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

Rhea-AI Summary

Security National Financial Corporation (NASDAQ: SNFCA) reported results for the quarter ended September 30, 2025. After-tax earnings were $7,815,000 for Q3 2025, down 34% from $11,831,000 a year earlier; for the nine months ended September 30, 2025 after-tax earnings were $18,866,000, down 30% from $26,578,000. Net earnings per share were $0.32 for nine months vs. $0.48 a year earlier. Book value per share was $14.79 as of September 30, 2025, up from $13.76 at December 31, 2024.

Management highlighted a 9-month ROE of 7.9% (annualized to 10.5%), improved personnel-cost efficiencies (YTD personnel costs up ~6%), a profitable Mortgage segment in Q3, and upcoming LDTI accounting changes for the Life Insurance segment to be implemented in Q4.

Positive

• 9-month ROE 7.9% (annualized to 10.5%)
• Mortgage segment profitable in Q3 2025 (third profitable quarter in 3 years)

Negative

• After-tax earnings Q3 -34% to $7.815M versus $11.831M
• Nine-month after-tax earnings -30% to $18.866M versus $26.578M
• Net earnings per share down 33% to $0.32 (nine months)
• Total earnings before taxes nine months -29.7% to $24.060M

Insights

Equity Analyst

SNFC reports sizable EPS and after-tax earnings declines, offset by improved ROE and segment recoveries.

Security National Financial Corporation showed a 34% drop in quarterly after-tax earnings and a 30% decline for nine months, with net EPS of $.32 versus $.48 year‑ago; revenues rose modestly 1.2% quarter-to-quarter and 2.5% year-to-date, indicating revenue stability but material profit pressure.

The business drivers differ by segment: Mortgage returned to small profitability in Q3 after prolonged weakness, Cemeteries/Mortuaries posted modest EBIT improvement, and Life Insurance saw weaker earnings due to DAC, CECL, and lower unrealized stock gains; management highlights improved operational quality, personnel efficiency, and an annualized nine-month ROE of 10.5%, which partially offsets concern about lower operating earnings.

Key dependencies and risks include the forthcoming Q4 LDTI accounting adoption that will materially reclassify reserves and DAC, the timing effects from CECL provisioning (noted near $1,000,000 for mortgage CECL), and whether upgraded sales/executive hires translate into higher life premium sales. Monitor the earnings call on November 14, 2025 for management guidance, LDTI transition detail, and segment-specific sales trends over the next 90 days.

SALT LAKE CITY, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the quarter ended September 30, 2025. For the three months ended September 30, 2025, SNFC’s after tax earnings decreased 34% from $11,831,000 in 2024 to $7,815,000 in 2025. For the nine months ended September 30, 2025, after tax earnings decreased 30% to $18,866,000 from $26,578,000 in 2024.

Scott M. Quist, President of the Company, said:

“While the third quarter was definitely weak from my point of view, being $4MM below Q3 2024 or roughly 34%, there are some definite bright spots which partially illuminate much of the hard work that has gone on. For example, on a Return On Equity basis, as of September 30^th we achieved a 7.9% ROE for the nine months, which if annualized would put us in double digits at 10.5%. That is an improvement over our June report where the similar annualized ROE number was 8.5%. In some respects that improvement highlights the financial diversity and resilience of our Company even when our operating earnings are a little disappointing. Another financial bright spot that deserves mention is our personnel costs. While they are still up roughly 6% on a YTD basis, for the quarter they are flat, indicating that we have found and implemented sufficient efficiencies to offset the talent hiring we undertook commencing in Q4 of 2024. Another way to say it is that we have significantly improved our executive management talent, particularly in the sales arena, and have been able to offset those immediate costs with operational efficiencies. In June, by way of further illustration, our YTD personnel costs were up roughly 10%, so to be up just 6% YTD in September indicates that significant progress has been made. Of course improved management talent, particularly sales talent, should pay for themselves plus a margin and I believe I am seeing that progress. I continue to be very impressed with the people that have chosen to join us. That process, however, is a process and will take a little time for it to play out. We have spent heavily and have expended much effort this past year to retain first and then recruit improved sales, sales support, and executive talent in all of our segments. It has been, and continues to be a major management focus.

