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.
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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.
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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: 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.