Security National Financial Corporation (SNFCA) reported a significant decline in Q1 2025 financial results. Net earnings decreased 42% to $4.34M from $7.48M in Q1 2024. The company's performance was impacted by several factors, with approximately 75% ($3M) of the $4.05M pretax income decrease attributed to reduced realized and unrealized investment income. Key segment performance showed mixed results: Life Insurance revenue declined 1.4% to $49.29M, Cemeteries/Mortuaries dropped 7.6% to $8.12M, while Mortgages grew 12.9% to $25.33M. Despite challenges, the Death Care Segment increased families served by 4%, and the Mortgage Segment achieved profitability in March. Personnel costs rose 11.7% ($2.2M) due to market-competitive compensation and strategic hiring. Earnings per share decreased to $0.18 from $0.31, while book value per share improved to $14.68 from $14.45 in December 2024.
Security National Financial Corporation (SNFCA) ha riportato un calo significativo nei risultati finanziari del primo trimestre 2025. Gli utili netti sono diminuiti del 42%, attestandosi a 4,34 milioni di dollari rispetto ai 7,48 milioni del primo trimestre 2024. Le prestazioni dell'azienda sono state influenzate da diversi fattori, con circa il 75% (3 milioni di dollari) della riduzione del reddito ante imposte di 4,05 milioni attribuita a un calo dei redditi da investimenti realizzati e non realizzati. Le performance dei principali segmenti hanno mostrato risultati contrastanti: i ricavi delle Assicurazioni Vita sono scesi dell'1,4% a 49,29 milioni di dollari, i ricavi di Cimiteri/Funebri sono diminuiti del 7,6% a 8,12 milioni, mentre i mutui sono cresciuti del 12,9% a 25,33 milioni. Nonostante le difficoltà, il segmento Death Care ha aumentato del 4% le famiglie servite e il segmento Mutui ha raggiunto la redditività a marzo. I costi del personale sono aumentati dell'11,7% (2,2 milioni) a causa di compensi competitivi sul mercato e assunzioni strategiche. L'utile per azione è sceso a 0,18 dollari da 0,31, mentre il valore contabile per azione è migliorato a 14,68 dollari da 14,45 a dicembre 2024.
Security National Financial Corporation (SNFCA) reportó una caída significativa en los resultados financieros del primer trimestre de 2025. Las ganancias netas disminuyeron un 42% hasta 4,34 millones de dólares desde 7,48 millones en el primer trimestre de 2024. El desempeño de la compañía se vio afectado por varios factores, atribuyéndose aproximadamente el 75% (3 millones de dólares) de la disminución de 4,05 millones en ingresos antes de impuestos a una reducción en los ingresos por inversiones realizadas y no realizadas. El desempeño de los segmentos clave mostró resultados mixtos: los ingresos de Seguros de Vida bajaron un 1,4% a 49,29 millones, Cementerios/Funerarias cayeron un 7,6% a 8,12 millones, mientras que las Hipotecas crecieron un 12,9% a 25,33 millones. A pesar de los desafíos, el segmento de Cuidado de la Muerte aumentó en un 4% las familias atendidas y el segmento de Hipotecas alcanzó rentabilidad en marzo. Los costos de personal aumentaron un 11,7% (2,2 millones) debido a compensaciones competitivas en el mercado y contrataciones estratégicas. Las ganancias por acción disminuyeron a 0,18 desde 0,31, mientras que el valor en libros por acción mejoró a 14,68 desde 14,45 en diciembre de 2024.
