest increases in DALP. DHC’s earnings from its investments were $12.4 million in 2024 as compared to $10.5 million in 2023 resulting in net income of $12.4 million.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Cash

$

2.1

Investments in Subsidiaries & Partnerships

$

188,780.0

2.8 180,061.9

Total Assets

$

188,782.1

$

180,064.7

Total Equity

$

188,782.1

$

180,064.7

STATEMENT OF OPERATIONS

Twelve Months Ended December 31,

(Dollars in thousands) Operating Expenses

$

Operating Loss Equity in Earnings of Subsidiaries & Partnerships Net Income

2023

2024

$

DIRECTORS

0.7

$

2.1

(0.7)

(2.1)

12,381.1

10,460.2

12,380.4

$

INVESTM ENT

10,458.1

GROUP

22

DIRECTORS CAPITAL VENTURES , INC .

DCVI is the general partner for the limited partnership investment in DALP and is the operating entity for the DIG Wellness Center - a company-provided health and wellness facility for employees of DIG affiliates that opened in February 2013. DCVI owns a 1% interest in DALP that represents $10.7 thousand of its assets. Other assets include computer equipment and prepaid expenses.

DCVI ended the year with assets of $14.0 thousand compared to $22.0 thousand in 2023.

Liabilities of $11.6 thousand are related to general accounts payable and amounts due to affiliates.

Equity ended the year at $2.4 thousand. During 2024, DCVI paid dividends to DIG in the amount of $37.0 thousand and received contributions of $64.0 thousand. The contributions from DIG provided operating cash flow for the wellness facility.

23

A NN UAL

REP ORT

2024

Revenues consist of reimbursements from Blue Cross Blue Shield (BCBS) for services provided to DIG’s employees as well as monthly service fees from FDL. During the year, DCVI received $150.0 thousand in service fees from FDL and $70.0 thousand in reimbursements from BCBS and employees. DCVI had $286.4 thousand in expenses for operating the DIG Wellness Center as well as corporate existence expenses such as registration fees and corporate residency expenses.

The DIG Wellness Center employs a nurse practitioner and a fitness director. DCVI’s equity in earnings was derived from its 1% ownership in DALP. Partnership income in the amount of $32.1 thousand was reported for 2024. DCVI recorded a net loss of $34.3 thousand in 2024 consistent with a net loss of $34.1 thousand for 2023.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Cash

$

1.7

$

4.0

Investments in Partnerships

10.7

15.6

Other Assets

1.6

2.4

Total Assets

$

14.0

$

22.0

$

11.6

$

12.3

Liabilities Other Payables Total Liabilities

11.6

12.3

Equity

2.4

9.7

Total Liabilities & Equity

$

STATEMENT OF OPERATIONS

$

22.0

Twelve Months Ended December 31,

(Dollars in thousands) Revenue

14.0

2023

2024 $

Expenses

220.0

$

219.4

286.4

284.9

Operating Loss

(66.4)

(65.5)

Equity in Earnings of Partnerships

32.1

31.4

Net Income (Loss)

$

DIREC TORS

(34.3)

$

INVESTM ENT

(34.1 )

GROUP

24

PA R KWAY A DVI S O R S , L P PALP is a Delaware limited partnership that was created on March 22, 2001, and is owned 1%

by PAGI and 99% by PAHI, both wholly owned subsidiaries of DIG. PALP is an investment advisory firm in the business of providing discretionary investment advisory, consulting, and investment accounting services to insurance companies.

Total assets for 2024 were $1.3 million. Cash ended the year at $883.3 thousand after partner distributions of $2.3 million. Receivables were $324.7 thousand and represent fees due from advisory clients as well as amounts due from affiliates. Investments in EDP equipment and software were $62.2 thousand. Other assets of $50.6 thousand consisted of prepaid expenses.

25

A NN UAL

REP ORT

2024

Liabilities consisted of general payables and payroll liabilities. Total partners’ capital ended the year at $1.3 million after net income for the year of $2.3 million less partner withdrawals of $2.3 million.

Revenues for 2024 were $5.6 million and were comprised of advisory service and consulting fees.

Assets under management were approximately $3.5 billion at year-end 2024. The assets of consulting and investment reporting clients were $7.8 billion.

During the year, Parkway added four new insurance clients to asset management and two clients for consulting services. Operating expenses were $3.3 million, largely comprised of salaries and benefits.

Other operating expenses were general in nature.

