What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-13 compared with 2025-08-14 · 1068 added, 1051 removed, 1789 unchanged (54% of the section changed)

1 unchanged sentence

Fixed maturity

securities, available for sale, at estimated fair value (amortized cost of $ 393,340,165 and $ 376,012,071 for 2025 and 2024,

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 $ 486,986 and $ 420,993 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

1 unchanged sentence

Equity securities at estimated

fair value (cost of $ 11,657,063 and $ 11,386,454 for 2025 and 2024, respectively)

fair value (cost of $ 12,128,914 and

$ 11,386,454 for 2025 and 2024, respectively)

Mortgage loans held for

investment (net of allowance for credit losses of $ 2,640,744 and $ 1,885,390 for 2025 and 2024, respectively)

investment (net of allowance for credit losses

of $ 2,677,001 and $ 1,885,390 for 2025 and 2024, respectively)

Real estate held for investment

(net of accumulated depreciation of $ 34,288,777 and $ 31,419,539 for 2025 and 2024, respectively)

(net of accumulated depreciation of

$ 35,724,258 and $ 31,419,539 for 2025 and 2024, respectively)

Real estate held for sale

Other investments and policy

loans (net of allowance for credit losses of $ 1,481,032 and $ 1,536,926 for 2025 and 2024, respectively)

investment income

loans (net of allowance for credit losses

of $ 1,534,957 and $ 1,536,926 for 2025 and 2024, respectively)

Accrued investment income

Total investments

3 unchanged sentences

Receivables (net of allowance for credit losses

of $ 1,491,043 and $ 1,678,531 for 2025 and 2024, respectively)

of $ 1,542,731 and $ 1,678,531

for 2025 and 2024, respectively)

Restricted assets (including $ 15,016,744 and

$ 12,323,535 for 2025 and 2024 respectively, at estimated fair value)

$ 12,323,535 for 2025 and 2024

respectively, at estimated fair value)

Cemetery perpetual care trust investments (including

$ 6,043,952 and $ 5,689,706 for 2025 and 2024, respectively, at estimated fair value)

$ 6,154,575 and

$ 5,689,706 for 2025 and 2024, respectively, at estimated fair value)

Receivable from reinsurers

28 unchanged sentences

40,000,000 shares authorized;

22,391,637 shares issued and outstanding as of June 30, 2025 and 22,321,422 (1) shares issued and outstanding as of December

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

non-voting common stock - $ 1.00 par

5,000,000 shares authorized;

5,000,000 shares

none issued or outstanding

1 unchanged sentence

6,000,000 shares

3,587,614 shares issued and outstanding as of June 30, 2025 and 3,492,672 (1) shares issued and outstanding as

of December 31, 2024

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

Common stock, value

Additional paid-in capital

Accumulated other comprehensive loss, net of

( 1,830,143 )

Accumulated other comprehensive gain (loss),

( 6,951,266 )

1 unchanged sentence

Treasury stock at cost - 1,180,564 Class A

shares and 104,604 Class C shares as of June 30, 2025;

and 1,081,281 (1) Class A shares and 104,604 (1) Class C shares

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

5 unchanged sentences

$ 1,489,807,214

and outstanding shares have been adjusted retroactively for the effect of annual stock dividends.

(1) Issued and outstanding

shares have been adjusted retroactively for the effect of annual stock dividends.

accompanying notes to condensed consolidated financial statements (unaudited).

1 unchanged sentence

CONSOLIDATED STATEMENTS OF EARNINGS

Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Mortgage fee income

2 unchanged sentences

Net mortuary and cemetery sales

Gains (losses) on investments and other assets

Gains on investments and other assets

Total revenues

3 unchanged sentences

Increase in future policy benefits

Amortization of deferred policy and pre-need

acquisition costs and value of business acquired

Amortization of deferred policy and pre-need acquisition costs and value of business acquired

Selling, general and administrative expenses:

Rent and rent related

Depreciation on property

and equipment

Costs related to funding

mortgage loans

Depreciation on property and equipment

Costs related to funding mortgage loans

Interest expense

Cost of goods and services

sold-mortuaries and cemeteries

Cost of goods and services sold-mortuaries and cemeteries

Total benefits and expenses

5 unchanged sentences

( 7,646,071 )

earnings per Class A Equivalent common share (1)

earnings per Class A Equivalent common share-assuming dilution (1)

Weighted-average Class

A equivalent common shares outstanding (1)

Weighted-average Class

A equivalent common shares outstanding-assuming dilution (1)

earnings per share amounts have been adjusted retroactively for the effect of annual stock

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.

Net earnings per Class A Equivalent common

share-assuming dilution (1)

Weighted-average Class A equivalent common shares

outstanding (1)

Weighted-average Class A equivalent common shares

outstanding-assuming dilution

(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

Net earnings per common share represent net earnings per equivalent Class A common share.

accompanying notes to condensed consolidated financial statements (unaudited).

1 unchanged sentence

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Months Ended June 30,

Months Ended September 30,

Other comprehensive income:

Unrealized gains (losses)

on fixed maturity securities available for sale

Unrealized gains on fixed

maturity securities available for sale

Unrealized gains on restricted

gains on cemetery perpetual care trust investments (1)

comprehensive income, before income tax

Income tax expense

( 2,201,866 )

Unrealized losses on restricted

gains (losses) on cemetery perpetual care trust investments (1)

comprehensive income (loss), before income tax

( 2,069,450 )

Income tax (expense) benefit

( 1,826,546 )

Other comprehensive

income (loss), net of income tax

( 1,412,227 )

income, net of income tax

Comprehensive income

maturity securities available for sale

(1) Fixed maturity securities available

accompanying notes to condensed consolidated financial statements (unaudited).

5 unchanged sentences

Other Comprehensive Income (Loss)

Months Ended June 30, 2025

Months Ended September 30, 2025

A Common Stock

31 unchanged sentences

$ 354,754,718

Months Ended June 30, 2024

Other comprehensive income

Stock-based compensation expense

Vesting of restricted stock units

Sale of treasury stock

Purchase of treasury stock

Conversion Class C to Class A

Stock dividends

September 30, 2025

$ 232,857,565

$ ( 9,705,930 )

$ 365,381,858

NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)

Months Ended September 30, 2024

A Common Stock

18 unchanged sentences

$ 320,103,974

$ ( 7,780,656 )

$ 214,452,895

$ ( 5,336,081 )

$ 320,103,974

Other comprehensive loss

Other comprehensive income (loss )

Stock-based compensation expense

17 unchanged sentences

$ 325,765,993

Other comprehensive income

Other comprehensive income (loss)

Stock-based compensation expense

Exercise of stock options

Vesting of restricted stock units

Sale of treasury stock

Purchase of treasury stock

Stock dividends

September 30, 2024

$ 225,400,933

$ ( 6,490,559 )

$ 346,322,066

$ 225,400,933

$ ( 6,490,559 )

$ 346,322,066

NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

Months Ended June 30,

Months Ended September 30,

Cash flows from operating

14 unchanged sentences

Purchases of cemetery perpetual care trust

( 2,487,924 )

Sales, calls and maturities of perpetual care

7 unchanged sentences

Purchases of property and equipment

( 1,591,486 )

Sales of property and equipment

16 unchanged sentences

( 49,525,258 )

( 1,423,826 )

Proceeds from bank loans

10 unchanged sentences

$ 114,639,271

$ 188,938,399

Supplemental Disclosure

8 unchanged sentences

operating lease liabilities

Loans held for sale transferred into mortgage

loans held for investment

Benefit plans funded with treasury stock

1 unchanged sentence

held for sale

Transfer of loans held for sale to mortgage

loans held for investment

Mortgage loans held for investment foreclosed

into real estate held for sale

Right-of-use assets obtained in exchange for

finance lease liabilities

NATIONAL FINANCIAL CORPORATION

5 unchanged sentences

$ 100,396,059

$ 170,706,542

Restricted assets

Cemetery perpetual care

trust investments

Cemetery perpetual care trust investments

Total cash, cash equivalents,

1 unchanged sentence

$ 114,639,271

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year

$ 188,938,399

Cash, cash equivalents,

restricted cash and restricted cash equivalents at end of year

$ 114,639,271

$ 188,938,399

accompanying notes to condensed consolidated financial statements (unaudited).

2 unchanged sentences

30, 2025 (Unaudited)

of Presentation

Basis of Presentation

accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally

8 unchanged sentences

considered necessary for a fair presentation have been included.

Operating results for the three and six month periods ended June 30,

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.

39 unchanged sentences

The Company will adopt the standard commencing with

its annual reporting period ending December 31, 2025.

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.

Company continues to evaluate the impact of the new guidance on its consolidated financial statements.

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.

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.

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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Recent Accounting Pronouncements (Continued)

initial future policy benefit for each cohort is calculated using the original discount rate and then remeasured using the current discount

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

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.

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.

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

“Income Taxes (Topic 740):

12 unchanged sentences

The Company will adopt the standard commencing with its annual reporting period ending December 31,

The Company does not anticipate that the adoption of ASU 2023-09 will have a material impact on the consolidated financial statements.

The Company does not anticipate that the adoption of this standard will have a material impact on the consolidated financial statements.

“Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40):

9 unchanged sentences

Accordingly, the Company will adopt the standard commencing with its annual reporting period ending December

The Company is in the process of estimating the potential impact of the new guidance on the consolidated financial statements.

The Company is in the process of estimating the potential impact of this new standard on the consolidated financial statements.

Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company’s

3 unchanged sentences

30, 2025 (Unaudited)

3) Investments

Company’s investments as of June 30, 2025 are summarized as follows:

Company’s investments as of September 30, 2025, are summarized as follows:

of Investments

2 unchanged sentences

for Credit Losses

June 30, 2025:

September 30,

Fixed maturity securities, available for sale,

46 unchanged sentences

Other investments

Allowance for credit losses for insurance assignments

Allowance for

credit losses for insurance assignments

( 1,534,957 )

4 unchanged sentences

$ 1,047,102,986

unrealized losses are net of allowance for credit losses

$ 581,600 of Membership stock and $ 743,200 of Activity stock attributable to short-term borrowings

and letters of credit.

(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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

Company’s investments as of December 31, 2024, are summarized as follows:

4 unchanged sentences

at estimated fair value:

securities and obligations of U.S.

Treasury securities and obligations

Government agencies

$ ( 486,976 )

Obligations of states and

political subdivisions

Corporate securities including

public utilities

Obligations of states and political subdivisions

Corporate securities including public utilities

( 6,922,871 )

2 unchanged sentences

Redeemable preferred stock

fixed maturity securities available for sale

Total fixed maturity

securities available for sale

$ 376,012,071

7 unchanged sentences

$ ( 591,340 )

equity securities at estimated fair value

Total equity securities

at estimated fair value

$ ( 591,340 )

1 unchanged sentence

Residential construction

Unamortized deferred

loan fees, net

Unamortized deferred loan fees, net

( 2,082,241 )

Allowance for credit

Allowance for credit losses

( 1,885,390 )

13 unchanged sentences

Insurance assignments

Federal Home Loan Bank

Federal Home Loan Bank stock (2)

Other investments

Allowance for credit losses for insurance assignments

Allowance for credit

losses for insurance assignments

( 1,536,926 )

4 unchanged sentences

$ 966,390,748

unrealized losses are net of allowance for credit losses

$ 553,900 of Membership stock and $ 1,851,000 of Activity stock due to short-term advances

and letters of credit.

(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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

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 June 30, 2025, other than investments

issued or guaranteed by the United States Government.

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.

Maturity Securities

table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as

of June 30, 2025 and December 31, 2024.

The fair values of fixed maturity securities are based on quoted market prices, when available.

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.

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

Losses for Less than Twelve Months

Losses for More than Twelve Months

Unrealized Loss

June 30, 2025

September 30, 2025

Treasury securities and obligations

3 unchanged sentences

Mortgage-backed securities

$ 102,791,220

Redeemable preferred stock

$ 114,748,344

7 unchanged sentences

$ 221,767,792

holdings were comprised of 477 securities with fair values aggregating 94.7 % of the aggregate amortized cost as of June 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 release of

$ 20,313 and of $ 16,289 have been recognized for the three month periods ended June 30, 2025 and 2024, respectively.

A credit loss provision

of $ 65,993 and of $ 79,711 have been recognized for the six month periods ended June 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.

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

Other unrealized losses for which no credit loss was recognized are primarily the result of increases in interest rates.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

of Allowance for Credit Losses

10 unchanged sentences

Based on the analysis of a security that is rated 3 to 5, a determination

is made whether the security will likely make interest and principal 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.

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.

the decline in fair value of fixed maturity securities is attributable to changes in market interest rates or to factors such as market

21 unchanged sentences

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

Quality Indicators

on the NAIC securities designations, the Company had 98.1 % and 97.7 % of its fixed maturity securities rated investment grade as of June

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.

2 unchanged sentences

Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation

NAIC Designation

$ 201,200,500

7 unchanged sentences

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 June 30, 2025 and 2024:

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

Months Ended June 30, 2025

Treasury securities and obligations of U.S.

Government agencies

of states and political subdivisions

securities including public utilities

Mortgage-backed

Beginning balance - March 31, 2025

securities and

obligations of

of states and

Months Ended September 30, 2025

securities and

obligations of

of states and

Beginning balance - June 30, 2025

Additions for credit losses

8 unchanged sentences

the allowance

Recoveries of amounts previously

Ending Balance - June 30, 2025

Months Ended June 30, 2024

Treasury securities and obligations of U.S.

Government agencies

of states and political subdivisions

securities including public utilities

Mortgage-backed

Beginning balance - March 31, 2024

of amounts previously written off

Ending Balance - September 30, 2025

Three Months Ended September 30, 2024

securities and

obligations of

and political

backed securities

Beginning balance - June 30, 2024

Additions for credit losses

8 unchanged sentences

the allowance

Recoveries of amounts previously

Ending Balance - June 30, 2024

of amounts previously written off

Ending Balance - September 30, 2024

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

following tables present a roll forward of the Company’s allowance for credit losses on fixed maturity securities available for

sale for the six month periods ended June 30, 2025 and 2024:

Months Ended June 30, 2025

Treasury securities and obligations of U.S.

Government agencies

of states and political subdivisions

securities including public utilities

Mortgage-backed

sale for the nine-month periods ended September 30, 2025, and 2024:

Months Ended Sepember 30, 2025

securities and

obligations of

and political

backed securities

Beginning balance - December 31, 2024

9 unchanged sentences

the allowance

Recoveries of amounts previously

Ending Balance - June 30, 2025

Months Ended June 30, 2024

Treasury securities and obligations of U.S.

Government agencies

of states and political subdivisions

securities including public utilities

Mortgage-backed

of amounts previously written off

Ending Balance - September 30, 2025

Months Ended Sepember 30, 2024

securities and

obligations of

and political

backed securities

Beginning balance - December 31, 2023

9 unchanged sentences

the allowance

Recoveries of amounts previously

Ending Balance - June 30, 2024

table below presents the amortized cost and the estimated fair value of fixed maturity securities available for sale as of June 30, 2025,

of amounts previously written off

Ending Balance - September 30, 2024

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.

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

10 unchanged sentences

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

regarding sales of fixed maturity securities available for sale is presented as follows.

Schedule of Major Categories of Net Investment Income

Months Ended June 30,

September 30,

Proceeds from sales

4 unchanged sentences

Schedule of Assets on Deposit With Life Insurance

of December 31, 2024

September 30, 2025

Fixed maturity securities available

4 unchanged sentences

held in trust related to third-party reinsurance agreements were as follows:

of December 31, 2024

September 30, 2025

December 31, 2024

Fixed maturity securities available

2 unchanged sentences

Total assets on deposit

Company is a member of the Federal Home Loan Bank of Des Moines and Dallas (“FHLB”).

Assets pledged as collateral with the

FHLB are presented below.

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 June 30, 2025, the Company

owed $ 15,000,000 to the FHLB for 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 second quarter of 2025.

of December 31, 2024

the nine months ended September 30, 2025.

September 30, 2025

December 31, 2024

Fixed maturity securities available

4 unchanged sentences

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

Estate Held for Investment and Held for Sale

8 unchanged sentences

are determined by senior management under the direction of the Board of Directors.

Company employs full-time employees to attend to 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.

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.

Company currently owns and operates six commercial properties in two states.

4 unchanged sentences

class diversification.

aggregate net book value of commercial real estate serving as collateral for bank loans was $ 117,337,770 and $ 119,889,846 as of June

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 $ 95,074,196 and $ 96,007,488 as of June

The associated bank loan carrying values totaled $ 94,597,809 and $ 96,007,488 as of September

30, 2025, and December 31, 2024, respectively.

the three and six month periods ended June 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.

the three month periods ended June 30, 2025 and 2024, the Company recorded depreciation expense on commercial real estate held for investment

of $ 1,432,921 and $ 1,418,301 , respectively, and of $ 2,854,937 and $ 2,946,094 during the six month periods ended June 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 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.

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.

Company’s commercial real estate held for investment is summarized as follows as of the respective dates indicated:

5 unchanged sentences

$ 126,074,928

(1) Includes Center53

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

Company’s commercial real estate held for sale is summarized as follows as of the respective dates indicated:

Mississippi (1)

Consists of approximately 93 acres of undeveloped

(1) Consists of approximately 93 acres

of undeveloped land

Real Estate Owned and Occupied by the Company

primary business units of the Company occupy a portion of the real estate owned by the Company.

As of June 30, 2025, real estate owned

and occupied by the Company is summarized as follows:

As of September 30, 2025, real estate

owned and occupied by the Company is summarized as follows:

of Real Estate Owned and Occupied by the Company

10 unchanged sentences

Life Insurance Sales

in real estate held for investment on the condensed consolidated balance sheets

in property and equipment on the condensed consolidated balance sheets

(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

Real Estate Held for Investment and Held for Sale

5 unchanged sentences

Once developed, finished lots are sold to builder partners and others.

the three and six month periods ended June 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.

the three month periods ended June 30, 2025 and 2024, the Company recorded depreciation expense on residential real estate held for investment

of $ 2,732 and $ 2,653 , respectively, and $ 5,408 and $ 5,305 during the six month periods ended June 30, 2025 and 2024, respectively.

real estate held for investment is stated at cost and is depreciated over the estimated useful life, primarily using the straight-line

Depreciation is included in net investment income on the consolidated statements of earnings.

