Security National Financial Corporation (NASDAQ: SNFCA) reported a 7.3% year-over-year increase in second-quarter 2026 net earnings to approximately $9 million, despite a 6.3% decline in top-line revenue. The company achieved its first profitable quarter for the mortgage segment since Q3FY25.

The diversified financial services firm strengthened its balance sheet, with total assets growing 3% to $1.61 billion and stockholders' equity rising 5.5% to $433 million. Cash and cash equivalents surged 60% compared to the previous year-end position.

Segment Performance

The mortgage division delivered a pre-tax net income of $71,000 in Q2FY26, reversing a pre-tax loss of $1.67 million in the same period last year. This improvement occurred even as origination volumes fell 11% year-over-year to $548 million. Sequentially, origination volumes rose 12% from Q1FY26. Market share increased to 10 basis points from 9 basis points in the prior quarter.

The funeral homes and cemeteries segment saw revenue jump 20.7% to $9.8 million, driven by a 21% increase in cemetery sales. Earnings before tax for this segment climbed 69.5% to $3 million. However, operating earnings before tax excluding investment results decreased 4.8% to $963,000, reflecting deliberate investments in talent and technology that outpaced organic revenue growth of 5.5%.

The life insurance segment faced headwinds, with revenue falling 5.5% to $49.5 million and pre-tax net earnings dropping 13% to $8.5 million. The decline was primarily attributed to lower single-premium product sales and reduced investment income from home builder profit shares.

What the Numbers Show

A significant divergence exists between operating performance and comprehensive income due to accounting standards. While core net earnings grew steadily, comprehensive income for the quarter fell 18.2% to $7.3 million from $8.9 million in Q2FY25. This quarterly decline contrasts sharply with the 86.6% year-to-date increase in comprehensive income to $22.4 million, driven by a $23 million favorable swing in interest rate remeasurement of future policy benefits under LDTI standards.

Furthermore, the mortgage segment's profitability improvement came despite an 11% drop in loan volumes, indicating successful margin expansion or cost restructuring rather than volume-driven growth. The shift toward repeat borrowers, now at a three-year high, and the launch of home equity lines of credit (averaging one transaction daily) suggest a strategic pivot toward higher-margin, recurring revenue streams amidst a challenging interest rate environment.

Balance Sheet and Credit Quality

Total liabilities increased 2.2% to $1.18 billion, while the debt-to-equity ratio improved to 2.72 times from 2.81 times at year-end. The fixed maturity security portfolio remained high-quality, with 98.4% rated investment grade. However, loans more than 90 days past due in the mortgage portfolio nearly tripled to $15.8 million from $6.5 million at year-end, prompting management to monitor credit trends closely.

Security National Financial Corporation (NASDAQ: SNFCA) appointed Alissa Neufeld as Chief Legal Officer, effective Monday, August 17, 2026. The Salt Lake City-based company operates through life insurance, cemetery/mortuary, and mortgages segments.

Neufeld joins Security National from LifeVantage Corporation, where she served as General Counsel and Corporate Secretary. Her legal career began with a state judicial internship at age 19 and continued with a clerkship on the U.S. Court of Appeals for the Ninth Circuit, followed by corporate and M&A work at a national law firm. She has since held multiple in-house counsel roles, building and leading legal and compliance departments through periods of regulatory complexity and significant business growth.

As Chief Legal Officer, Neufeld will assume the roles and responsibilities of the Company’s Secretary and General Counsel, who is retiring after 20 years of service.

Leadership Transition

Scott Quist, Chairman, President, and CEO of Security National Financial Corporation, stated that the company thanks its prior General Counsel for his many accomplishments and wishes him well in retirement. Quist noted that Neufeld brings depth of legal and compliance leadership as the company continues to grow across its three business lines. He highlighted her track record of building strong teams and navigating complex regulatory environments as a real asset to Security National.

Neufeld commented that she measures success not just in outcomes, but in whether people around her feel engaged, positive, and proud of their work. She expressed excitement about bringing this approach to the team.

About Security National Financial Corporation

Security National Financial Corporation (NASDAQ: SNFCA), headquartered in Salt Lake City, Utah, operates through three business segments: life insurance, cemetery/mortuary, and mortgages. Founded in 1965, the Company serves customers across the United States.