Net income for 2024 was $2.3 million compared to $2.2 million for 2023.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Cash

$

883.3

$

895.7

Trade Receivables

324.7

290.9

Investments

62.2

69.1

Other Assets

50.6

84.5

Total Assets

$

1,320.8

$

1,340.2

$

12.6

$

3.1

Liabilities & Capital Accounts Payables and Other Liabilities Total Liabilities

12.6

3.1

Capital Accounts

1,308.2

1,337.1

Total Liabilities & Capital Accounts

$

STATEMENT OF OPERATIONS

1,340.2

2023

2024 $

Expenses Operating Income Other Income (Loss) Net Income

$

Twelve Months Ended December 31,

(Dollars in thousands) Revenue

1,320.8

$

DIRECTORS

5,587.5

$

5,200.7

3,325.7

2,978.1

2,261.8

2,222.6

9.3

3.8

2,271.1

$

INVESTM ENT

2,226.4

GROUP

26

PA R KWAY A DVI S O R S G R O U P, I N C .

PAGI is the sole general partner for the limited partnership, PALP. PAGI is a Nevada corporation created on March 23, 2001.

PAGI ended the year with assets of $16.9 thousand.

PAGI owns 1% interest in the limited partnership that represents $13.1 thousand of its assets. Cash and accounts receivable comprised the remaining assets.

Liabilities of $39.1 thousand represent amounts due to PALP. Total capital ended the year at negative $22.2 thousand after dividends to DIG in the amount of $23.0 thousand.

27

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2024

PAGI had limited expenses for its corporate existence, such as registration fees, telephone charges, and corporate residency expenses, resulting in an operating loss of $3.0 thousand.

For 2024, PAGI recorded partnership earnings of $22.7 thousand from its 1% ownership of the limited partnership investment in PALP. Net income for PAGI was $19.7 thousand.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Cash

$

0.9

$

0.9

Receivables and Prepaids

2.9

2.9

Investment in Partnership

13.1

13.3

Total Assets

$

16.9

$

17.1

$

39.1

$

36.0

Liabilities & Equity Payables and Other Liabilities Total Liabilities

39.1

36.0

Total Equity

(22.2 )

(18.9 )

Total Liabilities & Equity

$

STATEMENT OF OPERATIONS

$

17.1

Twelve Months Ended December 31,

(Dollars in thousands) Operating Expenses

16.9

2023

2024 $

3.0

$

3.0

Operating Loss

(3.0)

(3.0)

Equity in Earnings of Partnership

22.7

22.3

Net Income

$

DIRECTORS

19.7

$

INVESTM ENT

19.3

GROUP

28

PA R KWAY A DVI S O R S H O L D I N G S , I N C .

PAHI is the sole limited partner for the limited partnership, PALP. PAHI is a Nevada corporation created on March 23, 2001.

PAHI ended the year with assets of $1.3 million.

PAHI owns a 99% interest in the limited partnership that comprised the majority of its assets with a small amount of cash for remaining assets. Liabilities of $32.9 thousand represent amounts due to PALP. Total capital ended the year at $1.27 million after dividends paid to DIG in the amount of $2.277 million.

29

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REP ORT

2024

PAHI had expenses for its corporate existence, such as registration fees, telephone charges, and corporate residency expenses. Total operating expenses were $2.5 thousand.

For 2024, PAHI recorded partnership earnings of $2.2 million from its 99% ownership of the limited partnership investment in PALP, resulting in net income of $2.2 million.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Cash

$

4.3

Investment in Partnership Total Assets

$

4.3

1,295.1

1,323.7

$

1,299.4

$

1,328.0

$

32.9

$

30.4

Liabilities & Equity Payables and Other Liabilities Total Liabilities Total Equity Total Liabilities & Equity

$

STATEMENT OF OPERATIONS

1,266.5

1,297.6

1,299.4

$

1,328.0

2023

2024 $

Operating Loss Equity in Earnings of Partnership Net Income

30.4

Twelve Months Ended December 31,

(Dollars in thousands) Operating Expenses

32.9

$

DIRECTORS

2.5

$

2.4

(2.5)

(2.4 )

2,248.4

2,204.1

2,245.9

$

INVESTM ENT

2,201.7

GROUP

30

FUNERAL AGENCY, INC .

FAI is a marketer and seller of prepaid funerals and various insurance products on behalf of FDL in the states of Texas and Colorado. FAI is a licensed insurance agency and holds a prepaid funeral permit issued by the Texas Department of Banking and the Colorado Department of Insurance. A Texas corporation organized on June 18, 1982, FAI was acquired by DIG on January 1, 2006.

