Security National Financial Corporation Reports Financial Results for the Quarter Ended September 30, 2026

Quarterly earnings declined across all three segments, while stockholders’ equity increased about $36 million.

Rhea-AI Summary

Security National Financial (SNFCA) reported third-quarter after-tax earnings of $6.166 million, down from the same period a year earlier. Earnings fell 38.6%, while revenue decreased 10.5% to $79.942 million. Pretax earnings declined 37.2% to $8.223 million. Mortgage operations posted a $2.649 million pretax loss, versus a $66,000 profit; insurance and cemetery/mortuary pretax earnings also declined.

Nine-month after-tax earnings fell 10.8% to $22.149 million, and revenue dropped 6.9% to $243.597 million. Earnings per common share decreased to $0.82 from $0.93. Stockholders’ equity increased about $36 million during the quarter to $469 million, reflecting a downward revaluation of life reserves outside net earnings. Book value per common share reached $17.98 versus $15.75 at year-end 2025, adjusted for annual stock dividends. Nine-month cemetery/mortuary pretax earnings rose 9.1%, while mortgage losses narrowed 9.0%.

8 points · 0 major

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0 major · 16 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointStockholders’ equity increased about $36 million, or 8.2%, during Q3 to $469 million.
• Moderate pointNine-month cemetery/mortuary pretax earnings increased 9.1% year over year to $7.720 million.
• Moderate pointNine-month mortgage pretax loss narrowed 9.0% to $3.276 million from $3.601 million.
• Minor pointBook value per common share rose to $17.98 from $15.75 at December 31, 2025, adjusted for annual stock dividends.
• Minor pointCemetery/mortuary revenue rose 1.3% to $9.048 million in Q3 and 8.6% to $27.349 million over nine months.

3 minor points

• Minor pointFirst-year life insurance sales rose over 20% by annualized premium and 27% by face amount year to date versus 2025.
• Minor pointPreneed cemetery sales rose roughly 12% for the quarter and 17% year to date.
• Minor pointFamilies served increased 2.5% in Q3 compared with 2025.

Negative

• Moderate pointQ3 after-tax earnings decreased 38.6% year over year to $6.166 million from $10.048 million.
• Moderate pointMortgage revenue declined 28.5% to $21.169 million in Q3 and 15.9% to $71.355 million over nine months.
• Moderate pointQ3 mortgage pretax loss reached $2.649 million, versus a $66,000 profit in Q3 2025.
• Moderate pointLife insurance revenue fell 2.1% to $49.725 million in Q3 and 4.4% to $144.893 million over nine months.
• Moderate pointLife insurance pretax earnings fell 16.5% to $8.341 million in Q3 and 14.4% to $24.490 million over nine months.
• Moderate pointQ3 cemetery/mortuary pretax earnings declined 16.9% year over year to $2.531 million from $3.045 million.

10 minor points

• Minor pointNine-month after-tax earnings decreased 10.8% year over year to $22.149 million from $24.832 million.
• Minor pointNine-month earnings per common share fell to $0.82 from $0.93 in the prior-year period.
• Minor pointNon-cash fair value adjustments to loans held for sale and derivatives contributed about $1 million to Q3 mortgage losses.
• Minor pointAverage insurance portfolio yield declined approximately 90 basis points year over year, primarily from home-builder profit-recognition timing.
• Minor pointQ3 credit-loss provision was roughly $2 million, primarily related to two loans that defaulted during the quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.First-year life insurance sales are mildly profit negative initially; the company expects accounting profits in future years.
• Minor pointCemetery/mortuary stock portfolio recorded unrealized losses of over $400,000 during Q3.
• Minor pointPrior-year leasing income gain of $241,000 did not recur in Q3 2026.
• Minor pointYear-to-date families served decreased some 1.3% compared with 2025.
• Minor pointFuneral mix shifted toward lower-revenue cremations, while cemetery/mortuary operations faced cost pressures.

News Explained

The Q3 credit-loss provision was roughly $2 million, primarily related to two loans that defaulted during the quarter; if ultimate recoveries exceed current estimates, a portion could be reversed in future periods.

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SALT LAKE CITY, Nov. 09, 2026 (GLOBE NEWSWIRE) -- Security National Financial Corporation (SNFC) (NASDAQ symbol “SNFCA”) announced financial results for the quarter ended September 30, 2026. For the three months ended September 30, 2026, SNFC’s after-tax earnings decreased 38.6% from $10,048,000 in 2025, to $6,166,000 in 2026. For the nine months ended September 30, 2026, after-tax earnings decreased 10.8% to $22,149,000, from $24,832,000 in 2025.

