Financial Performance - The company reported a GAAP net loss per share-diluted of ($0.10) for the second quarter of 2025[10, 12] - Earnings Available for Distribution (EAD) for 2Q25 was $0.04 per share, an 11.4% annual increase since the ACRES acquisition in 3Q20[10, 12] - Book value per share at June 30, 2025, was $27.93, down from $28.50 in 1Q25 and up from $27.20 in 2Q24[10, 12] Loan Portfolio & Activity - The CRE loan portfolio at par value was $1.4 billion, with a weighted average LTV of 80%[12] - Net CRE loan production for 2Q25 was $60.5 million[10, 12] - 91.4% of the par value of the CRE loan portfolio is current on payments[10, 12] - 75% of the CRE loan portfolio is focused on multifamily properties[10] Capitalization & Liquidity - Total liquidity at June 30, 2025, was $64.7 million[10, 13] - Total capacity at June 30, 2025, was $2.2 billion[13] - Capacity available at June 30, 2025, was $908.8 million[13] Real Estate Investments - Net investments in real estate and properties held for sale totaled $176.8 million[12, 34]

Core Viewpoint - Security National Financial Corporation (SNFC) reported a significant decrease in after-tax earnings for Q1 2025, down approximately 42% compared to the same period in 2024, primarily due to declines in investment income and increased personnel costs [1][2][6]. Financial Performance - After-tax earnings for Q1 2025 were $4.338 million, down from $7.475 million in Q1 2024, representing a decrease of approximately $3.1 million [1]. - Pre-tax earnings also decreased by about 42%, or $4.05 million, to $5.571 million [1]. - Net earnings per common share fell to $0.18 from $0.31 year-over-year, while book value per common share increased slightly to $14.68 from $14.45 [8]. Segment Performance - The Life Insurance segment reported revenues of $49.287 million, a decrease of 1.4% from $49.971 million in 2024, with pre-tax earnings down 37.5% to $5.327 million [8]. - The Cemeteries/Mortuaries segment saw revenues decline by 7.6% to $8.119 million, with pre-tax earnings down 26.7% to $2.238 million [8]. - The Mortgages segment experienced a revenue increase of 12.9% to $25.334 million, although it reported a slight pre-tax loss of $1.994 million [8]. Investment Income Analysis - Approximately 75% of the $4.05 million decrease in pre-tax income was attributed to declines in realized and unrealized investment income, with a notable $3 million decline in investment income [2][4]. - Of the $3 million decline in investment income, about 56% ($1.7 million) was related to decreased construction profits and fewer home closings compared to Q1 2024 [3]. - The stock market decline accounted for roughly 42% ($1.25 million) of the investment income decrease, with the company opting not to liquidate positions, resulting in unrealized losses [4]. Personnel Costs and Strategic Investments - Personnel costs rose by 11.7%, or approximately $2.2 million, primarily due to annual compensation increases and strategic hiring to enhance sales and fulfillment capabilities [6]. - The increase in personnel costs is viewed as a necessary investment for future growth, despite the immediate impact on earnings [6]. Operational Highlights - Despite the decrease in income, the company achieved a 4% increase in families served in the Death Care Segment and improved premium margins in the Insurance Segment [7]. - The Mortgage Segment reported an 11% increase in volume compared to Q1 2024, indicating positive operational performance [7].

Financial Performance - The company reported a GAAP net loss per share-diluted of $0.80 for 1Q25[12] - The company reported an EAD loss for 1Q25 of $0.86[12] - Book Value per Share at March 31, 2025 was $28.50, down from $28.87 in 4Q24 and up from $27.25 in 1Q24[10, 12] Loan Portfolio - The CRE loan portfolio at par value is $1.4 billion, comprising 48 loans with a weighted average LTV of 81%[12] - 89.5% of the par value of the CRE loan portfolio is current on payments[10, 12] - 77% of the CRE loan portfolio is focused on Multifamily properties[10] - Net CRE loan repayments for 1Q25 totaled $120.7 million[10, 12] Capitalization and Liquidity - Total liquidity at March 31, 2025 was $87.4 million[10, 12] - Total capacity was $2.2 billion, with $948.3 million available at March 31, 2025[12, 13] - Total Capitalization is $1.7 billion, with Stockholders' equity accounting for 26%[17] Real Estate Investments - Net investments in real estate and properties held for sale totaled $177.0 million[13, 32]

FOURTH QUARTER 2024 EARNINGS PRESENTATION March 5, 2025 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not historical facts but rather are based on ACRES Commercial Realty Corp.'s ("ACR's" or the "Company's") current beliefs, assumptions and expectations. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to ACR o ...