FAI ended the year with assets of $740.1 thousand, consisting mostly of claims receivable from FDL and goodwill. Liabilities of $2.7 million consisted largely of agent credit balances and suspense items. Equity ended the year at negative $1.9 million.

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2024

Through an agency agreement with FDL, FAI received commission income on premiums collected

by FDL on preneed funeral business written in Texas. Revenues for 2024 were $2.9 million – up $307.7 thousand from 2023. FAI contributed approximately 19.9% of FDL’s preneed sales volume during 2024, producing $114.1 million in new business. Expenses consisted mostly of salaries and benefits of sales managers employed by the Company and sales-related incentive programs. Net income for 2024 was $226.2 thousand compared to $111.8 thousand in 2023.

BALANCE SHEET

December 31,

(Dollars in thousands)

2024

2023

Assets Cash

$

14.3

$

(199.4 )

Receivables and Prepaids

236.3

353.3

Other Assets

489.5

497.1

Total Assets

$

740.1

$

651.0

$

2,652.0

$

2,789.2

Liabilities & Equity Payables and Other Liabilities Total Liabilities

2,652.0

2,789.2

Equity

(1,911.9)

(2,138.2)

Total Liabilities & Equity

$

STATEMENT OF OPERATIONS

651.0

2023

2024 $

Operating Expenses Operating Income (Loss) Other Income Net Income (Loss)

$

Twelve Months Ended December 31,

(Dollars in thousands) Revenue

740.1

$

DIREC TORS

2,929.2

$

2,621.5

2,755.0

2,539.0

174.2

82.5

52.0

29.3

226.2

$

INVESTM ENT

111.8

GROUP

32

PA S S A R E – A D IVI S I O N O F D I G Originally a Delaware corporation created on November 26, 2012, Passare was merged into DIG effective January 1, 2020. Passare is a software-as-aservice company providing an online administrative platform specifically designed for funeral homes.

DIG initially invested in Passare in 2013 and also provided an operating line of credit to sustain Passare’s operations. In April 2015, DIG negotiated an exchange of all outstanding debt with Passare in return for additional shares of stock, resulting in majority ownership. In 2019, DIG gained 100% ownership in Passare after an exchange of cash or stock for remaining minority interests in Passare.

Gaining 100% control of Passare paved the way to substantial expense reduction and sharing of resources between Passare and other DIG affiliates as reflected in the 2024 financial results.

While Passare’s assets and liabilities were combined with DIG’s due to the merger, the operations of Passare are monitored and recorded as a separate division within DIG.

33

A NN UAL

REP ORT

2024

During 2024, Passare increased revenues by 15.96% or $886.5 thousand, ending the year with approximately 1,300 customers. Passare continued to improve features of the software in line with the Company’s vision to “make Passare the system through which a funeral home can run its entire business.” Passare also expanded its consulting services, such as premium support and client services. Revenues were $6.4 million compared to $5.5 million in 2023. Total expenses in 2024 were $4.9 million compared to $4.3 million in 2023 – a $640.7 thousand increase. The increase in expenses was due largely to an increase in salaries and benefits and contract development. Laborrelated expenses account for approximately 88% of total operating expenses with the majority of those expenses dedicated to further development of the software. Net income was $1.6 million compared to $1.2 million in 2023.

STATEMENT OF OPERATIONS

Twelve Months Ended December 31,

(Dollars in thousands) Revenue

2024 $

Expenses Operating Income (Loss) Miscellaneous Income Net Income (Loss)

$

DIRECTORS

2023

6,440.3

$

5,553.8

4,974.2

4,333.5

1,466.1

1,220.3

100.2

5.1

1,566.3

$

INVESTM ENT

1,225.4

GROUP

34

FINANCIALS

35

A NN UAL

REP ORT

2023

financial summary

2024 2022

2023

% Change

Financial Total Assets Shareholders' Equity

$$ $$

195,756,798 216,277,339 208,980,869 187,337,230

$ $

205,472,690 197,264,723

5.26% 5.22% 5.60% 5.94%

Per Common Share Data Share Value

$$

105.46 86.94

$

95.51

10.42% 8.19%

2,556,699 2,551,569

2,558,468

-0.06% -0.27%

280 311

302

2.98% 7.69%

Shares Issued and Outstanding Shareholders

DIREC TORS

INVESTM ENT

GROUP

36

balance sheet Year Ended 2024

Year Ended 2023

Cash Trade Receivables Investments - Fixed Income and Cash Equivalents Investments - Long Term: Investment in Subsidiary - FDL Investment in Land Investment in Furniture & Fixtures - NET Investment in Autos - NET Investment in EDP Equipment - NET Notes Receivable Goodwill Other Assets - Net