Security National Financial Corporation(SNFCA)는 2025년 1분기 재무 실적에서 큰 하락을 보고했습니다. 순이익은 2024년 1분기 748만 달러에서 42% 감소한 434만 달러를 기록했습니다. 회사의 실적은 여러 요인의 영향을 받았으며, 약 75%(300만 달러)의 405만 달러 세전 소득 감소는 실현 및 미실현 투자 수익 감소에 기인합니다. 주요 부문별 성과는 엇갈렸습니다: 생명보험 수익은 1.4% 감소한 4929만 달러, 묘지/장례 서비스는 7.6% 감소한 812만 달러, 반면 주택담보대출은 12.9% 증가한 2533만 달러를 기록했습니다. 어려움에도 불구하고 사망 케어 부문은 서비스를 제공한 가구 수가 4% 증가했고, 주택담보대출 부문은 3월에 수익성을 달성했습니다. 인건비는 시장 경쟁력 있는 보상과 전략적 채용으로 인해 11.7%(220만 달러) 증가했습니다. 주당순이익은 0.31달러에서 0.18달러로 감소했으나, 주당 장부 가치는 2024년 12월 14.45달러에서 14.68달러로 개선되었습니다.
Security National Financial Corporation (SNFCA) a annoncé une baisse significative de ses résultats financiers au premier trimestre 2025. Le bénéfice net a diminué de 42 % pour atteindre 4,34 millions de dollars, contre 7,48 millions au premier trimestre 2024. La performance de l'entreprise a été impactée par plusieurs facteurs, environ 75 % (3 millions de dollars) de la baisse de 4,05 millions du revenu avant impôts étant attribuée à une diminution des revenus d'investissement réalisés et non réalisés. Les performances des segments clés ont été mitigées : le chiffre d'affaires de l'assurance vie a diminué de 1,4 % à 49,29 millions de dollars, les revenus des cimetières/funérailles ont chuté de 7,6 % à 8,12 millions, tandis que les hypothèques ont progressé de 12,9 % à 25,33 millions. Malgré les défis, le segment Death Care a augmenté de 4 % le nombre de familles servies et le segment Hypothèques a atteint la rentabilité en mars. Les coûts du personnel ont augmenté de 11,7 % (2,2 millions) en raison de rémunérations compétitives sur le marché et de recrutements stratégiques. Le bénéfice par action est passé de 0,31 à 0,18 dollar, tandis que la valeur comptable par action est passée de 14,45 à 14,68 dollars en décembre 2024.
Die Security National Financial Corporation (SNFCA) meldete einen deutlichen Rückgang der Finanzergebnisse im ersten Quartal 2025. Der Nettogewinn sank um 42 % auf 4,34 Mio. USD von 7,48 Mio. USD im ersten Quartal 2024. Die Unternehmensleistung wurde von mehreren Faktoren beeinflusst, wobei etwa 75 % (3 Mio. USD) des Rückgangs des Vorsteuerergebnisses um 4,05 Mio. USD auf geringere realisierte und unrealisierte Anlageerträge zurückzuführen sind. Die Leistung der wichtigsten Segmente zeigte gemischte Ergebnisse: Die Einnahmen aus Lebensversicherungen gingen um 1,4 % auf 49,29 Mio. USD zurück, Friedhöfe/Bestattungen sanken um 7,6 % auf 8,12 Mio. USD, während Hypotheken um 12,9 % auf 25,33 Mio. USD zunahmen. Trotz der Herausforderungen konnte das Death Care-Segment die betreuten Familien um 4 % steigern und das Hypothekensegment erreichte im März die Profitabilität. Die Personalkosten stiegen um 11,7 % (2,2 Mio. USD) aufgrund marktgerechter Vergütung und strategischer Einstellungen. Der Gewinn je Aktie sank von 0,31 auf 0,18 USD, während der Buchwert je Aktie von 14,45 USD im Dezember 2024 auf 14,68 USD anstieg.
Positive
Mortgage segment revenue increased 12.9% YoY to $25.33M
Death Care Segment increased families served by 4%
Insurance Segment improved premium margins
Mortgage Segment achieved profitability in March 2025
Book value per share increased to $14.68 from $14.45 in December 2024
Negative
Net earnings decreased 42% YoY to $4.34M
Investment income declined by approximately $3M
Personnel costs increased 11.7% ($2.2M)
Life Insurance segment revenue declined 1.4% to $49.29M
Cemeteries/Mortuaries revenue dropped 7.6% to $8.12M
Insights
SNFC reports 42% earnings decline due to investment income decrease and rising personnel costs despite operational strengths in core segments.
