SECURITY NATIONAL FINANCIAL CORP 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ________ Commission File Number: 000-09341 Security National Financial Corporation (Exact name of registrant as specified in its charter) utah 87-0345941 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 433 Ascension Way , 6 th Floor , Salt Lake City , Utah 84123 (Address of principal executive offices) (Zip Code) (801) 264-1060 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol Name of each exchange on which registered Class A Common Stock SNFCA The Nasdaq Global Select Market Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ (Do not check if a smaller reporting company) Smaller reporting company ☒ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ As of November 10, 2025, the registrant had 22,398,332 shares of Class A Common Stock, $ 2.00 par value, outstanding and 3,587,237 shares of Class C Common Stock, $ 2.00 par value, outstanding. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES FORM 10-Q QUARTER ENDED SEPTEMBER 30, 2025 Table of Contents Page No. Part I - Financial Information Item 1. Financial Statements Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 3-4 Condensed Consolidated Statements of Earnings for the three and nine month periods ended September 30, 2025 and 2024 (unaudited) 5 Condensed Consolidated Statements of Comprehensive Income for the three and nine month periods ended September 30, 2025 and 2024 (unaudited) 6 Condensed Consolidated Statements of Stockholders’ Equity as of September 30, 2025 and September 30, 2024 (unaudited) 7-8 Condensed Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2025 and 2024 (unaudited) 9-10 Notes to Condensed Consolidated Financial Statements (unaudited) 11 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 69 Item 3. Quantitative and Qualitative Disclosures about Market Risk 75 Item 4. Controls and Procedures 76 Part II - Other Information Item 1. Legal Proceedings 76 Item 1A. Risk Factors 76 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 77 Item 3. Defaults Upon Senior Securities 77 Item 4. Mine Safety Disclosures 77 Item 5. Other Information 77 Item 6. Exhibits 78 Signatures 79 2 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) Part I - Financial Information Item 1. Financial Statements. September 30, 2025 December 31, 2024 Assets Investments: Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $ 388,640,665 and $ 376,012,071 for 2025 and 2024, respectively; net of allowance for credit losses of $ 532,868 and $ 420,993 for 2025 and 2024, respectively) $ 389,193,589 $ 366,546,129 Equity securities at estimated fair value (cost of $ 12,128,914 and $ 11,386,454 for 2025 and 2024, respectively) 17,691,024 15,771,681 Mortgage loans held for investment (net of allowance for credit losses of $ 2,677,001 and $ 1,885,390 for 2025 and 2024, respectively) 329,164,691 301,747,358 Real estate held for investment (net of accumulated depreciation of $ 35,724,258 and $ 31,419,539 for 2025 and 2024, respectively) 216,563,881 197,693,338 Real estate held for sale 1,619,403 1,278,033 Other investments and policy loans (net of allowance for credit losses of $ 1,534,957 and $ 1,536,926 for 2025 and 2024, respectively) 83,124,030 74,855,041 Accrued investment income 9,746,368 8,499,168 Total investments 1,047,102,986 966,390,748 Cash and cash equivalents 100,396,059 140,546,421 Loans held for sale at estimated fair value 159,460,525 131,181,148 Receivables (net of allowance for credit losses of $ 1,542,731 and $ 1,678,531 for 2025 and 2024, respectively) 15,098,066 15,858,743 Restricted assets (including $ 15,016,744 and $ 12,323,535 for 2025 and 2024 respectively, at estimated fair value) 31,673,039 23,806,836 Cemetery perpetual care trust investments (including $ 6,154,575 and $ 5,689,706 for 2025 and 2024, respectively, at estimated fair value) 9,685,678 8,836,503 Receivable from reinsurers 13,721,510 13,831,093 Cemetery land and improvements 11,160,991 10,594,632 Deferred policy and pre-need contract acquisition costs 122,311,900 122,661,298 Mortgage servicing rights, net 2,616,372 2,939,878 Property and equipment, net 18,746,096 19,047,688 Value of business acquired 6,587,339 7,491,600 Goodwill 5,253,783 5,253,783 Other 19,171,747 21,366,843 Total Assets $ 1,562,986,091 $ 1,489,807,214 See accompanying notes to condensed consolidated financial statements (unaudited). 3 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) (Unaudited) September 30, 2025 December 31, 2024 Liabilities and Stockholders’ Equity Liabilities Future policy benefits and unpaid claims $ 965,878,450 $ 944,811,843 Unearned premium reserve 1,863,566 2,011,679 Bank and other loans payable 123,096,234 106,740,104 Deferred pre-need cemetery and mortuary contract revenues 22,234,892 20,168,405 Cemetery perpetual care obligation 5,838,879 5,642,693 Accounts payable 5,536,098 2,937,293 Other liabilities and accrued expenses 57,177,453 55,633,661 Income taxes 15,978,661 13,079,257 Total liabilities 1,197,604,233 1,151,024,935 Stockholders’ Equity Preferred Stock - non-voting - $ 1.00 par value; 5,000,000 shares authorized; none issued or outstanding - - Class A: common stock - $ 2.00 par value; 40,000,000 shares authorized; 22,395,245 shares issued and outstanding as of September 30, 2025 and 22,321,559 (1) shares issued and outstanding as of December 31, 2024 44,790,490 42,510,012 Class B: non-voting common stock - $ 1.00 par value; 5,000,000 shares authorized; none issued or outstanding - - Class C: convertible common stock - $ 2.00 par value; 6,000,000 shares authorized; 3,587,237 shares issued and outstanding as of September 30, 2025 and 3,492,674 (1) shares issued and outstanding as of December 31, 2024 7,174,474 6,643,666 Common stock, value 7,174,474 6,643,666 Additional paid-in capital 89,438,415 79,698,367 Accumulated other comprehensive gain (loss), net of taxes 826,844 ( 6,951,266 ) Retained earnings 232,857,565 225,359,186 Treasury stock at cost - 1,180,564 Class A shares and 104,604 Class C shares as of September 30, 2025; and 1,080,243 (1) Class A shares and 104,604 (1) Class C shares as of December 31, 2024 ( 9,705,930 ) ( 8,477,686 ) Total stockholders’ equity 365,381,858 338,782,279 Total Liabilities and Stockholders’ Equity $ 1,562,986,091 $ 1,489,807,214 (1) Issued and outstanding shares have been adjusted retroactively for the effect of annual stock dividends. See accompanying notes to condensed consolidated financial statements (unaudited). 4 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues: Mortgage fee income $ 29,139,245 $ 30,224,092 $ 83,433,590 $ 81,675,278 Insurance premiums and other considerations 29,880,785 30,011,081 89,846,164 89,823,732 Net investment income 20,109,600 17,799,096 59,893,212 55,790,472 Net mortuary and cemetery sales 7,140,942 6,814,331 21,698,880 21,531,769 Gains on investments and other assets 1,972,198 1,347,656 3,700,926 2,639,843 Other 1,083,393 2,077,431 3,034,263 3,792,127 Total revenues 89,326,163 88,273,687 261,607,035 255,253,221 Benefits and expenses: Death benefits 15,182,809 13,570,336 46,249,912 43,354,254 Surrenders and other policy benefits 1,374,289 1,194,692 3,807,498 3,453,425 Increase in future policy benefits 8,376,973 8,589,354 26,165,160 27,148,178 Amortization of deferred policy and pre-need acquisition costs and value of business acquired 5,533,421 2,287,003 15,967,631 11,332,305 Selling, general and administrative expenses: Commissions 13,054,117 13,204,406 36,957,836 34,638,464 Personnel 21,519,038 21,249,554 65,872,791 61,907,265 Advertising 983,291 907,528 2,747,684 2,381,400 Rent and rent related 947,664 1,380,076 2,873,414 4,078,792 Depreciation on property and equipment 607,300 611,475 1,821,453 1,791,823 Costs related to funding mortgage loans 1,813,814 1,694,791 5,120,855 4,677,767 Other 7,600,542 6,191,624 22,956,864 19,476,918 Interest expense 1,066,528 1,060,653 3,479,494 3,161,943 Cost of goods and services sold-mortuaries and cemeteries 1,113,425 1,117,513 3,525,978 3,627,101 Total benefits and expenses 79,173,211 73,059,005 237,546,570 221,029,635 Earnings before income taxes 10,152,952 15,214,682 24,060,465 34,223,586 Income tax expense ( 2,337,926 ) ( 3,383,238 ) ( 5,400,792 ) ( 7,646,071 ) Net earnings $ 7,815,026 $ 11,831,444 $ 18,659,673 $ 26,577,515 Net earnings per Class A Equivalent common share (1) $ 0.32 $ 0.48 $ 0.75 $ 1.09 Net earnings per Class A Equivalent common share-assuming dilution (1) $ 0.31 $ 0.47 $ 0.73 $ 1.05 Weighted-average Class A equivalent common shares outstanding (1) 24,709,518 24,418,679 24,725,938 24,465,661 Weighted-average Class A equivalent common shares outstanding-assuming dilution (1) 25,401,445 25,272,078 25,554,177 25,197,013 (1) Net earnings per share have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share. See accompanying notes to condensed consolidated financial statements (unaudited). 5 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net earnings $ 7,815,026 $ 11,831,444 $ 18,659,673 $ 26,577,515 Other comprehensive income: Unrealized gains on fixed maturity securities available for sale $ 3,353,280 10,443,490 $ 9,835,254 8,661,351 Unrealized gains on restricted assets (1) 7,118 9,353 6,586 5,770 Unrealized gains on cemetery perpetual care trust investments (1) 4,056 4,263 5,720 2,438 Other comprehensive income, before income tax 3,364,454 10,457,106 9,847,560 8,669,559 Income tax expense ( 707,467 ) ( 2,201,866 ) ( 2,069,450 ) ( 1,826,546 ) Other comprehensive income, net of income tax 2,656,987 8,255,240 7,778,110 6,843,013 Comprehensive income $ 10,472,013 $ 20,086,684 $ 26,437,783 $ 33,420,528 (1) Fixed maturity securities available for sale See accompanying notes to condensed consolidated financial statements (unaudited). 6 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) Class A Common Stock Class C Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Treasury Stock Total Nine Months Ended September 30, 2025 Class A Common Stock Class C Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Treasury Stock Total December 31, 2024 $ 42,510,012 $ 6,643,666 $ 79,698,367 $ ( 6,951,266 ) $ 225,359,186 $ ( 8,477,686 ) $ 338,782,279 Net earnings - - - - 4,338,292 - 4,338,292 Other comprehensive income - - - 2,997,612 - - 2,997,612 Stock-based compensation expense - - 309,260 - - - 309,260 Exercise of stock options 132,546 190,674 ( 92,965 ) - - ( 149,009 ) 81,246 Vesting of restricted stock units 920 - ( 920 ) - - - - Sale of treasury stock - - 90,895 - - 136,367 227,262 Purchase of treasury stock - - - - - ( 242,265 ) ( 242,265 ) March 31, 2025 $ 42,643,478 $ 6,834,340 $ 80,004,637 $ ( 3,953,654 ) $ 229,697,478 $ ( 8,732,593 ) $ 346,493,686 Net earnings - - - - 6,506,355 - 6,506,355 Other comprehensive income - - - 2,123,511 - - 2,123,511 Stock-based compensation expense - - 320,379 - - - 320,379 Vesting of restricted stock units 6,174 - ( 6,174 ) - - - - Sale of treasury stock - - 63,807 - - 208,399 272,206 Purchase of treasury stock - - - - - ( 961,419 ) ( 961,419 ) Conversion Class C to Class A 790 ( 790 ) - - - - - Stock dividends 2,132,832 341,678 8,685,530 - ( 11,160,040 ) - - June 30, 2025 $ 44,783,274 $ 7,175,228 $ 89,068,179 $ ( 1,830,143 ) $ 225,043,793 $ ( 9,485,613 ) $ 354,754,718 Net earnings - - - - 7,815,026 - 7,815,026 Other comprehensive income - - - 2,656,987 - - 2,656,987 Stock-based compensation expense - - 320,241 - - - 320,241 Vesting of restricted stock units 6,184 - ( 6,184 ) - - - - Sale of treasury stock - - 55,203 - - 180,612 235,815 Purchase of treasury stock - - - - - ( 400,929 ) ( 400,929 ) Conversion Class C to Class A 758 ( 758 ) - - - - - Stock dividends 274 4 976 - ( 1,254 ) - - September 30, 2025 $ 44,790,490 $ 7,174,474 $ 89,438,415 $ 826,844 $ 232,857,565 $ ( 9,705,930 ) $ 365,381,858 7 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued) (Unaudited) Nine Months Ended September 30, 2024 Class A Common Stock Class C Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Treasury Stock Total December 31, 2023 $ 40,096,004 $ 5,943,708 $ 72,424,429 $ ( 6,885,558 ) $ 206,978,373 $ ( 5,661,737 ) $ 312,895,219 Net earnings - - - - 7,474,522 - 7,474,522 Other comprehensive loss - - - ( 895,098 ) - - ( 895,098 ) Stock-based compensation expense - - 199,887 - - - 199,887 Vesting of restricted stock units 810 - ( 810 ) - - - - Sale of treasury stock - - 103,788 - - 366,733 470,521 Purchase of treasury stock - - - - - ( 41,077 ) ( 41,077 ) Conversion Class C to Class A 348 ( 348 ) - - - - - March 31, 2024 $ 40,097,162 $ 5,943,360 $ 72,727,294 $ ( 7,780,656 ) $ 214,452,895 $ ( 5,336,081 ) $ 320,103,974 Net earnings - - - - 7,271,549 - 7,271,549 Other comprehensive loss - - - ( 517,129 ) - - ( 517,129 ) Stock-based compensation expense - - 184,066 - - - 184,066 Exercise of stock options 64,164 - ( 17,982 ) - - - 46,182 Vesting of restricted stock units 920 - ( 920 ) - - - - Sale of treasury stock - - 13,201 - - 252,208 265,409 Purchase of treasury stock - - - - - ( 1,588,058 ) ( 1,588,058 ) Conversion Class C to Class A 184 ( 184 ) - - - - - Stock dividends 2,009,442 297,156 5,847,226 - ( 8,153,824 ) - - June 30, 2024 $ 42,171,872 $ 6,240,332 $ 78,752,885 $ ( 8,297,785 ) $ 213,570,620 $ ( 6,671,931 ) $ 325,765,993 Balance $ 42,171,872 $ 6,240,332 $ 78,752,885 $ ( 8,297,785 ) $ 213,570,620 $ ( 6,671,931 ) $ 325,765,993 Net earnings - - - - 11,831,444 - 11,831,444 Other comprehensive income - - - 8,255,240 - - 8,255,240 Other comprehensive income (loss) - - - 8,255,240 - - 8,255,240 Stock-based compensation expense - - 196,326 - - - 196,326 Exercise of stock options 62,860 - 7,550 - - - 70,410 Vesting of restricted stock units 920 - ( 920 ) - - - - Sale of treasury stock - - 21,281 - - 224,469 245,750 Purchase of treasury stock - - - - - ( 43,097 ) ( 43,097 ) Stock dividends 320 - 811 - ( 1,131 ) - - September 30, 2024 $ 42,235,972 $ 6,240,332 $ 78,977,933 $ ( 42,545 ) $ 225,400,933 $ ( 6,490,559 ) $ 346,322,066 Balance $ 42,235,972 $ 6,240,332 $ 78,977,933 $ ( 42,545 ) $ 225,400,933 $ ( 6,490,559 ) $ 346,322,066 8 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 2025 2024 Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net cash provided by operating activities $ 27,552,994 $ 34,894,323 Cash flows from investing activities: Purchases of fixed maturity securities ( 63,091,501 ) ( 45,346,681 ) Sales, calls and maturities of fixed maturity securities 49,800,384 89,829,379 Purchases of equity securities ( 4,245,856 ) ( 2,769,612 ) Sales of equity securities 3,814,374 2,018,249 Purchases of restricted assets ( 5,191,557 ) ( 2,536,814 ) Sales, calls and maturities of restricted assets 3,323,223 1,171,707 Purchases of cemetery perpetual care trust investments ( 990,234 ) ( 2,487,924 ) Sales, calls and maturities of perpetual care trust investments 1,896,777 2,383,653 Mortgage loans held for investment, other investments and policy loans made ( 652,228,219 ) ( 549,027,246 ) Payments received for mortgage loans held for investment, other investments and policy loans 615,698,100 540,583,700 Purchases of property and equipment ( 1,591,486 ) ( 575,648 ) Sales of property and equipment 4,700 365,693 Purchases of real estate ( 53,207,439 ) ( 46,189,096 ) Sales of real estate 31,493,671 28,385,283 Net cash provided by (used in) investing activities ( 74,515,063 ) 15,804,643 Cash flows from financing activities: Investment contract receipts 9,217,213 10,193,442 Investment contract withdrawals ( 12,494,990 ) ( 11,520,918 ) Proceeds from stock options exercised 81,246 116,592 Purchases of treasury stock ( 1,604,613 ) ( 1,672,232 ) Repayment of bank loans ( 49,525,258 ) ( 1,423,826 ) Proceeds from bank loans 69,000,000 - Net change in warehouse line borrowings for loans held for sale ( 3,174,878 ) 2,622,976 Net cash provided by (used in) financing activities 11,498,720 ( 1,683,966 ) Net change in cash, cash equivalents, restricted cash and restricted cash equivalents ( 35,463,349 ) 49,015,000 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 150,102,620 139,923,399 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 114,639,271 $ 188,938,399 Supplemental Disclosure of Cash Flow Information: Cash paid during the year for: Interest $ 3,497,142 $ 3,124,591 Income taxes (net of refunds) 4,548,279 6,877,342 Non Cash Operating, Investing and Financing Activities: Transfer from fixed maturity securities available for sale to other investments $ 1,185,603 $ - Right-of-use assets obtained in exchange for operating lease liabilities 1,157,084 1,130,610 Loans held for sale transferred into mortgage loans held for investment 828,063 - Benefit plans funded with treasury stock 735,283 981,680 Loans held for sale foreclosed into real estate held for sale 380,000 858,977 Mortgage loans held for investment foreclosed into real estate held for sale 190,495 - Right-of-use assets obtained in exchange for finance lease liabilities - 176,040 9 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Unaudited) Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as shown in the condensed consolidated statements of cash flows are presented in the table below: September 30, 2025 September 30, 2024 Cash and cash equivalents $ 100,396,059 $ 170,706,542 Restricted assets 13,556,435 15,232,601 Cemetery perpetual care trust investments 686,777 2,999,256 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 114,639,271 $ 188,938,399 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year $ 114,639,271 $ 188,938,399 See accompanying notes to condensed consolidated financial statements (unaudited). 10 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Articles 8 and 10 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements of the Company and notes thereto for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K (File Number 000-09341). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to adopt policies and make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. In applying these policies and estimates, the Company makes judgments that frequently require assumptions about matters that are inherently uncertain. Accordingly, significant estimates used in the preparation of the Company’s financial statements may be subject to significant adjustments in future periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term are those used in determining the value of derivative assets and liabilities; those used in determining deferred acquisition costs and the value of business acquired; those used in determining the liability for future policy benefits; those used in determining the value of loans held for sale; and those used in determining loan loss reserve. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects. 11 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 2) Recent Accounting Pronouncements Accounting Standards Issued But Not Yet Adopted ASU No. 2018-12: “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” — Issued in August 2018, ASU 2018-12 is intended to improve the timeliness of recognizing changes in the liability for future policy benefits on traditional long-duration contracts by requiring that assumptions be updated after contract inception and by modifying the rate used to discount future cash flows. The standard is aimed at improving the accounting for certain market-based options or guarantees associated with deposit or account balance contracts, simplifying amortization of deferred acquisition costs while improving and expanding required disclosures. In November 2020, ASU No. 2020-11: “Financial Services – Insurance (Topic 944): Effective Date and Early Application,” was issued. This ASU was issued to provide additional time for the implementation of ASU No. 2018-12 by deferring the effective date by one year. For smaller reporting companies, this update is effective for annual reporting periods beginning after December 15, 2024, and interim reporting periods beginning after December 15, 2025. The Company will adopt the standard commencing with its annual reporting period ending December 31, 2025, using the modified retrospective transition method as of the transition date (“Transition Date”) of January 1, 2024. The modified retrospective transition method requires the amended guidance be applied to contracts issued after the beginning of the earliest period presented, or the Transition Date, which will result in the restatement of the 2024 consolidated financial statements. The Company is nearing completion of its analysis and implementation of the new standard, including the identification of cohorts, system updates, and design. The Company has engaged its team of actuaries, accountants, and systems specialists and consulted external system providers as part of the implementation. The adoption of this guidance is expected to have an impact on its financial position, results of operations, and disclosures, as well as systems, processes and controls. Based upon the modified retrospective transition method, the Company estimates that the January 1, 2024, Transition Date impact from adoption will include an increase to total stockholders’ equity of approximately $ 4 million to $ 6 million. This expected increase includes the estimated impact to accumulated other comprehensive income (“AOCI”), which, as of the Transition Date, is expected to result in an increase of approximately $ 4 million to $ 6 million, net of income tax. The most significant drivers of the expected increase in AOCI are the anticipated impacts of the changes in the discount rates as of the Transition Date to be used in measuring the liability for future policy benefits for traditional and limited payment contracts. The expected increase to total stockholders’ equity also includes the estimated impact to retained earnings, which is immaterial. After implementation, cash flow assumptions, such as mortality, lapse, and expense, will be reviewed at least annually and, if necessary, they will be updated to reflect actual experience and current expectations in the calculation of the Company’s future policy benefits. Historically, cash flow assumptions were locked in at policy issuance and remained in place for the life of the business—even when material variances emerged between assumptions and actual experience—except in the case of a premium deficiency. Under the new guidance, net premiums are capped at 100 percent of gross premiums at the cohort level. Adoption of this standard also requires changes in the future treatment of the Company’s Deferred Acquisition Cost (“DAC”) asset. Historically, the interest rate used to calculate the Company’s future policy benefits was set at policy issuance and remained in effect for the life of the policy. The Company used an expected investment portfolio rate of return based on a conservative experience assumption. The new guidance seeks to improve reporting on the financial impact associated with interest rate sensitivity. To accomplish this, future policy benefits will be calculated using a discount rate based on an upper-medium-grade (A-rated) fixed income instrument. 