$

$

Total Assets

$

216,277,339

$

205,472,690

$

724,691 385,197 663,681 2,026,978 1,453,247 185,672 54,664 1,760,340 7,254,470

$

769,861 456,730 614,013 2,100,884 1,295,457 213,655 345,543 2,411,824 8,207,967

Assets 3,018,166 324,754 10,040,918 187,716,153 801,647 1,926 18,540 172,424 7,407,212 5,946,289 829,310

3,320,278 290,918 10,415,224 178,516,204 1,057,532 2,295 32,446 182,311 4,484,231 5,946,289 1,224,962

Liabilities and Stockholders' Equity Liabilities Intercompany Payables General Expense Payable Dividends Payable Agent Credit Balances Unearned Income Miscellaneous Liabilities Federal Income Taxes Payable Notes Payable Total Liabilities Stockholders' Equity Common Stock (2,928,954 and 2,913,715 shares,

respectively @ $.01 Par)

Additional Paid-In Capital Treasury Stock (377,185 and 355,247 shares respectively) Dividends Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity

37

A NN UAL

REP ORT

2024

$

29,288 24,314,278 (11,505,215) (30,026,058)

29,137 23,269,814 (9,333,966) (27,442,180)

226,168,576

210,741,918

208,980,869

197,264,723

216,235,339

$

205,472,690

STATEMENT OF OPERATIONS Year Ended 2024

Net Income of Subsidiaries and Partnerships Net Income - Parkway Advisors, LP Net Loss - Parkway Advisors Group, Inc. Net Loss - Parkway Advisors Holdings, Inc. Net Income - Directors Agency, LP Net Loss - Directors Capital Ventures, Inc. Net Loss - Directors Holding Corporation Net Income - Funeral Agency, Inc. Total Net Income of Subsidiaries and Partnerships

Year Ended 2023

$ 2,271,128 (3,051 (2,458 3,213,252 (66,468 (666 226,244 5,637,981

40.28% -0.05% -0.04% 56.99% -1.18% -0.01% 4.01% 100.00%

$ 2,226,397 (2,997 (2,423 3,137,944 (65,519 (2,154 111,827 5,403,075

39.49% -0.05% -0.04% 55.66% -1.16% -0.04% 1.98% 100.00%

35,826 181,095 437,800 39,805 186,452 880,978

0.64% 3.21% 7.77% 0.71% 3.31% 15.63%

40,606 226,449 359,550 35,761 27,909 690,275

0.72% 4.02% 6.38% 0.63% 0.50% 12.78%

Combined Income Before Other Income/Expense

4,757,003

84.37%

4,712,800

83.59%

Other Income Equity in Earnings of Funeral Directors Life Insurance Company GAAP Adjustment for Statutory Accounting Equity in Earnings of Passare Interest Income - Business Loans Interest Income - Investments Capital Gain on Sale of Assets

10,020,829 (820,880 1,566,346 650,959 419,201 144,115

177.74% -14.56% 27.78% 11.55% 7.44% 2.56%

8,174,555 (820,880 1,225,427 325,558 326,805 -

144.99% -14.56% 21.74% 5.77% 5.80% 0.00%

180,569

3.20%

235,357

4.17%

16,557,004

293.67%

13,708,908

243.15%

1,130,346

20.05%

1,209,943

21.46%

$ 15,426,658

273.62%

$ 12,498,965

221.69%

GROUP

38

Operating Expenses - Directors Investment Group, Inc. Legal and Accounting Fees Travel, Meals, and Entertainment Directors Fees Insurance Expense Other Operating Expenses Total Operating Expenses - Directors Investment Group, Inc.

Other Expense Interest Expense to FDL Income Before Income Taxes Federal Income Tax Expense Net Income

DIREC TORS

INVESTM ENT

SHAREHOLDERS’ EQUITY COMMON STOCK

TREASURY STOCK

Amount

Number of Shares

Amount

Additional Paid-in Capital

2,913,715

$29,137

355,247

$(9,333,966

$23,269,814 $183,299,738 $197,264,723

15,039

151

Number of Shares

Retained Earnings

Total

Ending Balance, December 31, 2023

Common Stock Issued Through Exercise of Stock Options

1,044,464

1,044,615

Common Stock Purchased by the Company

37,329

(3,639,250)

(3,639,250)

(15,391 )

1,468,001

1,468,001

Treasury Stock Sold by the Company

Dividends on Common Stock, $1.01 per share

(2,583,878)

(2,583,878)