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.

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

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

Company’s residential real estate held for investment is summarized as follows as of the respective dates indicated:

Schedule of Residential Real Estate Investment

multiple residential subdivision development projects, refer to the following tables.

(1) Includes multiple

residential subdivision development projects, refer to the following tables.

Company also invests in residential subdivision developments.

4 unchanged sentences

Company’s residential real estate held for sale is summarized as follows as of the respective dates indicated:

2,561,487 (1 )

a residential subdivision development project for $ 2,106,487

net book value of foreclosed residential real estate included in residential real estate held for sale was $ 835,000 and $ 1,126,480 as

of June 30, 2025 and December 31, 2024, respectively.

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.

Loans Held for Investment

loans held for investment consist of first and second mortgages and are generally classified in three distinct group:

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.

loans held for investment consist of first and second mortgages and are generally classified into three distinct groups:

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 a number of mortgage loan debtors have similar economic characteristics that would cause their ability to meet

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.

3 unchanged sentences

of the geographic region in which the debtors do business or are employed.

As of June 30, 2025, the Company had 57 %, 8 %, 6 %, 5 %, 4 % and

4 %, of its mortgage loans from borrowers located in the states of Utah, Florida, Arizona, California, Texas, and Hawaii, 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,

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.

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.

2 unchanged sentences

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

loans held for investment are carried at their unpaid principal balances adjusted for net deferred fees, charge-offs, premiums, discounts,

10 unchanged sentences

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 required.

market value of the respective loan collateral, additional collateral or mortgage insurance by an approved third-party insurer is generally

of Allowance for Credit Losses

15 unchanged sentences

Interest not accrued

on these loans totaled approximately $ 343,000 and $ 244,000 as of June 30, 2025 and December 31, 2024, respectively.

on these loans totaled approximately $ 1,043,517 and $ 244,000 as of September 30, 2025, and December 31, 2024, respectively.

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 and all expenses for foreclosure are expensed as incurred.

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.

9 unchanged sentences

ability to repay.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Investments (Continued)

loans are evaluated for credit loss by analyzing common metrics that are predictors for future credit losses such as debt service coverage

8 unchanged sentences

the allowance for credit losses.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

3) Investments

— These loans are secured by first and second mortgages on single-family dwellings.

1 unchanged sentence

to the life events and the general economic condition of the region.

Where loan to value exceeds 80%, the loan is generally guaranteed

by private mortgage insurance, the FHA, or VA.

Where LTV exceeds 80%, the loan is generally guaranteed by private

mortgage insurance, the FHA, or VA.

loans are evaluated for credit loss by using relevant available information from both internal and external sources.

6 unchanged sentences

The models consider loan features such as

loan type, loan to value, payment status, age, and current property values.

Analyzing the information from the various sources allows

the Company to arrive at the allowance for credit losses.

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.

construction (including land acquisition and development loans) – These loans are underwritten in accordance with the Company’s

10 unchanged sentences

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 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.

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 June 30, 2025, the Company’s

commitments were approximately $ 220,679,000 for these loans, of which $ 168,666,015 had been drawn.

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.

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 for subsequent draws.

at a per loan basis point allowance that is recognized at loan origination and subsequent draws.

The per loan basis point is reviewed

3 unchanged sentences

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

following table presents a roll forward of the allowance for credit losses as of the dates indicated:

Schedule of Allowance for Loan Losses

Beginning balance - March 31, 2025

Beginning balance - June 30, 2025

Change in provision for

credit losses (1)

Ending balance - June 30, 2025

Beginning balance - March 31, 2024

Ending balance - September 30, 2025

Beginning balance - June 30, 2024

Change in provision for

credit losses (1)

Ending balance - June 30, 2024

( 1,095,485 )

Ending balance - September 30, 2024

Beginning balance - December 31, 2024

1 unchanged sentence

credit losses (1)

Ending balance - June 30, 2025

Ending balance - September 30, 2025

Beginning balance - December 31, 2023

1 unchanged sentence

credit losses (1)

Ending balance - June 30, 2024

in other expenses on the condensed consolidated statements of earnings

( 1,143,422 )

( 1,095,485 )

Ending balance - September 30, 2024

(1) Included in other

expenses on the condensed consolidated statements of earnings

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

3) Investments

Investments (Continued)

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

June 30, 2025

September 30,

60-89 days past due

5 unchanged sentences

( 2,677,001 )

( 2,640,744 )

Unamortized deferred loan

20 unchanged sentences

$ 301,747,358

income is not recognized on loans which are more than 90 days past due or in foreclosure.

(1) Interest income

is not recognized on loans which are more than 90 days past due or in foreclosure.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Investments (Continued)

Quality Indicators

3 unchanged sentences

aggregate unpaid principal balance of commercial mortgage loans by credit quality indicator and origination year was as follows as of

June 30, 2025:

September 30, 2025:

of Commercial and Residential Mortgage Loans By Credit Quality Indicator

12 unchanged sentences

30, 2025 (Unaudited)

Investments (Continued)

Company evaluates and monitors the credit quality of its residential mortgage loans by analyzing LTV and loan performance.

3 unchanged sentences

aggregate unpaid principal balance of residential mortgage loans by credit quality indicator and origination year was as follows as of

June 30, 2025:

September 30, 2025:

Credit Quality

1 unchanged sentence

Non-performing (1)

Includes residential mortgage loans in the process of

foreclosure of $ 2,189,399

(1) Includes residential

mortgage loans in the process of foreclosure of $ 2,427,736

Less than 65%

2 unchanged sentences

December 31, 2024:

Credit Quality

Credit Quality Indicator

Performance Indicators:

Non-performing (1)

Includes residential mortgage loans in the process of

foreclosure of $ 3,942,392

(1) Includes residential mortgage loans

in the process of foreclosure of $ 3,942,392

Less than 65%

3 unchanged sentences

30, 2025 (Unaudited)

Investments (Continued)

Company evaluates and monitors the credit quality of its residential construction loans (including land acquisition and development loans)

3 unchanged sentences

aggregate unpaid principal balance of residential construction mortgage loans by credit quality indicator and origination year was as

follows as of June 30, 2025:

follows as of September 30, 2025:

Schedule of Residential Construction Mortgage Loans

23 unchanged sentences

30, 2025 (Unaudited)

Investments (Continued)

following table presents the aging of insurance assignments, included in other investments and policy loans on the condensed consolidated

1 unchanged sentence

Schedule of Aging of Insurance Assignments

September 30, 2025

December 31, 2024

30-59 days past due

8 unchanged sentences

Company records an allowance for credit losses when the insurance assignment is funded.

Once an insurance assignment moves to 90 days

past due or legal proceedings, it is monitored for write-off and collectability, and any adjustments to the allowance are recorded at

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

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

Beginning balance - March 31, 2025

Beginning balance - June 30, 2025

Change in provision for

credit losses (1)

Ending balance - June 30, 2025

Beginning balance - March 31, 2024

Ending balance - September 30, 2025

Beginning balance - June 30, 2024

Change in provision for

credit losses (1)

Ending balance - June 30, 2024

Ending balance - September 30, 2024

Beginning balance - December 31, 2024

1 unchanged sentence

credit losses (1)

Ending balance - June 30, 2025

Ending balance - September 30, 2025

Beginning balance - December 31, 2023

1 unchanged sentence

credit losses (1)

Ending balance - June 30, 2024

Included in other expenses

on the condensed consolidated statements of earnings

Ending balance - September 30, 2024

(1) Included in other

expenses on the condensed consolidated statements of earnings

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Investments (Continued)

Interest Entities (“VIE”)

Company has a 50 % ownership interest in HHH Real Estate LLC (“HHH”), an entity that holds and develops single family lots

for residential construction.

In accordance with the HHH operating agreement, net profits or losses are allocated to the members in accordance

with their ownership interests.

The investment in HHH is accounted for under the equity method of accounting.

HHH has not commenced its

principal operations as of June 30, 2025.

The carrying value of the equity investment in HHH was $ 11,163,125 and nil at June 30, 2025

and December 31, 2024, respectively, which is included in other investments and policy loans on the condensed consolidated balance sheets.

Company has determined that HHH is a VIE 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 investee is limited to the carrying value of the Company’s investment

of $ 11,163,125 .

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

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.

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.

Related Earnings

2 unchanged sentences

Schedule of Gain (Loss) on Investments

Months Ended June 30,

Months Ended September 30,

Fixed maturity securities:

6 unchanged sentences

held at the end of the period

Mortgage loans held for investment:

Gross realized gains

Gross realized losses

( 1,161,364 )

Real estate held for investment and sale:

4 unchanged sentences

realized losses

$ ( 377,239 )

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.

realized gains and losses includes gains and losses from cemetery perpetual care trust investments and the restricted assets of cemeteries

and mortuaries and totaled $ 271,176 and $ 202,800 in net gains for the three month periods ended June 30, 2025 and 2024, respectively,

and of $ 485,155 and $ 379,363 in net gains for the six month periods ended June 30, 2025 and 2024, respectively.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Investments (Continued)

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.