12 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 2) Recent Accounting Pronouncements (Continued) The initial future policy benefit for each cohort is calculated using the original discount rate and then remeasured using the current discount rate curve. The original rate is used to determine interest accretion on the liability—which is included in net earnings—as well as to calculate the net premiums in both scenarios. The impact of remeasurement, from the original locked-in discount rate to the current rate, is reported as a component of the Company’s AOCI. This original discount rate is locked in at the cohort’s inception or at the Transition Date and will continue to be used in determining the impact on future net earnings associated with that contract. DAC is used by insurance companies to defer costs related to acquiring insurance policies. Under the new guidance, amortization methods will be simplified, and DAC for all insurance contracts will be subject to straight-line amortization over the lifetime of the policy. Historically, traditional life contracts were amortized in proportion to premiums over the expected premium-paying period. Additionally, shadow DAC will no longer be reported and will be removed from AOCI, net of tax. The impact of the removal of shadow DAC is immaterial. The Company expects the impact on net earnings due to the decrease in amortization of DAC to be in the range of $ 3 million to $ 4 million, net of tax for 2024. While the requirements of the new guidance represents a change from existing standard, the new guidance will not impact capital and surplus or net income under statutory accounting practices, cash flows on the Company’s policies, or the underlying economics of the Company’s business. ASU No. 2023-09: “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” — Issued in December 2023, ASU 2023-09 requires that public business entities, on an annual basis: (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments in this update require that all entities disclose on an annual basis the following information about income taxes paid: (i) the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes and (ii) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). ASU 2023-09 is effective for the Company for the annual reporting periods beginning January 1, 2025. The Company will adopt the standard commencing with its annual reporting period ending December 31, 2025. The Company does not anticipate that the adoption of this standard will have a material impact on the consolidated financial statements. ASU No. 2024-03: “Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” — Issued in November 2024, ASU 2024-03 requires public business entities to disclose, in the notes to the consolidated financial statements, specified information about certain expenses at each interim and annual reporting period. ASU 2024-03 requires disclosures about specific types of expenses (i.e., (a) purchases of inventory, (b) employee compensation, (c) depreciation and (d) intangible asset amortization) included in the expense captions presented on the face of the statement of earnings as well as disclosures about selling expenses. ASU 2024-03 does not change the requirements for the presentation of expenses on the statement of earnings. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Accordingly, the Company will adopt the standard commencing with its annual reporting period ending December 31, 2027. The Company is in the process of estimating the potential impact of this new standard on the consolidated financial statements. The Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company’s results of operations or financial position. 13 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments The Company’s investments as of September 30, 2025, are summarized as follows: Schedule of Investments Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Allowance for Credit Losses Estimated Fair Value September 30, 2025: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 77,815,616 $ 941,844 $ ( 154,207 ) $ - $ 78,603,253 Obligations of states and political subdivisions 3,416,026 11,280 ( 175,233 ) - 3,252,073 Corporate securities including public utilities 281,126,441 7,265,563 ( 3,263,456 ) ( 378,819 ) 284,749,729 Mortgage-backed securities 25,532,582 110,226 ( 3,622,125 ) ( 154,049 ) 21,866,634 Redeemable preferred stock 750,000 9,400 ( 37,500 ) - 721,900 Total fixed maturity securities available for sale $ 388,640,665 $ 8,338,313 $ ( 7,252,521 ) $ ( 532,868 ) $ 389,193,589 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 12,128,914 $ 5,898,600 $ ( 336,490 ) $ 17,691,024 Total equity securities at estimated fair value $ 12,128,914 $ 5,898,600 $ ( 336,490 ) $ 17,691,024 Mortgage loans held for investment at amortized cost: Residential $ 91,948,455 Residential construction 165,869,176 Commercial 76,447,701 Less: Unamortized deferred loan fees, net ( 2,159,279 ) Less: Allowance for credit losses ( 2,677,001 ) Less: Net discounts ( 264,361 ) Total mortgage loans held for investment $ 329,164,691 Real estate held for investment - net of accumulated depreciation: Residential $ 93,885,033 Commercial 122,678,848 Total real estate held for investment $ 216,563,881 Real estate held for sale: Residential $ 1,467,850 Commercial 151,553 Total real estate held for sale $ 1,619,403 Other investments and policy loans at amortized cost: Policy loans $ 14,372,484 Insurance assignments 42,278,320 Federal Home Loan Bank stock (2) 1,590,400 Other investments 26,417,783 Less: Allowance for credit losses for insurance assignments ( 1,534,957 ) Total other investments and policy loans $ 83,124,030 Accrued investment income $ 9,746,368 Total investments $ 1,047,102,986 (1) Gross unrealized losses are net of allowance for credit losses (2) Includes $ 581,600 of Membership stock and $ 1,008,800 of Activity stock attributable to short-term borrowings and letters of credit. 14 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The Company’s investments as of December 31, 2024, are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Allowance for Credit Losses Estimated Fair Value December 31, 2024: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 74,680,606 $ 327,618 $ ( 486,976 ) $ - $ 74,521,248 Obligations of states and political subdivisions 6,416,751 1,762 ( 290,448 ) - 6,128,065 Corporate securities including public utilities 262,954,278 2,444,842 ( 6,922,871 ) ( 408,944 ) 258,067,305 Mortgage-backed securities 31,710,436 125,764 ( 4,244,640 ) ( 12,049 ) 27,579,511 Redeemable preferred stock 250,000 - - - 250,000 Total fixed maturity securities available for sale $ 376,012,071 $ 2,899,986 $ ( 11,944,935 ) $ ( 420,993 ) $ 366,546,129 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 11,386,454 $ 4,976,567 $ ( 591,340 ) $ 15,771,681 Total equity securities at estimated fair value $ 11,386,454 $ 4,976,567 $ ( 591,340 ) $ 15,771,681 Mortgage loans held for investment at amortized cost: Residential $ 92,061,787 Residential construction 151,172,733 Commercial 62,753,085 Less: Unamortized deferred loan fees, net ( 2,082,241 ) Less: Allowance for credit losses ( 1,885,390 ) Less: Net discounts ( 272,616 ) Total mortgage loans held for investment $ 301,747,358 Real estate held for investment - net of accumulated depreciation: Residential $ 71,618,410 Commercial 126,074,928 Total real estate held for investment $ 197,693,338 Real estate held for sale: Residential $ 1,126,480 Commercial 151,553 Total real estate held for sale $ 1,278,033 Other investments and policy loans at amortized cost: Policy loans $ 14,019,248 Insurance assignments 48,493,858 Federal Home Loan Bank stock (2) 2,404,900 Other investments 11,473,961 Less: Allowance for credit losses for insurance assignments ( 1,536,926 ) Total policy loans and other investments $ 74,855,041 Accrued investment income $ 8,499,168 Total investments $ 966,390,748 (1) Gross unrealized losses are net of allowance for credit losses (2) Includes $ 553,900 of Membership stock and $ 1,851,000 of Activity stock due to short-term advances and letters of credit. 15 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) There were no investments in fixed maturity securities or equity securities, aggregated by issuer, of more than 10% of shareholders’ equity (before net unrealized gains and losses on equity securities and fixed maturity securities) as of September 30, 2025, other than investments issued or guaranteed by the United States Government. Fixed Maturity Securities The table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as of September 30, 2025, and December 31, 2024. The fair values of fixed maturity securities that are actively traded are based on quoted market prices. For fixed maturity securities that are not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements, are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit and maturity of the investments. The table below sets forth unrealized losses by duration with the fair value of the related fixed maturity securities. Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Combined Fair Value September 30, 2025 U.S. Treasury securities and obligations of U.S. Government agencies $ 5,286 $ 2,413,864 $ 148,921 $ 10,950,745 $ 154,207 $ 13,364,609 Obligations of states and political subdivisions 322 199,678 174,911 2,107,032 175,233 2,306,710 Corporate securities 456,904 28,709,675 2,806,552 51,662,199 3,263,456 80,371,874 Mortgage-backed securities 6,859 360,565 3,615,266 18,132,086 3,622,125 18,492,651 Redeemable preferred stock 37,500 212,500 - - 37,500 212,500 Totals $ 506,871 $ 31,896,282 $ 6,745,650 $ 82,852,062 $ 7,252,521 $ 114,748,344 December 31, 2024 U.S. Treasury securities and obligations of U.S. Government agencies $ 8,737 $ 986,365 $ 478,239 $ 22,110,495 $ 486,976 $ 23,096,860 Obligations of states and political subdivisions 15,003 2,167,918 275,445 3,008,385 290,448 5,176,303 Corporate securities including public utilities 1,888,022 93,562,219 5,034,849 77,975,776 6,922,871 171,537,995 Mortgage-backed securities 32,150 2,915,192 4,212,490 19,041,442 4,244,640 21,956,634 Totals $ 1,943,912 $ 99,631,694 $ 10,001,023 $ 122,136,098 $ 11,944,935 $ 221,767,792 Relevant holdings were comprised of 359 securities with fair values aggregating 94.1 % of the aggregate amortized cost as of September 30, 2025, compared to 706 securities with fair values aggregating 94.9 % of the aggregate amortized cost as of December 31, 2024. A credit loss provision of $ 45,882 and of $ 20,342 have been recognized for the three-month periods ended September 30, 2025, and 2024, respectively. A credit loss provision of $ 111,875 and of $ 100,053 have been recognized for the nine-month periods ended September 30, 2025, and 2024, respectively. Credit losses are included in gains (losses) on investments and other assets on the condensed consolidated statements of earnings. Other unrealized losses for which no credit loss was recognized are primarily the result of increases in interest rates. 16 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Evaluation of Allowance for Credit Losses The Company evaluates its fixed maturity securities classified as available for sale on a quarterly basis to identify any potential credit losses. This evaluation includes a review of current ratings by the National Association of Insurance Commissions (“NAIC”) and other industry rating agencies. Securities with NAIC rating of 1 or 2 are considered investment grade and are only reviewed for credit loss if current market data or recent company news could lead to a credit downgrade. Securities with NAIC ratings of 3 to 5 are considered non-investment grade and are evaluated for credit loss. The evaluation involves assessing all facts and circumstances surrounding each security including, but not limited to, historical values, interest payment history, projected earnings, and revenue growth rates as well as a review of the reason for a downgrade in the NAIC rating. Based on the analysis of a security that is rated 3 to 5, a determination is made whether the security will likely make payments in accordance with the terms of the financial instrument. Securities with a rating of 6 are automatically determined to be impaired, and a credit loss is recognized in earnings. Where the decline in fair value of fixed maturity securities is attributable to changes in market interest rates or to factors such as market volatility, liquidity and spread widening, and the Company anticipates recovery of all contractual or expected cash flows, the Company does not consider these securities to have credit loss because the Company does not intend to sell these securities and it is not more likely than not the Company will be required to sell these securities before a recovery of amortized cost, which may be at maturity. If the Company intends to sell a fixed maturity security or if it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis, a credit loss has occurred and the difference between the amortized cost and the fair value that relates to the expected credit loss is recognized as a loss in earnings, included in gains (losses) on investments and other assets on the condensed consolidated statements of earnings. If the Company does not intend to sell a fixed maturity security and it is less likely than not that the Company will be required to sell the security but the Company also does not expect to recover the entire amortized cost basis of the security, a credit loss is recognized in earnings for the amount of the expected credit loss with a corresponding allowance for credit losses as a contra-asset account. The credit loss is included in gains (losses) on investments and other assets on the condensed consolidated statements of earnings. The recognized credit loss is limited to the total unrealized loss on the security due to a change in credit. Amounts due on available for sale fixed maturities that are deemed to be uncollectible are written off and removed from the allowance for credit loss. A write-off may also occur if the Company intends to sell a security or when it is more likely than not that the Company will be required to sell the security before the recovery of its amortized cost. The Company does not calculate a credit loss allowance on accrued interest income, included in accrued investment income on the condensed consolidated balance sheets, as the Company writes off any accrued interest income to net investment income if the accrued but unpaid amount exceeds 90 days. 17 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Credit Quality Indicators Based on the NAIC securities designations, the Company had 98.5 % and 97.7 % of its fixed maturity securities rated investment grade as of September 30, 2025, and December 31, 2024, respectively. The following table summarizes the credit quality, by NAIC designation, of the Company’s fixed maturity securities available for sale, excluding redeemable preferred stock. Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation September 30, 2025 December 31, 2024 NAIC Designation Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value 1 $ 201,200,500 $ 200,858,163 $ 188,386,980 $ 183,460,027 2 180,271,273 181,731,893 178,060,265 174,405,442 3 5,748,526 5,407,297 7,961,422 7,342,220 4 406,486 412,461 649,592 600,459 5 262,549 61,875 702,643 487,981 6 1,331 - 1,169 - Total $ 387,890,665 $ 388,471,689 $ 375,762,071 $ 366,296,129 The following tables present a roll forward of the Company’s allowance for credit losses on fixed maturity securities available for sale for the three-month periods ended September 30, 2025, and 2024: Schedule of Allowance for Credit Losses on Fixed Maturity Securities Available for Sale U.S. Treasury securities and obligations of U.S. Government agencies Obligations of states and political subdivisions Corporate securities including public utilities Mortgage- backed securities Total Three Months Ended September 30, 2025 U.S. Treasury securities and obligations of U.S. Government agencies Obligations of states and political subdivisions Corporate securities including public utilities Mortgage- backed securities Total Beginning balance - June 30, 2025 $ - $ - $ 474,937 $ 12,049 $ 486,986 Additions for credit losses not previously recorded - - 45,882 - 45,882 Change in allowance on securities with previous allowance - - - - - Reductions for securities sold during the period - - - - - Reductions for securities with credit losses due to intent to sell - - - - - Write-offs charged against the allowance - - - - - Recoveries of amounts previously written off - - - - - Ending Balance - September 30, 2025 $ - $ - $ 520,819 $ 12,049 $ 532,868 Three Months Ended September 30, 2024 U.S. Treasury securities and obligations of U.S. Government agencies Obligations of states and political subdivisions Corporate securities including public utilities Mortgage- backed securities Total Beginning balance - June 30, 2024 $ - $ - $ 382,211 $ 12,049 $ 394,260 Additions for credit losses not previously recorded - - 25,000 - 25,000 Change in allowance on securities with previous allowance - - ( 4,658 ) - ( 4,658 ) Reductions for securities sold during the period - - - - - Reductions for securities with credit losses due to intent to sell - - - - - Write-offs charged against the allowance - - - - - Recoveries of amounts previously written off - - - - - Ending Balance - September 30, 2024 $ - $ - $ 402,553 $ 12,049 $ 414,602 18 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The following tables present a roll forward of the Company’s allowance for credit losses on fixed maturity securities available for sale for the nine-month periods ended September 30, 2025, and 2024: Nine Months Ended Sepember 30, 2025 U.S. Treasury securities and obligations of U.S. Government agencies Obligations of states and political subdivisions Corporate securities including public utilities Mortgage- backed securities Total Beginning balance - December 31, 2024 $ - $ - $ 408,944 $ 12,049 $ 420,993 Additions for credit losses not previously recorded - - 72,000 - 72,000 Change in allowance on securities with previous allowance - - 39,875 - 39,875 Reductions for securities sold during the period - - - - - Reductions for securities with credit losses due to intent to sell - - - - - Write-offs charged against the allowance - - - - - Recoveries of amounts previously written off - - - - - Ending Balance - September 30, 2025 $ - $ - $ 520,819 $ 12,049 $ 532,868 Nine Months Ended Sepember 30, 2024 U.S. Treasury securities and obligations of U.S. Government agencies Obligations of states and political subdivisions Corporate securities including public utilities Mortgage- backed securities Total Beginning balance - December 31, 2023 $ - $ - $ 308,500 $ 6,049 $ 314,549 Balance $ - $ - $ 308,500 $ 6,049 $ 314,549 Additions for credit losses not previously recorded - - 55,000 6,000 61,000 Change in allowance on securities with previous allowance - - 39,053 - 39,053 Reductions for securities sold during the period - - - - - Reductions for securities with credit losses due to intent to sell - - - - - Write-offs charged against the allowance - - - - - Recoveries of amounts previously written off - - - - - Ending Balance - September 30, 2024 $ - $ - $ 402,553 $ 12,049 $ 414,602 Balance $ - $ - $ 402,553 $ 12,049 $ 414,602 The table below presents the amortized cost and the estimated fair value of fixed maturity securities available for sale as of September 30, 2025, by contractual maturity. Actual or expected maturities may differ from contractual maturities because certain securities afford the issuer the right to call or prepay its obligations. Schedule of Investments Classified by Contractual Maturity Date Amortized Cost Estimated Fair Value Due in 1 year $ 5,431,523 $ 5,435,051 Due in 2-5 years 138,658,507 139,348,247 Due in 5-10 years 129,622,596 133,518,158 Due in more than 10 years 88,645,457 88,303,599 Mortgage-backed securities 25,532,582 21,866,634 Redeemable preferred stock 750,000 721,900 Total $ 388,640,665 $ 389,193,589 19 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Information regarding sales of fixed maturity securities available for sale is presented as follows. Schedule of Major Categories of Net Investment Income 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Proceeds from sales $ 377,496 $ 181,949 $ 3,142,137 $ 789,190 Gross realized gains 3,668 - 4,194 2,714 Gross realized losses ( 14,777 ) ( 20,666 ) ( 15,318 ) ( 1,522 ) Assets on Deposit, Held in Trust, and Pledged as Collateral Assets on deposit with life insurance regulatory authorities as required by law were as follows: Schedule of Assets on Deposit With Life Insurance As of September 30, 2025 As of December 31, 2024 Fixed maturity securities available for sale at estimated fair value $ 7,756,474 $ 6,126,589 Other investments - 400,000 Cash and cash equivalents 1,538,320 1,444,654 Total assets on deposit $ 9,294,794 $ 7,971,243 Assets held in trust related to third-party reinsurance agreements were as follows: As of September 30, 2025 As of December 31, 2024 Fixed maturity securities available for sale at estimated fair value $ 26,013,241 $ 25,309,270 Cash and cash equivalents 1,310,683 4,417,683 Total assets on deposit $ 27,323,924 $ 29,726,953 The Company, through two of its life insurance subsidiaries, is a member of the Federal Home Loan Banks of Des Moines and Dallas (“FHLBs”). Assets pledged as collateral with the FHLBs are presented below. These pledged securities are used as collateral for any FHLB cash advances. As of September 30, 2025, the Company owed $ 21,000,000 to the FHLBs for advances, which is included in Bank and other loans payable on the condensed consolidated balance sheets. The Company received $ 69,000,000 in advances and repaid $ 48,000,000 of these advances during the nine months ended September 30, 2025. As of September 30, 2025 As of December 31, 2024 Fixed maturity securities available for sale at estimated fair value $ 62,730,848 $ 63,800,454 Total assets pledged as collateral $ 62,730,848 $ 63,800,454 20 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Real Estate Held for Investment and Held for Sale The Company strategically deploys resources into real estate assets to match the income and yield durations of its primary obligations. The sources for these real estate assets come through its various business units in the form of acquisition, development, and mortgage foreclosures. Commercial Real Estate Held for Investment and Held for Sale The Company owns, invests in and manages commercial real estate as a means of both generating investment income and providing workspace for its employees. This asset class is acquired in accordance with the Company’s goals and objectives for risk-adjusted returns. Due diligence is conducted on each asset using internal and third-party resources. The geographic locations and asset sub-classes of investments are determined by senior management under the direction of the Board of Directors. The Company employs full-time employees to manage the day-to-day operations of its commercial real estate within the greater Salt Lake area and close surrounding markets. The Company utilizes third party property managers where the geographic location does not warrant full-time staff or through strategic lease-up periods. The Company generally acquires commercial real estate in connection with company acquisitions or that are in regions expected to have high growth in employment and population and that provide operational efficiencies. The Company currently owns and operates six commercial properties in two states. These properties include office buildings, flex office space, and the redevelopment and expansion of its corporate campus (“Center53”) in Salt Lake City, Utah. The Company uses bank debt in strategic cases, primarily where it is anticipated to improve yields, or facilitate the acquisition of higher quality assets or asset class diversification. The aggregate net book value of commercial real estate serving as collateral for bank loans was $ 116,012,235 and $ 119,889,846 as of September 30, 2025, and December 31, 2024, respectively. The associated bank loan carrying values totaled $ 94,597,809 and $ 96,007,488 as of September 30, 2025, and December 31, 2024, respectively. During the three- and nine-month periods ended September 30, 2025, and 2024, the Company did not record any impairment losses on commercial real estate held for