15,426,658

15,426,658

Net Income

Ending Balance, December 31, 2024

39

A NN UAL

2,928,754

REP ORT

$29,288

2024

377,185

$(11,505,215

$24,314,278

$196,142,518 $208,980,869

CASH FLOWS Cash Flows from Operating Activities Net Income

Year Ended 2024

Year Ended 2023

$

$

15,426,658

12,498,965

Adjustments to Reconcile Net Income to Net Cash from Operating Activities: Depreciation and Amortization Change in Current Assets and Liabilities: Increase (Decrease) in Receivables and Other Assets Increase in Payables Increase (Decrease) in Taxes Payable Net Cash Provided by Operating Activities

95,744

86,619

361,817 30,866 (290,879) 15,624,206

(446,677) 99,321 238,376 12,476,604

Cash Flows from Investing Activities (Increase) Decrease in Short-Term Investments Increase in Investment in Affiliate - FDL Increase in Notes Receivable Net (Increase) Decrease in Land Net Increase in Furniture & Fixtures, Autos, and Equipment Net Cash Used In Investing Activity

374,306 (9,199,949) (2,922,981) 255,885 (71,583) (11,564,322)

(1,037,706) (7,353,675) (3,169,613) (727,230) (80,482) (12,368,706)

Cash Flows from Financing Activities Payments of Long-Term Debt Proceeds from Issuance of Common Stock Proceeds from Sale of Treasury Stock Repurchases of Common Stock Common Stock Dividends Net Cash Used in Financing Activity

(651,484) 1,044,615 1,468,001 (3,639,250) (2,583,878) (4,361,996)

(549,298) 960,707 2,943,784 (4,169,291) (2,306,672) (3,120,770)

Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period

$

(302,112) 3,320,278 3,018,166

$

(3,012,872) 6,333,150 3,320,278

Supplemental Disclosure of Cash Flow Information: Cash Paid During the Period for: Interest Taxes

$ $

185,319 1,421,225

$ $

217,771 971,567

DIREC TORS

INVESTM ENT

GROUP

40

shareholders SHAREHOLDERS OF RECORD AS OF MARCH 1, 2025 The Seale Family L. P., Kris Seale General Ptr JCJDC Investments, Ltd. Elizabeth Gay Schulze B. Kris Seale as Trustee for the Dylan Moore Trust Amy Paquette Robert Elliott Hamil Trust Angela Jo Hamil Willis Trust TT Welch Investments, LLC Phillip Welch Rudy Jack Cypert Mike Lemons Pam Welch Amy Paquette as Trustee for the Paquette Children’s Trust Bob and Carolynn White The Allan and Gail Adams Revocable Trust Robert E. Hamil Forward Investment LTD, Forward Mgt. Inc. General Ptr Lois Dodds K4G L.P. Kathleen B. McReavy REVOCABLE TRUST William L. McReavy REVOCABLE TRUST Charles Doby Mark S. France Thomas W. Branon Pat Baxter Darrell W. Rains Bobby B. Connell T. Duane Connell Teresa Carol Davis Branon Leslie Branon Montz Sidney C. Grant, Self Directed IRA Michael L. Soper B & LD Partnership Legacy Funeral Holdings, Inc. W. Brown Claybar Self-Directed IRA Addison Templeton Stuart Ford Mark Cypert Robby & Deana Morris Washburn McReavy Funeral Chapels, Inc Susan P. Branon Kasi Welch-Baker Ann M. Swanson Mark Owen 41

A NN UAL

REP ORT

2024

Director/ Officer

Total Common

Common %

DO D

549,918 214,000 160,794 136,665 120,748 115,826 115,825 84,987 75,035 66,000 64,688 61,221 54,244 39,200 36,775 35,741 29,816 26,718 25,000 23,442 23,442 21,945 21,903 18,995 18,000 17,902 16,690 16,690 15,239 15,200 14,500 11,375 11,253 11,249 10,625 10,600 10,000 10,000 10,000 9,383 9,000 9,000 8,215 6,600

21.505% 8.369% 6.288% 5.344% 4.722% 4.529% 4.529% 3.323% 2.934% 2.581% 2.530% 2.394% 2.121% 1.533% 1.438% 1.398% 1.166% 1.045% 0.978% 0.917% 0.917% 0.858% 0.857% 0.743% 0.704% 0.700% 0.653% 0.653% 0.596% 0.594% 0.567% 0.445% 0.440% 0.440% 0.415% 0.415% 0.391% 0.391% 0.391% 0.367% 0.352% 0.352% 0.321% 0.258%

