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- **ROE Improvement**: Annualized ROE of 10.5% reflects financial resilience despite Q3 underperformance.
- **Mortgage Profitability**: First profitable quarter in 3 years, but refinance execution remains a key challenge.
- **Life Insurance Headwinds**: DAC accounting changes and mortality costs weigh on earnings, but builder partnerships drive investment income.
- ** Funeral Growth**: Funeral home revenue up 9.4% and cemetery stabilization support 7.2% earnings growth.

**【CEO Opening Remarks】**
- Q3 2025 after-tax earnings were $4 million below Q3 2024, but annualized ROE improved to 10.5% (from 8.5% in Q2), highlighting financial resilience.
- Personnel costs up 6% YTD but flat Q/Q, reflecting efficiency gains offsetting talent investments (e.g., sales leadership).
- Mortgage segment returned to profitability after 3 years, though volumes remain modest. Cemetery pre-need land sales stabilized.
- Life insurance segment underperformed due to DAC amortization and CECL provisions, despite new talent hires.

**【CFO Financial Commentary】**
- Invested assets increased $5M (mortgage loans, real estate, equity), with bond portfolio fair value up $27M YTD.
- Q3 pre-tax earnings rose $2M vs. Q2, driven by $2M expense reduction (death benefits, DAC, personnel).
- Year-to-date net earnings down $8M due to higher expenses (DAC, mortality, bad debt). LDTI adoption will cause balance sheet and income statement restatements.

**【Mortgage Segment Update】**
- SNMC reported $66K pre-tax profit (vs. $16K in Q3 2024), excluding a $1.3M 2024 legal settlement. Operational improvement with flat origination volumes ($622M vs. $632M).
- Refinance share of originations at 14% vs. industry 33%, highlighting need to enhance refinance capabilities.

**【Life Insurance Segment】**
- Q3 pre-tax net income $7.5M (down 37% Y/Y) due to $3.7M DAC headwind (higher amortization, lower deferral). Investment income up 4% from builder partnerships.
- Personnel costs +10% Y/Y but lowest Q/Q growth of 2025. Death benefits up $2M, partially offset by no realized loan losses in 3 years.

**【Funeral & Cemetery Operations】**
- Earnings before tax up 7.2% ($3.045M vs. $2.841M), driven by funeral home revenue growth (9.4%) and cemetery stabilization.
- Funeral home cremation rate 49.9%, up 2.5% Q/Q. Cemetery pre-need land sales +3.2% Y/Y. Interment deficit reduced to 5.2% YTD.


Security National Financial (SNFCA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SNFCA

SNFCA fundamentals

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