investment or held for sale. Impairment losses, if any, are included in gains (losses) on investment and other assets on the condensed consolidated statements of earnings. During the three-month periods ended September 30, 2025, and 2024, the Company recorded depreciation expense on commercial real estate held for investment of $ 1,432,750 and $ 1,420,367 , respectively, and of $ 4,287,687 and $ 4,366,462 during the nine-month periods ended September 30, 2025, and 2024, respectively. Commercial real estate held for investment is stated at cost and is depreciated over the estimated useful life, primarily using the straight-line method. Depreciation is included in net investment income on the condensed consolidated statements of earnings. The Company’s commercial real estate held for investment is summarized as follows as of the respective dates indicated: Schedule of Commercial Real Estate Investment Net Book Value Total Square Footage September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 Utah (1) $ 122,660,759 $ 126,056,342 546,941 546,941 Louisiana 18,089 18,586 1,622 1,622 $ 122,678,848 $ 126,074,928 548,563 548,563 (1) Includes Center53 21 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The Company’s commercial real estate held for sale is summarized as follows as of the respective dates indicated: Net Book Value September 30, 2025 December 31, 2024 Mississippi (1) $ 151,553 $ 151,553 $ 151,553 $ 151,553 (1) Consists of approximately 93 acres of undeveloped land Commercial Real Estate Owned and Occupied by the Company The primary business units of the Company occupy a portion of the real estate owned by the Company. As of September 30, 2025, real estate owned and occupied by the Company is summarized as follows: Schedule of Real Estate Owned and Occupied by the Company Location Business Segment Approximate Square Footage Square Footage Occupied by the Company 433 Ascension Way, Floors 4, 5 and 6, Salt Lake City, UT - Center53 Building 2 (1) Corporate Offices, Life Insurance, Cemetery/Mortuary Operations, and Mortgage Operations and Sales 216,865 50 % 1818 Marshall Street, Shreveport, LA (2) Life Insurance Operations 12,274 100 % 812 Sheppard Street, Minden, LA (2) (3) Life Insurance Sales 1,560 100 % (1) Included in real estate held for investment on the condensed consolidated balance sheets (2) Included in property and equipment on the condensed consolidated balance sheets (3) Listed for sale Residential Real Estate Held for Investment and Held for Sale The Company occasionally acquires residential homes through the mortgage loan foreclosure process. The Company has the option to sell these properties or to continue to hold them for expected cash flow and price appreciation. The Company also looks for opportunities to acquire land that can be developed into single family lots. Once developed, finished lots are sold to builder partners and others. During the three- and nine-month periods ended September 30, 2025, and 2024 the Company did not record any impairment losses on residential real estate held for investment. Impairment losses, if any, are included in gains (losses) on investment and other assets on the condensed consolidated statements of earnings. During the three-month periods ended September 30, 2025, and 2024, the Company recorded depreciation expense on residential real estate held for investment of $ 2,732 and $ 2,653 , respectively, and $ 8,139 and $ 7,958 during the nine-month periods ended September 30, 2025, and 2024, respectively. Residential real estate held for investment is stated at cost and is depreciated over the estimated useful life, primarily using the straight-line method. Depreciation is included in net investment income on the condensed consolidated statements of earnings. 22 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The Company’s residential real estate held for investment is summarized as follows as of the respective dates indicated: Schedule of Residential Real Estate Investment Net Book Value September 30, 2025 December 31, 2024 Utah (1) $ 93,885,033 $ 71,618,410 $ 93,885,033 $ 71,618,410 (1) Includes multiple residential subdivision development projects, refer to the following tables. The Company also invests in residential subdivision developments. The following table presents additional information regarding the Company’s residential subdivision development projects in Utah: September 30, 2025 December 31, 2024 Lots developed 184 231 Lots to be developed 1,238 1,046 Book Value $ 93,718,118 $ 71,443,356 The Company’s residential real estate held for sale is summarized as follows as of the respective dates indicated: Net Book Value September 30, 2025 December 31, 2024 Utah $ 455,000 $ 849,900 Florida 442,355 276,580 Georgia 380,000 - Colorado 190,495 - $ 1,467,850 $ 1,126,480 The net book value of foreclosed residential real estate included in residential real estate held for sale was $ 1,467,850 and $ 1,126,480 as of September 30, 2025, and December 31, 2024, respectively. Mortgage Loans Held for Investment Mortgage loans held for investment consist of first and second mortgages and are generally classified into three distinct groups: Commercial, Residential and Residential Construction. These mortgage loans bear interest at rates ranging from 2.0 % to 10.5 %; maturity dates range from nine months to 30 years and have amortization periods of 0 to 30 years. Concentrations of credit risk arise when several mortgage loan debtors have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Although the Company has a diversified mortgage loan portfolio consisting of residential mortgages, commercial loans and residential construction loans and requires collateral on all real estate exposures, a substantial portion of the relevant debtors’ ability to honor obligations is dependent upon the economic stability of the geographic region in which the debtors do business or are employed. As of September 30, 2025, the Company had 59 %, 8 %, 6 %, 6 %, and 4 %, of its mortgage loans from borrowers located in the states of Utah, Florida, Arizona, California, and Texas, respectively. As of December 31, 2024, the Company had 56 %, 8 %, 9 %, and 6 % of its mortgage loans from borrowers located in the states of Utah, Florida, Arizona, and Texas, respectively. 23 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Mortgage loans held for investment are carried at their unpaid principal balances adjusted for net deferred fees, charge-offs, premiums, discounts, and the related allowance for credit losses. Interest income is included in net investment income on the condensed consolidated statements of earnings and is recognized when earned. The Company defers related material loan origination fees, net of related direct loan origination costs, and amortizes the net fees over the terms of the loans. Origination fees are included in net investment income on the condensed consolidated statements of earnings. Mortgage loans are secured by the underlying property and require an appraisal at the time of underwriting and funding. Generally, the Company requires that loans not exceed 80% of the fair market value of the respective loan collateral. For loans of more than 80% of the fair market value of the respective loan collateral, additional collateral or mortgage insurance by an approved third-party insurer is generally required. Evaluation of Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the Company’s mortgage loans held for investment to present the net amount expected to be collected. The Company reports in net earnings, as a credit loss expense, the amount necessary to adjust the allowance for credit losses for the Company’s current estimate of expected credit losses on mortgage loans held for investment. This credit loss expense is included in other expenses on the condensed consolidated statements of earnings. Once a mortgage loan is past due 90 days, it is the policy of the Company to end the accrual of interest income on the loan and reverse any interest income that had been accrued. Given this policy, the Company does not measure a credit loss allowance on accrued interest receivable. Accrued interest receivable is included in accrued investment income on the condensed consolidated balance sheets. Payments received for mortgage loans on a non-accrual status are recognized when received. The interest income recognized from payments received for mortgage loans on a non-accrual status was immaterial. Accrual of interest resumes if a mortgage loan is brought current. Interest not accrued on these loans totaled approximately $ 1,043,517 and $ 244,000 as of September 30, 2025, and December 31, 2024, respectively. The Company measures expected credit losses based on the fair value of the collateral when the Company determines that foreclosure is probable. When a mortgage loan becomes delinquent, the Company proceeds to foreclose. Once foreclosed, the property is classified as real estate held for investment or held for sale. To determine the allowance for credit losses, the Company has segmented its mortgage loans held for investment by loan type. The Company’s loan types are commercial, residential, and residential construction. The inherent risks within the portfolio vary depending upon the loan type as follows: Commercial - Underwritten in accordance with the Company’s policies to determine the borrower’s ability to repay the obligation as agreed. Commercial loans are made primarily based on the underlying collateral supporting the loan. Accordingly, the repayment of a commercial loan depends primarily on the collateral and its ability to generate income and secondarily on the borrower’s (or guarantor’s) ability to repay. 24 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Commercial loans are evaluated for credit loss by analyzing common metrics that are predictors for future credit losses such as debt service coverage ratio (“DSCR”), loan to value (“LTV”), local market conditions, borrower quality, and underlying collateral. The fair value of the underlying collateral is based on a third-party appraisal of the property at origination of the loan. The fair value is assessed if the loan becomes 90 days delinquent. The Company uses these metrics to pool similar loans. The allowance for credit losses is based on estimates, historical experience, probability of loss, value of the underlying collateral, and other factors that affect the collectability of the loan. The Company applies a future loss factor to the outstanding balance of each group to arrive at the allowance for credit losses. Residential — These loans are secured by first and second mortgages on single-family dwellings. The borrower’s ability to repay is sensitive to the life events and the general economic condition of the region. Where LTV exceeds 80%, the loan is generally guaranteed by private mortgage insurance, the FHA, or VA. Residential loans are evaluated for credit loss by using relevant available information from both internal and external sources. Among other things, the Company uses its historical delinquency information and considers current and forecasted economic conditions. External sources include a monthly analysis of its residential portfolio by a third party. The third party uses the Company’s current loan data and runs it through various models to project cash flows and provide a projected life of loan loss. The models consider loan features such as loan type, LTV, payment status, age, and current property values. Analyzing the information from various sources allows the Company to arrive at an allowance for credit losses. Residential construction (including land acquisition and development loans) – These loans are underwritten in accordance with the Company’s underwriting policies, which include a financial analysis of the builders, borrowers (guarantors), construction cost estimates, and independent appraisal valuations, and factor in estimates of the value of construction projects upon completion. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project and the ability of the borrower to secure long-term financing. Additionally, land acquisition and development loans are underwritten in accordance with the Company’s underwriting policies, which include independent appraisal valuations as well as the estimated value associated with the land upon completion of development into finished lots. These loans are of a higher risk than other mortgage loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term or construction financing, and interest rate sensitivity. The Company advances funds in accordance with the loan agreements once the work has been completed, and an independent inspection is made. The maximum loan commitment ranges between 50 % and 85 % of the appraised value. The Company receives fees and interest for these loans, and the interest rate is generally fixed at 5.25 % to 8.50 % per annum. Maturities range between six and eighteen months. The Company has commitments to fund existing construction and land development loans pursuant to the various loan agreements. As of September 30, 2025, the Company’s commitments were approximately $ 221,215,527 for these loans, of which $ 168,880,381 had been drawn. Residential construction mortgage loans are evaluated for credit loss by considering historical activity and current housing market trends to arrive at a per loan basis point allowance that is recognized at loan origination and subsequent draws. The per loan basis point is reviewed at least annually or as loan losses or market trends require. 25 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The following table presents a roll forward of the allowance for credit losses as of the dates indicated: Schedule of Allowance for Loan Losses Three Months Ended Commercial Residential Residential Construction Total Beginning balance - June 30, 2025 $ 1,179,267 $ 1,129,892 $ 331,585 $ 2,640,744 Change in provision for credit losses (1) 375,839 ( 340,049 ) 467 36,257 Charge-offs - - - - Ending balance - September 30, 2025 $ 1,555,106 $ 789,843 $ 332,052 $ 2,677,001 Beginning balance - June 30, 2024 $ 849,323 $ 1,779,386 $ 225,143 $ 2,853,852 Change in provision for credit losses (1) ( 87,611 ) ( 127,239 ) 36,229 ( 178,621 ) Charge-offs - ( 1,095,485 ) - ( 1,095,485 ) Ending balance - September 30, 2024 $ 761,712 $ 556,662 $ 261,372 $ 1,579,746 Nine Months Ended Commercial Residential Residential Construction Total Beginning balance - December 31, 2024 $ 732,494 $ 850,550 $ 302,346 $ 1,885,390 Change in provision for credit losses (1) 822,612 ( 60,707 ) 29,706 791,611 Charge-offs - - - - Ending balance - September 30, 2025 $ 1,555,106 $ 789,843 $ 332,052 $ 2,677,001 Beginning balance - December 31, 2023 $ 1,219,653 $ 2,390,894 $ 208,106 $ 3,818,653 Change in provision for credit losses (1) ( 457,941 ) ( 738,747 ) 53,266 ( 1,143,422 ) Charge-offs - ( 1,095,485 ) - ( 1,095,485 ) Ending balance - September 30, 2024 $ 761,712 $ 556,662 $ 261,372 $ 1,579,746 (1) Included in other expenses on the condensed consolidated statements of earnings 26 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The following table presents the aging of mortgage loans held for investment by loan type as of the dates indicated: Schedule of Aging of Mortgage Loans Commercial Residential Residential Construction Total September 30, 2025 30-59 days past due $ 132,237 $ 6,057,452 $ - $ 6,189,689 60-89 days past due - 1,687,873 - 1,687,873 Over 90 days past due (1) 3,196,505 3,014,258 - 6,210,763 In process of foreclosure (1) 191,508 2,427,736 - 2,619,244 Total past due 3,520,250 13,187,319 - 16,707,569 Current 72,927,451 78,761,136 165,869,176 317,557,763 Total mortgage loans 76,447,701 91,948,455 165,869,176 334,265,332 Allowance for credit losses ( 1,555,106 ) ( 789,843 ) ( 332,052 ) ( 2,677,001 ) Unamortized deferred loan fees, net ( 319,736 ) ( 1,321,211 ) ( 518,332 ) ( 2,159,279 ) Unamortized discounts, net ( 145,419 ) ( 118,942 ) - ( 264,361 ) Net mortgage loans held for investment $ 74,427,440 $ 89,718,459 $ 165,018,792 $ 329,164,691 December 31, 2024 30-59 days past due $ 2,100,000 $ 5,818,334 $ - $ 7,918,334 60-89 days past due - 845,980 - 845,980 Over 90 days past due (1) 4,205,000 3,061,450 - 7,266,450 In process of foreclosure (1) 191,508 3,942,392 - 4,133,900 Total past due 6,496,508 13,668,156 - 20,164,664 Current 56,256,577 78,393,631 151,172,733 285,822,941 Total mortgage loans 62,753,085 92,061,787 151,172,733 305,987,605 Allowance for credit losses ( 732,494 ) ( 850,550 ) ( 302,346 ) ( 1,885,390 ) Unamortized deferred loan fees, net ( 115,555 ) ( 1,307,539 ) ( 659,147 ) ( 2,082,241 ) Unamortized discounts, net ( 149,268 ) ( 123,348 ) - ( 272,616 ) Net mortgage loans held for investment $ 61,755,768 $ 89,780,350 $ 150,211,240 $ 301,747,358 (1) Interest income is not recognized on loans which are more than 90 days past due or in foreclosure. 27 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Credit Quality Indicators The Company evaluates and monitors the credit quality of its commercial loans by analyzing LTV and DSCR. Monitoring a commercial mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment. The aggregate unpaid principal balance of commercial mortgage loans by credit quality indicator and origination year was as follows as of September 30, 2025: Schedule of Commercial and Residential Mortgage Loans By Credit Quality Indicator Credit Quality Indicator 2025 2024 2023 2022 2021 Prior Total % of Total LTV: Less than 65% $ 19,847,653 $ 3,892,248 $ 15,600,000 $ 462,761 $ 824,305 $ 8,475,563 $ 49,102,530 64.23 % 65% to 80% 14,381,076 10,432,942 1,840,776 293,872 - - 26,948,666 35.25 % Greater than 80% - - - - 396,505 - 396,505 0.52 % Total $ 34,228,729 $ 14,325,190 $ 17,440,776 $ 756,633 $ 1,220,810 $ 8,475,563 $ 76,447,701 100.00 % DSCR >1.20x $ 8,542,000 $ 13,892,248 $ 13,640,000 $ - $ - $ 5,322,035 $ 41,396,283 54.15 % 1.00x - 1.20x 20,161,729 432,942 3,800,776 756,633 1,220,810 3,153,528 29,526,418 38.62 % <1.00x 5,525,000 - - - - - 5,525,000 7.23 % Total $ 34,228,729 $ 14,325,190 $ 17,440,776 $ 756,633 $ 1,220,810 $ 8,475,563 $ 76,447,701 100.00 % The aggregate unpaid principal balance of commercial mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2024: Credit Quality Indicator 2024 2023 2022 2021 2020 Prior Total % of Total LTV: Less than 65% $ 7,653,600 $ 24,600,000 $ 2,352,150 $ 864,128 $ - $ 8,867,779 $ 44,337,657 70.65 % 65% to 80% 10,432,942 1,840,776 823,397 - 4,913,313 - 18,010,428 28.70 % Greater than 80% - - - 405,000 - - 405,000 0.65 % Total $ 18,086,542 $ 26,440,776 $ 3,175,547 $ 1,269,128 $ 4,913,313 $ 8,867,779 $ 62,753,085 100.00 % DSCR >1.20x $ 16,300,000 $ 20,990,000 $ 1,000,000 $ - $ 4,913,313 $ 5,414,274 $ 48,617,587 77.47 % 1.00x - 1.20x 432,942 5,450,776 2,175,547 1,269,128 - 3,453,505 12,781,898 20.37 % <1.00x 1,353,600 - - - - - 1,353,600 2.16 % Total $ 18,086,542 $ 26,440,776 $ 3,175,547 $ 1,269,128 $ 4,913,313 $ 8,867,779 $ 62,753,085 100.00 % 28 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The Company evaluates and monitors the credit quality of its residential mortgage loans by analyzing LTV and loan performance. The Company defines non-performing mortgage loans as loans more than 90 days past due and on a non-accrual status. Monitoring a residential mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment. The aggregate unpaid principal balance of residential mortgage loans by credit quality indicator and origination year was as follows as of September 30, 2025: Credit Quality Indicator 2025 2024 2023 2022 2021 Prior Total % of Total Performance Indicators: Performing $ 9,761,488 $ 11,925,652 $ 8,846,498 $ 39,491,126 $ 2,894,338 $ 13,587,359 $ 86,506,461 94.08 % Non-performing (1) 546,602 - 3,013,370 943,125 - 938,897 5,441,994 5.92 % Total $ 10,308,090 $ 11,925,652 $ 11,859,868 $ 40,434,251 $ 2,894,338 $ 14,526,256 $ 91,948,455 100.00 % (1) Includes residential mortgage loans in the process of foreclosure of $ 2,427,736 LTV: Less than 65% $ 3,581,292 $ 5,723,881 $ 4,547,440 $ 6,670,677 $ 1,337,492 $ 7,570,352 $ 29,431,134 32.01 % 65% to 80% 5,742,730 6,046,634 6,638,395 32,174,154 1,556,846 6,416,327 58,575,086 63.70 % Greater than 80% 984,068 155,137 674,033 1,589,420 - 539,577 3,942,235 4.29 % Total $ 10,308,090 $ 11,925,652 $ 11,859,868 $ 40,434,251 $ 2,894,338 $ 14,526,256 $ 91,948,455 100.00 % The aggregate unpaid principal balance of residential mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2024: Credit Quality Indicator 2024 2023 2022 2021 2020 Prior Total % of Total Performance Indicators: Performing $ 14,861,098 $ 10,030,848 $ 42,634,670 $ 3,076,901 $ 5,513,462 $ 8,940,966 $ 85,057,945 92.39 % Non-performing (1) - 3,442,992 1,451,039 291,359 311,116 1,507,336 7,003,842 7.61 % Total $ 14,861,098 $ 13,473,840 $ 44,085,709 $ 3,368,260 $ 5,824,578 $ 10,448,302 $ 92,061,787 100.00 % (1) Includes residential mortgage loans in the process of foreclosure of $ 3,942,392 Year 1 Year 2 Year 3 Year 4 Year 5 LTV: Less than 65% $ 6,241,730 $ 4,931,376 $ 5,488,954 $ 1,790,036 $ 2,440,002 $ 5,273,672 $ 26,165,770 28.42 % 65% to 80% 7,802,984 7,662,200 37,509,634 1,578,224 2,701,008 5,107,289 62,361,339 67.74 % Greater than 80% 816,384 880,264 1,087,121 - 683,568 67,341 3,534,678 3.84 % Total $ 14,861,098 $ 13,473,840 $ 44,085,709 $ 3,368,260 $ 5,824,578 $ 10,448,302 $ 92,061,787 100.00 % 29 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The Company evaluates and monitors the credit quality of its residential construction loans (including land acquisition and development loans) by analyzing LTV and loan performance. Monitoring a residential construction mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment. The aggregate unpaid principal balance of residential construction mortgage loans by credit quality indicator and origination year was as follows as of September 30, 2025: Schedule of Residential Construction Mortgage Loans Credit Quality Indicator 2025 2024 2023 2022 2021 Total % of Total Performance Indicators: Performing $ 97,416,837 $ 55,925,032 $ 7,751,304 $ - $ 4,776,003 $ 165,869,176 100.00 % Non-performing - - - - - - 0.00 % Total $ 97,416,837 $ 55,925,032 $ 7,751,304 $ - $ 4,776,003 $ 165,869,176 100.00 % LTV: Less than 65% $ 27,347,365 $ 30,938,061 $ 7,751,304 $ - $ 4,776,003 $ 70,812,733 42.69 % 65% to 80% 65,953,712 24,986,971 - - - 90,940,683 54.83 % Greater than 80% 4,115,760 - - - - 4,115,760 2.48 % Total $ 97,416,837 $ 55,925,032 $ 7,751,304 $ - $ 4,776,003 $ 165,869,176 100.00 % The aggregate unpaid principal balance of residential construction mortgage loans by credit quality indicator and origination year was as follows as of December 31, 2024: Credit Quality Indicator 2024 2023 2022 2021 Total % of Total Performance Indicators: Performing $ 118,863,944 $ 21,375,552 $ 972,468 $ 9,960,769 $ 151,172,733 100.00 % Non-performing - - - - - 0.00 % Total $ 118,863,944 $ 21,375,552 $ 972,468 $ 9,960,769 $ 151,172,733 100.00 % LTV: Less than 65% $ 48,065,177 $ 21,375,552 $ 518,590 $ 9,960,769 $ 79,920,088 52.87 % 65% to 80% 70,798,767 - 453,878 - 71,252,645 47.13 % Greater than 80% - - - - 0.00 % Total $ 118,863,944 $ 21,375,552 $ 972,468 $ 9,960,769 $ 151,172,733 100.00 % 30 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Insurance Assignments The following table presents the aging of insurance assignments, included in other investments and policy loans on the condensed consolidated balance sheets: Schedule of Aging of Insurance Assignments As of September 30, 2025 As of December 31, 2024 30-59 days past due $ 7,982,177 $ 8,785,184 60-89 days past due 2,834,811 4,046,731 Over 90 days past due 4,883,289 5,320,216 Total past due 15,700,277 18,152,131 Current 26,578,043 30,341,727 Total insurance assignments 42,278,320 