Security National Financial (SNFCA) investor relations material

Executive summary

• Second quarter 2026 after-tax earnings increased 7.3% year-over-year to $9.0M, with diluted EPS at $0.33; first half earnings up 8.1% to $16.0M, despite a 6.3% quarterly and 5% half-year revenue decline.

• Profitability improvements were driven by operational and sales progress across all business segments, with the Mortgage segment showing standout performance.

• Comprehensive income for the first half rose 86.6% year-over-year, primarily due to favorable interest rate remeasurement under LDTI.

• Lower mortgage fee and investment income were partially offset by higher gains on investments and funeral/cemetery sales.

Financial highlights

• Net earnings for Q2 2026 were $9.0M, up 28.3% sequentially from Q1 2026; diluted EPS at $0.33.

• Total assets grew to $1.61 billion, up 3% from year-end; cash and cash equivalents increased to $163.4M, up 60%.

• Stockholders' equity rose to $433M at June 30, 2026, up from $410.4M at year-end; debt-to-equity ratio improved to 2.72x.

• Combined commissions and personnel expenses decreased 13.5% for the quarter and 11.8% year-to-date.

• Net investment income dropped 20.2% year-over-year to $16.4M, mainly due to lower mortgage loan interest.

Outlook and guidance

• Strategic investments in land and sales force are expected to drive future profitability, though current results are impacted by these choices.

• Construction loan origination activity rebounded in Q2, signaling potential for improved investment income in the second half.

• Management expects continued focus on niche insurance products, funeral/cemetery business, and mortgage origination.

• Anticipates renewal of key mortgage warehouse lines of credit in 2026; alternative funding may be sought if not renewed.

• Management remains confident in the company's foundation and future performance, despite current revenue headwinds.