Scott M. Quist, Chairman, President and Chief Executive Officer of the Company, said:

“There are two major financial statements in the 10Q that I will focus on: the “Statement of Earnings”, or Income Statement, and the Balance Sheet. From the Income Statement point of view, we had a rugged 3^rd quarter, with earnings decreasing some 37% (pre-tax) as compared to Q3 2025 to $8.2MM. From a Balance Sheet point of view, we had what we believe is the largest single-quarter dollar increase in Stockholders’ Equity in our history, with equity increasing some $36MM, or 8.2% for the quarter, to $469MM. From my point of view, both results, as divergent as they may seem, are driven primarily by the same macro factor – increased interest rates.

Going to a Segment Analysis, our Mortgage Segment fell from a profit of $66,000 in Q3 2025 to a $2.65MM loss in 2026. About $1MM of that loss is a non-cash fair value adjustment to our loans held for sale and our derivatives (primarily interest rate lock commitments), which is based on estimates and can fluctuate from period to period. The major reason behind our reduced profitability is simply market conditions. The geopolitical environment was very unfavorable in Q3, which led to accelerating, deteriorating market conditions through the entire quarter and very reduced volumes. For comparison’s sake, in the Utah Housing market (which is one of our major markets) pending home sales were down 27% September 2026 over September 2025 and closed sales were down 12%, with homes for sale increasing 4%. To summarize the Utah market, inventory increased and sales decreased sharply. Similar conditions existed in most of the markets we service. It should be noted that despite the very rugged 3^rd quarter, we narrowed our losses by 9% over 2025 on a YTD basis. To me, our Mortgage Segment deserves a hearty “Thank You” for their continued tenacity in the face of such very tough market conditions. I am not discouraged one bit from our deliberate overall corporate strategy.

In our Insurance Segment, the reduced profitability causes were similar from an Income Statement point of view. I should stress at the outset that our investment yield remains quite above industry averages for life insurance companies. According to the National Association of Insurance Commissioners, industry book yields at year end 2025 were in the mid 4% range, while ours for Q3 2026 was in the mid 5% range. Nevertheless, our average portfolio yield declined approximately 90 basis points YOY, primarily driven by the timing of home builder profit recognition, with additional impacts from the allowance for credit losses and decreased funeral funding yields, as well as modest declines in construction interest earnings, fee income, and gains on sale. The decreased home builder profits and construction interest earnings require no further comment than what has been given above regarding mortgage market conditions. Regarding the allowance for credit losses, under the Current Expected Credit Losses (CECL) accounting standard we recorded a provision for credit losses of roughly $2MM in Q3, primarily related to two loans that went into default during the quarter. If our ultimate recoveries exceed current estimates, a portion of this provision could be reversed in future periods. Expense levels at our Insurance Segment are a little elevated, which I view as money well spent. First year life insurance sales are up over 20% YTD as measured by annualized premium, 27% as measured by face amount, over 2025, which is a very credible accomplishment given that we changed out almost our entire senior sales management staff last year. Much hard work from new sales management has gone into improving our sales processes and offerings and we believe we are just getting started. Due to how first year sales are accounted for, the profits from those sales will not be realized from an accounting point of view until future years. In fact, first year sales are mildly profit negative. Lastly, due to the increase in interest rates, our life reserves were revalued downwards. Under current accounting rules, that revaluation is not included in net earnings; instead, it flows through Other Comprehensive Income (reported in a separate statement in the Form 10Q) and directly into Stockholders’ Equity, which caused the large increase noted above. In a nutshell, our liabilities have a longer average duration than our assets, so increases in interest rates generally have the effect noted, and decreases generally have the opposite effect.

Our Cemetery and Mortuary Segment similarly had a rugged Q3 with profit declining roughly $500,000 or 17%, as compared to 2025. While there are numerous inputs that lead to any increase or decrease in profitability, there were two major factors for Q3 totaling over $600,000. First, the Segment had unrealized losses of over $400,000 in its stock portfolio for the quarter and in Q3 2025 had a leasing income gain of $241,000, which is not present in 2026 thus giving a negative comparison. Operationally speaking, while families served in Q3 increased modestly (2.5%) over 2025, for the YTD families served decreased some 1.3%, reflecting the constrained death rate environment that has been experienced nationwide. Our traditional funeral vs. cremation mix turned more towards cremation, which gives a lower revenue, and we are experiencing cost pressures. Nevertheless, we controlled what we could control, and our preneed cemetery sales rose roughly 12% for the quarter and 17% for the year, which is the largest single factor in giving us a 9% profit improvement YTD. To summarize very broadly, we “held serve” operationally, and our preneed cemetery sales viewed YTD overcame our unrealized losses, giving a 9% YTD profit improvement.

Lastly, I will comment here that the financial balance inherent in our businesses is illustrated markedly when the financial statements are viewed as a whole, meaning that increased interest rates gave our Mortgage Segment a very rugged environment, but at least from a GAAP Balance Sheet point of view gave our Insurance Segment a very favorable environment. Our Cemetery and Mortuary Segment, which is not affected nearly as much by interest rates is affected by the death rate, but again note the balance that decreases in death rates benefit the Insurance Segment.

SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended September 30, 2026, as compared to 2025, for each of the three business segments:

	Revenues								Earnings before Taxes
	2026			2025					2026				2025
Life Insurance	$	49,725,000		$	50,790,000		(2.1%)		$	8,341,000			$	9,991,000			(16.5%)
Cemeteries/Mortuaries	$	9,048,000		$	8,928,000		1.3%		$	2,531,000			$	3,045,000			(16.9%)
Mortgages	$	21,169,000		$	29,608,000		(28.5%)		$	(2,649,000	)		$	66,000			NM
Total	$	79,942,000		$	89,326,000		(10.5%)		$	8,223,000			$	13,102,000			(37.2%)

For the nine months ended September 30, 2026:

	Revenues								Earnings before Taxes
	2026			2025						2026				2025
Life Insurance	$	144,893,000		$	151,602,000		(4.4%)		$	24,490,000			$	28,614,000			(14.4%)
Cemeteries/Mortuaries	$	27,349,000		$	25,187,000		8.6%		$	7,720,000			$	7,078,000			9.1%
Mortgages	$	71,355,000		$	84,818,000		(15.9%)		$	(3,276,000	)		$	(3,601,000	)		9.0%
Total	$	243,597,000		$	261,607,000		(6.9%)		$	28,934,000			$	32,091,000			(9.8%)

Net earnings per common share was $.82 for the nine months ended September 30, 2026, compared to net earnings of $.93 per share for the prior year and book value per common share was $17.98 as of September 30, 2026, compared to $15.75 as of December 31, 2025, after adjustments for the effect of annual stock dividends.

The Company has two classes of common stock outstanding, Class A and Class C. There were 26,061,063 Class A equivalent shares outstanding as of September 30, 2026.

An earnings call will commence at approximately 1PM (MST) on Thursday, November 12, 2026, and will include a review of its 3^rd quarter results as well as an update from the Company’s three business segments. Investors and other interested members of the public may access the earnings call by clicking the link below:

https://investor.securitynational.com/news-and-events/events-and-presentations

The earnings call can also be accessed directly from the Company’s website under “Events” on the Investor Relations page.  

If there are any questions, please contact Mr. Garrett S. Sill, Chief Financial Officer, or Mr. Scott M. Quist, Chairman, President and Chief Executive Officer, at:

Security National Financial Corporation
P.O. Box 57250
Salt Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 264-8430

Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements covered by Section 21E of the Securities Exchange Act of 1934 and, where applicable, Section 27A of the Securities Act of 1933. Statements other than statements of historical fact are forward-looking statements. Words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “plan,” “may,” “could,” “will,” “should,” “would,” “continue” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements include statements regarding future operating performance, liquidity, financing, business strategy, mortgage origination activity, covenant compliance, waivers, renewals or replacement of mortgage warehouse lines of credit, remediation of internal control over financial reporting, expected future events, and assumptions underlying those statements. These statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include, among others, (i) competition and the Company’s ability to attract and retain customers; (ii) changes in laws, regulations and tax treatment affecting the Company’s businesses; (iii) changes in interest rates and their effect on investment income, investment values, interest expense and policy liabilities; (iv) the Company’s liquidity, including compliance with covenants under, and the renewal, waiver or replacement of, its mortgage warehouse lines of credit; (v) mortgage origination volumes, secondary market pricing and loan repurchase demands; (vi) the credit quality of the Company’s mortgage loans and deterioration in real estate markets; (vii) mortality, morbidity and lapse experience, medical costs and the adequacy of reinsurance; (viii) higher operating and information systems expenses; (ix) the Company’s ability to remediate the material weakness in internal control over financial reporting; and (x) the loss of key personnel, rating changes, and litigation, including claims relating to sales practices and claim denials. Additional factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this report, and readers should not place undue reliance on them. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement.

About Security National Financial Corporation
Security National Financial Corporation (NASDAQ: SNFCA), headquartered in Salt Lake City, Utah, operates through three business segments: life insurance, cemetery/mortuary, and mortgages. Founded in 1965, the Company serves customers across the United States. For more information, visit investor.securitynational.com.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Security National Financial’s third-quarter 2026 earnings?

Security National Financial reported $6.166 million in after-tax earnings for the three months ended September 30, 2026, down 38.6% from $10.048 million a year earlier. Revenue declined 10.5% to $79.942 million, and pretax earnings fell 37.2% to $8.223 million.

Why did SNFCA’s equity rise while third-quarter earnings declined?

Higher interest rates reduced the valuation of life reserves, with that adjustment flowing through other comprehensive income rather than net earnings and directly into stockholders’ equity. The company explains that its liabilities have a longer average duration than its assets, so rising rates generally have this effect; falling rates generally have the opposite effect.

Could Security National Financial reverse its third-quarter credit-loss provision?

A portion of the roughly $2 million Q3 credit-loss provision could be reversed in future periods if ultimate recoveries exceed current estimates. The provision was primarily related to two loans that defaulted during the quarter and was recorded under the Current Expected Credit Losses accounting standard.