48,493,858 Allowance for credit losses ( 1,534,957 ) ( 1,536,926 ) Net insurance assignments $ 40,743,363 $ 46,956,932 The Company records an allowance for credit losses when the insurance assignment is funded. Once an insurance assignment is 90 days past due or is in legal proceedings, it is monitored for write-off and collectability, and any adjustments to the allowance are recorded at that time. The following table presents a roll forward of the allowance for credit losses for insurance assignments as of the dates indicated: Schedule of Allowance for Credit Losses Three Months Ended Beginning balance - June 30, 2025 $ 1,481,032 Change in provision for credit losses (1) 248,408 Charge-offs ( 194,483 ) Ending balance - September 30, 2025 $ 1,534,957 Beginning balance - June 30, 2024 $ 1,535,324 Change in provision for credit losses (1) 259,643 Charge-offs ( 254,132 ) Ending balance - September 30, 2024 $ 1,540,835 Nine Months Ended Beginning balance - December 31, 2024 $ 1,536,926 Change in provision for credit losses (1) 799,460 Charge-offs ( 801,429 ) Ending balance - September 30, 2025 $ 1,534,957 Beginning balance - December 31, 2023 $ 1,553,836 Change in provision for credit losses (1) 752,256 Charge-offs ( 765,257 ) Ending balance - September 30, 2024 $ 1,540,835 (1) Included in other expenses on the condensed consolidated statements of earnings 31 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) Variable Interest Entities (“VIE”) The Company has a 50 % ownership interest in three VIEs; HHH Real Estate LLC (“HHH”), SN Oquirrh LLC (“Oquirrh”), and SN Towns LLC (“Towns”). These entities hold and develop single family lots for residential construction. In accordance with the operating agreements for these entities, net profits or losses are allocated to the members in accordance with their ownership interests. The investments in HHH, Oquirrh and Towns are accounted for under the equity method of accounting. The carrying value of the equity investment in HHH was $ 11,163,125 and nil at September 30, 2025, and December 31, 2024, respectively, which is included in other investments and policy loans on the condensed consolidated balance sheets. The carrying value of the equity investment in Oquirrh was $ 870,063 and $ 1,500,000 at September 30, 2025, and December 31, 2024, respectively, which is included in other investments and policy loans on the condensed consolidated balance sheets. The carrying value of the equity investment in Towns was $ 2,614,037 and $ 4,063,537 at September 30, 2025, and December 31, 2024, respectively. $ 1,445,769 and $ 1,939,269 of which at September 30, 2025, and December 31, 2024, respectively, is included in restricted assets and $ 1,168,268 and $ 2,124,268 of which at September 30, 2025, and December 31, 2024, respectively, is included in cemetery perpetual care trust investments on the condensed consolidated balance sheets. The Company has determined that HHH, Oquirrh and Towns are VIEs for which the Company is not the primary beneficiary for the following reasons: (1) the at-risk equity holders, as a group, lack the characteristics of a controlling financial interest, (2) the General Manager directs the activities and legal operations that most significantly affect the entity’s economic performance and (3) the Company does not have majority voting rights and no power to unilaterally direct the activities of the entity, and therefore, is not the primary beneficiary. The Company’s exposure to loss because of its involvement with the equity method investees is limited to the carrying value of the Company’s investments. Investment Related Earnings The following table presents the realized gains and losses from sales, calls, and maturities, and unrealized gains and losses on equity securities from investments and other assets: Schedule of Gain (Loss) on Investments 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Fixed maturity securities: Gross realized gains $ 3,904 $ 7,929 $ 5,425 $ 13,120 Gross realized losses ( 24,168 ) ( 43,184 ) ( 36,426 ) ( 61,539 ) Net credit loss provision ( 45,882 ) ( 20,342 ) ( 111,875 ) ( 100,053 ) Equity securities: Gains (losses) on securities sold ( 990,140 ) 708 ( 860,032 ) ( 16,662 ) Unrealized gains on securities held at the end of the period 2,477,603 2,415,881 3,544,484 3,534,285 Mortgage loans held for investment: Gross realized gains - - - - Gross realized losses - ( 1,161,364 ) - ( 1,161,364 ) Real estate held for investment and sale: Gross realized gains 644,370 71,622 1,241,285 360,474 Gross realized losses ( 12,099 ) - ( 12,099 ) - Other assets: Gross realized gains 448 95,690 11,252 92,095 Gross realized losses ( 81,838 ) ( 19,284 ) ( 81,088 ) ( 20,513 ) Total $ 1,972,198 $ 1,347,656 $ 3,700,926 $ 2,639,843 32 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 3) Investments (Continued) The realized gains and losses on the sale of securities are recorded on the trade date, and the cost of the securities sold is determined using the specific identification method. Net realized gains and losses includes gains and losses from cemetery perpetual care trust investments and the restricted assets of cemeteries and mortuaries and totaled $ 711,436 and $ 1,140,136 in net gains for the three-month periods ended September 30, 2025 and 2024, respectively, and of $ 1,196,591 and $ 1,519,487 in net gains for the nine-month periods ended September 30, 2025 and 2024, respectively. Major categories of net investment income were as follows: 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Fixed maturity securities available for sale $ 4,818,558 $ 4,301,241 $ 14,233,356 $ 13,050,503 Equity securities 210,342 171,767 650,605 516,363 Mortgage loans held for investment 10,149,577 7,032,201 30,571,474 22,867,797 Real estate held for investment and sale 2,885,847 3,093,459 8,718,124 9,893,539 Policy loans 256,796 225,393 737,159 715,791 Insurance assignments 4,948,025 5,009,043 15,818,390 14,971,607 Other investments 236,288 272,062 480,123 672,363 Cash and cash equivalents 747,758 1,700,898 3,104,010 5,107,765 Gross investment income 24,253,191 21,806,064 74,313,241 67,795,728 Investment expenses ( 4,143,591 ) ( 4,006,968 ) ( 14,420,029 ) ( 12,005,256 ) Net investment income $ 20,109,600 $ 17,799,096 $ 59,893,212 $ 55,790,472 Net investment income includes income earned from cemetery perpetual care trust investments and the restricted assets of cemeteries and mortuaries and totaled $ 319,480 and $ 393,811 for the three-month periods ended September 30, 2025, and 2024, respectively, and $ 686,952 and $ 1,798,170 for the nine-month periods ended September 30, 2025, and 2024, respectively. Net investment income on real estate consists primarily of rental revenue. Investment expenses consist primarily of depreciation, property taxes, operating expenses of real estate, and an estimated portion of administrative expenses relating to investment activities. Accrued Investment Income Accrued investment income consists of the following: Schedule of Accrued Investment Income As of September 30, 2025 As of December 31, 2024 Fixed maturity securities available for sale $ 4,530,512 $ 3,795,581 Equity securities 14,147 11,049 Mortgage loans held for investment 981,754 1,049,489 Real estate held for investment 4,181,528 3,559,463 Other investments 4,667 - Cash and cash equivalents 33,760 83,586 Total accrued investment income $ 9,746,368 $ 8,499,168 33 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 4) Loans Held for Sale The Company’s loans held for sale portfolio is valued using the fair value option. Changes in the fair value of the loans are included in mortgage fee income. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on recognition of mortgage loan interest income and is included in mortgage fee income on the condensed consolidated statement of earnings. See Note 8 to the condensed consolidated financial statements for additional disclosures regarding loans held for sale. The following table presents the aggregate fair value and the aggregate unpaid principal balance of loans held for sale: Schedule of Aggregate Fair Value Loans Held for Sale As of September 30, 2025 As of December 31, 2024 Aggregate fair value $ 159,460,525 $ 131,181,148 Unpaid principal balance 156,916,889 128,948,072 Unrealized gain 2,543,636 2,233,076 Mortgage Fee Income Mortgage fee income consists of origination fees, processing fees, interest income, and other income related to the origination and sale of mortgage loans held for sale. Major categories of mortgage fee income for loans held for sale are summarized as follows: Schedule of Mortgage Fee Income for Loans Held for Sale 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Loan fees $ 6,670,934 $ 7,358,830 $ 18,634,088 $ 20,245,527 Interest income 2,500,007 2,357,379 6,533,686 6,104,113 Secondary gains 20,378,078 17,982,124 57,518,242 51,387,693 Change in fair value of loan commitments ( 202,896 ) ( 179,836 ) 404,048 811,765 Change in fair value of loans held for sale 10,709 2,959,729 960,050 3,855,914 Provision for loan loss reserve ( 217,587 ) ( 254,134 ) ( 616,524 ) ( 729,734 ) Mortgage fee income $ 29,139,245 $ 30,224,092 $ 83,433,590 $ 81,675,278 34 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 4) Loans Held for Sale (Continued) Loan Loss Reserve Repurchase demands (“demand(s)”) from third party investors for mortgage loans previously held for sale and sold are reviewed, and relevant data is captured so that an estimated future loss can be calculated. The key factors that are used in the estimated future loss calculation are as follows: (i) lien position, (ii) payment status, (iii) claim type, (iv) unpaid principal balance, (v) interest rate, and (vi) validity of the demand. Other data is captured and is useful for management purposes; the actual estimated loss is generally based on these key factors. The Company conducts its own review upon the receipt of a demand. In many instances, the Company can resolve the issues relating to the demand by the third-party investor without having to make any payments to the investor. The loan loss reserve, which is included in other liabilities and accrued expenses, is summarized as follows: Summary of Loan Loss Reserve Included in Other Liabilities and Accrued Expenses As of September 30, 2025 As of December 31, 2024 Balance, beginning of period $ 696,626 $ 547,233 Provision on current loan originations (1) 616,524 932,154 Additional provision (2) 40,000 - Charge-offs, net of recaptured amounts ( 764,281 ) ( 782,761 ) Balance, end of period $ 588,869 $ 696,626 (1) Included in mortgage fee income (2) Included in other expenses The Company maintains reserves for estimated losses on current production volumes. For the nine-month period ended September 30, 2025, $ 616,524 in reserves were added at a rate of 3.5 basis points per loan, the equivalent of $ 350 per $ 1,000,000 in loans originated. For the nine-month period ended September 30, 2024, $ 729,734 in reserves were added at a rate of 4.2 basis points per loan, the equivalent of $ 420 per $ 1,000,000 in loans originated. The Company monitors market data and trends, and economic conditions (including forecasts) and uses its own experience to determine adequate loss reserves on current production. 35 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 5) Stock Compensation Plans The Company has three active equity incentive plans (the “2013 Plan”, the “2014 Director Plan” and the “2022 Plan” or “the Plans”). Stock Options Stock based compensation expense for stock options issued of $ 310,165 and $ 195,431 has been recognized for these Plans for the three-month periods ended September 30, 2025, and 2024, respectively, and $ 919,868 and $ 577,613 has been recognized for these Plans for the nine-month periods ended September 30, 2025, and 2024, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings. As of September 30, 2025, the total unrecognized compensation expense related to the options issued was $ 238,128 which is expected to be recognized over the remaining vesting period. The fair value of each option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant. The activity of the Plans during the nine-month period ended September 30, 2025, is summarized as follows: Schedule of Activity of Stock Option Plans Number of Class A Shares Weighted Average Exercise Price (2) Number of Class C Shares Weighted Average Exercise Price (2) Outstanding at December 31, 2024 646,594 $ 5.63 1,724,400 $ 6.87 Adjustment for the effect of stock dividends 27,898 80,571 Granted 24,000 - Exercised ( 112,735 ) ( 113,023 ) Cancelled ( 18,462 ) - Outstanding at September 30, 2025 567,295 $ 5.77 1,691,948 $ 7.13 As of September 30, 2025: Options exercisable 548,470 $ 5.55 1,609,452 $ 9.05 As of September 30, 2025: Available options for future grant 2,164,542 678,550 Weighted average contractual term of options outstanding at September 30, 2025 4.92 years 6.14 years Weighted average contractual term of options exercisable at September 30, 2025 4.77 years 6.00 years Aggregated intrinsic value of options outstanding at September 30, 2025 (1) $ 1,647,183 $ 2,607,971 Aggregated intrinsic value of options exercisable at September 30, 2025 (1) $ 1,710,565 $ 2,926,771 (1) The Company used a stock price of $ 8.67 as of September 30, 2025 to derive intrinsic value. (2) Adjusted for the effect of annual stock dividends. 36 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 5) Stock Compensation Plans (Continued) The activity of the Plans during the nine-month period ended September 30, 2024, is summarized as follows: Number of Class A Shares Weighted Average Exercise Price (2) Number of Class C Shares Weighted Average Exercise Price (2) Outstanding at December 31, 2023 833,570 $ 4.91 1,520,062 $ 5.57 Adjustment for the effect of stock dividends 38,724 76,005 Granted 16,500 - Exercised ( 88,714 ) - Cancelled ( 17,333 ) - Outstanding at September 30, 2024 782,747 $ 5.16 1,596,067 $ 5.57 As of September 30, 2024: Options exercisable 751,872 $ 5.05 1,519,817 $ 5.46 As of September 30, 2024: Available options for future grant 39,006 556,238 Weighted average contractual term of options outstanding at September 30, 2024 4.91 years 5.74 years Weighted average contractual term of options exercisable at September 30, 2024 4.73 years 5.63 years Aggregated intrinsic value of options outstanding at September 30, 2024 (1) $ 3,165,305 $ 5,793,310 Aggregated intrinsic value of options exercisable at September 30, 2024 (1) $ 3,119,776 $ 5,676,723 (1) The Company used a stock price of $ 9.20 as of September 30, 2024 to derive intrinsic value. (2) Adjusted for the effect of annual stock dividends. The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during the nine-month periods ended September 30, 2025, and 2024 was $1,357,776 and $290,159, respectively. 37 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 5) Stock Compensation Plans (Continued) Restricted Stock Units (“RSUs”) Stock based compensation expense for RSUs issued of $ 10,076 and $ 895 has been recognized under these plans for the three-month periods ended September 30, 2025, and 2024, respectively, and $ 30,012 and $ 2,666 has been recognized under these plans for the nine-month periods ended September 30, 2025, and 2024, and is included in personnel expenses on the condensed consolidated statements of earnings. The fair value of each RSU granted is determined by the Company’s stock price on the date of the grant. As of September 30, 2025, the total unrecognized compensation expense related to the RSUs issued was $ 7,286 , which is expected to be recognized over the remaining vesting period. Activity of the RSUs during the nine-month period ended September 30, 2025, is summarized as follows: Schedule of Activity Restricted Stock Units Number of Class A Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2024 12,813 $ 12.90 Granted - Vested ( 6,639 ) Non-vested at September 30, 2025 6,174 $ 13.08 Available RSUs for future grant 504,187 Activity of the RSUs during the nine-month period ended September 30, 2024, is summarized as follows: Number of Class A Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2023 2,245 $ 7.72 Granted - Vested ( 1,325 ) Non-vested at September 30, 2024 920 $ 7.99 Available RSUs for future grant 16,540 38 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 6) Earnings Per Share Earnings per share have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share were calculated as follows: Schedule of Earnings Per Share, Basic and Diluted 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Numerator: Net earnings $ 7,815,026 $ 11,831,444 $ 18,659,673 $ 26,577,515 Denominator: Basic weighted-average shares outstanding 24,709,518 24,418,679 24,725,938 24,465,661 Effect of dilutive securities: Employee stock options 691,927 853,399 828,239 731,352 Diluted weighted-average shares outstanding 25,401,445 25,272,078 25,554,177 25,197,013 Basic net earnings per share $ 0.32 $ 0.48 $ 0.75 $ 1.09 Diluted net earnings per share $ 0.31 $ 0.47 $ 0.73 $ 1.05 For the nine-month periods ended September 30, 2025, and 2024, there were 403,514 and nil anti-dilutive stock option shares, respectively, that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive. Basic and diluted earnings per share are the same for each class of common stock. The following table summarizes the activity in shares of capital stock. Summary of Activities in Shares of Capital Stock Class A Class C Outstanding shares at December 31, 2024 (1) 22,321,559 3,492,674 Exercise of stock options 66,273 95,337 Vesting of restricted stock units 6,639 - Conversion of Class C to Class A 774 ( 774 ) Outstanding shares at September 30, 2025 (1) 22,395,245 3,587,237 Outstanding shares at December 31, 2023 (1) 22,119,436 3,291,271 Outstanding shares, beginning 22,119,436 3,291,271 Exercise of stock options 63,512 - Vesting of restricted stock units 1,325 - Conversion of Class C to Class A 266 ( 266 ) Outstanding shares at September 30, 2024 (1) 22,184,539 3,291,005 Outstanding shares, ending 22,184,539 3,291,005 (1) Adjusted retroactively for the effect of annual stock dividends 39 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 7) Business Segment Information Description of Products and Services by Segment The Company has identified three operating and reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment revenue consists of life insurance premiums; fees earned on factored life insurance policies and net investment income derived from investing policyholder and surplus funds. Its expenses include operating expenses to collect insurance premiums and insurance policy receivables, and administer claims, and commissions payable related to the sale of insurance products sold by the Company’s independent agency force. The Company’s cemetery and mortuary segment revenue consists of fees from the sale of at-need cemetery and mortuary merchandise, services at its mortuaries and cemeteries, pre-need sales of cemetery spaces and the net investment income from investing surplus cash. Its expenses include operating expenses to maintain mortuary and cemetery operations and commissions related to the sale of insurance products sold by the Company’s agents. The Company’s mortgage segment revenue consists of residential mortgage origination fee income and mortgage interest income. Its expenses include normal operating expenses related to the origination and sale of residential mortgage loans, loan servicing, and warehouse interest and fee expenses. Services and Cost Sharing Policies The accounting policies of the Company’s operating and reportable segments are the same as those described in Part II, Item 8, Note 1 - Significant Accounting Policies of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit and are eliminated upon consolidation. In addition to revenues, the reportable segments share in business services and costs including personnel expenses, rent, information technology, software, interest expense, and other similar operating costs. These shared services and costs are allocated between the segments using prevailing market rates and other agreed upon allocation methods. Factors Management Used to Identify the Company’s Operating and Reportable Segments The Company’s operating and reportable segments are business units that are managed separately due to the different products provided and the need to report separately to the various regulatory jurisdictions. Chief Operating Decision Maker (“CODM”) The Company’s CODM is the Chief Executive Officer. The following table summarizes significant segment expenses. The significant expenses are based on the information that the CODM is regularly provided to assess segment performance. The CODM reviews the regularly provided information for each segment monthly and gives added emphasis on month-over-month and year-over-year comparative results. The CODM considers these comparative results when making decisions about the allocation of the Company’s resources to each segment. The measure of segment profit or loss for the Company’s three operating and reportable business segments is net earnings. 40 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 7) Business Segment Information (Continued) Schedule of Revenues and Expenses by Reportable Segment Insurance Mortuary Mortgage Total For the Three Months Ended September 30, 2025 Life Cemetery/ Insurance Mortuary Mortgage Total Revenues: From external sources: Revenue from external customers $ 29,880,785 $ 7,140,942 $ 29,139,245 $ 66,160,972 Net investment income 19,278,861 641,814 188,925 20,109,600 Gains on investments and other assets 1,258,854 711,884 1,460 1,972,198 Other revenues 371,667 432,894 278,832 1,083,393 Intersegment revenues 2,044,534 85,699 75,882 2,206,115 Total segment revenues 52,834,701 9,013,233 29,684,344 91,532,278 Elimination of intersegment revenues ( 2,206,115 ) Total consolidated revenues 89,326,163 Less: Death benefits 15,182,809 - - Surrenders and other policy benefits 1,374,289 - - Increase in future policy benefits 8,376,973 - - Amortization of deferred policy and pre-need acquisition costs and value of business acquired 5,329,768 203,653 - Selling, general and administrative expenses: Commissions 1,327,707 53,382 11,673,028 Personnel 8,679,182 2,689,765 10,150,091 Advertising 172,623 174,285 636,383 Rent and rent related 86,781 38,902 821,981 Depreciation on property and equipment 217,990 233,853 155,457 Cost related to funding mortgage loans - - 1,813,814 Data processing and IT related (1) 334,212 78,005 913,247 Premium taxes on insurance premiums and other considerations (1) 751,520 - - Other segment items (1)(2) 2,884,733 1,299,434 1,339,391 Intersegment expenses (3) 161,581 83,359 1,961,175 Interest expense 912,232 136 154,160 Costs of goods and services sold-mortuaries and cemeteries - 1,113,425 - Income tax expense 1,534,528 757,700 45,698 Segment net earnings 5,507,773 2,287,334 19,919 7,815,026 Net earnings $ 7,815,026 (1) Included in other expenses on the condensed consolidated statements of earnings. Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support and storage fees. (2) For each reportable segment, other segment items includes: Life Insurance - bad debt, insurance expenses, professional service expenses, state insurance department fees, amortization of intangible assets, and certain overhead expenses. Cemetery/Mortuary - bad debt, insurance expenses, professional service expenses, maintenance and utility expenses, property taxes, amortization of intangible assets, and certain overhead expenses. Mortgage - bad debt, insurance expenses, professional service expenses, business license and registration fees, dues and subscriptions, amortization expense of mortgage servicing rights, and certain overhead expenses. (3) For each reportable segment, intersegment expenses includes: Life Insurance - mortgage servicing fees and interest expense. Cemetery/Mortuary - rent expense, data processing and IT related expenses, and interest expense. Mortgage - rent expense and interest expense. 