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.

categories of net investment income were as follows:

Months Ended June 30,

Fixed maturity securities available

13 unchanged sentences

investment income includes income earned from cemetery perpetual care trust investments and the restricted assets of cemeteries and mortuaries

and totaled $ 220,634 and $ 470,808 for the three month periods ended June 30, 2025 and 2024, respectively, and $ 367,472 and $ 1,404,359

for the six month periods ended June 30, 2025 and 2024, respectively.

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.

investment income on real estate consists primarily of rental revenue.

4 unchanged sentences

Schedule of Accrued Investment Income

September 30, 2025

Fixed maturity securities available

5 unchanged sentences

Total accrued investment

SECURITY NATIONAL

FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed

Consolidated Financial Statements

June 30, 2025

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Loans Held for Sale

7 unchanged sentences

of Aggregate Fair Value Loans Held for Sale

September 30, 2025

December 31, 2024

Aggregate fair value

7 unchanged sentences

of Mortgage Fee Income for Loans Held for Sale

Months Ended June 30,

Interest income

4 unchanged sentences

Mortgage fee income

SECURITY NATIONAL

FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed

Consolidated Financial Statements

June 30, 2025

Loans Held for Sale

demands from third party investors that correspond to mortgage loans previously held for sale and sold are reviewed and relevant data

is captured so that an estimated future loss can be calculated.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Loans Held for Sale (Continued)

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

5 unchanged sentences

these key factors.

The Company conducts its own review upon the receipt of a repurchase demand.

In many instances, the Company can resolve

the issues relating to the repurchase demand by the third-party investor without having to make any payments to the investor.

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.

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

June 30, 2025

December 31, 2024

Balance, beginning of period

Provision on current loan originations (1)

Charge-offs, net of recaptured

Additional provision (2)

Charge-offs, net of recaptured amounts

Balance, end of period

Included in mortgage fee

(1) Included in mortgage

(2) Included in other

Company maintains reserves for estimated losses on current production volumes.

For the six month period ended June 30, 2025, $ 398,937

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.

month period ended June 30, 2024, $ 475,601 in reserves that were added at a rate of 4.4 basis points per loan, the equivalent of $ 440

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.

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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Stock Compensation Plans

Company has equity incentive plans (the “2013 Plan”, the “2014 Director Plan” and the “2022 Plan”).

Company has three active equity incentive plans (the “2013 Plan”, the “2014 Director Plan” and the “2022

Plan” or “the Plans”).

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 June 30, 2025 and 2024, respectively, and $ 609,703 and $ 382,182 has been recognized for these plans for the six month periods

ended June 30, 2025 and 2024, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings.

As of June 30, 2025, the total unrecognized compensation expense related to the options issued was $ 562,707 which is expected to be recognized

over the remaining vesting period.

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

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.

fair value of each option granted is estimated on the date of grant using the Black Scholes Option Pricing Model.

5 unchanged sentences

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.

activity of the stock option plans during the six month period ended June 30, 2025, is summarized as follows:

activity of the Plans during the nine-month period ended September 30, 2025, is summarized as follows:

Schedule of Activity of Stock Option Plans

5 unchanged sentences

Adjustment for the effect of stock dividends

Outstanding at June 30, 2025

As of June 30, 2025:

Outstanding at September 30, 2025

As of September 30, 2025:

Options exercisable

As of June 30, 2025:

As of September 30, 2025:

Available options for

Weighted average contractual term of options outstanding at June 30,

Weighted average contractual term of options exercisable at June 30,

Weighted average contractual term of options

outstanding at September 30, 2025

Weighted average contractual term of options

exercisable at September 30, 2025

Aggregated intrinsic value of options

outstanding at June 30, 2025 (1)

Aggregated intrinsic value of options exercisable at June 30, 2025 (1)

The Company used a stock

price of $ 9.02 as of June 30, 2025 to derive intrinsic value.

Adjusted for the effect of

annual stock dividends.

outstanding at September 30, 2025 (1)

Aggregated intrinsic value of options

exercisable at September 30, 2025 (1)

(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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Stock Compensation Plans

activity of the stock option plans during the six month period ended June 30, 2024, is summarized as follows:

Stock Compensation Plans (Continued)

activity of the Plans during the nine-month period ended September 30, 2024, is summarized as follows:

Class A Shares

4 unchanged sentences

Adjustment for the effect of stock dividends

Outstanding at June 30, 2024

As of June 30, 2024:

Outstanding at September 30, 2024

As of September 30, 2024:

Options exercisable

As of June 30, 2024:

As of September 30, 2024:

Available options for

Weighted average contractual term of options outstanding at June 30,

Weighted average contractual term of options exercisable at June 30,

Aggregated intrinsic value of options outstanding at June 30, 2024 (1)

Aggregated intrinsic value of options exercisable at June 30, 2024 (1)

The Company used a stock

price of $ 7.61 as of June 30, 2024 to derive intrinsic value.

Adjusted for the effect of

annual stock dividends.

Weighted average contractual term of options

outstanding at September 30, 2024

Weighted average contractual term of options

exercisable at September 30, 2024

Aggregated intrinsic value of options

outstanding at September 30, 2024 (1)

Aggregated intrinsic value of options

exercisable at September 30, 2024 (1)

(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.

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 six month periods ended June 30, 2025 and 2024 was $ 1,357,776 and $ 142,210 ,

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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Stock Compensation Plans

Stock Compensation Plans (Continued)

Stock Units (“RSUs”)

based compensation expense for RSUs issued of $ 10,076 and $ 895 has been recognized under these plans for the three-month periods ended

June 30, 2025 and 2024, respectively, and $ 19,936 and $ 1,771 has been recognized under these plans for the six month periods ended June

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 June 30, 2025, the total unrecognized compensation

expense related to the RSUs issued was $ 17,362 , which is expected to be recognized over the remaining vesting period.

of the RSUs during the six month period ended June 30, 2025, is summarized as follows:

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.

of the RSUs during the nine-month period ended September 30, 2025, is summarized as follows:

Schedule of Activity Restricted Stock Units

Class A Shares

Average Grant Date Fair Value

Non-vested at December 31, 2024

Non-vested at June 30, 2025

Non-vested at September 30, 2025

Available RSUs for future

of the RSUs during the six month period ended June 30, 2024, is summarized as follows:

of the RSUs during the nine-month period ended September 30, 2024, is summarized as follows:

Class A Shares

Average Grant Date Fair Value

Non-vested at December 31, 2023

Non-vested at June 30, 2024

Non-vested at September 30, 2024

Available RSUs for future

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Earnings Per Share

per share amounts have been retroactively adjusted for the effect of annual stock dividends.

In accordance with GAAP, the basic and diluted

earnings per share amounts were calculated as follows:

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

Months Ended June 30,

September 30,

weighted-average shares outstanding

Effect of dilutive securities:

stock options

Employee stock options

weighted-average shares outstanding

1 unchanged sentence

Diluted net earnings per share

the six month periods ended June 30, 2025 and 2024, there were 416,539 and 143,456 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 amounts are the same for each class of common stock.

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.

diluted earnings per share are the same for each class of common stock.

following table summarizes the activity in shares of capital stock.

2 unchanged sentences

Exercise of stock options

Vesting of restricted stock

Conversion of Class C to

Outstanding shares at June 30, 2025 (1)

Vesting of restricted stock units

Conversion of Class C to Class A

Outstanding shares at September 30, 2025

Outstanding shares at December 31, 2023 (1)

1 unchanged sentence

Exercise of stock options

Vesting of restricted stock

Conversion of Class C to

Outstanding shares at June 30, 2024 (1)

Vesting of restricted stock units

Conversion of Class C to Class A

Outstanding shares at September 30, 2024

Outstanding shares, ending

Adjusted retroactively for

the effect of annual stock dividends

(1) Adjusted retroactively

for the effect of annual stock dividends

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

1 unchanged sentence

of Products and Services by Segment

Company has three operating and reportable business segments:

Company has identified three operating and reportable business segments:

life insurance, cemetery and mortuary, and mortgage.

The Company’s

life insurance segment’s revenue consists of life insurance premiums, fees earned on factored life insurance policies and net investment

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.

2 unchanged sentences

independent agency force.

The Company’s cemetery and mortuary segment’s 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 after collection of 10%

or more of the purchase price 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’s 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.

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.

and Cost Sharing Policies

22 unchanged sentences

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Business Segment Information

Business Segment Information (Continued)

Schedule of Revenues and Expenses by Reportable Segment

the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

From external sources:

1 unchanged sentence

Net investment income

Gains (losses) on investments and other assets

Gains on investments and other assets

Other revenues

1 unchanged sentence

Total segment revenues

Elimination of intersegment

Elimination of intersegment revenues

( 2,206,115 )

3 unchanged sentences

Increase in future policy benefits

Amortization of deferred policy and pre-need

acquisition costs and value of business acquired

Amortization of deferred policy and pre-need acquisition costs and value of business acquired

Selling, general and administrative expenses:

Rent and rent related

Depreciation on property

and equipment

Cost related to funding

mortgage loans

Data processing and IT

Premium taxes on insurance

premiums and other considerations (1)

Depreciation on property and equipment

Cost related to funding mortgage loans

Data processing and IT related (1)

Premium taxes on insurance premiums and other considerations (1)

Other segment items (1)(2)

1 unchanged sentence

Interest expense

Costs of goods and services sold-mortuaries

and cemeteries

Income tax expense (benefit)

Segment net earnings (loss)

( 1,260,869 )

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.