Security National Financial Corporation's Q1 2025 results reveal a significant 42% decrease in after-tax earnings to $4.34 million compared to $7.48 million in Q1 2024. This notable decline stems primarily from two factors: a $3 million reduction in investment income (representing ~75% of the total earnings decrease) and an 11.7% rise in personnel costs ($2.2 million).
The investment income decline reflects both market conditions and business timing: $1.7 million relates to decreased construction profits and residential lot sales, reflecting fewer home closings despite consistent margins. An additional $1.25 million stems from unrealized stock market losses that the company has chosen not to realize by maintaining positions. The remaining $900,000 relates to increased bad debt expenses from CECL (Current Expected Credit Losses) accounting requirements.
The personnel cost increase includes 5% in market-competitive compensation adjustments and strategic hiring investments aimed at future growth. While these investments create short-term expense pressure, management views them as necessary for long-term performance.
Segment performance shows mixed results: Life Insurance revenues decreased 1.4% with earnings falling 37.5%, Cemeteries/Mortuaries saw a 7.6% revenue decline and 26.7% earnings reduction, while Mortgages achieved 12.9% revenue growth but remained unprofitable with losses increasing 1.5%.
Despite these challenges, there are positive indicators: Death Care increased families served by 4%, Insurance improved premium margins, and Mortgage volume grew 11% with improved product mix. Book value per share increased from $14.45 to $14.68, suggesting balance sheet resilience despite earnings pressure.
The quarterly performance demonstrates SNFC's vulnerability to market conditions and investment timing while highlighting management's willingness to invest in growth despite short-term earnings impact. The company maintains operational strength in core segments despite financial headwinds.
SALT LAKE CITY, May 16, 2025 (GLOBE NEWSWIRE) -- Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the quarter ended March 31, 2025.
For the three months ending March 31, 2025, SNFC’s after tax earnings decreased approximately 42%, or $3.1MM, from $7,475,000 in 2024 to $4,338,000 in 2025. Pre Tax earnings decreased approximately 42%, or $4.05MM, to $5.571MM (please see the table below).
Scott Quist, Chairman of the Board, President, and Chief Executive Officer of SNFC, said, “A decrease in quarterly income is never our goal and falls below our self-set standards. Despite the decrease in net income, I believe that as a Company we performed operationally pretty well. Our Insurance Segment had its second best Q1 out of the last 5 years and our Death Care Segment had its 3rd best Q1 out of the last 5 years, which time period, it is important to note, includes the pandemic. Speaking now of our decrease in net income, of the approximate $4.05MM decrease in pretax quarterly income (see the table below), about 75%, or roughly $3MM, is attributable to decreases in both our realized and unrealized investment income. Our investment income can be, and is, “lumpy” between quarters and years, primarily due to its close relationship to real estate activities (home closings/lot sales) and secondarily to public equity markets.
Speaking to our $3MM decline in investment income, and referring to that portion directly related to real estate activities, roughly 56%, or $1.7MM, is related to decreased construction profits and decreased gains on the sale of residential lots from our builder relationships. We simply participated in fewer home closings in Q1 2025 than in Q1 2024. I believe it is fair to say that in Q1 2025 the builders with whom we have profit-sharing relationships had more homes in the process of being built, but fewer closings. Margins appear to be consistent with 2024’s experience, but margins are always in issue until a home sale closes. Lastly, as a general real estate market comment, housing inventories and “days on market” appear to have increased, but not to a degree that causes alarm.
Roughly 42%, or $1.25MM of our $3MM investment income decline, is due to stock market declines in Q1. Generally speaking, we have chosen to not liquidate our positions, so the aforementioned loss is simply a recognized, but unrealized, stock market loss as of March 31, 2025.
Roughly $900K, or 22%, of the $4.05MM decrease in pretax income is related to an increase in our bad debt expense as prescribed by the adoption of CECL (Current Expected Credit Losses) in Q1 2024. Arguments can be credibly made that this accounting rule is simply another element of our investment income. In my view, CECL is a very formulaic and forward-looking calculation that places a heavier weight on outside factors at the time an asset is acquired and less weight on the company’s experience over the course of time. Time will tell if the Company’s allowances are appropriate, but in my view CECL did change, and does have the potential to further change in the future, the Company’s bad debt allowances based on factors that are outside of its control.