E E

E D E

D

E

D D

O D D

D

SHAREHOLDERS OF RECORD AS OF MARCH 1, 2025

Director/ Officer

Total Common

Common %

6,350 6,027 6,000 6,000 6,000 5,800 5,500 5,500 5,350 5,000 5,000 4,846 4,769 4,000 3,536 3,423 3,373 3,319 3,114 2,850 2,786 2,730 2,501 2,361 2,300 2,200 2,152 2,100 2,086 2,055 2,000 1,897 1,894 1,847 1,800 1,700 1,610 1,600 1,430 1,425 1,405 1,400 1,283 1,267 1,226 1,220 1,200 1,200

0.248% 0.236% 0.235% 0.235% 0.235% 0.227% 0.215% 0.215% 0.209% 0.196% 0.196% 0.190% 0.186% 0.156% 0.138% 0.134% 0.132% 0.130% 0.122% 0.111% 0.109% 0.107% 0.098% 0.092% 0.090% 0.086% 0.084% 0.082% 0.082% 0.080% 0.078% 0.074% 0.074% 0.072% 0.006% 0.066% 0.063% 0.063% 0.056% 0.056% 0.055% 0.055% 0.050% 0.050% 0.048% 0.048% 0.047% 0.047%

Patrick C. Patton & Suzanne E. Patton, Trustees of Patton Living Trust dated 6-2-2020 D 401k FBO Sam J Chase Jerry Willingham Taylor Greene Reagan Ramsower D Terry Groban DO Terri Bannister Theron Holladay Timothy J. Hoff and Jenifer R. Hoff Trust under Agreement dated December 30, 2020. D Thomas M. Vertin Samuel S. Maroney Ray Harper Betty S. Alvey Mark & Lori Beale Pressley H. Guitar II Patricia Angeley John Harrington JNLucas II, LP Roy Carroway, Jr. Cliff Pollack Horan 2012 Family Trust Gregg A. Havlak Drew Seale DO Nadene Smith John W. & Grace Eirkson Jeff W. Stewart O Shannon Ward 401k FBO Linda Chase Ray Thompson Amanda Farrow Gerald D. Runnels Robert Hantge First Financial Trust & Asset Management Co.,N.A. FBO Jeannette Waddell McQueen First Financial Trust & Asset Management Co.,N.A. FBO David Lee McQueen Jeffery Stewart (DSD) Sonia DeLeon Zachary O. Schulze Pat Zalusky Gloria Skinner Kyle Swearingen Mark Willingham Lori Owen Mark Childs Angela Hamil-Willis Pamela Ulery Elizabeth Harper Schulze Edwards Harry C. Drew Kelsey Swearingen DIREC TORS

INVESTM ENT

GROUP

42

SHAREHOLDERS OF RECORD AS OF MARCH 1, 2025 Kelly McCarty W.B Claybar Mark J. Krause Victor E. Schulze Angie Dobbs Shaun Gaffney Paul Lovelace Horan Indie Holdings, LLC. Amy Biggs Kevin Gaffney Alvino Sanchez Warren Family Trust - Larry Warren Zach Sims Jay Thomas Melissa Magers Stephen Etter Bassett Brian K. Nichols Foresight Family Funeral Homes, LLC Charles M. Walls Sam Chase Todd Carlson Patricia Haynes Gary Boulicault Melanie Carr Kyle Timmermann Thomas & Maria Hartsfield William P. Wimberly Josh McQueen Thomas E. Antram John & Christie Callahan Larry Anderson Theodore Beck Zachary Bellenger Brandon Byerly Frank Downing Ben Ciani Annette Parmelly Vicki Dickson Matthew Waldrip Stephen Vermilya Denise Chabarria David McQueen Craig Loper Steven Dantzler Lisa Davidson Charles Eric Espinosa Suzann Sharp Kim J. Beckerman 43

A NN UAL

REP ORT

Director/ Officer

O

O

2024

Total Common

Common %

1,200 1,161 1,152 1,130 1,100 1,075 1,066 1,050 1,000 958 945 900 900 897 890 800 800 767 700 681 675 674 600 600 600 600 600 600 550 525 500 500 475 462 450 450 400 400 400 400 350 342 311 310 300 300 300 300

0.047% 0.045% 0.045% 0.044% 0.043% 0.042% 0.042% 0.041% 0.039% 0.037% 0.037% 0.035% 0.035% 0.035% 0.035% 0.031% 0.031% 0.030% 0.027% 0.027% 0.026% 0.026% 0.023% 0.023% 0.023% 0.023% 0.023% 0.023% 0.022% 0.021% 0.020% 0.020% 0.019% 0.018% 0.018% 0.018% 0.016% 0.016% 0.016% 0.016% 0.014% 0.013% 0.012% 0.012% 0.012% 0.012% 0.012% 0.012%