For each reportable segment,

other segment items includes:

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

Costs of goods and services sold-mortuaries and cemeteries

Income tax expense

Segment net earnings

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.

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.

- 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.

For each reportable segment,

intersegment expenses includes:

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.

each reportable segment, intersegment expenses includes:

Insurance - mortgage servicing fees and interest expense.

3 unchanged sentences

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Business Segment Information

the Three Months Ended June 30, 2024

Business Segment Information (Continued)

For the Three Months Ended September 30, 2024

From external sources:

2 unchanged sentences

Gains (losses) on investments and other assets

( 1,093,530 )

Other revenues

1 unchanged sentence

Total segment revenues

Elimination of intersegment

Elimination of intersegment revenues

( 2,289,697 )

3 unchanged sentences

Increase in future policy benefits

Amortization of deferred policy and pre-need

acquisition costs and value of business acquired

Amortization of deferred policy and pre-need acquisition costs and value of business acquired

Selling, general and administrative expenses:

Rent and rent related

Depreciation on property

and equipment

Cost related to funding

mortgage loans

Data processing and IT

Premium taxes on insurance

premiums and other considerations (1)

Depreciation on property and equipment

Cost related to funding mortgage loans

Data processing and IT related (1)

Premium taxes on insurance premiums and other considerations (1)

Other segment items (1)(2)

1 unchanged sentence

Interest expense

Costs of goods and services sold-mortuaries

and cemeteries

Income tax expense (benefit)

Costs of goods and services sold-mortuaries and cemeteries

Income tax expense

Segment net earnings

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.

For each reportable segment,

other segment items includes:

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.

- 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.

For each reportable segment,

intersegment expenses includes:

Insurance - mortgage servicing fees and interest expense.

Cemetery/Mortuary

- rent expense, data processing and IT related expenses, and interest expense.

- rent expense and interest expense.

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.

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.

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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Business Segment Information

the Six Months Ended June 30, 2025

Business Segment Information (Continued)

For the Nine Months Ended September 30, 2025

From external sources:

6 unchanged sentences

Total segment revenues

Elimination of intersegment

Elimination of intersegment revenues

( 5,719,409 )

3 unchanged sentences

Increase in future policy benefits

Amortization of deferred policy and pre-need

acquisition costs and value of business acquired

Amortization of deferred policy and pre-need acquisition costs and value of business acquired

Selling, general and administrative expenses:

Rent and rent related

Depreciation on property

and equipment

Cost related to funding

mortgage loans

Data processing and IT

Premium taxes on insurance

premiums and other considerations (1)

Depreciation on property and equipment

Cost related to funding mortgage loans

Data processing and IT related (1)

Premium taxes on insurance premiums and other considerations (1)

Other segment items (1)(2)

1 unchanged sentence

Interest expense

Costs of goods and services sold-mortuaries

and cemeteries

Costs of goods and services sold-mortuaries and cemeteries

Income tax expense (benefit)

5 unchanged sentences

$ 1,598,481,116

Elimination of intersegment

Elimination of intersegment assets

( 35,495,025 )

1 unchanged sentence

$ 1,562,986,091

Expenditures for long-lived

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.

For each reportable segment,

other segment items includes:

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.

- 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.

For each reportable segment,

intersegment expenses includes:

Expenditures for long-lived assets

Included in other expenses on the condensed consolidated statements

Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support

and storage fees.

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.

each reportable segment, intersegment expenses includes:

Insurance - mortgage servicing fees and interest expense.

3 unchanged sentences

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Business Segment Information

the Six Months Ended June 30, 2024

Business Segment Information (Continued)

For the Nine Months Ended September 30, 2024

From external sources:

3 unchanged sentences

Gains on investments and other assets

( 1,058,594 )

Other revenues

1 unchanged sentence

Total segment revenues

Elimination of intersegment

Elimination of intersegment revenues

( 6,036,375 )

3 unchanged sentences

Increase in future policy benefits

Amortization of deferred policy and pre-need

acquisition costs and value of business acquired

Amortization of deferred policy and pre-need acquisition costs and value of business acquired

Selling, general and administrative expenses:

Rent and rent related

Depreciation on property

and equipment

Cost related to funding

mortgage loans

Data processing and IT

Premium taxes on insurance

premiums and other considerations (1)

Depreciation on property and equipment

Cost related to funding mortgage loans

Data processing and IT related (1)

Premium taxes on insurance premiums and other considerations (1)

Other segment items (1)(2)

1 unchanged sentence

Interest expense

Costs of goods and services sold-mortuaries

and cemeteries

Costs of goods and services sold-mortuaries and cemeteries

Income tax expense (benefit)

4 unchanged sentences

$ 1,523,129,135

Elimination of intersegment

Elimination of intersegment assets

( 28,304,940 )

1 unchanged sentence

$ 1,494,824,195

Expenditures for long-lived

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.

For each reportable segment,

other segment items includes:

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.

- 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.

For each reportable segment,

intersegment expenses includes:

Insurance - mortgage servicing fees and interest expense.

Cemetery/Mortuary

- rent expense, data processing and IT related expenses, and interest expense.

- rent expense and interest expense.

Expenditures for long-lived assets

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.

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

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.

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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Fair Value of Financial Instruments

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

8 unchanged sentences

Financial assets and financial liabilities whose values are based on the following:

Quoted prices for similar

assets or liabilities in active markets.

Quoted prices for identical

or similar assets or liabilities in non-active markets;

models whose inputs are observable, directly or indirectly, for substantially the full term

of the asset or liability.

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.

Quoted prices for similar assets or liabilities in active markets.

Quoted prices for identical or similar assets or liabilities

in non-active markets;

Valuation models whose inputs are observable, directly or indirectly,

for substantially the full term of the asset or liability.

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.

Company utilizes a combination of third-party valuation service providers, brokers, and internal valuation models to determine fair value.

following methods and assumptions were used by the Company in estimating the fair value disclosures related to significant financial

following methods and assumptions were used by the Company in estimating the fair value presented in its disclosures related to significant

financial instruments.

items shown under Level 1 and Level 2 are valued as follows:

21 unchanged sentences

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Fair Value of Financial Instruments (Continued)

items shown under Level 3 are valued as follows:

3 unchanged sentences

(when available).

When a quoted market price is not readily available, the Company uses the market price from its last sale of similar

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.

21 unchanged sentences

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.

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.

Real Estate Held for Investment :

Fair value is generally determined by obtaining an independent appraisal, which typically considers

area comparable properties and property condition.

area comparable properties and property conditions.

The Company believes that in an orderly market, fair value approximates the replacement

3 unchanged sentences

in rental properties with the funds required for estimated future policy benefits.

Accordingly, in addition to an appraisal, the fair

value determination will generally be weighed more heavily toward the rental analysis.

Accordingly, in addition to an appraisal, the determination

of fair value will generally be weighed more heavily toward the rental analysis.

should be noted that for replacement cost, when determining the fair value of real estate held for investment, the Company uses a provider

1 unchanged sentence

For the investment analysis, the Company uses market data based

upon its real estate operation experience and projected the present value of the net rental income over seven years.

The Company also

considers area comparable properties and property condition when determining fair value.

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.

addition to this analysis performed by the Company, the Company depreciates Real Estate Held for Investment.

6 unchanged sentences

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Fair Value of Financial Instruments (Continued)

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 June 30, 2025:

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

Prices in Active Markets for Identical Assets

Observable Inputs

Unobservable Inputs

Assets accounted for at fair value on a recurring

Fixed maturity securities available

Assets accounted for at fair value on a recurring basis

Fixed maturity securities available for sale

$ 389,193,589

7 unchanged sentences

Derivatives - loan commitments (3)

Total assets accounted

for at fair value on a recurring basis

Total assets accounted for at fair value on a recurring basis

$ 590,316,100

1 unchanged sentence

$ 162,835,037

Liabilities accounted for at fair value on

a recurring basis

Liabilities accounted for at fair value on a recurring basis

Derivatives - loan commitments (4)

Total liabilities accounted

for at fair value on a recurring basis

$ ( 757,137 )

Fixed maturity securities

available for sale

Equity securities

Included in other assets

on the condensed consolidated balance sheets

Included in other liabilities

and accrued expenses on the condensed consolidated balance sheets

Total liabilities accounted for at fair value

on a recurring basis

maturity securities available for sale

in other assets on the condensed consolidated balance sheets

in other liabilities and accrued expenses on the condensed consolidated balance sheets

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Fair Value of Financial Instruments (Continued)

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:

Prices in Active Markets for Identical Assets

Observable Inputs

Unobservable Inputs

Assets accounted for at fair value on a recurring

Fixed maturity securities available

Assets accounted for at fair value on a recurring basis

Fixed maturity securities available for sale

$ 366,546,129

7 unchanged sentences

Derivatives - loan commitments (3)

