Security National Financial (SNFCA) investor relations material

Executive summary

• Second quarter 2026 net earnings increased 7.3% year-over-year to $9.0M, with diluted EPS at $0.33, despite a 6.3% revenue decline to $83.9M; first half net earnings rose 8.1% to $16.0M, with EPS at $0.60.

• Profitability improvements were driven by operational efficiencies, cost reductions, and higher gains on investments and funeral/cemetery sales.

• The Mortgage segment returned to profitability, the Cemetery and Mortuary segment saw strong revenue and profit growth, and the Life Insurance segment maintained solid fundamentals despite lower revenue.

• 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.

• Comprehensive income for the first half of 2026 was $22.4M, up 86.6% year-over-year, mainly due to favorable interest rate remeasurement under LDTI.

• Cash and cash equivalents rose to $163.4M at June 30, 2026, from $102.3M at year-end, a 60% increase.

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

• Selling, general and administrative expenses fell 10.9% to $42.7M.

Outlook and guidance

• Management expects future profitability from increased land holdings, improved sales processes, and continued focus on niche insurance, funeral/cemetery, and mortgage origination.

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

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