SHAREHOLDERS OF RECORD AS OF MARCH 1, 2025 Robert Durham David and Toni Nichols White Dove Holdings Business Trust Jon Billetdeaux Maria Sandoval Nathan Ulery Bryan Hicks Anissa Minatra Ester Johnson Rodolfo D. Robles, Jr Jason Gazaille Kelly Johnson Marcus Wilson Joe Ramos Haley Cooke Jacob Kramar Joshua Koehler Kelly Gilgenbach Colin Nguyen Barry R. Henderson Trevor Rupe Mandi Faulks Laurie Mitchell Sherri Miller Nathan Kesler Dawson Rodriguez Gloria & Jim Skinner David C. Ulery Proko-Wall and Associates, LLC Albert Jonas Vanessa Callari Frank and Amy Downing Brandi Williams (Turner) Gibraltar Remembrance Services Jessica Ahrens Judy Webb Ryon Allen Ezmeralda Bueno Karen Toms Patrick Walker Spring Grove Cemetery and Arboretum Glenn Taylor Heather Guitar Julie Hofmann Scott Schaake Stephanie Nelson Kylee Stockard Susan Condry

Director/ Officer

Total Common

Common %

300 293 250 250 225 220 215 210 200 200 200 200 200 200 200 200 200 200 200 200 200 181 180 178 161 160 160 160 157 156 150 150 150 149 148 135 135 130 129 120 119 119 117 115 110 105 100 100

0.012% 0.011% 0.010% 0.010% 0.009% 0.009% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.008% 0.007% 0.007% 0.007% 0.006% 0.006% 0.006% 0.006% 0.006% 0.006% 0.006% 0.006% 0.006% 0.006% 0.006% 0.005% 0.005% 0.005% 0.005% 0.005% 0.005% 0.005% 0.005% 0.004% 0.004% 0.004% 0.004% 0.004%

O

DIREC TORS

INVESTM ENT

GROUP

44

SHAREHOLDERS OF RECORD AS OF MARCH 1, 2025 Mary Beth Hensley Kim Halfmann Kyle Williams Ronald H. Clyde Branddy Hopkins Bryan Sherman Erin Shilcutt Jonathan Moore Mark Maschka Michael Anderson Stephen Patrick McKee and Denise McKee Trustees of the McKee Revocable Trust Beth Ann Carpenter Eric M. and Nancy N. Siegel Trust under agreement dated February 12, 2019 William T. & Diana R. Turner Trust Jill Lopez LeAndra Pruett Jessie Caffey Mitchell McLean William F. Krause III Donald F. Swan Brennan Arthur Lantzy Kylie Eileen Lantzy Westin Reid Lantzy Lei Ann Lantzy Jayce Parker Lantzy Cooper James Lantzy Jennifer Flores Arthur Ellis Lantzy Delia Villanueva RAMI Properties LLC Tammy Dermody Iris Williams Michael Robinson Hillary Madeline Leslie Oglesby Shawna Thomas Judy Farmer Stacy M. Foley Erin Merriott J. Mark Busch James H. Busch Tracy Tortella Nelida Rodriguez Doug Diener Alec Hartman Nicholas Tunheim David Fuentes Shannon Stih-Zaun 45

A NN UAL

REP ORT

2024

Director/ Officer

Total Common

Common %

100 100 100 100 100 100 100 100 100 100 97 96 93 93 90 90 90 90 89 83 80 80 80 80 80 80 80 80 76 74 74 70 70 66 65 60 60 60 60 59 59 55 50 50 50 50 50 50

0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.004% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.003% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002%

SHAREHOLDERS OF RECORD AS OF MARCH 1, 2025

Director/ Officer

Total Common

Common %

50 50 50 49 46 46 46 46 46 46 46 46 46 45 45 40 40 40 40 37 36 31 30 30 30 30 30 30 27 25 25 25 24 22 20 20 20 20 20 20 20 20 20 20 18 16 15 15

0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.002% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001% 0.001%