Total assets accounted

for at fair value on a recurring basis

Total assets accounted for at fair value on a recurring basis

$ 536,860,288

1 unchanged sentence

$ 137,679,163

Liabilities accounted for at fair value on

a recurring basis

Liabilities accounted for at fair value on a recurring basis

Derivatives - loan commitments (4)

1 unchanged sentence

$ ( 3,034,879 )

Total liabilities accounted

for at fair value on a recurring basis

Total liabilities accounted for at fair value

on a recurring basis

$ ( 3,034,879 )

Fixed maturity securities

available for sale

Equity securities

Included in other assets

on the condensed consolidated balance sheets

Included in other liabilities

and accrued expenses on the condensed consolidated balance sheets

maturity securities available for sale

in other assets on the condensed consolidated balance sheets

in other liabilities and accrued expenses on the condensed consolidated balance sheets

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 2025, the significant unobservable inputs used

in the fair value measurements were as follows:

of Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair Value of Financial Instruments (Continued)

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

Range of Inputs

Fair Value at

September 30, 2025

Loans held for sale

1 unchanged sentence

Market approach

Investor contract pricing as a

percentage of unpaid principal balance

Investor contract pricing as a percentage of unpaid principal balance

Derivatives - loan commitments (net)

7 unchanged sentences

used in the fair value measurements were as follows:

Range of Inputs

Fair Value at

December 31, 2024

Loans held for sale

1 unchanged sentence

Market approach

Investor contract pricing as a

percentage of unpaid principal balance

Investor contract pricing as a percentage of unpaid principal balance

Derivatives - loan commitments (net)

6 unchanged sentences

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Fair Value of Financial Instruments (Continued)

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 June 30, 2025:

three-month period ended September 30, 2025:

Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs

Loan Commitments

Held for Sale

Maturity Securities Available for Sale

Balance - March 31, 2025

Loans Held for

Fixed Maturity

Available for Sale

Balance - June 30, 2025

$ 165,876,119

2 unchanged sentences

( 642,485,858 )

Transter to mortgage loans held for investment

Loans held for sale foreclosed into real estate

held for sale

Total gains (losses):

1 unchanged sentence

( 202,896 )(1)

in other comprehensive income

Balance - June 30, 2025

14,563,996 (1)

As a component of Mortgage

fee income on the condensed consolidated statements of earnings

As a component of Net investment

income on the condensed consolidated statements of earnings

Included in other comprehensive income

Balance - September 30, 2025

$ 159,460,525

a component of Mortgage fee income on the condensed consolidated statements of earnings

a component of Net investment income on the condensed consolidated statements of earnings

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 June 30, 2024:

Loan Commitments

Held for Sale

Maturity Securities Available for Sale

Balance - March 31, 2024

three-month period ended September 30, 2024:

Loans Held for

Fixed Maturity

Available for Sale

Balance - June 30, 2024

$ 150,196,416

5 unchanged sentences

( 179,836 )(1)

in other comprehensive income

Balance - June 30, 2024

14,576,935 (1)

(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

Included in other comprehensive income

Balance - September 30, 2024

$ 142,897,741

a component of Mortgage fee income on the condensed consolidated statements of earnings

a component of Net investment income on the condensed consolidated statements of earnings

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Fair Value of Financial Instruments (Continued)

following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the

six month period ended June 30, 2025:

Loan Commitments

Held for Sale

Maturity Securities Available for Sale

nine-month period ended September 30, 2025:

Loans Held for

Fixed Maturity

Available for

Balance - December 31, 2024

5 unchanged sentences

Transfer to mortgage loans held for investment

Loans held for sale foreclosed into real estate

held for sale

Loans held for sale foreclosed into real estate held for sale

Total gains (losses):

1 unchanged sentence

40,662,117 (1)

in other comprehensive income

Balance - June 30, 2025

Included in other comprehensive income

Balance - September 30, 2025

$ 159,460,525

As a component of Mortgage

fee income on the condensed consolidated statements of earnings

As a component of Net investment

income on the condensed consolidated statements of earnings

a component of Mortgage fee income on the condensed consolidated statements of earnings

a component of Net investment income on the condensed consolidated statements of earnings

following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the

six month period ended June 30, 2024:

Loan Commitments

Held for Sale

Maturity Securities Available for Sale

nine-month period ended September 30, 2024:

Loans Held for

Fixed Maturity

Available for

Balance - December 31, 2023

4 unchanged sentences

( 1,742,693,113 )

Transfer to mortgage loans held for investment

( 1,867,552 )

Foreclosed into real estate held for sale

2 unchanged sentences

36,863,767 (1)

in other comprehensive income

Balance - June 30, 2024

Included in other comprehensive income

Balance - September 30, 2024

$ 142,897,741

As a component of Mortgage

fee income on the condensed consolidated statements of earnings

As a component of Net investment income on

the condensed consolidated statements of earnings

a component of Mortgage fee income on the condensed consolidated statements of earnings

a component of Net investment income on the condensed consolidated statements of earnings

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Company did not have any financial assets and financial liabilities measured at fair value on a nonrecurring basis as of June 30, 2025

Fair Value of Financial Instruments (Continued)

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.

Value of Financial Instruments Carried at Other Than Fair Value

825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the

balance sheet, for which it is practicable to estimate that value.

Company uses its best judgment in estimating the fair value of the Company’s financial instruments;

2 unchanged sentences

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 June 30, 2025 and December

are not necessarily indicative of the amounts the Company could have realized in a sales transaction as of September 30, 2025, and December

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 June 30, 2025:

are summarized as follows as of September 30, 2025:

Schedule of Financial Instruments Carried at Other Than Fair Value

Estimated Fair Value

Mortgage loans held for investment

20 unchanged sentences

( 104,481,604 )

Included in other investments

and policy loans on the condensed consolidated balance sheets

Mortgage loans held for investment

Included in future policy

benefits and unpaid claims on the condensed consolidated balance sheets

in other investments and policy loans on the condensed consolidated balance sheets

loans held for investment

in future policy benefits and unpaid claims on the condensed consolidated balance sheets

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Fair Value of Financial Instruments (Continued)

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:

Estimated Fair Value

Mortgage loans held for investment

20 unchanged sentences

( 104,611,544 )

Included in other investments

and policy loans on the consolidated balance sheets

Mortgage loans held for investment

Included in future policy

benefits and unpaid claims on the consolidated balance sheets

in other investments and policy loans on the consolidated balance sheets

loans held for investment

in future policy benefits and unpaid claims on the consolidated balance sheets

methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of these financial instruments are

15 unchanged sentences

interest rates for commercial mortgages.

The carrying amounts reported in the accompanying condensed consolidated balance sheet for these financial instruments

approximate their fair values because they are fully collateralized by the cash surrender value of the underlying insurance policies.

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.

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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Fair Value of Financial

Instruments (Continued)

Assignments, Net :

These investments primarily have short term maturities, accordingly, the carrying amounts reported in the accompanying

condensed consolidated balance sheet for these financial instruments approximate their fair values.

Fair Value of Financial Instruments (Continued)

and Other Loans Payable :

47 unchanged sentences

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Derivative Instruments

Derivative Instruments (Continued)

Sale Commitments

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 exercise of the loan commitments.

A forward commitment protects the Company from losses on sales of the loans arising from the exercise of the loan commitments.

expects these types of commitments will experience changes in fair value opposite to changes in fair value of the loan commitments, thereby

6 unchanged sentences

Schedule of Derivative Assets at Fair Value

Balance Sheet

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

and Other liabilities

Other assets and Other liabilities

$ 185,579,856

6 unchanged sentences

Schedule of Gains and Losses on Derivatives

Net Amount Gain

Net Amount loss

Net Amount Gain

Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Classification

Loan commitments

Mortgage fee income

$ ( 202,896 )

$ ( 179,836 )

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

to Condensed Consolidated Financial Statements

30, 2025 (Unaudited)

Reinsurance, Commitments

and Contingencies

Reinsurance, Commitments and Contingencies

Company follows the procedure of reinsuring risks of more than a specified limit, which ranges from $ 25,000 to $ 100,000 on newly issued

13 unchanged sentences

Covenants for Mortgage Warehouse Lines of Credit

Company, through its subsidiary SecurityNational Mortgage, has two lines of credit for the purpose of funding mortgage loans.

of the lines of credit, with U.S.

Bank, allows SecurityNational Mortgage to borrow up to $ 15,000,000 .

Company, through its subsidiary SecurityNational Mortgage, has three lines of credit for the purpose of funding mortgage loans-one through

Bank, a second through Western Alliance Bank and a third through JPMorgan Chase Bank.

Bank warehouse line of credit agreement allows SecurityNational Mortgage to borrow up to $ 15,000,000 .

The relevant agreement contemplates

2 unchanged sentences

The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and a

maximum pre-tax loss of $ 2.5 million for the quarter.

Company’s other line of credit, with Western Alliance Bank, allows SecurityNational Mortgage to borrow up to $ 25,000,000 .

agreement contemplates interest at the 1-Month SOFR rate plus 2.0% on drawn amounts and matures on August 27, 2025 .

The Company is required

to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and a maximum pre-tax loss of $ 2.5 million for the

The agreement for the U.S.