41 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 7) Business Segment Information (Continued) Insurance Mortuary Mortgage Total For the Three Months Ended September 30, 2024 Life Cemetery/ Insurance Mortuary Mortgage Total Revenues: From external sources: Revenue from external customers $ 30,011,081 $ 6,814,331 $ 30,224,092 $ 67,049,504 Net investment income 17,105,712 477,833 215,551 17,799,096 Gains (losses) on investments and other assets 1,316,673 1,124,513 ( 1,093,530 ) 1,347,656 Other revenues 419,890 126,000 1,531,541 2,077,431 Intersegment revenues 2,066,052 85,699 137,946 2,289,697 Total segment revenues 50,919,408 8,628,376 31,015,600 90,563,384 Elimination of intersegment revenues ( 2,289,697 ) Total consolidated revenues 88,273,687 Less: Death benefits 13,570,336 - - Surrenders and other policy benefits 1,194,692 - - Increase in future policy benefits 8,589,354 - - Amortization of deferred policy and pre-need acquisition costs and value of business acquired 2,093,892 193,111 - Selling, general and administrative expenses: Commissions 953,987 268,499 11,981,920 Personnel 7,462,332 2,483,960 11,303,262 Advertising 177,329 159,117 571,082 Rent and rent related 103,137 39,324 1,237,615 Depreciation on property and equipment 248,914 205,529 157,032 Cost related to funding mortgage loans - - 1,694,791 Data processing and IT related (1) 210,002 62,314 813,729 Premium taxes on insurance premiums and other considerations (1) 739,809 - - Other segment items (1)(2) 2,061,764 1,167,856 1,136,150 Intersegment expenses (3) 223,434 90,613 1,975,650 Interest expense 932,239 194 128,220 Costs of goods and services sold-mortuaries and cemeteries - 1,117,513 - Income tax expense 2,651,944 716,898 14,396 Segment net earnings 9,706,243 2,123,448 1,753 11,831,444 Net earnings $ 11,831,444 (1) Included in other expenses on the condensed consolidated statements of earnings. Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support and storage fees. (2) For each reportable segment, other segment items includes: Life Insurance - bad debt, insurance expenses, professional service expenses, state insurance department fees, amortization of intangible assets, and certain overhead expenses. Cemetery/Mortuary - bad debt, insurance expenses, professional service expenses, maintenance and utility expenses, property taxes, amortization of intangible assets, and certain overhead expenses. Mortgage - bad debt, insurance expenses, professional service expenses, business license and registration fees, dues and subscriptions, amortization expense of mortgage servicing rights, and certain overhead expenses. (3) For each reportable segment, intersegment expenses includes: Life Insurance - mortgage servicing fees and interest expense. Cemetery/Mortuary - rent expense, data processing and IT related expenses, and interest expense. Mortgage - rent expense and interest expense. 42 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 7) Business Segment Information (Continued) Insurance Mortuary Mortgage Total For the Nine Months Ended September 30, 2025 Life Cemetery/ Insurance Mortuary Mortgage Total Revenues: From external sources: Revenue from external customers $ 89,846,164 $ 21,698,880 $ 83,433,590 $ 194,978,634 Net investment income 57,909,679 1,528,492 455,041 59,893,212 Gains on investments and other assets 2,422,649 1,193,030 85,247 3,700,926 Other revenues 1,422,933 766,987 844,343 3,034,263 Intersegment revenues 5,192,800 254,302 272,307 5,719,409 Total segment revenues 156,794,225 25,441,691 85,090,528 267,326,444 Elimination of intersegment revenues ( 5,719,409 ) Total consolidated revenues 261,607,035 Less: Death benefits 46,249,912 - - Surrenders and other policy benefits 3,807,498 - - Increase in future policy benefits 26,165,160 - - Amortization of deferred policy and pre-need acquisition costs and value of business acquired 15,436,601 531,030 - Selling, general and administrative expenses: Commissions 3,266,908 841,828 32,849,100 Personnel 25,602,668 7,901,569 32,368,554 Advertising 398,893 468,503 1,880,288 Rent and rent related 265,531 112,896 2,494,987 Depreciation on property and equipment 680,675 669,398 471,380 Cost related to funding mortgage loans - - 5,120,855 Data processing and IT related (1) 882,143 222,937 2,690,366 Premium taxes on insurance premiums and other considerations (1) 2,203,794 - - Other segment items (1)(2) 7,911,917 3,834,468 5,211,239 Intersegment expenses (3) 526,395 255,285 4,937,729 Interest expense 2,812,509 446 666,539 Costs of goods and services sold-mortuaries and cemeteries - 3,525,978 - Income tax expense (benefit) 4,526,820 1,722,410 ( 848,438 ) Segment net earnings (loss) 16,056,801 5,354,943 ( 2,752,071 ) 18,659,673 Net earnings $ 18,659,673 Segment assets $ 1,403,748,846 $ 105,083,649 $ 89,648,621 $ 1,598,481,116 Elimination of intersegment assets ( 35,495,025 ) Total consolidated assets $ 1,562,986,091 Expenditures for long-lived assets $ 53,325,905 $ 1,176,244 $ 296,776 $ 54,798,925 (1) Included in other expenses on the condensed consolidated statements of earnings. Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support and storage fees. (2) For each reportable segment, other segment items includes: Life Insurance - bad debt, insurance expenses, professional service expenses, state insurance department fees, amortization of intangible assets, and certain overhead expenses. Cemetery/Mortuary - bad debt, insurance expenses, professional service expenses, maintenance and utility expenses, property taxes, amortization of intangible assets, and certain overhead expenses. Mortgage - bad debt, insurance expenses, professional service expenses, business license and registration fees dues and subscriptions, amortization expense of mortgage servicing rights, and certain overhead expenses. (3) For each reportable segment, intersegment expenses includes: Life Insurance - mortgage servicing fees and interest expense. Cemetery/Mortuary - rent expense, data processing and IT related expenses, and interest expense. Mortgage - rent expense and interest expense. 43 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 7) Business Segment Information (Continued) Insurance Mortuary Mortgage Total For the Nine Months Ended September 30, 2024 Life Cemetery/ Insurance Mortuary Mortgage Total Revenues: From external sources: Revenue from external customers $ 89,823,732 $ 21,531,769 $ 81,675,278 $ 193,030,779 Net investment income 52,902,146 2,136,982 751,344 55,790,472 Gains on investments and other assets 2,194,572 1,503,865 ( 1,058,594 ) 2,639,843 Other revenues 1,140,856 435,507 2,215,764 3,792,127 Intersegment revenues 5,351,600 255,234 429,541 6,036,375 Total segment revenues 151,412,906 25,863,357 84,013,333 261,289,596 Elimination of intersegment revenues ( 6,036,375 ) Total consolidated revenues 255,253,221 Less: Death benefits 43,354,254 - - Surrenders and other policy benefits 3,453,425 - - Increase in future policy benefits 27,148,178 - - Amortization of deferred policy and pre-need acquisition costs and value of business acquired 10,708,888 623,417 - Selling, general and administrative expenses: Commissions 2,817,716 1,047,105 30,773,643 Personnel 21,979,252 7,346,938 32,581,075 Advertising 400,206 437,731 1,543,463 Rent and rent related 332,764 118,753 3,627,275 Depreciation on property and equipment 698,173 620,861 472,789 Cost related to funding mortgage loans - - 4,677,767 Data processing and IT related (1) 633,130 183,300 2,618,662 Premium taxes on insurance premiums and other considerations (1) 2,260,033 - - Other segment items (1)(2) 6,100,295 3,596,281 4,085,217 Intersegment expenses (3) 683,672 276,933 5,075,770 Interest expense 2,790,510 650 370,783 Costs of goods and services sold-mortuaries and cemeteries - 3,627,101 - Income tax expense (benefit) 6,017,032 2,025,774 ( 396,735 ) Segment net earnings (loss) 22,035,378 5,958,513 ( 1,416,376 ) 26,577,515 Net earnings $ 26,577,515 Segment assets $ 1,329,401,728 $ 94,063,898 $ 99,663,509 $ 1,523,129,135 Elimination of intersegment assets ( 28,304,940 ) Total consolidated assets $ 1,494,824,195 Expenditures for long-lived assets $ 46,317,358 $ 300,393 $ 146,993 $ 46,764,744 (1) Included in other expenses on the condensed consolidated statements of earnings. Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support and storage fees. (2) For each reportable segment, other segment items includes: Life Insurance - bad debt, insurance expenses, professional service expenses, state insurance department fees, amortization of intangible assets, and certain overhead expenses. Cemetery/Mortuary - bad debt, insurance expenses, professional service expenses, maintenance and utility expenses, property taxes, amortization of intangible assets, and certain overhead expenses. Mortgage - bad debt, insurance expenses, professional service expenses, business license and registration fees, dues and subscriptions, amortization expense of mortgage servicing rights, and certain overhead expenses. (3) For each reportable segment, intersegment expenses includes: Life Insurance - mortgage servicing fees and interest expense. Cemetery/Mortuary - rent expense, data processing and IT related expenses, and interest expense. Mortgage - rent expense and interest expense. 44 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. Fair value measurements are classified under the following hierarchy: Level 1: Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access. Level 2: Financial assets and financial liabilities whose values are based on the following: a) Quoted prices for similar assets or liabilities in active markets. b) Quoted prices for identical or similar assets or liabilities in non-active markets; or c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect the Company’s estimates of the assumptions that market participants would use in valuing financial assets and financial liabilities. The Company utilizes a combination of third-party valuation service providers, brokers, and internal valuation models to determine fair value. The following methods and assumptions were used by the Company in estimating the fair value presented in its disclosures related to significant financial instruments. The items shown under Level 1 and Level 2 are valued as follows: Fixed Maturity Securities Available for Sale : The fair values of fixed maturity securities are based on quoted market prices (when available). For fixed maturity securities not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements (considered Level 3 financial assets), are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit and maturity of the investments. Equity Securities : The fair values for equity securities are based on quoted market prices. Restricted Assets : A portion of these assets include equity securities and fixed maturity securities that have quoted market prices that are used to determine fair value. Also included are cash and cash equivalents and participations in mortgage loans. The carrying amounts reported in the accompanying condensed consolidated balance sheets for these financial instruments approximate their fair values due to their short-term nature. Cemetery Perpetual Care Trust Investments : A portion of these assets include equity securities and fixed maturity securities that have quoted market prices that are used to determine fair value. Also included are cash and cash equivalents. The carrying amounts reported in the accompanying condensed consolidated balance sheets for these financial instruments approximate their fair values due to their short-term nature. Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy. 45 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) The items shown under Level 3 are valued as follows: Loans Held for Sale : The Company elected the fair value option for loans held for sale. The fair value is based on quoted market prices (when available). When a quoted market price is not readily available, the Company uses the market price from its last sale of similar assets. Fair value is often difficult to determine in volatile markets and may contain significant unobservable inputs. Loan Commitments and Forward Sale Commitments : The Company’s mortgage segment enters loan commitments with potential borrowers and forward sale commitments to sell loans with third-party investors. The Company also uses a hedging strategy for these transactions. A loan commitment binds the Company to lend funds to a qualified borrower at a specified interest rate and within a specified period, generally up to 30 days after issuance of the loan commitment. Loan commitments are defined to be derivatives under GAAP and are recognized at fair value on the consolidated balance sheets with changes in their fair values recorded in current earnings. The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted MBS prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the loan commitment is issued. Following issuance, the value of a mortgage loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will be funded within the terms of the commitments. Impaired Mortgage Loans Held for Investment : The Company believes that the fair value of these nonperforming loans will approximate the unpaid principal balance expected to be recovered based on the fair value of the underlying collateral. For residential and commercial properties, the collateral value is estimated by obtaining an independent appraisal. The appraisal typically considers comparable sales in the area, property condition, and potential rental income that could be generated (particularly for commercial properties). For residential construction loans, the collateral is typically incomplete, so the fair value is estimated as the replacement cost using data from a provider of building cost information to the real estate construction. Impaired Real Estate Held for Investment : Fair value is generally determined by obtaining an independent appraisal, which typically considers area comparable properties and property conditions. The Company believes that in an orderly market, fair value approximates the replacement cost of a home and will list for sale any foreclosed properties. In a disorderly market, the Company believes the highest and best use of the properties is as income producing assets and will hold the properties as rental properties, matching the income from the investment in rental properties with the funds required for estimated future policy benefits. Accordingly, in addition to an appraisal, the determination of fair value will generally be weighed more heavily toward the rental analysis. It should be noted that for replacement cost, when determining the fair value of real estate held for investment, the Company uses a provider of building cost information to the real estate construction industry. For the investment analysis, the Company uses market data based upon its real estate operation experience and projected the present value of net rental income over seven years. The Company also considers comparable properties in the area and property conditions when determining fair value. In addition to this analysis performed by the Company, the Company depreciates Real Estate Held for Investment. This depreciation reduces the book value of these properties and lessens the exposure to the Company from further deterioration in real estate values. Mortgage Servicing Rights : The Company initially recognizes Mortgage Servicing Rights (“MSRs”) at their estimated fair values derived from the net cash flows associated with the servicing contracts, where the Company assumes the obligation to service the loan in the sale transaction. 46 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet as of September 30, 2025: Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturity securities available for sale $ 389,193,589 $ - $ 388,618,720 $ 574,869 Equity securities 17,691,024 17,691,024 - - Loans held for sale 159,460,525 - - 159,460,525 Restricted assets (1) 2,010,076 - 2,010,076 - Restricted assets (2) 13,006,668 13,006,668 - - Cemetery perpetual care trust investments (1) 271,285 - 271,285 - Cemetery perpetual care trust investments (2) 5,883,290 5,883,290 - - Derivatives - loan commitments (3) 2,799,643 - - 2,799,643 Total assets accounted for at fair value on a recurring basis $ 590,316,100 $ 36,580,982 $ 390,900,081 $ 162,835,037 Liabilities accounted for at fair value on a recurring basis Derivatives - loan commitments (4) ( 82,385 ) - - ( 82,385 ) Total liabilities accounted for at fair value on a recurring basis $ ( 82,385 ) $ - $ - $ ( 82,385 ) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the condensed consolidated balance sheets (4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets 47 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet as of December 31, 2024: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturity securities available for sale $ 366,546,129 $ - $ 365,396,203 $ 1,149,926 Equity securities 15,771,681 15,771,681 - - Loans held for sale 131,181,148 - - 131,181,148 Restricted assets (1) 2,351,369 - 2,351,369 - Restricted assets (2) 9,972,166 9,972,166 - - Cemetery perpetual care trust investments (1) 769,662 - 769,662 - Cemetery perpetual care trust investments (2) 4,920,044 4,920,044 - - Derivatives - loan commitments (3) 5,348,089 - - 5,348,089 Total assets accounted for at fair value on a recurring basis $ 536,860,288 $ 30,663,891 $ 368,517,234 $ 137,679,163 Liabilities accounted for at fair value on a recurring basis Derivatives - loan commitments (4) $ ( 3,034,879 ) $ - $ - $ ( 3,034,879 ) Total liabilities accounted for at fair value on a recurring basis $ ( 3,034,879 ) $ - $ - $ ( 3,034,879 ) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the condensed consolidated balance sheets (4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets 48 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) For Level 3 assets and liabilities measured at fair value on a recurring basis as of September 30, 2025, the significant unobservable inputs used in the fair value measurements were as follows: Schedule of Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted September 30, 2025 Technique Input(s) Value Value Average Loans held for sale $ 159,460,525 Market approach Investor contract pricing as a percentage of unpaid principal balance 87.0 % 108.0 % 102.0 % Derivatives - loan commitments (net) 2,717,258 Market approach Pull-through rate 68.0 % 100.0 % 93.0 % Initial-Value N/A N/A N/A Servicing 0 bps 251 bps 57 bps Fixed maturity securities available for sale 574,869 Broker quotes Pricing quotes $ 100.00 $ 101.07 $ 100.54 For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2024, the significant unobservable inputs used in the fair value measurements were as follows: Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted December 31, 2024 Technique Input(s) Value Value Average Loans held for sale $ 131,181,148 Market approach Investor contract pricing as a percentage of unpaid principal balance 84.0 % 109.0 % 102.0 % Derivatives - loan commitments (net) 2,313,210 Market approach Pull-through rate 63.0 % 100.0 % 83.0 % Initial-Value N/A N/A N/A Servicing 0 bps 242 bps 47 bps Fixed maturity securities available for sale 1,149,926 Broker quotes Pricing quotes $ 100.00 $ 101.20 $ 100.16 49 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the three-month period ended September 30, 2025: Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs Net Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - June 30, 2025 $ 2,920,154 $ 165,876,119 $ 1,149,738 Originations and purchases - 621,506,268 - Sales, maturities and paydowns - ( 642,485,858 ) ( 574,074 ) - - - - - - - - - Total gains (losses): Included in earnings ( 202,896 )(1) 14,563,996 (1) - (2) Included in other comprehensive income - - ( 795 ) Balance - September 30, 2025 $ 2,717,258 $ 159,460,525 $ 574,869 (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings (2) As a component of Net investment income on the condensed consolidated statements of earnings The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the three-month period ended September 30, 2024: Net Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - June 30, 2024 $ 2,574,863 $ 150,196,416 $ 1,237,469 Originations and purchases - 633,213,359 - Sales, maturities and paydowns - ( 655,088,969 ) - Total gains (losses): Included in earnings ( 179,836 )(1) 14,576,935 (1) - (2) Included in other comprehensive income - - ( 5,915 ) Balance - September 30, 2024 $ 2,395,027 $ 142,897,741 $ 1,231,554 (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings (2) As a component of Net investment income on the condensed consolidated statements of earnings 50 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the nine-month period ended September 30, 2025: Net Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2024 $ 2,313,210 $ 131,181,148 $ 1,149,926 Originations and purchases - 1,756,289,354 - Sales, maturities and paydowns - ( 1,767,464,031 ) ( 574,074 ) Transfer to mortgage loans held for investment - ( 828,063 ) - Loans held for sale foreclosed into real estate held for sale - ( 380,000 ) - Total gains (losses): Included in earnings 404,048 (1) 40,662,117 (1) - (2) Included in other comprehensive income - - ( 983 ) Balance - September 30, 2025 $ 2,717,258 $ 159,460,525 $ 574,869 (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings (2) As a component of Net investment income on the condensed consolidated statements of earnings The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the nine-month period ended September 30, 2024: Net Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2023 $ 1,583,262 $ 126,549,190 $ 1,238,656 Originations and purchases - 1,723,036,874 - Sales, maturities and paydowns - ( 1,742,693,113 ) - Foreclosed into real estate held for sale - ( 858,977 ) - Total gains (losses): Included in earnings 811,765 (1) 36,863,767 (1) - (2) Included in other comprehensive income - - ( 7,102 ) Balance - September 30, 2024 $ 2,395,027 $ 142,897,741 $ 1,231,554 (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings (2) As a component of Net investment income on the condensed consolidated statements of earnings 51 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) The Company did not have any financial assets and financial liabilities measured at fair value on a nonrecurring basis as of September 30, 2025, or as of December 31, 2024. Fair Value of Financial Instruments Carried at Other Than Fair Value The Company uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction as of September 30, 2025, and December 31, 2024. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of September 30, 2025: Schedule of Financial Instruments Carried at Other Than Fair Value Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 89,718,459 $ - $ - $ 89,993,926 $ 89,993,926 Residential construction 165,018,792 - - 165,018,792 165,018,792 Commercial 74,427,440 - - 75,580,341 75,580,341 Mortgage loans held for investment, net $ 329,164,691 $ - $ - $ 330,593,059 $ 330,593,059 Policy loans 14,372,484 - - 14,372,484 14,372,484 Insurance assignments, net (1) 40,743,363 - - 40,743,363 40,743,363 Restricted assets (2) 1,176,532 - - 1,176,532 1,176,532 Cemetery perpetual care trust investments (2) 1,671,956 - - 1,671,956 1,671,956 Mortgage servicing rights, net 2,616,372 - - 4,035,635 4,035,635 Liabilities Bank and other loans payable $ ( 123,096,234 ) $ - $ - $ ( 110,888,695 ) $ ( 110,888,695 ) Policyholder account balances (3) ( 35,957,897 ) - - ( 35,998,992 ) ( 35,998,992 ) Future policy benefits - annuities (3) ( 105,401,640 ) - - ( 104,481,604 ) ( 104,481,604 ) (1) Included in other investments and policy loans on the condensed consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheets 52 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2024: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 89,780,350 $ - $ - $ 90,168,328 $ 90,168,328 Residential construction 150,211,240 - - 150,211,240 150,211,240 Commercial 61,755,768 - - 60,864,775 60,864,775 Mortgage loans held for investment, net $ 301,747,358 $ - $ - $ 301,244,343 $ 301,244,343 Policy loans 14,019,248 - - 14,019,248 14,019,248 Insurance assignments, net (1) 46,956,932 - - 46,956,932 46,956,932 Restricted assets (2) 983,834 - - 983,834 983,834 Cemetery perpetual care trust investments (2) 2,141,464 - - 2,141,464 2,141,464 Mortgage servicing rights, net 2,939,878 - - 4,552,316 4,552,316 Liabilities Bank and other loans payable $ ( 106,740,104 ) $ - $ - $ ( 90,455,678 ) $ ( 90,455,678 ) Policyholder account balances (3) ( 37,066,043 ) - - ( 37,626,593 ) ( 37,626,593 ) Future policy benefits - annuities (3) ( 105,716,087 ) - - ( 104,611,544 ) ( 104,611,544 ) (1) Included in other investments and policy loans on the consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the consolidated balance sheets The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of these financial instruments are summarized as follows: Mortgage Loans Held for Investment : The estimated fair value of the Company’s mortgage loans held for investment is determined using various methods. The Company’s mortgage loans are grouped into three categories: Residential, Residential Construction, and Commercial. When estimating the expected future cash flows, it is assumed that all loans will be held to maturity, and any loans that are non-performing are evaluated individually for impairment. Residential – The estimated fair value is determined through a combination of discounted cash flows (estimating expected future cash flows of payments and discounting them using current interest rates from single-family mortgages) and considering pricing of similar loans that were sold recently. Residential Construction – These loans primarily have short term maturities. Accordingly, the estimated fair value is determined to be the carrying value. Commercial – The estimated fair value is determined by estimating expected future cash flows of payments and discounting them using current interest rates for commercial mortgages. Policy Loans : These loans are fully collateralized by the cash surrender value of the underlying policy. Accordingly, the carrying amounts reported in the accompanying condensed consolidated balance sheet approximates their fair values. Insurance Assignments, Net : These investments primarily have short term maturities. Accordingly, the carrying amounts reported in the accompanying condensed consolidated balance sheet approximates their fair values. 53 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 8) Fair Value of Financial Instruments (Continued) Bank and Other Loans Payable : The carrying amounts reported in the accompanying condensed consolidated balance sheet for warehouse lines of credit approximate their fair values due to their relatively short-term maturities and variable interest rates. The estimated fair value for bank loans collateralized by real estate is determined by estimating future cash flows of payments and discounting them using current market rates. Policyholder Account Balances and Future Policy Benefits-Annuities : Future policy benefit reserves for interest-sensitive insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period of more than related policy account balances. Interest crediting rates for interest-sensitive insurance products ranged from 1.5 % to 6.5 %. The fair values for these investment-type insurance contracts are estimated based on the present value of liability cash flows. The fair values for the Company’s insurance contracts other than investment-type contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts. 9) Derivative Instruments Mortgage Banking Derivatives Loan Commitments The Company is exposed to price risk due to the potential impact of changes in interest rates on the values of loan commitments from the time a loan commitment is made to an applicant to the time the loan that would result from the exercise of that loan commitment is funded. Managing price risk is complicated by the fact that the ultimate percentage of loan commitments that will be exercised (i.e., the number of loans that will be funded) fluctuates. The probability that a loan will not be funded, or the loan application is denied or withdrawn within the terms of the commitment is driven by several factors, particularly the change, if any, in mortgage rates following the issuance of the loan commitment. In general, the probability of funding increases if mortgage rates rise and decreases if mortgage rates fall. This is due primarily to the relative attractiveness of current mortgage rates compared to the applicant’s committed rate. The probability that a loan will not be funded within the terms of the mortgage loan commitment also is influenced by the source of the applications (retail, broker or correspondent channels), proximity to rate lock expiration, purpose for the loan (purchase or refinance), product type and the application approval status. The Company has developed fallout estimates using historical data that consider all the variables, as well as renegotiations of rate and point commitments that tend to occur when mortgage rates fall. These fallout estimates are used to estimate the number of loans that the Company expects to be funded within the terms of the loan commitments and are updated periodically to reflect the most current data. The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment net of estimated commission expense. The change in fair value of the underlying mortgage loan is measured from the date the loan commitment is issued and is shown net of related expenses. Following issuance, the value of a loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will be funded within the terms of the commitments. 54 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 9) Derivative Instruments (Continued) Forward Sale Commitments The Company utilizes forward commitments to economically hedge the price risk associated with its outstanding mortgage loan commitments. A forward commitment protects the Company from losses on sales of the loans arising from the exercise of the loan commitments. Management expects these types of commitments will experience changes in fair value opposite to changes in fair value of the loan commitments, thereby reducing earnings volatility related to the recognition in earnings of changes in the values of the commitments. The net changes in fair value of loan commitments and forward sale commitments are shown in current earnings as a component of mortgage fee income on the consolidated statements of earnings. Mortgage banking derivatives are shown in other assets and other liabilities and accrued expenses on the condensed consolidated balance sheets. The following table shows the fair value and notional amounts of derivative instruments: Schedule of Derivative Assets at Fair Value September 30, 2025 December 31, 2024 Balance Sheet Location Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives not designated as hedging instruments: Loan commitments Other assets and Other liabilities $ 185,579,856 $ 2,799,643 $ 82,385 $ 210,597,657 $ 5,348,089 $ 3,034,879 Total $ 185,579,856 $ 2,799,643 $ 82,385 $ 210,597,657 $ 5,348,089 $ 3,034,879 The table below presents the gains (losses) on derivatives. There were no gains or losses reclassified from accumulated other comprehensive income into income or gains or losses recognized in income on derivatives ineffective portion, or any amounts excluded from effective testing. Schedule of Gains and Losses on Derivatives Net Amount loss Net Amount Gain Three Months Ended September 30, Nine Months Ended September 30, Derivative Classification 2025 2024 2025 2024 Loan commitments Mortgage fee income $ ( 202,896 ) $ ( 179,836 ) $ 404,049 $ 811,765 55 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 10) Reinsurance, Commitments and Contingencies Reinsurance The Company follows the procedure of reinsuring risks of more than a specified limit, which ranges from $ 25,000 to $ 100,000 on newly issued policies. The Company has also assumed various reinsurance agreements through acquisition of life companies. The Company is ultimately liable for these reinsured amounts in the event such reinsurers are unable to pay their portion of the claims. The Company evaluates the financial condition of reinsurers and monitors the concentration of credit risk. The Company is also a reinsurer of insurance with other companies. Mortgage Loan Loss Settlements Future loan losses can be extremely difficult to estimate. However, the Company believes that the Company’s reserve methodology and its current practice of property preservation allow it to estimate its potential losses on loans sold. See Note 4 to the condensed consolidated financial statements for additional information about the Company’s loan loss reserve. Debt Covenants for Mortgage Warehouse Lines of Credit The Company, through its subsidiary SecurityNational Mortgage, has three lines of credit for the purpose of funding mortgage loans-one through U.S. Bank, a second through Western Alliance Bank and a third through JPMorgan Chase Bank. The U.S. Bank warehouse line of credit agreement allows SecurityNational Mortgage to borrow up to $ 15,000,000 . The relevant agreement contemplates interest at 2.10% plus the greater of (i) 0%, and (ii) the one-month forward-looking term rate based on SOFR on drawn amounts and matures on July 17, 2026 . The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and a minimum net income of $ 1 for the quarter. The Western Alliance Bank warehouse line of credit agreement allows SecurityNational Mortgage to borrow up to $ 25,000,000 . The relevant agreement contemplates interest at the 1-Month SOFR rate plus 2.0 % on drawn amounts and matures on August 15, 2026 . The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and a minimum pre-tax income of $ 1 for the year. The JPMorgan Chase Bank warehouse line of credit agreement allows SecurityNational Mortgage to borrow up to $ 35,000,000 . The relevant agreement contemplates interest at the 1-Month SOFR rate plus 1.95 % on drawn amounts and matures on August 15, 2026 . The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and a minimum pre-tax income of $ 1 for the year. The agreements for US Bank and JP Morgan Chase Bank warehouse lines of credit include a cross-default provision where certain events of default under other of SecurityNational Mortgage’s obligations constitute events of default under the warehouse lines of credit. As of September 30, 2025, SecurityNational Mortgage was not in compliance with the adjusted tangible net worth covenant of Western Alliance Bank’s warehouse line of credit. SecurityNational Mortgage is in the process of receiving waivers. In the unlikely event the Company is required to repay the outstanding advances of approximately $ 7,412,571 on the warehouse lines of credit, the Company has sufficient cash to do so. The Company has also performed an analysis of its funding capacities of both internal and external sources and has determined that there are sufficient funds to continue its current business model. The Company continues to negotiate other warehouse lines of credit with other lenders. Debt Covenants for Revolving Lines of Credit and Bank Loans The Company’s revolving line of credit agreements contain debt covenants requiring the Company to maintain minimum operating cash flow ratios and minimum net worth requirements for each of its business segments. The Company is also subject to debt covenants under one of its real estate loans which require maintenance of a minimum consolidated operating cash flow ratio, minimum liquidity amounts, and minimum consolidated net worth value. In addition to these financial debt covenants, the Company is required to provide segment specific financial statements and building specific financial statements under the agreements for each of its bank loans. As of September 30, 2025, the Company was in compliance with all of those debt covenants. Other Contingencies and Commitments The Company belongs to a captive insurance group (“the captive group”) for certain casualty insurance, worker compensation and general liability programs. The captive group maintains insurance reserves relative to these programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the insurance liabilities and related reserves, the captive group considers several factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. If actual claims or adverse development of loss reserves occurs and exceed these estimates, additional reserves may be required from the Company and its subsidiaries. The estimation process contains uncertainty since captive insurance management must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. The Company is a defendant in various legal actions arising from the normal conduct of business. The Company believes that none of the actions, if adversely determined, will have a material effect on the Company’s financial position or results of operations. Based on management’s assessment and legal counsel’s analysis concerning the likelihood of unfavorable outcomes, no amounts have been accrued for the above claims in the consolidated financial statements. The Company is not a party to any other material legal proceedings outside the ordinary course of business or to any other legal proceedings, which, if adversely determined, would have a material adverse effect on its financial condition or results of operations. 56 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 11) Mortgage Servicing Rights The Company initially records its MSRs at fair value as discussed in Note 8. After being initially recorded at fair value, MSRs backed by mortgage loans are accounted for using the amortization method. Amortization expense is included in other expenses on the condensed consolidated statements of earnings. MSR amortization is determined by amortizing the MSR balance in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. The Company periodically assesses MSRs for impairment. Impairment occurs when the current fair value of the MSR falls below the carrying value (carrying value is the amortized cost reduced by any related valuation allowance). If MSRs are impaired, the impairment is recognized in current-period earnings and the carrying value of the MSRs is adjusted through a valuation allowance. The Company periodically reviews the various loan strata to determine whether the value of the MSRs in each stratum is impaired and likely to recover. If the Company deems recovery of the value to be unlikely in the foreseeable future, a write-down of the cost of the MSRs for that stratum to its estimated recoverable value is charged to the valuation allowance. The following table presents the MSR activity: Schedule of Mortgage Servicing Rights As of September 30, 2025 As of December 31, 2024 Amortized cost: Balance before valuation allowance at beginning of year $ 2,939,878 $ 3,461,146 MSR additions resulting from loan sales (1) 90,026 90,370 Amortization (2) ( 413,532 ) ( 611,638 ) Sale of MSRs - - Application of valuation allowance to write down MSRs with other than temporary impairment - - Balance before valuation allowance at end of period $ 2,616,372 $ 2,939,878 Valuation allowance for impairment of MSRs: Balance at beginning of year $ - $ - Additions - - Application of valuation allowance to write down MSRs with other than temporary impairment - - Balance at end of period $ - $ - Mortgage servicing rights, net $ 2,616,372 $ 2,939,878 Estimated fair value of MSRs at end of period $ 4,035,635 $ 4,552,316 (1) Included in mortgage fee income on the condensed consolidated statements of earnings (2) Included in other expenses on the condensed consolidated statements of earnings 57 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 11) Mortgage Servicing Rights (Continued) The table below summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the Company’s assumptions in its September 30, 2025, valuation of MSRs. The assumptions used in the following table are likely to change as market conditions, portfolio composition and borrower behavior change, causing both actual and projected amortization levels to change over time. Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights Estimated MSR Amortization 2025 279,041 2026 253,744 2027 230,321 2028 205,263 2029 183,829 Thereafter 1,464,174 Total $ 2,616,372 The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the condensed consolidated statement of earnings. Schedule of Other Revenues 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Contractual servicing fees $ 235,892 $ 237,531 $ 690,893 $ 736,137 Late fees 16,603 17,349 48,451 56,637 Total $ 252,495 $ 254,880 $ 739,344 $ 792,774 The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio. Summary of Unpaid Principal Balances of the Servicing Portfolio As of September 30, 2025 As of December 31, 2024 Servicing UPB $ 366,929,184 $ 385,134,774 The following key assumptions were used in determining MSR value: Schedule of Assumptions Used in Determining MSR Value Prepayment Speeds Average Life (Years) Discount Rate September 30, 2025 11.68 7.55 11.93 December 31, 2024 8.79 8.28 12.14 58 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 12) Income Taxes The Company’s overall effective tax rate for the three month periods ended September 30, 2025 and 2024 was 23.0 % and 22.2 % , respectively, which resulted in a provision for income taxes of $ 2,337,926 and $ 3,383,238 , respectively, and for the nine month periods ended September 30, 2025 and 2024 was 22.4 % and 22.3 % , respectively, which resulted in a provision for income taxes of $ 5,400,792 and $ 7,646,071 , respectively. The Company’s effective tax rate is higher than the U.S. federal statutory rate of 21 % due to, among other factors, state taxes as offset by certain state income tax benefits, along with certain permanent tax adjustments such as meals and entertainment and stock-based compensation. The increase in the effective tax rate when compared to the prior year was primarily due to certain permanent tax adjustments that, as a ratio of lower pre-tax book income, are higher than when compared to the prior year. Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. Although the Company believes its tax estimates are reasonable, the Company can make no assurance that the final tax outcome of these matters will not be different from that which it has reflected in its historical income tax provisions and accruals. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes provisions that allow for the immediate expensing of domestic research and development expenses, immediate expensing of certain capital expenditures, and other changes to the U.S. taxation of profits derived from foreign operations. The Company continues to evaluate the impact the new legislation will have on its estimated annual effective tax rate and cash tax position; however, the Company does not expect a material impact to its estimated effective tax rate in 2025. 13) Revenues from Contracts with Customers The Company reports revenues from contracts with customers pursuant to ASC No. 606, Revenue from Contracts with Customers . Information about Performance Obligations and Contract Balances The Company’s cemetery and mortuary segment sells a variety of goods and services to customers in both at-need and pre-need situations. Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled. The Company’s two types of future obligations are as follows: Pre-need Merchandise and Service Revenue : All pre-need merchandise and service revenue are deferred, and the funds are placed in trust until the need arises; the merchandise is received, or the service is performed. The trust is then relieved, and the revenue and commissions are recognized. Pre-need contracts are required to be paid in full prior to a customer using a good or service from a pre-need contract. Goods and services from pre-need contracts can be transferred when paid in full from one owner to another. In such cases, the Company will act as an agent in transferring the requested goods and services. The transfer of goods and services does not fulfill the contract and revenue remains deferred. At-need Specialty Merchandise Revenue : At-need specialty merchandise revenue consists of customizable merchandise ordered from manufacturers such as markers and bases. When specialty merchandise is ordered, it can take time to manufacture and deliver the product. Revenue is deferred until the at-need merchandise is received. Complete payment does not constitute fulfillment of the contract. Goods or services are deferred until such a time the service is performed, or merchandise is received. 