Security National Financial Corporation Reports Financial Results for the Quarter Ended September 30, 2025

Core Viewpoint - Security National Financial Corporation (SNFC) reported a significant decrease in after-tax earnings for the third quarter of 2025, with a 34% drop compared to the same period in 2024, highlighting challenges in the current financial landscape while noting some operational improvements and strategic management changes [1][2]. Financial Performance - For the three months ended September 30, 2025, after-tax earnings fell to $7,815,000 from $11,831,000 in 2024, marking a 34% decrease [1]. - For the nine months ended September 30, 2025, after-tax earnings decreased by 30% to $18,866,000 from $26,578,000 in 2024 [1]. - The company achieved a Return On Equity (ROE) of 7.9% for the nine months, which, if annualized, would be 10.5%, an improvement from 8.5% reported in June [1]. Business Segments Overview - The Mortgage Segment reported profitability for the quarter, marking only the third profitable quarter in the last three years, despite ongoing challenges in the mortgage market [2]. - The Cemetery and Mortuary Segment showed improved results over Q3 2024, with stabilized preneed cemetery land sales [2]. - The Life Insurance Segment experienced weak earnings primarily due to Deferred Acquisition Costs (DAC), Current Expected Credit Losses (CECL), and lower unrealized gains on common stock [2]. Revenue and Earnings Breakdown - For Q3 2025, the revenues and earnings before taxes for each segment were as follows: - Life Insurance: Revenues of $50,790,000 (up 4.0% from $48,853,000) with earnings of $7,042,000 (down 43.0% from $12,358,000) [3]. - Cemeteries/Mortuaries: Revenues of $8,928,000 (up 4.5% from $8,543,000) with earnings of $3,045,000 (up 7.2% from $2,841,000) [3]. - Mortgages: Revenues of $29,608,000 (down 4.1% from $30,878,000) with earnings of $66,000 (up 312.5% from $16,000) [3]. - For the nine months ended September 30, 2025, total revenues were $261,607,000 (up 2.5% from $255,253,000) with earnings before taxes of $24,060,000 (down 29.7% from $34,224,000) [3]. Shareholder Information - As of September 30, 2025, there were 24,697,314 Class A equivalent shares outstanding [5]. - An earnings call is scheduled for November 14, 2025, to review the third-quarter results and provide updates on the business segments [5].