Security National Financial Corporation Reports Q2 2026 Results with Revenue Decline and Increased Net Earnings

Security National Financial Corporation (SNFC) reported its financial results for the second quarter of 2026, revealing a total revenue of $83.9 million, a decrease of 6.3% from $89.5 million in the same period last year. The decline in revenue was primarily driven by a $4.2 million drop in net investment income and a $3.7 million decrease in mortgage fee income. The company’s net earnings for the quarter were $9.0 million, up from $8.4 million in the prior year, reflecting a 7.3% increase. Earnings per Class A equivalent common share rose to $0.34 from $0.32, indicating improved profitability despite lower revenues.

In the first half of 2026, SNFC's total revenues decreased by 5.0% to $163.7 million compared to $172.3 million in the first half of 2025. The company experienced a notable decline in mortgage fee income, which fell by $5.0 million, alongside a $4.9 million drop in net investment income. However, gains on investments and other assets increased significantly, contributing positively to the overall financial performance. The company’s net earnings for the six-month period were $16.0 million, compared to $14.8 million in the previous year.

Operationally, SNFC has focused on its niche insurance products, particularly funeral plans, and has continued to expand its funeral home and cemetery business. The company operates eleven funeral homes in Utah and four in New Mexico, along with five cemeteries in Utah and additional locations in California and New Mexico. The funeral home and cemetery segment reported a revenue increase of 12% to $18.5 million for the first half of 2026, driven by higher pre-need sales and improved at-need sales.

The company’s mortgage operations also faced challenges, with a decrease in loan originations attributed to rising mortgage rates and a slowdown in the housing market. For the first half of 2026, SNFC originated 3,011 loans totaling $1.036 billion, down from 3,375 loans totaling $1.135 billion in the same period last year. The mortgage segment reported a revenue decline of 9% to $50.3 million, reflecting the impact of market conditions on loan volume and pricing.

Looking ahead, SNFC remains focused on its strategic initiatives, including enhancing its insurance product offerings and expanding its real estate investments. The company is currently negotiating renewals for its mortgage warehouse lines of credit, which are set to mature in August 2026. Management believes that the current cash flow from operations, combined with its investment strategies, will adequately support future growth and obligations. The company’s total assets increased to $1.609 billion as of June 30, 2026, up from $1.562 billion at the end of 2025, indicating a solid financial position moving forward.