Going to our business segments, for the quarter our Mortgage Segment was profitable and was up over Q3 of 2024. While the numbers are not large, it represents a significant milestone. The mortgage market continues to be troubled, with this being only the third profitable quarter in the last 3 years. Nevertheless, it was a profitable quarter! Further, I would note that in my estimation our operational quality has improved YOY with actual operational improvement rather than simply accounting improvements (or drags). Segueing to accounting treatments for a moment, using Current Expected Credit Losses (CECL, or bad debt expense) as the example, which are for the most part formulaic and which affect all our business segments, we have set aside nearly $1MM for mortgage losses when in fact for at least the last 36 months we have suffered no losses due to foreclosure. I am not arguing that the accounting principles are being misapplied, I am simply saying that sometimes accounting treatments can have a timing effect of moving income between years, if not quarters. Our Cemetery and Mortuary Segment also posted improved results over Q3 2024. We are just now seeing stabilized, if not improved, preneed cemetery land sales which are a major profit driver. It is a fair statement that over the last 9 months we have completely revamped our cemetery sales force. Our Life Insurance segment’s earnings were weak for the quarter, primarily due to DAC, CECL, and lower unrealized gains on common stock. Our goal is to grow new life premium sales. We did not achieve that goal in the third quarter, and we are working diligently to rectify the situation. Much of the aforementioned management and sales talent, and increased personnel costs, were/are centered in our Life Insurance Segment. As a reminder, in Q4 we will be implementing new accounting standards known as Long Duration Targeted Improvements (LDTI) in our Life Insurance Segment. This implementation will cause significant adjustments to our Benefit Reserves, our Deferred Acquisition Costs, and the implementation of a new concept of a Deferred Profit Liability among other items. Those accounting adjustments do not reflect any inappropriateness of our current calculations, but will reflect new accounting standards. Whether those new accounting standards are better or worse than existing standards, I will leave such judgment to the discretion of the user. Our investment income continues to be good corporate wide, particularly in the Life Insurance Segment. As referenced in the June Earnings Press Release, the nature of our real estate based activities (lending, directly owning, builder partnerships) does create a significant current drag to income, we believe it will be positively accretive over time. Finally, just commenting on our real estate based investments, we seem to be seeing weakness in the first time buyer markets, but strength in the move up markets.

SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended September 30, 2025, as compared to 2024, for each of the three business segments:

	Revenues										Earnings before Taxes
		2025				2024						2025			2024
Life Insurance	$	50,790,000			$	48,853,000		4.0	%		$	7,042,000		$	12,358,000		(43.0	%)
Cemeteries/Mortuaries	$	8,928,000			$	8,543,000		4.5	%		$	3,045,000		$	2,841,000		7.2	%
Mortgages	$	29,608,000			$	30,878,000		(4.1	%)		$	66,000		$	16,000		312.5	%
Total	$	89,326,000			$	88,274,000		1.2	%		$	10,153,000		$	15,215,000		(33.3	%)

For the nine months ended September 30, 2025:

	Revenues										Earnings before Taxes
		2025				2024						2025			2024
Life Insurance	$	151,602,000			$	146,061,000		3.8	%		$	20,584,000		$	28,053,000		(26.6	%)
Cemeteries/Mortuaries	$	25,187,000			$	25,608,000		(1.6	%)		$	7,077,000		$	7,984,000		(11.4	%)
Mortgages	$	84,818,000			$	83,584,000		1.5	%		$	(3,601,000)		$	(1,813,000)		(298.6	%)
Total	$	261,607,000			$	255,253,000		2.5	%		$	24,060,000		$	34,224,000		(29.7	%)

Net earnings per common share was $.32 for the nine months ended September 30, 2025, compared to net earnings of $.48 per share for the prior year and book value per common share was $14.79 as of September 30, 2025, compared to $13.76 as of December 31, 2024, 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 24,697,314 Class A equivalent shares outstanding as of September 30, 2025.

An earnings call will commence at approximately 1PM (MST) on November 14^th and will include a review of its 3^rd Quarter results as well as an update from the Company’s three business segments. Shareholders 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 or Mr. Scott Quist at:

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

This press release contains statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Security National Financial Corporation and its business. The predictions in the statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.

FAQ

What were Security National Financial (SNFCA) after-tax earnings for Q3 2025?

SNFCA reported $7.815 million after-tax earnings for the quarter ended September 30, 2025, a 34% decline versus Q3 2024.

How did SNFCA perform year-to-date through September 30, 2025 compared to 2024?

For the nine months ended September 30, 2025 SNFCA reported $18.866 million after-tax earnings, down 30% from $26.578 million in 2024.

What is SNFCA's reported earnings per share (EPS) for the first nine months of 2025?

Net earnings per common share were $0.32 for the nine months ended September 30, 2025 versus $0.48 a year earlier.

Did any SNFCA business segment show improvement in Q3 2025?

Yes. Management reported the Mortgage segment was profitable in Q3 2025 and the Cemeteries/Mortuaries segment improved versus Q3 2024.

How did SNFCA's book value per share change by September 30, 2025?

Book value per common share was $14.79 as of September 30, 2025, compared with $13.76 at December 31, 2024 (after annual stock dividend adjustments).

Will SNFCA change accounting rules that affect Life Insurance results in Q4 2025?

Yes. SNFCA will implement LDTI accounting changes in Q4 2025 that will adjust benefit reserves, deferred acquisition costs, and introduce a deferred profit liability.