After accounting for the investment income and related decreases, the remaining elements causing the decrease in income are smaller in net impact and are much more numerous and nuanced. One element that probably merits comment is Personnel Costs. Personnel Costs rose 11.7%, or roughly $2.2MM, over 2024. Roughly speaking 5 percentage points of that increase relates to general annual compensation increases for both staff and management. We find it important to remain marketplace competitive in our compensation or our experienced staff are recruited away from us. The remaining increase relates to increased staffing, pretty much across all levels. We are constantly reviewing operational costs to ensure that we remain operationally efficient, but the majority of this increase represents very deliberate strategic hirings of high-quality, high-performing individuals to augment our sales and fulfillment staffs where we determined that we needed greater capability to reach our growth goals. Growth is expensive but is nevertheless our constant goal. We believe these increased Personnel Costs to be necessary investments which will yield returns in the years to come.
Despite the decrease in income, many accomplishments were made in the first quarter. In our Death Care Segment we increased families served by 4%, in what we believe to be a flat to declining mortality climate. In our Insurance Segment we have improved our premium margin by several percentage points, reflecting the increased premium rates we have been implementing over the last several years. The full effect of those margin increases will not be apparent for several years hence. In our Mortgage Segment we increased volume by 11% in Q1 2025 over Q1 2024, with an improved mix of products. Importantly, our Mortgage Segment was both profitable and cash flow positive in March.”
SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended March 31, 2025, as compared to 2024, for each business segment:
Revenues
Earnings before Taxes
2025
2024
2025
2024
Life Insurance
$
49,287,000
$
49,971,000
(1.4%)
$
5,327,000
$
8,530,000
(37.5%)
Cemeteries/Mortuaries
$
8,119,000
$
8,787,000
(7.6%)
$
2,238,000
$
3,053,000
(26.7%)
Mortgages
$
25,334,000
$
22,430,000
12.9%
$
(1,994,000
)
$
(1,964,000
)
(1.5%)
Total
$
82,740,000
$
81,188,000
1.9%
$
5,571,000
$
9,619,000
(42.1%)
Net earnings per common share was $.18 for the three months ended March 31, 2025, compared to net earnings of $.31 per share for the prior year, as adjusted for the effect of annual stock dividends. Book value per common share was $14.68 as of March 31, 2025, compared to $14.45 as of December 31, 2024.
The Company has two classes of common stock outstanding, Class A and Class C. There were 23,601,718 Class A equivalent shares outstanding as of March 31, 2025.
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.
If there are any questions, please contact Mr. Garrett S. Sill or Mr. Scott M. Quist at:
Security National Financial Corporation P.O. Box 57250 Salt Lake City, Utah 84157 Phone (801) 264-1060 Fax (801) 265-9882
FAQ
What caused SNFCA's earnings decline in Q1 2025?
SNFCA's earnings decline was primarily due to a $3M decrease in investment income (75% of total decline), with $1.7M related to decreased construction profits and lot sales, $1.25M from stock market declines, and $900K from increased bad debt expense.
How did SNFCA's different business segments perform in Q1 2025?
Life Insurance revenue declined 1.4% to $49.29M, Cemeteries/Mortuaries dropped 7.6% to $8.12M, while Mortgages grew 12.9% to $25.33M. The Death Care Segment increased families served by 4%.
What was SNFCA's earnings per share in Q1 2025?
SNFCA reported earnings of $0.18 per share in Q1 2025, down from $0.31 per share in Q1 2024.
Why did SNFCA's personnel costs increase in Q1 2025?
Personnel costs rose 11.7% ($2.2M) due to 5% general annual compensation increases to remain competitive and additional strategic hiring across all levels to support growth goals.
What was SNFCA's book value per share as of March 31, 2025?
SNFCA's book value per share was $14.68 as of March 31, 2025, an increase from $14.45 as of December 31, 2024.
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