Security National Financial Corp-A 2025年度报告

SECURITY NATIONALFINANCIAL CORPORATION CELEBRATING 60 YEARS Celebrating 60 Years Who We Are Our story began in 1965 with the founding of Security National Life Insurance Company. Startingwith just $543,000 in assets and operating out of a small rented house in Salt Lake City, Utah,Security National has grown into a diversified, publicly traded leader across multiple serviceindustries. In 2025, we proudly celebrated our 60th anniversary—a milestone that reflects six decadesofdisciplined growth,strong relationships,and long-term vision.This achievement wascommemorated throughout the year across our organization, as we recognized our employees,honored our history, and reaffirmed our commitment to the communities we serve. A highlightof this celebration was the honor of ringing the opening bell at Nasdaq, marking both ourlegacy and our continued momentum as a company. Over the past six decades, our growth has been driven by consistent new business development,strategic investment opportunities, and targeted acquisitions. We have expanded our footprintthrough the acquisition of life insurance companies, funeral homes, and cemeteries, while alsobuilding and scaling a strong mortgage operation. Company Profile SecurityNational operates through threeprimarybusiness segments:life insurance,funeral service, and mortgage lending. Ourorganizationis intentionally structured sothat each segment complements the others,contributingto the overall strength andprofitability of the company. turn, our life insurance operations invest inhigh-quality mortgage loans, reinforcing theperformance of our mortgage segment. Whileeach business unit operates as astandaloneprofitcenter,thisstrategichorizontalintegration enhances efficiency,stability, and long-term value creation. Wecontinue to pursue growth through disciplinedacquisitions, expansion of our funeral servicenetwork, and ongoing development of ourmortgage platform. Ourcemetery and mortuary operationsmaintaina high level of public visibilityandcommunity presence,supporting themarketingand sales of our insurance andpreneed funeral and cemetery products. In Our Funeral Home and Cemetery Segment turned in a basicallyflat YOY financial performance, which I thought was actuallyquitecredible.The cremation market in the United Statescontinues to expand and is now estimated at 63% of the totalUS market, and is estimated at above 60% in our Utah market.Cremation services, being neither better nor worse than othertypes of disposition, are generally at a lower price point thantraditional services and thus can present a financial headwind.We strongly believe that whatever method of disposition ischosen by a family, be it traditional burial, cremation with aservice, or otherwise, that is the correct choice for that family,and it is our task to meet the family’s expectations. However,we also believe that the family should make its choice on sucha significant matter based on personal beliefs and preferences,not costs. To that end, we work very hard to help families pre-plan those costs so they are not burdensome at the time ofdeath, which is the basic purpose of our preplanning salesactivities. Over the past year, we have executed a comprehensivereorganization of our sales force, increasing its size by 28%while undertaking the rigorous and complex transition of 53%ofour sales counselors.Throughout this process,we haveelevated standards of training and professionalism across theorganization. These strategic investments are now beginningto be reflected in our financial performance. It is instructive tonote that our Utah-based Cemetery and Mortuary group hasreceived the “Best in State” award for the last 8 consecutiveyears, a very significant recognition of the quality services weprovide. It is one thing to achieve “Best in State”, but it is quiteanother to remain “Best in State”. Scott M. Quist Chairman of the BoardChief Executive OfficerPresident My Fellow Shareholders: I am pleased to report on the affairs of our Company for theyear ended December 31, 2025, and invite you to attend theannual Stockholders Meeting to be held Friday, June 26, 2026,in Salt Lake City, Utah at the Company’s offices. This past year was significant as it marked our 60th anniversaryand, in recognition of that milestone, on September 24, 2025,we had the honor of ringing the Opening Bell of the NASDAQStock Exchange. To be so recognized by our public companypeerswas gratifying.According to public data bases,theaverage life span of a public company is roughly 15-20 years,thus to be in our 60th year and to be invited to ring theOpening Bell is remarkable. Financially speaking, in 2025, ourGAAPStockholders’Equity passed the$400 million dollarmark, ending at over $410,000,000. It was just 10 years ago, in2015, that we first passed the $100 million dollar mark - givingus a 13.96% compounded annual growth rate, or basically aquadrupling of Stockholders’ Equity. Our Insurance Segment has shouldered the bulk of