Stephanie Hinkson Coleton Honea Darla McCarty Susana Cantu Daniel David S. J. Anderson John G. Fidel Charles W. Hammond Steve & Michele Ferree James A. Clair Barry L. Noffze Charles E Young Millennium Trust Company, LLC Custodian FBO Mark Gonzales Traditional IRA xxxx91670 Daniel R. Neal Christine M. Jacob Gregg P. Krause Laurie Burton Jessica Kraut William (Jeff) Robinson Rees Heizelman Steve McKee Tatianna E. Verden Zachary G. Verden Dawn Garrett Koetta Carrell Kathy Byram Tina Steele Clint Eastman Nathan Bachert Bonafair Capital Partners, LLC Caroline Jackson Amanda Williams Klayton Oneal Jeremy Miles Elaine Edwards Greg Neeley Zack Shahan Sam Corbett Emerson G. Verden Emalin Verden Teagen G. Knowles Amanda Buch Tyler Ward John P. Chaka Alyssia Martinez Michelle Morgan Rex Johnson Alyssa Alvarez Christy Kessler DIREC TORS

INVESTM ENT

GROUP

46

SHAREHOLDERS OF RECORD AS OF MARCH 1, 2025

Director/ Officer

Lisa Bolin McKee Wallwork + Company, LLC Kim Kent Chris Baber Deonna Walker Jessie Martin Joyce Kiser Christy Bechtel Darrell Richardson Jamin Phillips Teresa Mansker Allison Condry Jennifer Richardson Carlos Pena Zackary Keene Patrick Messersmith Taylor Stokes Nicolas Alvarez Keith Carroll Brooke Thompson Brown Cody Forrester Jennifer Salinas Lauren Evans Amber Rush-Jones Michael Garcia Reagan Biggs Brady Corbett Chloe Jonas Jamilah Spears Carrie Terrill Andrea Frizzell Ruben James Ulloa Tate Knowles Grand Total Issued and Outstanding Treasury Stock Held By Company Grand Total Issued and Outstanding and in Treasury All Active Directors (D), Emeritus Directors (E) and Officers (O) as a Group

47

A NN UAL

REP ORT

2024

Total Common

Common %

15 11 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 7 6 5 5 5 5 5 5 5 5 2,557,171 372,161 2,929,332 1,138,570 Seale Family Harper Family Hamil Family Other Shareholders

0.001% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 87.295% 12.705% 100.000% 44.525% 33.955% 15.001% 10.506% 40.538%

DIREC TORS

INVESTM ENT

GROUP

48

BOARD OF DIRECTORS

shareholders

Leslie Branon Montz

Mark Cypert

Stuart Ford

Terry Groban

Robert Hamil

Jeff Harper

Snyder

Ft. Worth

Abilene

Abilene

Abilene

Waco

Snyder Emeritus Director

49

A NN UAL

San Angelo

Drew Seale

Dr. Reagan Ramsower

jack Cypert

Houston

Jerry Edwards Granbury Emeritus Director

REP ORT

2024

Mark France

Austin Emeritus Director

Sylvester

Tim Hoff

Pat Patton

St. Charles, MN

Kris Seale

Mike Lemons

Sid Grant

Austin

Abilene

Sauk Centre, MN

Kasi Welch-Baker Midland

Darrell Rains Austin Emeritus Director

Bob White

Weatherford Emeritus Director

CORPORATE OFFICERS

Kris Seale

Todd Carlson

Terry Groban

Paul Lovelace

Dwayne McGraw

Dawson Rodriguez

Jeff Stewart

Addison Templeton

President & Chief Executive Officer, Chairman of the Board

Executive Vice President & Chief Corporate Development Officer

Drew Seale

Executive Vice President & Chief Marketing Officer

Executive Vice President & Chief Sales Officer

Executive Vice President & Chief Actuary

Executive Vice President & Chief Culture Officer

DIRECTORS

Executive Vice President & Chief Financial Officer

Executive Vice President & Chief Information Security Officer

Executive Vice President & Chief Operations Officer

INVESTM ENT

GROUP

50

OUR

visionaries Allan Adams..............................................................................1945 - 2024 Thomas (Tommy) Lynn Welch. .....................................1953 - 2024 Jay Kelly.......................................................................................1932 - 2022 Ernest Welch, Jr...................................................................... 1925 - 2016 Mike Branon............................................................................. 1953 - 2015 Billy Ray Harper.......................................................................1931 - 2013 Avery Connell. .........................................................................1922 - 2008 Bill Seale. .....................................................................................1927 - 2005 Benjamin Burton....................................................................1930 - 2004 Melvin Storm. .......................................................................... 1921 - 2004 Wendell Dodds. .......................................................................1938 - 2000 John Hamil..................................................................................1935 - 1998 Haynie Sides...............................................................................1917 - 1998 Tom Branon...............................................................................1929 - 1988

51

A NN UAL

REP ORT

2024

DIREC TORS

INVESTM ENT

GROUP

52

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