Financials
Below you will find a quick summary of noteworthy financial highlights that may assist in understanding the detailed financial statements and supporting graphs.
Summary
The 2025 financial results reflect the strides made during the year towards executing LCBA’s long-term strategic plan. Investments were made in expanding our sales force, launching our direct-to-consumer online insurance application, and growing and cultivating our branches in support of our fraternal mission. We forged relationships with new and existing partners in our funeral homes and most notably, with our reinsurer, Heritage Life Insurance, to allow us to continue our path towards sustainable growth. On the financials this is evident by a nearly break-even net income on the summary of operations and a marginal decrease in surplus. Although overall sales increased in 2025, life insurance and annuity premiums reflected are much lower than in 2024 because a portion of these collected premiums during the year were transferred to the reinsurer, which allows us to continue to increase our certificate count, serving more families while maintaining operational stability.
Financial Highlights
LCBA’s surplus decreased by $252k in 2025, while recognizing a net gain of $3k and a decrease in Risk-Based Capital ratio from 793% to 778%. These overall financial results reflect LCBA’s expectations as we continue investing in growth initiatives, the issuance of new business and expanding our membership. Our relationship with Heritage Life Insurance softens the strain that can often be associated with increased insurance sales, allowing us to continue to prioritize supporting our members, branches, and communities.
Overall portfolio investment quality remains high, with an average rating of “A” and 99% of bonds are investment grade. LCBA’s bond portfolio grew by $1 million from 2024. The ending book yield for 2025 is up 7 basis points from 2024. LCBA continues to work directly with its investment advisors to maintain stable investment income while structuring cash flows that are sufficient to meet the needs of the organization regardless of interest rate fluctuations, while also managing an appropriate risk/return tradeoff in accordance with our investment policy.
General expenses overall are up 2% from the prior year, while remaining under budget by 3%. Overall, totals are expected to continue to increase gradually as we reinvest in the future of the association and bear the strain of increasing costs associated with labor, benefits and overall operating expenses. 2025 is a proper reflection of this as we reaped the benefits of the efforts and investments incurred in 2024 as part of our ongoing strategic initiatives.
2025 ANNUAL FINANCIAL REPORT
STATEMENT OF FINANCIAL POSITION
As of December 31,
| Assets | 2025 | 2024 |
|---|---|---|
| Bonds | $116,587,506 | $115,603,105 |
| Mortgage Loans | $2,213,319 | $2,168,235 |
| Real Estate | $1,369,420 | $1,402,505 |
| Certificate Loans | $969,250 | $904,143 |
| Cash & Cash Equivalents | $2,085,323 | $2,715,080 |
| EDP Equipment | $21,711 | $9,801 |
| Income Due & accrued | $1,716,783 | $2,663,521 |
| Total Assets | $124,963,312 | $125,466,390 |
| Liabilities & Surplus | 2025 | 2024 |
| Certificate Reserves | $103,568,453 | $103,082,266 |
| Deposit-Type Contracts | $5,149,187 | $5,417,082 |
| Certificate Claims | $481,726 | $416,268 |
| Provision for Dividends | $508,648 | $508,099 |
| Advance Premiums | $189,758 | $215,233 |
| Investment Reserves | $5,366,661 | $5,829,073 |
| Accrued General Expenses | $350,473 | 331,101 |
| Other Liabilities | $655,846 | $722,944 |
| Unassigned Funds | $8,692,560 | $8,944,324 |
| Total Liabilities & Surplus | $124,963,312 | $ 125,466,390 |
SUMMARY OF OPERATIONS
Through December 31,
| Income | 2025 | 2024 |
|---|---|---|
| Life insurance premiums | $5,682,184 | $9,520,997 |
| Annuity premiums | $3,682,612 | $6,291,492 |
| Accident & health premiums | $80,451 | $88,413 |
| Net investment income | $5,638,024 | $5,333,567 |
| Other income | $2,085,511 | $1,263,664 |
| Total Income | $ 17,168,782 | $22,498,133 |
| Member Benefits | 2025 | 2024 |
| Death benefits | $4,932,825 | $4,643,767 |
| Life & annuity benefits | $5,625,569 | $5,660,656 |
| Reserve changes | $486,187 | $6,153,540 |
| Total Member Benefits | $11,044,581 | $16,457,963 |
| Operating Expenses | 2025 | 2024 |
| Commissions | $1,126,487 | $1,115,681 |
| General expenses | $4,348,227 | $4,265,567 |
| Taxes & other | $161,286 | $180,388 |
| Total Operating Expenses | $5,636,000 | $5,561,636 |
| Total Benefits & Expenses | $16,680,581 | $22,019,599 |
| Net Gain from Operations | $488,201 | $478,534 |
| Dividends incurred | $(485,240) | $(494,328) |
| Net Income | $2,961 | $(15,794) |
| Other Changes in Surplus | $(254,725) | $(214,780) |
| Net Change in Surplus | $(251,764) | $(230,574) |