59 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 13) Revenues from Contracts with Customers (Continued) The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows: Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities Contract Balances Receivables (1) Contract Asset Contract Liability Opening (December 31, 2024) $ 7,095,589 $ - $ 20,168,405 Closing (September 30, 2025) 6,797,943 - 22,234,892 Increase/(decrease) ( 297,646 ) - 2,066,487 Contract Balances Receivables (1) Contract Asset Contract Liability Opening (December 31, 2023) $ 6,321,573 $ - $ 18,237,246 Closing (December 31, 2024) 7,095,589 - 20,168,405 Increase/(decrease) 774,016 - 1,931,159 (1) Included in Receivables, net on the condensed consolidated balance sheets The amount of revenue recognized and included in the opening contract liability balance for the three-month periods ended September 30, 2025, and 2024 was $ 1,326,702 and $ 1,320,688 , respectively, and for the nine-month periods ended September 30, 2025, and 2024 was $ 3,650,091 and $ 4,256,184 , respectively. The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. Disaggregation of Revenue The following table disaggregates revenue for the Company’s cemetery and mortuary contracts: Schedule of Revenues of the Cemetery and Mortuary Contracts 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Major goods/service lines At-need $ 5,441,670 $ 5,024,330 $ 16,241,736 $ 15,299,010 Pre-need 1,699,272 1,790,001 5,457,144 6,232,759 Net mortuary and cemetery sales $ 7,140,942 $ 6,814,331 $ 21,698,880 $ 21,531,769 Timing of Revenue Recognition Goods transferred at a point in time $ 4,384,201 $ 4,064,864 $ 13,381,830 $ 13,287,515 Services transferred at a point in time 2,756,741 2,749,467 8,317,050 8,244,254 Net mortuary and cemetery sales $ 7,140,942 $ 6,814,331 $ 21,698,880 $ 21,531,769 60 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 14) Receivables Receivables consist of the following: Schedule of Receivable As of September 30, 2025 As of December 31, 2024 Contracts with customers $ 6,797,943 $ 7,095,589 Receivables from sales agents 4,180,222 4,028,881 Other 5,662,632 6,412,804 Total receivables 16,640,797 17,537,274 Allowance for credit losses ( 1,542,731 ) ( 1,678,531 ) Net receivables $ 15,098,066 $ 15,858,743 The Company records an allowance for credit losses for its receivables in accordance with GAAP. The following table presents a roll forward of the allowance for credit losses as of the dates indicated: Schedule of Allowance Credit Losses Three Months Ended Beginning balance - June 30, 2025 $ 1,491,043 Change in provision for credit losses (1) 84,603 Charge-offs ( 32,915 ) Ending balance - September 30, 2025 $ 1,542,731 Beginning balance - June 30, 2024 $ 1,770,911 Change in provision for credit losses (1) ( 167,300 ) Charge-offs ( 37,461 ) Ending balance - September 30, 2024 $ 1,566,150 (1) Included in other expenses on the condensed consolidated statements of earnings Nine Months Ended Beginning balance - December 31, 2024 $ 1,678,531 Change in provision for credit losses (1) 153,034 Charge-offs ( 288,834 ) Ending balance - September 30, 2025 $ 1,542,731 Beginning balance - December 31, 2023 $ 1,897,887 Change in provision for credit losses (1) ( 254,306 ) Charge-offs ( 77,431 ) Ending balance - September 30, 2024 $ 1,566,150 (1) Included in other expenses on the condensed consolidated statements of earnings 61 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 15) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets Cemetery Perpetual Care Trust Investments and Obligation State law requires the Company to pay into endowment care trusts a portion of the proceeds from the sale of certain cemetery property interment rights for cemeteries that have established an endowment care trust. These endowment care trusts are defined as Variable Interest Entities pursuant to GAAP. The Company is the primary beneficiary of these trusts, as it absorbs both the losses and any expenses associated with the trusts. The Company has consolidated cemetery endowment care trust investments with a corresponding amount recorded as Cemetery Perpetual Care Obligation in the accompanying consolidated balance sheets . The components of cemetery perpetual care investments and obligation as of September 30, 2025, are as follows: Schedule of Investments and Obligation Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2025: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 150,482 $ 1,806 $ - $ 152,288 Obligations of states and political subdivisions 122,043 - ( 3,046 ) 118,997 Total fixed maturity securities available for sale $ 272,525 $ 1,806 $ ( 3,046 ) $ 271,285 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 4,439,406 $ 1,579,249 $ ( 135,365 ) $ 5,883,290 Total equity securities at estimated fair value $ 4,439,406 $ 1,579,249 $ ( 135,365 ) $ 5,883,290 Mortgage loans held for investment at amortized cost: Residential construction $ 1,675,307 Less: Allowance for credit losses ( 3,351 ) Total mortgage loans held for investment $ 1,671,956 Other investments $ 1,168,269 Cash and cash equivalents $ 686,777 Accrued investment income $ 4,101 Total cemetery perpetual care trust investments $ 9,685,678 Cemetery perpetual care obligation $ ( 5,838,879 ) Trust investments in excess of trust obligations $ 3,846,799 62 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 15) Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued) The components of cemetery perpetual care investments and obligation as of December 31, 2024, are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2024: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 651,428 $ - $ ( 2,010 ) $ 649,418 Obligations of states and political subdivisions 125,194 - ( 4,950 ) 120,244 Total fixed maturity securities available for sale $ 776,622 $ - $ ( 6,960 ) $ 769,662 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 3,874,522 $ 1,271,529 $ ( 226,007 ) $ 4,920,044 Total equity securities at estimated fair value $ 3,874,522 $ 1,271,529 $ ( 226,007 ) $ 4,920,044 Mortgage loans held for investment at amortized cost: Residential construction $ 202,600 Less: Allowance for credit losses ( 405 ) Commercial 1,939,269 Less: Allowance for credit losses - Total mortgage loans held for investment $ 2,141,464 Cash and cash equivalents $ 1,002,396 Accrued investment income $ 2,937 Total cemetery perpetual care trust investments $ 8,836,503 Cemetery perpetual care obligation $ ( 5,642,693 ) Trust investments in excess of trust obligations $ 3,193,810 63 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 15) Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued) Fixed Maturity Securities The table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as of September 30, 2025, and December 31, 2024. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value September 30, 2025 Obligations of states and political subdivisions $ - $ - $ 3,046 $ 118,998 $ 3,046 $ 118,998 Totals $ - $ - $ 3,046 $ 118,998 $ 3,046 $ 118,998 December 31, 2024 U.S. Treasury securities and obligations of U.S. Government agencies $ 2,010 $ 649,419 $ - $ - $ 2,010 $ 649,419 Obligations of states and political subdivisions 4,950 120,243 - - 4,950 120,243 Totals $ 6,960 $ 769,662 $ - $ - $ 6,960 $ 769,662 Relevant holdings were comprised of two securities with fair values aggregating 97.5 % of the aggregate amortized cost as of September 30, 2025. Relevant holdings were comprised of four securities with fair values aggregating 99.1 % of aggregate amortized cost as of December 31, 2024. No credit losses have been recognized for the three- and nine-month periods ended September 30, 2025, and 2024, since the unrealized losses are primarily the result of increases in interest rates. See Note 3 for additional information regarding the Company’s evaluation of the allowance for credit losses for fixed maturity securities available for sale. The table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of September 30, 2025, by contractual maturity. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Cost Value Due in 1 year $ - $ - Due in 2-5 years 220,652 220,389 Due in 5-10 years 51,873 50,896 Due in more than 10 years - - Total $ 272,525 $ 271,285 64 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 15) Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued) Restricted Assets The Company has also established certain restricted assets to provide for future merchandise and service obligations incurred in connection with its pre-need sales for its cemetery and mortuary segment. Additionally, restricted cash represents escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company elected to maintain its medical benefit fund without change from the prior year and has included this amount as a component of restricted cash. These restricted cash items are for the Company’s life insurance and mortgage segments. Restricted assets as of September 30, 2025, are summarized as follows: Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2025: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 1,625,998 $ 4,147 $ - $ 1,630,145 Obligations of states and political subdivisions 330,955 120 ( 2,158 ) 328,917 Corporate securities including public utilities 52,030 - ( 1,016 ) 51,014 Total fixed maturity securities available for sale $ 2,008,983 $ 4,267 $ ( 3,174 ) $ 2,010,076 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 10,790,554 $ 2,553,913 $ ( 337,799 ) $ 13,006,668 Total equity securities at estimated fair value $ 10,790,554 $ 2,553,913 $ ( 337,799 ) $ 13,006,668 Mortgage loans held for investment at amortized cost: Residential construction $ 1,178,890 Less: Allowance for credit losses ( 2,358 ) Total mortgage loans held for investment $ 1,176,532 Other investments $ 1,912,436 Cash and cash equivalents (1) $ 13,556,435 Accrued investment income $ 10,892 Total restricted assets $ 31,673,039 (1) Including cash and cash equivalents of $ 12,375,579 for the life insurance and mortgage segments. 65 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 15) Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued) Restricted assets as of December 31, 2024, are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2024: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 1,741,029 $ 2,256 $ ( 1,511 ) $ 1,741,774 Obligations of states and political subdivisions 471,217 180 ( 4,223 ) 467,174 Corporate securities including public utilities 144,616 32 ( 2,227 ) 142,421 Total fixed maturity securities available for sale $ 2,356,862 $ 2,468 $ ( 7,961 ) $ 2,351,369 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 8,547,709 $ 1,914,309 $ ( 489,852 ) $ 9,972,166 Total equity securities at estimated fair value $ 8,547,709 $ 1,914,309 $ ( 489,852 ) $ 9,972,166 Mortgage loans held for investment at amortized cost: Residential construction $ 985,806 Less: Allowance for credit losses ( 1,972 ) Total mortgage loans held for investment $ 983,834 Other investments $ 1,939,269 Cash and cash equivalents (1) $ 8,553,803 Accrued investment income $ 6,395 Total restricted assets $ 23,806,836 (1) Including cash and cash equivalents of $ 7,657,958 for the life insurance and mortgage segments. 66 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 15) Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued) Fixed Maturity Securities The table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as of September 30, 2025, and December 31, 2024. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities. Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At September 30, 2025 Obligations of states and political subdivisions $ 994 $ 100,305 $ 1,164 $ 103,492 $ 2,158 $ 203,797 Corporate securities including public utilities - - 1,016 51,014 1,016 51,014 Total unrealized losses $ 994 $ 100,305 $ 2,180 $ 154,506 $ 3,174 $ 254,811 At December 31, 2024 U.S. Treasury securities and obligations of U.S. Government agencies $ 1,511 $ 558,707 $ - $ - $ 1,511 $ 558,707 Obligations of states and political subdivisions 2,004 237,636 2,219 129,358 4,223 366,994 Corporate securities including public utilities 1,316 51,685 911 65,704 2,227 117,389 Total unrealized losses $ 4,831 $ 848,028 $ 3,130 $ 195,062 $ 7,961 $ 1,043,090 Relevant holdings were comprised of four securities with fair values aggregating 98.8 % of the aggregate amortized cost as of September 30, 2025. Relevant holdings were comprised of 15 securities with fair values aggregating 99.2 % of the aggregate amortized cost as of December 31, 2024. No credit losses have been recognized for the three- and nine-month periods ended September 30, 2025, and 2024, since the unrealized losses are primarily the result of increases in interest rates. See Note 3 for additional information regarding the Company’s evaluation of the allowance for credit losses for fixed maturity securities available for sale. The table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of September 30, 2025, by contractual maturity. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Cost Value Due in 1 year $ 810,104 $ 810,295 Due in 2-5 years 941,887 945,094 Due in 5-10 years 100,307 100,181 Due in more than 10 years 156,685 154,506 Total $ 2,008,983 $ 2,010,076 See Notes 3 and 8 for additional information regarding restricted assets and cemetery perpetual care trust investments. 67 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 16) Accumulated Other Comprehensive Income (loss) The following table summarizes the changes in accumulated other comprehensive income (loss): Schedule of Changes in Accumulated Other Comprehensive Income (Loss) 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Unrealized gains on fixed maturity securities available for sale $ 3,546,952 $ 10,595,637 $ 9,978,130 $ 8,809,823 Amounts reclassified into net earnings ( 193,672 ) ( 152,147 ) ( 142,876 ) ( 148,472 ) Net unrealized gains before taxes 3,353,280 10,443,490 9,835,254 8,661,351 Tax (expense) ( 704,684 ) ( 2,198,474 ) ( 2,066,384 ) ( 1,824,502 ) Net 2,648,596 8,245,016 7,768,870 6,836,849 Unrealized gains on restricted assets (1) 7,118 9,353 6,586 5,770 Tax (expense) ( 1,773 ) ( 2,330 ) ( 1,641 ) ( 1,437 ) Net 5,345 7,023 4,945 4,333 Unrealized gains on cemetery perpetual care trust investments (1) 4,056 4,263 5,720 2,438 Unrealized gains 4,056 4,263 5,720 2,438 Tax (expense) ( 1,010 ) ( 1,062 ) ( 1,425 ) ( 607 ) Net 3,046 3,201 4,295 1,831 Other comprehensive income changes $ 2,656,987 $ 8,255,240 $ 7,778,110 $ 6,843,013 (1) Fixed maturity securities available for sale The following table presents the accumulated balances of other comprehensive income (loss) as of September 30, 2025: Schedule of Accumulated Balances of Other Comprehensive Income Beginning Balance December 31, 2024 Change for the period Ending Balance September 30, 2025 Unrealized gains (losses) on fixed maturity securities available for sale $ ( 6,941,915 ) $ 7,768,870 $ 826,955 Unrealized gains (losses) on restricted assets (1) ( 4,126 ) 4,945 819 Unrealized gains (losses) on cemetery perpetual care trust investments (1) ( 5,225 ) 4,295 ( 930 ) Other comprehensive income (loss) $ ( 6,951,266 ) $ 7,778,110 $ 826,844 (1) Fixed maturity securities available for sale The following table presents the accumulated balances of other comprehensive income (loss) as of December 31, 2024: Beginning Balance December 31, 2023 Change for the period Ending Balance December 31, 2024 Unrealized losses on fixed maturity securities available for sale $ ( 6,876,629 ) $ ( 65,286 ) $ ( 6,941,915 ) Unrealized gains (losses) on restricted assets (1) ( 4,757 ) 631 ( 4,126 ) Unrealized losses on cemetery perpetual care trust investments (1) ( 4,172 ) ( 1,053 ) ( 5,225 ) Other comprehensive loss $ ( 6,885,558 ) $ ( 65,708 ) $ ( 6,951,266 ) (1) Fixed maturity securities available for sale 68 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Overview The Company’s operations over the last several years generally reflect three strategies which the Company expects to continue: (i) increased attention to “niche” insurance products, such as the Company’s funeral plan policies and traditional whole life products; (ii) increased emphasis on the cemetery and mortuary business; and (iii) capitalizing on an improving housing market by originating mortgage loans. Insurance Operations The Company’s life insurance business includes funeral plans and interest-sensitive life insurance, as well as other traditional life, accident and health insurance products. The Company places specific marketing emphasis on funeral plans through pre-need planning. A funeral plan is a small face value life insurance policy that generally has face coverage of up to $30,000. The Company believes that funeral plans represent a marketing niche that is less competitive because most insurance companies do not offer similar coverage. The purpose of the funeral plan policy is to pay the costs and expenses incurred at the time of a person’s death. On a per thousand-dollar cost of insurance basis, these policies can be more expensive to the policyholder than many types of non-burial insurance due to their low face amount, requiring the fixed cost of the policy administration to be distributed over a smaller policy size, and the simplified underwriting practices that result in higher mortality costs. The following table shows the condensed financial results of the insurance operations for the three- and nine-month periods ended September 30, 2025, and 2024. See Note 7 to the condensed consolidated financial statements. Three months ended September 30, (in thousands of dollars) Nine months ended September 30, (in thousands of dollars) 2025 2024 % Increase (Decrease) 2025 2024 % Increase (Decrease) Revenues from external customers: Insurance premiums $ 29,881 $ 30,011 0 % $ 89,846 $ 89,824 0 % Net investment income 19,279 17,106 13 % 57,910 52,902 9 % Gains on investments and other assets 1,259 1,317 (4 %) 2,423 2,195 10 % Other revenues 372 420 (11 %) 1,423 1,141 25 % Intersegment revenues 2,044 2,066 (1 %) 5,193 5,352 (3 %) Total segment revenues $ 52,835 $ 50,920 4 % $ 156,795 $ 151,414 4 % Segment net earnings $ 5,508 $ 9,706 (43 %) $ 16,057 $ 22,035 (27 %) Profitability for the nine month period ended September 30, 2025 decreased due to (a) a $5,991,000 increase in selling, general and administrative expenses, primarily attributable to a $3,623,000 increase in personnel expenses due to an annual increase in salaries and key new hires as a part of the Company’s growth strategy, (b) a $4,728,000 increase in amortization of deferred policy acquisition costs, (c) a $2,896,000 increase in death benefits, (d) a $354,000 increase in surrenders and other policy benefits (e) a $159,000 decrease in intersegment revenue, and (f) a $22,000 increase in interest expense, which were partially offset by (i) a $5,008,000 increase in net investment income, (ii) a $1,490,000 decrease in income tax expense, (iii) a $983,000 decrease in future policy benefits, (iv) a $282,000 increase in other revenues, (v) a $228,000 increase in gains on investments and other assets, (vi) a $157,000 decrease in intersegment expenses, and (vii) a $22,000 increase in insurance premiums and other considerations. Cemetery and Mortuary Operations The Company sells mortuary services and products through its eleven mortuaries in Utah and four mortuaries in New Mexico. The Company also sells cemetery services, products and land (burial plots) through its five cemeteries in Utah, one cemetery in San Diego County, California, and one cemetery in Santa Fe, New Mexico. At-need mortuary and cemetery product sales and services are recognized as revenue when the services are performed or when the products are delivered. Pre-need mortuary and cemetery product sales and services are deferred until the merchandise is delivered, or services are performed. Revenue for pre-need cemetery land sales is recognized at the time of sale, and land is removed from inventory. 69 The following table shows the condensed financial results of the cemetery and mortuary operations for the three- and nine-month periods ended September 30, 2025, and 2024. See Note 7 to the condensed consolidated financial statements. Three months ended September 30, (in thousands of dollars) Nine months ended September 30, (in thousands of dollars) 2025 2024 % Increase (Decrease) 2025 2024 % Increase (Decrease) Revenues from external customers: Cemetery revenues $ 3,624 $ 3,598 1 % $ 11,428 $ 11,776 (3 %) Mortuary revenues 3,517 3,216 9 % 10,271 9,755 5 % Net investment income 642 478 34 % 1,529 2,137 (28 %) Gains on investments and other assets 712 1,125 (37 %) 1,193 1,504 (21 %) Other revenues 433 126 244 % 767 436 76 % Interesegment revenues 86 86 0 % 254 255 0 % Total segment revenues $ 9,014 $ 8,629 4 % $ 25,442 $ 25,863 (2 %) Segment net earnings $ 2,287 $ 2,123 8 % $ 5,355 $ 5,959 (10 %) Profitability in the nine month period ended September 30, 2025 decreased due to (a) a $701,000 increase in selling, general and administrative expenses, primarily attributable to a $555,000 increase in personnel expenses, (b) a $608,000 decrease in net investment income, (c) a $311,000 decrease in gains on investments and other assets, (d) a $240,000 decrease in cemetery pre-need sales, (e) a $108,000 decrease in cemetery at-need sales, and (f) a $1,000 decrease in intersegment revenues, which were partially offset by (i) a $516,000 increase in mortuary at-need sales, (ii) a $331,000 increase in other revenues, (iii) a $303,000 decrease in income tax expense, (iv) a $101,000 decrease in cost of goods and services sold, (v) a $92,000 decrease in amortization of deferred policy acquisition costs, and (vi) a $22,000 decrease in intersegment expenses. Mortgage Operations The Company’s wholly owned subsidiary, SecurityNational Mortgage Company (“SecurityNational Mortgage), is a mortgage lender incorporated under the laws of the State of Utah and approved and regulated by the Federal Housing Administration (FHA), a department of the U.S. Department of Housing and Urban Development (HUD), which originates mortgage loans that qualify for government insurance in the event of default by the borrower, in addition to various conventional mortgage loan products. SecurityNational Mortgage originates and refinances mortgage loans on a retail basis. Mortgage loans originated or refinanced by the SecurityNational Mortgage are funded through loan purchase agreements with Security National Life, Kilpatrick Life and unaffiliated financial institutions. SecurityNational Mortgage receives fees from borrowers that are involved in mortgage loan originations and refinancings, and secondary fees earned from third party investors that purchase the mortgage loans. Mortgage loans are generally sold with mortgage servicing rights (“MSRs”) released to third-party investors or retained by SecurityNational Mortgage. SecurityNational Mortgage currently retains the mortgage servicing rights on approximately 0.43% of its loan origination volume. These mortgage loans are serviced by either SecurityNational Mortgage or an approved third-party sub-servicer. Mortgage rates have followed the US Treasury yields in response to inflation and slowing new home sales. As expected, the lack of mortgage rate reductions has resulted in a decrease in loan originations classified as ‘refinance.’ Higher than anticipated mortgage rates have also had a negative effect on loan originations classified as ‘purchases’ although not as significant as those in the refinance classification. For the nine-month periods ended September 30, 2025, and 2024, SecurityNational Mortgage originated 5,216 loans ($1,756,289,000 total volume) and 5,505 loans ($1,723,036,000 total volume), respectively. 70 The following table shows the condensed financial results of the mortgage operations for the three- and nine-month periods ended September 30, 2025, and 2024. See Note 7 to the condensed consolidated financial statements. Three months ended September 30, (in thousands of dollars) Nine months ended September 30, (in thousands of dollars) 2025 2024 % Increase (Decrease) 2025 2024 % Increase (Decrease) Revenues from external customers Secondary gains from investors $ 20,378 $ 17,982 13 % $ 57,518 $ 51,388 12 % Income from loan originations 8,953 9,462 (5 %) 24,551 25,619 (4 %) Change in fair value of loans held for sale (203 ) 2,960 (107 %) 404 3,856 (90 %) Change in fair value of loan commitments 11 (180 ) (106 %) 960 812 18 % Net investment income 189 216 (13 %) 455 751 (39 %) Gains (losses) on investments and other assets 1 (1,094 ) 100 % 85 (1,059 ) 108 % Other revenues 279 1,532 (82 %) 844 2,216 (62 %) Intersegment revenues 76 138 (45 %) 272 430 (37 %) Total segment revenues $ 29,684 $ 31,016 (4 %) $ 85,089 $ 84,013 1 % Segment net earnings (loss) $ 20 $ 2 900 % $ (2,752 ) $ (1,416 ) 94 % Losses for the nine month period ended September 30, 2025 increased due to (a) a $3,452,000 decrease in the fair value of loans held for sale, (b) a $2,075,000 increase in commissions, (c) a $1,371,000 decrease in other revenues, (d) a $1,197,000 increase in other expenses, (e) a $1,068,000 decrease in income from loan originations, (f) a $443,000 increase in costs related to funding mortgage loans, (g) a $337,000 increase in advertising expenses, (h) a $296,000 increase in interest expense, (i) a $296,000 decrease in net investment income, and (j) a $157,000 decrease in intersegment revenues, which were partially offset by (i) a $6,130,000 increase in secondary gains from investors, (ii) a $1,144,000 increase in gains on investments and other assets, (iii) a $1,132,000 decrease in rent and rent related expenses, (iv) a $452,000 increase in income tax benefit, (v) a $213,000 decrease in personnel expenses, (vi) a $148,000 increase in the fair value of loan commitments, and (vii) a $138,000 decrease in intersegment expenses. Consolidated Results of Operations Three-month period ended September 30, 2025, Compared to Three-month period ended September 30, 2024 Total revenues increased by $1,052,000, or 1.2%, to $89,326,000 for the three-month period ended September 30, 2025, from $88,274,000 for the comparable period in 2024. Contributing to this increase in total revenues was a $2,310,000 increase in net investment income, a $624,000 increase in gains on investments and other assets, and a $327,000 increase in net mortuary and cemetery sales, which were partially offset by a $1,085,000 decrease in mortgage fee income, a $994,000 decrease in other revenues, and a $130,000 decrease in insurance premiums and other considerations. Mortgage fee income decreased by $1,085,000, or 3.6%, to $29,139,000, for the three-month period ended September 30, 2025, from $30,224,000 for the comparable period in 2024. This decrease was primarily due to a $3,163,000 decrease in the fair value of loans held for sale and a $509,000 decrease in income from loan originations, which were partially offset by a $2,396,000 increase in secondary gains from mortgage loans sold to third-party investors into the secondary market and a $191,000 increase in the fair value of loan commitments. Insurance premiums and other considerations decreased by $130,000, or 0.4%, to $29,881,000 for the three-month period ended September 30, 2025, from $30,011,000 for the comparable period in 2024. This decrease was primarily due to an increase of $557,000 in renewal premiums, which was partially offset by a decrease of $687,000 in first year premiums. Net investment income increased by $2,310,000, or 13.0%, to $20,109,000 for the three-month period ended September 30, 2025, from $17,799,000 for the comparable period in 2024. This increase was primarily attributable to a $3,117,000 increase in mortgage loan interest, a $517,000 increase in fixed maturity securities income, a $39,000 increase in equity securities income, and a $32,000 increase in policy loan interest, which were partially offset by a $953,000 decrease in interest on cash and cash equivalents, a $208,000 decrease in real estate income, a $137,000 increase in investment expenses, a $61,000 decrease in insurance assignment income, and a $36,000 decrease in other investment income. 