This article first appeared on GuruFocus .
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Return on Equity (ROE):Achieved 7.9% for the nine months, annualized to 10.5%, up from 8.5% in June.
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Personnel Costs:Up 6% year-to-date, flat for the quarter.
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Mortgage Segment Profit:Pre-tax net income of $66,000 in Q3 2025, up from $16,000 in Q3 2024.
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Loan Origination Volume:$622 million in Q3 2025, down 2% year-over-year.
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Life Segment Pre-Tax Income:$7.5 million in Q3 2025, down from $11.8 million in Q3 2024.
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Funeral Home Revenue:Increased 9.4% to $3.52 million in Q3 2025.
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Cemetery Earnings Before Tax:$880,000 in Q3 2025, up 21.7% from Q3 2024.
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Investment Income:$1.44 million in Q3 2025, compared to $1.6 million in Q3 2024.
Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Security National Financial Corp ( NASDAQ:SNFCA ) achieved a 7.9% return on equity for the nine months ending September 30, 2025, showing improvement from the previous quarter.
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The Mortgage segment returned to profitability in Q3 2025, marking its first profitable quarter since Q3 2024.
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Personnel costs were flat for the quarter, indicating successful implementation of operational efficiencies.
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The Cemetery Mortuary segment posted improved results over Q3 2024, with stabilized pre-need cemetery land sales.
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Investment income remained strong, particularly in the Life Insurance segment, contributing positively to overall earnings.
Negative Points
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Overall net earnings for the year-to-date period were down $8 million compared to the same period in 2024.
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The Life Insurance segment experienced a 37% decrease in pre-tax income due to increased deferred acquisition costs and lower unrealized gains.
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The Mortgage segment's market share decreased due to higher refinance volumes, highlighting an area of underperformance.
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Personnel costs increased by 10% compared to Q3 2024, despite efforts to control expenses.
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The implementation of new accounting standards (LDTI) in Q4 2025 is expected to cause significant adjustments to financial statements, adding uncertainty.
Q & A Highlights
Q: Can you elaborate on the financial performance of the Mortgage segment in Q3 2025 compared to the previous year? A: S. Andrew Quist, President and CEO of Security National Mortgage Company, explained that the Mortgage segment achieved a pre-tax net income of $66,000 in Q3 2025, compared to $16,000 in Q3 2024, marking a 312% increase. This improvement was achieved despite flat origination volumes, with a slight decrease in market share due to higher refinance volumes in the industry.
Q: What were the key drivers behind the Cemetery Mortuary segment's improved results in Q3 2025? A: Steve Keel, COO of Security National Funeral Homes and Cemeteries, noted that the Cemetery Mortuary segment saw a 7.2% increase in earnings before tax, driven by a 4.5% increase in total revenue. This was attributed to a 4.2% growth in the number of families served and a 0.5% increase in funeral sales averages, alongside strategic rebuilding of the sales team.
Q: How did the Life Insurance segment perform in Q3 2025, and what challenges did it face? A: Adam Quist, President and CEO of Secure National Life Insurance Companies, reported a 37% decrease in pre-tax net income for the Life Insurance segment, primarily due to increased amortization of deferred acquisition costs (DAC) and higher death benefits. Despite these challenges, total revenues increased by 4%, driven by higher investment income.
Q: What strategic initiatives are being implemented to address the challenges in the Life Insurance segment? A: Adam Quist highlighted ongoing investments in sales force expansion, technology, and strengthening relationships with funeral home and agent partners. These initiatives aim to enhance operational efficiency and market competitiveness, with a focus on long-term profitability and growth.
Q: How is Security National Financial Corp addressing the accounting changes related to long-duration targeted improvements (LDTI)? A: Garrett Sill, CFO, explained that the company is preparing for the implementation of LDTI in Q4 2025, which will result in significant adjustments to benefit reserves and deferred acquisition costs. The company is also working on documenting and auditing internal controls to comply with accelerated filing status requirements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
