Security National Financial Corporation Reports Q1 2025 Results with Revenue Increase and Decline in Net Earnings

Security National Financial Corporation reported its financial results for the first quarter of 2025, revealing total revenues of $82.74 million, a 1.9% increase from $81.19 million in the same period last year. The growth was primarily driven by a $2.98 million rise in mortgage fee income, which reached $24.81 million, and a $0.35 million increase in net mortuary and cemetery sales, totaling $7.30 million. However, the company experienced a decline in net investment income, which fell to $19.20 million from $19.95 million, and a decrease in gains on investments and other assets, which dropped to $586,000 from $1.67 million.

The company's net earnings for the quarter were $4.34 million, down 42.5% from $7.47 million in the prior year. This decline was attributed to several factors, including a $2.54 million increase in selling, general, and administrative expenses, a $0.80 million decrease in gains on investments, and a $0.33 million increase in death benefits. The effective tax rate for the quarter was 22.1%, slightly lower than the 22.3% reported in the previous year.

In terms of operational developments, Security National Financial Corporation's mortgage subsidiary originated 1,508 loans totaling $517.89 million during the quarter, compared to 1,486 loans amounting to $465.61 million in the same period last year. The company continues to focus on niche insurance products, particularly funeral plans, and has emphasized its cemetery and mortuary business. The company operates eleven mortuaries in Utah and four in New Mexico, along with five cemeteries in Utah and additional locations in California and New Mexico.

As of March 31, 2025, the company's total assets stood at $1.52 billion, an increase from $1.49 billion at the end of 2024. Total liabilities also rose to $1.18 billion from $1.15 billion, with future policy benefits and unpaid claims accounting for a significant portion of the liabilities at $953 million. Stockholders' equity increased to $346.49 million, up from $338.78 million, reflecting a continued strong capital position. The company remains optimistic about its future, citing adequate cash flow from operations and compliance with all debt covenants, which positions it well for ongoing growth and stability.