Bank warehouse line of credit includes 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 June 30, 2025, SecurityNational Mortgage was not in compliance with the net income covenant of Western

Alliance Bank’s warehouse line of credit.

minimum net income of $ 1 for the quarter.

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.

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.

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 $ 12,751,822 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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Financial Statements

2025 (Unaudited)

Reinsurance, Commitments

and Contingencies (Continued)

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.

Covenants for Revolving Lines of Credit and Bank Loans

Company also has debt covenants on its revolving lines of credit and is required to comply with minimum operating cash flow ratios and

minimum net worth requirement for each of its business segments.

The Company also has debt covenants for one of its loans on real estate

requiring a minimum consolidated operating cash flow ratio, minimum liquidity, and consolidated net worth.

In addition to these financial

debt covenants, the Company is required to provide segment specific financial statements and building specific financial statements on

all bank loans.

As of June 30, 2025, the Company was in compliance with all these debt covenants.

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.

Contingencies and Commitments

Company belongs to a captive insurance group (“the captive group”) for certain casualty insurance, worker compensation and

general liability programs.

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 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.

Company is a defendant in various legal actions arising from the normal conduct of business.

18 unchanged sentences

Company periodically assesses MSRs for impairment.

Impairment occurs when the current fair value of the MSR falls below the asset’s

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.

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.

Company periodically reviews the various loan strata to determine whether the value of the MSRs in each stratum is impaired and likely

3 unchanged sentences

of Mortgage Servicing Rights

June 30, 2025

December 31, 2024

September 30,

Amortized cost:

Balance before valuation allowance

at beginning of year

Balance before valuation allowance at beginning of year

MSR additions resulting from loan sales (1)

Amortization (2)

Application of valuation

allowance to write down MSRs with other than temporary impairment

Balance before valuation

allowance at end of period

Application of valuation allowance to write down MSRs

with other than temporary impairment

Balance before valuation allowance at end of period

Valuation allowance for impairment of MSRs:

Balance at beginning of year

Application of valuation

allowance to write down MSRs with other than temporary impairment

Application of valuation allowance to write down MSRs

with other than temporary impairment

Balance at end of period

Mortgage servicing rights,

Estimated fair value of MSRs at end of

Included in mortgage fee

income on the condensed consolidated statements of earnings

Included in other expenses

on the condensed consolidated statements of earnings

Mortgage servicing rights, net

Estimated fair value of MSRs at end of period

in mortgage fee income on the condensed consolidated statements of earnings

in other expenses on the condensed consolidated statements of earnings

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Mortgage Servicing Rights

Mortgage Servicing Rights (Continued)

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 June 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.

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.

of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights

MSR Amortization

Estimated MSR Amortization

Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the condensed consolidated

1 unchanged sentence

of Other Revenues

September 30,

Contractual servicing fees

following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio.

of Unpaid Principal Balances of the Servicing Portfolio

June 30, 2025

December 31, 2024

Summary of Unpaid Principal Balances of the Servicing Portfolio

September 30,

Servicing UPB

3 unchanged sentences

of Assumptions Used in Determining MSR Value

June 30, 2025

September 30, 2025

December 31, 2024

2 unchanged sentences

30, 2025 (Unaudited)

Company’s overall effective tax rate for the three month periods ended June 30, 2025 and 2024 was 22.0 % and 22.6 %, respectively,

which resulted in a provision for income taxes of $ 1,830,264 and $ 2,118,044 , respectively, and for the six month periods ended June 30,

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 decrease in the effective tax rate when compared to the prior year was primarily due to the Company’s decreased

state income tax provision.

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.

income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete

3 unchanged sentences

tax provisions and accruals.

Revenues from Contracts

with Customers

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.

Revenues from Contracts with Customers

Company reports revenues from contracts with customers pursuant to ASC No.

3 unchanged sentences

Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled.

Company’s three types of future obligations are as follows:

Company’s two types of future obligations are as follows:

Merchandise and Service Revenue :

All pre-need merchandise and service revenue is deferred, and the funds are placed in trust

until the need arises, the merchandise is received, or the service is performed.

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.

Specialty Merchandise Revenue :

At-need specialty merchandise revenue consists of customizable merchandise ordered from a manufacturer

At-need specialty merchandise revenue consists of customizable merchandise ordered from manufacturers

such as markers and bases.

1 unchanged sentence

deferred until the at-need merchandise is received.

Pre-need Land Revenue :

Deferred pre-need revenue and corresponding commissions are deferred until 10% of the funds are received

from the customer through regular monthly payments.

Deferred pre-need land revenue is not placed in trust.

payment of the contract does not constitute fulfillment of the performance obligation.

Goods or services are deferred until such a time

the service is performed or merchandise is received.

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

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 an obligation and revenue remains deferred.

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.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Revenues from Contracts

with Customers (Continued)

Revenues from Contracts with Customers (Continued)

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

of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities

Contract Balances

Receivables (1)

Contract Asset

Opening (December 31, 2024)

Closing (June 30, 2025)

Closing (September 30, 2025)

Increase/(decrease)

Contract Balances

Receivables (1)

Contract Asset

Opening (December 31, 2023)

2 unchanged sentences

in Receivables, net on the condensed consolidated balance sheets

amount of revenue recognized and included in the opening contract liability balance for the three month periods ended June 30, 2025 and

2024 was $ 1,164,177 and $ 1,429,381 , respectively, and for the six month periods ended June 30, 2025 and 2024 was $ 2,323,389 and $ 2,935,495 ,

respectively.

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.

difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results

3 unchanged sentences

of Revenues of the Cemetery and Mortuary Contracts

Major goods/service

Three Months Ended

September 30,

Nine Months Ended

September 30,

Major goods/service lines

Net mortuary and cemetery

Timing of Revenue

Timing of Revenue Recognition

Goods transferred at a point in time

Services transferred at

a point in time

Services transferred at a point in time

Net mortuary and cemetery

3 unchanged sentences

consist of the following:

Schedule of Receivable

June 30, 2025

December 31, 2024

of Receivable

September 30,

Contracts with customers

8 unchanged sentences

of Allowance Credit Losses

Beginning balance - March 31, 2025

Change in provision for

credit losses (1)

Ending balance - June 30, 2025

Beginning balance - March 31, 2024

Change in provision for

credit losses (1)

Ending balance - June 30, 2024

Included in other expenses on the condensed consolidated statements of

Beginning balance - June 30, 2025

Change in provision for credit losses (1)

Ending balance - September 30, 2025

Beginning balance - June 30, 2024

Change in provision for credit losses (1)

Ending balance - September 30, 2024

Included in other expenses on the condensed consolidated statements

Beginning balance - December 31, 2024

Change in provision for

credit losses (1)

Ending balance - June 30, 2025

Change in provision for credit losses (1)

Ending balance - September 30, 2025

Beginning balance - December 31, 2023

Change in provision for

credit losses (1)

Ending balance - June 30, 2024

Included in other expenses on the condensed consolidated statements of

Change in provision for credit losses (1)

Ending balance - September 30, 2024

Included in other expenses on the condensed consolidated statements

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Cemetery Perpetual Care

Trust Investments and Obligation and Restricted Assets

Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets

Perpetual Care Trust Investments and Obligation

6 unchanged sentences

Care Obligation in the accompanying consolidated balance sheets .

components of cemetery perpetual care investments and obligation as of June 30, 2025, are as follows:

components of cemetery perpetual care investments and obligation as of September 30, 2025, are as follows:

of Investments and Obligation

Unrealized Gains

Unrealized Losses

June 30, 2025:

Fixed maturity securities, available for sale,

at estimated fair value:

securities and obligations of U.S.

Estimated Fair

September 30, 2025:

Fixed maturity securities, available for sale, at estimated fair value:

Treasury securities and obligations of U.S.

Government agencies

of states and political subdivisions

fixed maturity securities available for sale

Obligations of states and political subdivisions

Total fixed maturity securities available for sale

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous

and all other

Industrial, miscellaneous and all other

$ ( 135,365 )

equity securities at estimated fair value

Total equity securities at estimated fair value

$ ( 135,365 )

Mortgage loans held for investment at amortized

Mortgage loans held for investment at amortized cost:

Residential construction

Allowance for credit losses

Total mortgage loans

held for investment

Total mortgage loans held for investment

Other investments

Cash and cash equivalents

Accrued investment

Total cemetery perpetual

care trust investments

Cemetery perpetual

care obligation

Accrued investment income

Total cemetery perpetual care trust investments

Cemetery perpetual care obligation

$ ( 5,838,879 )

Trust investments

in excess of trust obligations

Trust investments in excess of trust obligations

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Cemetery Perpetual Care

Trust Investments and Obligations and Restricted Assets (Continued)

Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)

components of cemetery perpetual care investments and obligation as of December 31, 2024, are as follows:

Unrealized Gains

Unrealized Losses

Fixed maturity securities, available for sale,

at estimated fair value:

securities and obligations of U.S.

Estimated Fair

December 31, 2024:

Fixed maturity securities, available for sale, at estimated fair value:

Treasury securities and obligations of U.S.

