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Security National Financial Corporation Reports Financial Results for the Quarter Ended June 30, 2025
Globenewswireยท 2025-08-14 16:10
Core Viewpoint - Security National Financial Corporation (SNFC) reported a decline in after-tax earnings for the second quarter and first half of 2025, attributing part of the decrease to challenges in the mortgage industry and ongoing efforts to improve sales and operational efficiency [1][2]. Financial Performance - For Q2 2025, after-tax earnings decreased by 10% to $6,506,000 from $7,271,000 in Q2 2024, while for the first half of 2025, earnings fell by 26% to $10,845,000 from $14,746,000 in the same period of 2024 [1]. - The company achieved an annualized Return On Equity (ROE) of 8% for the first half of 2025, which is below the 10-year average of 13.3% [1]. - Total revenues for Q2 2025 were $89,541,000, a 4.4% increase from $85,791,000 in Q2 2024, while total earnings before taxes decreased by 11.2% to $8,337,000 from $9,390,000 [5]. Segment Performance - **Life Insurance Segment**: Revenues increased by 9.1% to $51,525,000 in Q2 2025, with earnings before taxes rising by 14.6% to $8,214,000 [5]. - **Cemetery and Mortuary Segment**: Revenues decreased by 1.7% to $8,140,000, with earnings before taxes down by 14.2% to $1,794,000 [5]. - **Mortgage Segment**: Revenues fell by 1.3% to $29,876,000, with a loss before taxes of $1,671,000 compared to a profit of $134,000 in Q2 2024 [5]. Strategic Initiatives - The company has made significant investments in residential land holdings, totaling approximately $50 million, aiming for higher future yields despite sacrificing current income [3]. - SNFC is focused on improving sales performance across all segments, including a recent reorganization of the executive sales staff to enhance sales capabilities [4][5]. - The company anticipates that increased life insurance premium rates will contribute an additional 1.5 percentage points to ROE in the short term [1]. Market Context - The mortgage market remains challenging, with increased commission expenses impacting profitability, although the company believes it is performing comparably to industry peers [5]. - The nationwide cremation rate has surpassed 50%, influencing revenue dynamics in the Cemetery and Mortuary Segment [4].