71 Net mortuary and cemetery sales increased by $327,000, or 4.8%, to $7,141,000 for the three-month period ended September 30, 2025, from $6,814,000 for the comparable period in 2024. This increase was primarily due to a $301,000 increase in mortuary at-need sales, a $23,000 increase in cemetery at-need sales, and a $3,000 increase in cemetery pre-need sales. Gains (losses) on investments and other assets increased by $624,000 to $1,972,000 in net gains for the three-month period ended September 30, 2025, from $1,348,000 in net gains for the comparable period in 2024. This increase in gains on investments and other assets was primarily due to a $1,161,000 increase in gains on mortgage loans held for investment and a $561,000 increase in gains on real estate, which were partially offset by a $929,000 decrease in gains on equity securities primarily attributable to decreases in the fair value of these equity securities, a $158,000 decrease in gains on other assets, and a $11,000 decrease in gains on fixed maturity securities. Other revenues decreased by $994,000, or 47.8%, to $1,083,000 for the three-month period ended September 30, 2025, from $2,077,000 for the comparable period in 2024. This decrease was primarily due to a decrease of $994,000 in other miscellaneous revenues. Death benefits, surrenders and other policy benefits, and future policy benefits increased by an aggregate of $1,580,000 or 6.8%, to $24,934,000 for the three-month period ended September 30, 2025, from $23,354,000 for the comparable period in 2024. This increase was primarily the result of a $1,612,000 increase in death benefits and a $180,000 increase in surrender and other policy benefits, which were partially offset by a $212,000 decrease in future policy benefits. Amortization of deferred policy and pre-need acquisition costs and value of business acquired increased by $3,246,000, or 142.0%, to $5,533,000 for the three-month period ended September 30, 2025, from $2,287,000 for the comparable period in 2024. This increase was primarily due to an increase in the termination rate for deaths, lapses, policies moving to a reduced paid up status, and a shift in product mix. Selling, general and administrative expenses increased by $1,286,000, or 2.8%, to $46,525,000 for the three-month period ended September 30, 2025, from $45,239,000 for the comparable period in 2024. This increase was primarily the result of a $1,409,000 increase in other expenses, a $269,000 increase in personnel expenses, a $119,000 increase in costs related to funding mortgage loans, and a $76,000 increase in advertising expense, which were partially offset by a $432,000 decrease in rent and rent related expenses, a $150,000 decrease in commissions, and a $5,000 decrease in depreciation on property and equipment. Interest expense increased by $6,000, or 0.6%, to $1,067,000 for the three-month period ended September 30, 2025, from $1,061,000 for the comparable period in 2024. This increase was primarily due to an increase of $26,000 in interest expense on mortgage warehouse lines of credit for loans held for sale, which was partially offset by a decrease of $20,000 in interest expense on bank loans. Cost of goods and services sold in mortuaries and cemeteries decreased by $4,000, or 0.4%, to $1,113,000 for the three-month period ended September 30, 2025, from $1,117,000 for the comparable period in 2024. This decrease was primarily due to a decrease of $20,000 in pre-need sales, which was partially offset by an increase of $16,000 in at-need sales. In summary, total benefits and expenses were $79,173,000, or 88.6% of total revenues, for the three-month period ended September 30, 2025, as compared to $73,059,000, or 82.8% of total revenues, for the comparable period in 2024. 72 Nine-month period ended September 30, 2025, Compared to Nine-month period ended September 30, 2024 Total revenues increased by $6,354,000, or 2.5%, to $261,607,000 for the nine-month period ended September 30, 2025, from $255,253,000 for the comparable period in 2024. Contributing to this increase in total revenues was a $4,103,000 increase in net investment income, a $1,758,000 increase in mortgage fee income, a $1,061,000 increase in gains on investments and other assets, a $167,000 increase in net mortuary and cemetery sales, and a $22,000 increase in insurance premiums and other considerations, which were partially offset by a $758,000 decrease in other revenues. Mortgage fee income increased by $1,758,000, or 2.2%, to $83,433,000, for the nine-month period ended September 30, 2025, from $81,675,000 for the comparable period in 2024. This increase was primarily due to a $6,130,000 increase in secondary gains from mortgage loans sold to third-party investors into the secondary market and a $148,000 increase in the fair value of loan commitments, which were partially offset by a $3,452,000 decrease in the fair value of loans held for sale, and a $1,068,000 decrease in income from loan originations. Insurance premiums and other considerations increased by $22,000, less than a percentage point, to $89,846,000 for the nine-month period ended September 30, 2025, from $89,824,000 for the comparable period in 2024. This increase was primarily due to an increase of $1,432,000 in renewal premiums, which was partially offset by a decrease of $1,410,000 in first year premiums. Net investment income increased by $4,103,000, or 7.4%, to $59,893,000 for the nine-month period ended September 30, 2025, from $55,790,000 for the comparable period in 2024. This increase was primarily attributable to a $7,704,000 increase in mortgage loan interest, a $1,183,000 increase in fixed maturity securities income, a $847,000 increase in insurance assignment income, a $134,000 increase in equity securities income, and a $21,000 increase in policy loan interest which were partially offset by a $2,415,000 increase in investment expenses, a $2,004,000 decrease in interest on cash and cash equivalents, a $1,175,000 decrease in real estate income, and a $192,000 decrease in other investment income. Net mortuary and cemetery sales increased by $167,000, or 0.8%, to $21,699,000 for the nine-month period ended September 30, 2025, from $21,532,000 for the comparable period in 2024. This increase was primarily due to a $516,000 increase in mortuary at-need sales, which were partially offset by a $240,000 decrease in cemetery pre-need sales and a $109,000 decrease in cemetery at-need sales. Gains (losses) on investments and other assets increased by $1,061,000, or 40.2% to $3,701,000 for the nine-month period ended September 30, 2025, from $2,640,000 for the comparable period in 2024. This increase in gains on investments and other assets was primarily due to a $1,161,000 increase in gains on mortgage loans held for investment, a $869,000 increase in gains on real estate, and a $6,000 increase in gains on fixed maturity securities, which were partially offset by a $833,000 decrease in gains on equity securities primarily attributable to decreases in the fair value of these equity securities and a $142,000 decrease in gains on other assets. Other revenues decreased by $758,000, or 20.00%, to $3,034,000 for the nine-month period ended September 30, 2025, from $3,792,000 for the comparable period in 2024. This decrease was primarily due to a decrease of $713,000 in other miscellaneous revenues and a decrease of $45,000 in servicing fee revenue due to a decrease in the retention of mortgage servicing rights. Death benefits, surrenders and other policy benefits, and future policy benefits increased by an aggregate of $2,267,000 or 3.1%, to $76,223,000 for the nine-month period ended September 30, 2025, from $73,956,000 for the comparable period in 2024. This increase was primarily the result of a $2,896,000 increase in death benefits and a $354,000 increase in surrender and other policy benefits, which were partially offset by $983,000 decrease in future policy benefits. Amortization of deferred policy and pre-need acquisition costs and value of business acquired increased by $4,635,000, or 40.9%, to $15,968,000 for the nine-month period ended September 30, 2025, from $11,332,000 for the comparable period in 2024. This increase was primarily due to an increase in the termination rate for deaths, lapses, policies moving to a reduced paid up status, and a shift in product mix. 73 Selling, general and administrative expenses increased by $9,399,000, or 7.3%, to $138,351,000 for the nine-month period ended September 30, 2025, from $128,952,000 for the comparable period in 2024. This increase was primarily the result of a $3,966,000 increase in personnel expenses due to an annual increase in salaries and key new hires as a part of the Company’s growth strategy, a $3,480,000 increase in other expenses, a $2,319,000 increase in commissions, a $443,000 increase in costs related to funding mortgage loans, a $366,000 increase in advertising expense, and a $30,000 increase in depreciation on property and equipment, which were partially offset by a $1,205,000 decrease in rent and rent related expenses. Interest expense increased by $317,000, or 10.0%, to $3,479,000 for the nine-month period ended September 30, 2025, from $3,162,000 for the comparable period in 2024. This increase was primarily due to an increase of $296,000 in interest expense on mortgage warehouse lines of credit for loans held for sale and an increase of $21,000 in interest expense on bank loans. Cost of goods and services sold in mortuaries and cemeteries decreased by $101,000, or 2.8%, to $3,526,000 for the nine-month period ended September 30, 2025, from $3,627,000 for the comparable period in 2024. This decrease was primarily due to a decrease of $87,000 in at-need sales and a decrease of $14,000 in pre-need sales. In summary, total benefits and expenses were $237,547,000, or 90.8% of total revenues, for the nine-month period ended September 30, 2025, as compared to $221,030,000, or 86.6% of total revenues, for the comparable period in 2024. Liquidity and Capital Resources The Company’s life insurance subsidiaries and cemetery and mortuary subsidiaries realize cash flow from premiums, contract payments and sales on personal services rendered for cemetery and mortuary business, from interest and dividends on invested assets, and from the proceeds from the sale or maturity of investments. The mortgage subsidiaries realize cash flow from fees generated by originating and refinancing mortgage loans and fees from mortgage loans held for sale that are sold to investors into the secondary market. It should be noted that current conditions in the financial markets and economy may affect the realization of these expected cash flows. The Company considers these sources of cash flow to be adequate to fund future policyholder and cemetery and mortuary liabilities, which generally are long-term, and adequate to pay current policyholder claims, annuity payments, expenses related to the issuance of new policies, the maintenance of existing policies, debt service, and to meet current operating expenses. As of September 30, 2025, SecurityNational Mortgage was not in compliance with the adjusted tangible net worth covenant of Western Alliance Bank’s warehouse line of credit. SecurityNational Mortgage is in the process of receiving waivers. In the unlikely event the Company is required to repay the outstanding advances of approximately $7,412,571 on the warehouse lines of credit, the Company has sufficient cash to do so. The Company has also performed an analysis of its funding capacities of both internal and external sources and has determined that there are sufficient funds to continue its current business model. The Company continues to negotiate other warehouse lines of credit with other lenders. During the nine-month periods ended September 30, 2025, and 2024, the Company’s operations provided cash of approximately $27,553,000 and of approximately $34,894,000, respectively. The decrease in cash provided by operations was due primarily to the decrease in net earnings. The Company expects to pay out liabilities under its funeral plans over the long term given the nature of those plans. Funeral plans are small face value life insurance policies that payout upon a person’s death to cover funeral burial costs; policyholders generally keep these policies in force until, and do not surrender prior to, death. Because of the long-term nature of these liabilities, the Company can hold to maturity or for the targeted investment period its corresponding bond, real estate, and mortgage loan investments, thus reducing the risk of liquidating these long-term investments because of any sudden changes in their fair values. The Company attempts to match the duration of invested assets with its policyholder and cemetery and mortuary liabilities. The Company may sell investments other than those held to maturity in the portfolio to help in this timing matching. The Company purchases short-term investments on a temporary basis to meet the expected short-term requirements of the Company’s insurance products. The Company’s investment philosophy is intended to provide a rate of return for the expected duration of its cemetery and mortuary policies that will exceed the accruing of liabilities under those policies regardless of future interest rate movements. 74 The Company’s investment policy is also to invest predominantly in fixed maturity securities, real estate, mortgage loans, and warehousing of mortgage loans. The warehoused mortgage loans are typically held for sale on a short-term basis before selling the loans to investors in accordance with the requirements and laws governing the Company’s life insurance subsidiaries. Bonds owned by the insurance subsidiaries amounted to $370,953,000 (at estimated fair value) and $348,774,000 (at estimated fair value) as of September 30, 2025, and December 31, 2024, respectively. This represented 35.4% and 38.0% of the total investments of the Company as of September 30, 2025, and December 31, 2024, respectively. Generally, all bonds owned by the life insurance subsidiaries are rated by the National Association of Insurance Commissioners. Under this rating system, there are six categories used for the rating of bonds. As of September 30, 2025, 1.6% (or $5,882,000) and as of December 31, 2024, 2.4% (or $8,431,000) of the Company’s total bond investments were invested in bonds in rating categories three through six, which are considered non-investment grade. The Company’s life insurance subsidiaries are subject to risk-based capital guidelines established by statutory regulators requiring minimum capital levels based on the perceived risk of assets, liabilities, disintermediation, and business risk. As of September 30, 2025, and December 31, 2024, the life insurance subsidiaries were in compliance with the regulatory criteria. The Company’s total capitalization of stockholders’ equity, bank and other loans payable was $488,478,000 as of September 30, 2025, as compared to $445,522,000 as of December 31, 2024. This increase was primarily due to an increase of $26,600,000 in stockholders’ equity and an increase of $16,356,000 in bank loans and other loans payable. Stockholders’ equity as a percent of total capitalization was 74.8% and 76.1% as of September 30, 2025, and December 31, 2024, respectively. Lapse rates measure the amount of insurance terminated during a particular period. The Company’s lapse rate for life insurance in 2024 was 7.0% as compared to a lapse rate of 4.4% for 2023. The 2025 lapse rate to date has been approximately the same as 2024. The combined statutory capital and surplus of the Company’s life insurance subsidiaries was approximately $133,949,000 and $120,216,000 as of September 30, 2025, and December 31, 2024, respectively. The life insurance subsidiaries cannot pay a dividend to their parent company without the approval of state insurance regulatory authorities. The One Big Beautiful Bill Act (“OBBBA”), which was signed into law on July 4, 2025, significantly affected U.S. income tax law. The Company is currently assessing its impact; however, the Company does not expect a material impact to its consolidated financial statements. Item 3. Quantitative and Qualitative Disclosures About Market Risk. As a smaller reporting company, the Company is not required to provide information typically disclosed under this item. 75 Item 4. Controls and Procedures. Disclosure Controls and Procedures As of September 30, 2025, the Company carried out an evaluation under the supervision and with the participation of its Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed in the Securities and Exchange Commission (SEC) reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time period specified by the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. The executive officers have concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2025, and that the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, the Company’s financial condition, results of operations, and cash flows for the periods presented in conformity with United States Generally Accepted Accounting Principles (GAAP). Changes in Internal Control over Financial Reporting There have not been any significant changes in the Company’s internal control over financial reporting during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. Part II - Other Information Item 1. Legal Proceedings . The Company is not a party to any material legal proceedings outside the ordinary course of business or to any other legal proceedings, which if adversely determined, would be expected to have a material adverse effect on its financial condition or results of operation. Item 1A. Risk Factors. As a smaller reporting company, the Company is not required to provide information typically disclosed under this item. 76 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. Recent Sales of Unregistered Securities and Use of Proceeds from Registered Securities None. Issuer Purchases of Equity Securities On April 22, 2025, the Company executed a 10b5-1 agreement with a broker to repurchase shares of the Company’s Class A Common Stock. Under the terms of the agreement, the broker is permitted to repurchase up to $1,000,000 of the Company’s Class A Common Stock. Purchases commenced April 23, 2025. The agreement is subject to the daily time, price, and volume conditions of Rule 10b-18. The agreement will expire on December 31, 2025. The following table shows the Company’s repurchase activity during the three-month period ended September 30, 2025, under the 10b5-1 agreement. Period (a) Total Number of Class A Shares Purchased (b) Average Price Paid per Class A Share (1) (c) Total Number of Class A Shares Purchased as Part of Publicly Announced Plan or Program (d) Maximum Number (or Approximate Dollar Value) of Class A Shares that May Yet Be Purchased Under the Plan or Program (2) 7/1/2025-7/31/2025 4,463 $ 10.22 - 94,565 8/1/2025-8/31/2025 - - - 94,565 9/1/2025-9/30/2025 - - - 94,565 Total 4,463 $ 10.22 - 94,565 (1) Includes fees and commissions paid on stock repurchases. (2) In September 2018, the Board of Directors of the Company approved a Stock Repurchase Plan that authorized the repurchase of 300,000 shares of the Company’s Class A Common Stock in the open market. The Company amended the Stock Repurchase Plan on December 4, 2020. The amendment authorized the repurchase of a total of 1,000,000 shares of the Company’s Class A Common Stock in the open market. Any repurchased shares of Class A common stock are to be held as treasury shares to be used as the Company's employer matching contribution to the Employee 401(k) Retirement Savings Plan and for shares held in the Deferred Compensation Plan. Item 3. Defaults Upon Senior Securities. None. Item 4. Mine Safety Disclosures. None. Item 5. Other Information. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes provisions that allow for the immediate expensing of domestic research and development expenses, immediate expensing of certain capital expenditures, and other changes to the U.S. taxation of profits derived from foreign operations. The Company continues to evaluate the impact the new legislation will have on its estimated annual effective tax rate and cash tax position; however, the Company does not expect a material impact to its estimated effective tax rate in 2025. 77 Item 6. Exhibits, Financial Statements Schedules, and Reports on Form 8-K. (a)(1) Financial Statements See “Table of Contents – Part I – Financial Information” under page 2 above. (a)(2) Financial Statement Schedules None All other schedules to the consolidated financial statements required by Article 7 of Regulation S-X are not required under the related instructions or are inapplicable and therefore have been omitted. (a)(3) Exhibits The following Exhibits are filed herewith pursuant to Rule 601 of Regulation S-K or are incorporated by reference to previous filings. 3.1 Amended and Restated Articles of Incorporation (1) 3.2 Amended and Restated Bylaws (2) 21 Subsidiaries of the Registrant 31.1 Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 31.2 Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS Inline XBRL Instance Document 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) (1) Incorporated by reference from Report on Form 10-K, as filed on March 31, 2017 (2) Incorporated by reference from Report on Form 10-Q, as filed on May 15, 2019 78 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. REGISTRANT SECURITY NATIONAL FINANCIAL CORPORATION Registrant Dated: November 13, 2025 /s/ Scott M. Quist Scott M. Quist Chairman, President and Chief Executive Officer (Principal Executive Officer) Dated: November 13, 2025 /s/ Garrett S. Sill Garrett S. Sill Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer) 79