Government agencies

of states and political subdivisions

fixed maturity securities available for sale

Obligations of states and political subdivisions

Total fixed maturity securities available for sale

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous

and all other

Industrial, miscellaneous and all other

$ ( 226,007 )

equity securities at estimated fair value

Total equity securities at estimated fair value

$ ( 226,007 )

Mortgage loans held for investment at amortized

Mortgage loans held for investment at amortized cost:

Residential construction

Allowance for

credit losses

Allowance for credit losses

Total mortgage loans

held for investment

Allowance for credit losses

Total mortgage loans held for investment

Cash and cash equivalents

Accrued investment

Total cemetery perpetual

care trust investments

Cemetery perpetual

care obligation

Accrued investment income

Total cemetery perpetual care trust investments

Cemetery perpetual care obligation

$ ( 5,642,693 )

Trust investments

in excess of trust obligations

Trust investments in excess of trust obligations

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Cemetery Perpetual Care

Trust Investments and Obligations and Restricted Assets (Continued)

Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)

Maturity Securities

table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as

of June 30, 2025 and December 31, 2024.

The tables set forth unrealized losses by duration with the fair value of the related fixed maturity

Schedule of Fair Value of Fixed Maturity Securities

Losses for Less than Twelve Months

Losses for More than Twelve Months

Unrealized Loss

June 30, 2025

Treasury securities and obligations

Government agencies

Obligations of states

and political subdivisions

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:

of Fair Value of Fixed Maturity Securities

September 30, 2025

Obligations of states and political subdivisions

December 31, 2024

Treasury securities and obligations of

Treasury securities and obligations of U.S.

Government agencies

Obligations of states

and political subdivisions

holdings were comprised of three securities with fair values aggregating 99.1 % of the aggregate amortized cost as of June 30, 2025.

holdings were comprised of four securities with fair values aggregating 99.1 % of aggregate amortized cost as of December 31, 2024.

credit losses have been recognized for the three and six month periods ended June 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.

table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of June 30, 2025,

Obligations of states and political subdivisions

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,

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.

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

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.

of Investments Classified by Contractual Maturity Date

Estimated Fair

6 unchanged sentences

30, 2025 (Unaudited)

Cemetery Perpetual Care

Trust Investments and Obligations and Restricted Assets (Continued)

Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)

Company has also established certain restricted assets to provide for future merchandise and service obligations incurred in connection

7 unchanged sentences

These restricted cash items are for the Company’s life insurance and mortgage

assets as of June 30, 2025, are summarized as follows:

Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

Unrealized Gains

Unrealized Losses

June 30, 2025:

Fixed maturity securities, available for sale,

at estimated fair value:

securities and obligations of U.S.

assets as of September 30, 2025, are summarized as follows:

of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

Estimated Fair

September 30, 2025:

Fixed maturity securities, available for sale, at estimated fair value:

Treasury securities and obligations of U.S.

Government agencies

Obligations of states and

political subdivisions

securities including public utilities

fixed maturity securities available for sale

Obligations of states and political subdivisions

Corporate securities including public utilities

Total fixed maturity securities available for sale

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous

and all other

Industrial, miscellaneous and all other

$ ( 337,799 )

equity securities at estimated fair value

Total equity securities at estimated fair value

$ ( 337,799 )

loans held for investment at amortized cost:

Mortgage loans held for investment at amortized cost:

Residential construction

Allowance for credit losses

Total mortgage loans

held for investment

Total mortgage loans held for investment

Other investments

1 unchanged sentence

Accrued investment income

Total restricted

Including cash and cash equivalents of $ 11,520,474

for the life insurance and mortgage segments.

Total restricted assets

Including cash and cash equivalents of $ 12,375,579 for the

life insurance and mortgage segments.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Cemetery Perpetual Care

Trust Investments and Obligations and Restricted Assets (Continued)

Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)

assets as of December 31, 2024, are summarized as follows:

Unrealized Gains

Unrealized Losses

Fixed maturity securities, available for sale,

at estimated fair value:

securities and obligations of U.S.

Amortized Cost

Gross Unrealized Gains

Gross Unrealized Losses

Estimated Fair Value

December 31, 2024:

Fixed maturity securities, available for sale, at estimated fair value:

Treasury securities and obligations of U.S.

Government agencies

Obligations of states and

political subdivisions

securities including public utilities

fixed maturity securities available for sale

Obligations of states and political subdivisions

Corporate securities including public utilities

Total fixed maturity securities available for sale

Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous

and all other

Industrial, miscellaneous and all other

$ ( 489,852 )

equity securities at estimated fair value

Total equity securities at estimated fair value

$ ( 489,852 )

Mortgage loans held for investment at amortized

Mortgage loans held for investment at amortized cost:

Residential construction

Allowance for credit losses

Total mortgage loans

held for investment

Total mortgage loans held for investment

Other investments

1 unchanged sentence

Accrued investment income

Total restricted

Including cash and cash equivalents of $ 7,657,958

for the life insurance and mortgage segments.

Total restricted assets

Including cash and cash equivalents of $ 7,657,958 for the

life insurance and mortgage segments.

NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

1 unchanged sentence

30, 2025 (Unaudited)

Cemetery Perpetual Care

Trust Investments and Obligations and Restricted Assets (Continued)

Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)

Maturity Securities

table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as

of June 30, 2025 and December 31, 2024.

The tables set forth unrealized losses by duration with the fair value of the related fixed maturity

Schedule of Fair Value of Fixed Maturity Securities

Losses for Less than Twelve Months

Losses for More than Twelve Months

Unrealized Loss

At June 30, 2025

Treasury securities and obligations

Government agencies

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.

of Fair Value of Fixed Maturity Securities

At September 30, 2025

Obligations of states and political subdivisions

Corporate securities including

public utilities

Corporate securities including public utilities

Total unrealized losses

At December 31, 2024

Treasury securities and obligations of

Treasury securities and obligations of U.S.

Government agencies

Obligations of states and political subdivisions

Corporate securities including

public utilities

Corporate securities including public utilities

Total unrealized losses

holdings were comprised of 11 securities with fair values aggregating 99.5 % of the aggregate amortized cost as of June 30, 2025.

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 six month periods ended June 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.

table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of June 30, 2025,

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,

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.

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

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.

of Investments Classified by Contractual Maturity Date

Estimated Fair

7 unchanged sentences

30, 2025 (Unaudited)

Accumulated Other Comprehensive

Income (loss)

Accumulated Other Comprehensive Income (loss)

following table summarizes the changes in accumulated other comprehensive income (loss):

of Changes in Accumulated Other Comprehensive Income (Loss)

Months Ended June 30,

Unrealized gains (losses) on fixed

maturity securities available for sale

$ ( 654,164 )

Three Months Ended

September 30,

Nine Months Ended

September 30,

Unrealized gains on fixed maturity securities

available for sale

Amounts reclassified into net earnings

Net unrealized gains before taxes

Tax (expense)

( 2,198,474 )

Amounts reclassified into

Net unrealized gains (losses) before taxes

( 2,066,384 )

Tax (expense) benefit

( 1,824,502 )

Unrealized gains on restricted assets (1)

Tax (expense)

Unrealized gains on cemetery perpetual care

trust investments (1)

Unrealized gains

Tax (expense)

Other comprehensive income changes

Fixed maturity securities available for sale

following table presents the accumulated balances of other comprehensive income (loss) as of September 30, 2025:

of Accumulated Balances of Other Comprehensive Income

December 31, 2024

Change for the

Ending Balance

September 30,

Unrealized gains (losses) on fixed maturity securities available for sale

$ ( 6,941,915 )

Unrealized losses on restricted assets (1)

Unrealized gains (losses) on restricted assets (1)

Unrealized gains (losses) on cemetery perpetual

care trust investments (1)

Unrealized gains (losses)

Tax (expense) benefit

Other comprehensive

income (loss) changes

$ ( 517,129 )

$ ( 1,412,227 )

Fixed maturity securities available for sale

following table presents the accumulated balances of other comprehensive income (loss) as of June 30, 2025:

Schedule of Accumulated Balances of Other Comprehensive Income

Balance December 31, 2024

for the period

Balance June 30,

Unrealized gains (losses) on fixed

maturity securities available for sale

$ ( 6,941,915 )

$ ( 1,821,642 )

Unrealized losses on restricted assets (1)

Unrealized gains (losses)

on cemetery perpetual care trust investments (1)

Other comprehensive

income (loss)

$ ( 6,951,266 )

Other comprehensive income (loss)

$ ( 6,951,266 )

1 unchanged sentence

following table presents the accumulated balances of other comprehensive income (loss) as of December 31, 2024:

Balance December 31, 2023

for the period

Balance December 31,

Unrealized losses on fixed maturity

securities available for sale

Beginning Balance December 31, 2023

Change for the period

Ending Balance December 31,

Unrealized losses on fixed maturity securities

available for sale

$ ( 6,876,629 )

$ ( 6,941,915 )

Unrealized gains (losses) on restricted

Unrealized losses on

cemetery perpetual care trust investments (1)

Other comprehensive

Unrealized gains (losses) on restricted assets (1)

Unrealized losses on cemetery perpetual

care trust investments (1)

Other comprehensive loss

$ ( 6,885,558 )

$ ( 6,951,266 )

Fixed maturity securities

available for sale

Fixed maturity securities available for sale

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements