Security National Financial Corporation Class A Stock

Good afternoon, everyone, and welcome to Security National Financial Corporation's Second Quarter 2026 Earnings Call. We thank you for joining us today to review our financial and operational results for the period ended June 30, 2026.

Before we begin, I'd like to remind everyone that our remarks today will include forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially from those projected. Such risks include, but are not limited to, changes in economic conditions, interest rates, regulatory developments, competitive pressures and other factors detailed in our filings with the Securities and Exchange Commission.

We caution you not to place undue reliance on these forward-looking statements, which speak only as of today's date. We undertake no obligation to publicly update or revise these statements to reflect future events or circumstances, except as required by law.

With that, I'd like to turn the call over to our Chairman, President and Chief Executive Officer, Scott Quist. Scott?

Thank you. Welcome, everyone. I am pleased to report that our second quarter earnings after tax increased 7.3% over 2025 and that our first half earnings increased 8.1% over 2025. This improved profitability for both the quarter and the first half of the year illustrates the very solid operational and sales progress we have made in all of our business segments. It is not lost on me that our top line revenue decreased 6.3% for the quarter and 5% for the half. We are working aggressively and in my view, successfully to address those revenue issues. But our first goal was improved profitability, and we achieved that goal.

Our Mortgage Segment can be considered the star for the first half of 2026, delivering 2 very solid quarters of improved performance. The mortgage segment improved Q1 year-over-year profitability by $1.4 million and then followed that great performance in Q2 with a $1.6 million improvement for a total $3 million profit improvement for the first half of 2026. Revenue did decrease 9% for the first half, which is never our goal, but that decrease highlights the tremendous operational improvements that were accomplished. Obviously, there is a nexus between revenue and profitability. But in this market, if we must choose one or the other, meaning revenue growth or improved profitability, at this juncture, I much prefer the improved profitability. And I will say that is not always my preference, while I always do want to improve profitability. But sometimes it's the time to grow revenue and sometimes it's the time to grow profitability.

A shout out is owed to the entire company for this improved performance. Suffice it to say that all aspects have been worked, worked again and reworked over the last several years, including management structures, margins, marketing, commissions, products, pricing, back office, secondary operations, underwriting and closing and funding to achieve greater efficiencies. Much work remains to be done. But after all the hard work of our team, it is gratifying to see this segment profitable in Q2 and within striking distance of profitability for the year.

Our Cemetery and Mortuary Segment also delivered stellar results, increasing revenue by 21% for the quarter and by 13% for the first half with a corresponding profit improvement of 69% for the quarter and 29% for the first half. As is many times the case, there is much movement going on under the hood in achieving those impressive results. First, the overall backdrop. While it's difficult to precisely quantify at this time, I believe most would agree that the death rate in the United States dropped in 2026 to its lowest level in recent years. The improved mortality experienced in our Life company segment, decreased case count in our funeral funding operation and reviews of our publicly traded peers all reinforce that conclusion.

Thus, looking within this segment at our mortuary only results, while revenue did increase by some 3% for the first half, profitability actually decreased some 9%. We believe that we have generally increased our market share, but it has been a struggle because of this year's declining death rate. However, demonstrating the benefit of diversified income streams, our cemetery-only results showed an 11% revenue improvement with a 17% profitability improvement, basically as a result of improved preneed cemetery sales. Our cemetery preneed sales results show that we are controlling that which we can control, which is leading to overall profit improvement. Many thanks are owed to the considerable effort that has gone into rebuilding our preneed cemetery sales force.

In addition to the improved preneed sales results, we had a $1 million favorable investment tailwind in the second quarter, which reversed the unfavorable investment results we experienced in the first quarter. All in, we achieved a nearly 23% segment net profit margin in the first half, which, in my view, is admirable.

Our Life Insurance segment also made very significant positive progress despite its top line revenue decrease of 5.5% for the first half and a profitability decrease of 13%. I don't believe those numbers are illustrative of the significant progress, which has been accomplished in nearly all facets of our business. Regarding the revenue decrease, there are 2 major components, which are premium revenue, which is the smaller component of the decrease and our investment income revenue. While there are numerous inputs in the reported premium amount, which makes generalizing somewhat hazardous, to me, the premium revenue decline is primarily due to fewer single premium products being sold in 2026, which, in my view, is our least profitable product.

Our modal-pay product sales have actually increased year-to-date, but those effects won't be realized in our financial statements for several periods. As I have noted in prior releases, we have been spending significant time and resources in improving our sales functions, which efforts in my view have been very successful even being measured at this very initial stage. Illustrative of that initial success, first year premium sales are now up versus 2025. We have much work to do, but we have built and are building excellent offerings for the marketplace to include a much improved onboarding process for new sales personnel, ease of application for both the agent and the customer, quicker real-time underwriting decisions, better lead generation and management, more predictable commission and advanced structures and better quality measuring metrics, all resulting in significant first-year traction.

The larger factor in this segment's revenue decline and probably also the larger factor in its profitability decline is its investment income. Specifically, we had lower builder profit split in 2026 vis-a-vis 2025, and also decreased interest income. We have made specific strategic decisions to increase our land holdings, which, in my view, will lead to greater profits in the future, albeit at the cost of current profitability since we recognize no profit on land until it is either sold or a home on it has started construction. Many of our land holdings have a 12 to 24 month, or even longer time horizon. So increasing land holdings does suppress both revenue and profit in the current period in favor of greater profitability in the future.

Regarding the decrease in interest income, this result reflects the impact of loan payoffs, increased rate competition and lower loan origination volumes during Q1. Construction-related loan originations, however, rebounded strongly during Q2. Utah new-home starts were down significantly in 2025, which trend appears to be continuing in 2026, which led to the decreased construction loans. Primarily due to lower loan production, our cash position has increased by some $61 million since December 31, 2025, which does earn bank interest, but at a rate below that of our lending activities.

Despite those declines, I don't believe we've ever had better processes or more talented and capable people in responsible positions than we do today. In summary, I believe we have improved capacity, more talented people, greater wherewithal and better sales offerings in both products and processes than we have ever had. In a nutshell, when viewed as a whole, SNFC increased profitability in the quarter by 7.3% and for the first half by 8.1% despite a decline in revenue. Many thanks to our hardworking teams for achieving those impressive operational results.

Thank you, Scott, and good afternoon, and thank you for joining us today. My name is Garrett Sill. I am the Chief Financial Officer of Security National Financial Corporation. This was a good quarter for the company, and I do want to thank all our employees for their efforts and dedication in making Security National a great company. In addition to what Scott shared, I want to highlight a few additional items regarding our consolidated financial statements.

First, on our balance sheet, total assets grew to $1.61 billion as of June 30, 2026, an increase of $47.5 million or 3% compared to year-end. We also saw a 60% increase in cash and cash equivalents, while our combined investment portfolio decreased $13 million or 1.2% to just over $1 billion as we continue to look for opportunities to deploy the elevated cash balances we discussed in our last call and this call. Total liabilities increased $24.8 million or 2.2% to $1.18 billion. Stockholders' equity increased $22.7 million or 5.5% to $433 million. And as a result, our debt-to-equity ratio improved to 2.72x from 2.81x at year-end, reflecting a continued strengthening of our capital position.

Moving to our statement of earnings. Net earnings for the second quarter were approximately $9 million, an increase of nearly $2 million or 28.3% compared to net earnings of $7 million in the first quarter of 2026. On a year-over-year basis, net earnings for the 6 months ended June 30, 2026, increased 8.1% compared to the same period in 2025, which Scott addressed in his remarks. I'd also note that combined commissions and personnel expense, our 2 largest cost categories decreased $4.8 million or 13.5% for the quarter and $8 million or 11.8% year-to-date compared to the same period in 2025, reflecting continued efficiency efforts across our segments. As a reminder, all 2025 figures referenced today have been revised to reflect our adoption of LDTI, so these quarter-over-quarter and year-over-year comparisons are being made on a consistent basis.

Speaking of LDTI, I'd like to draw your attention to our statement of comprehensive income, which showed a notable divergence between our quarterly and year-to-date results this quarter. For the 6 months ended June 30, 2026, comprehensive income totaled $22.4 million, an increase of 86.6% compared to the $12 million for the same period last year. This year-to-date improvement was driven primarily by the interest rate remeasurement of our future policy benefits under LDTI, which swung from a $10.2 million charge to other comprehensive income in the first half of 2025 to a $12.9 million benefit in the first half of 2026, a favorable swing of approximately $23 million tied to the discount rate movements.

I would note, however, that on a stand-alone quarterly basis, comprehensive income for the second quarter of 2026 was $7.3 million, down 18.2% from $8.9 million in the second quarter of 2025. So while our year-to-date comprehensive income trend is strongly positive, the core trend moved in the opposite direction this quarter, a good reminder of how sensitive this measure is to discount rate movements from period to period and why we continue to encourage you to review both the quarterly and year-to-date statement of comprehensive income.

Turning to credit quality. Our fixed maturity security portfolio remains high in quality with 98.4% rated investment grade as of June 30, 2026, essentially unchanged from 98.5% at year-end. Only 1.6% of our total bond portfolio or approximately $6 million was held in noninvestment-grade categories, consistent with year-end. On the mortgage loan side, loans more than 90 days past due increased to $15.8 million as of June 30, 2026, from $6.5 million at year-end. Our allowance for credit losses on mortgage loan portfolio remains appropriately reserved, and we are monitoring this trend closely.

In closing, the second quarter 2026 was a good quarter for the company as we again saw growth in total assets, stockholders' equity and net earnings, both sequentially and year-over-year. Regarding our internal controls over financial reporting, we continue to test, improve and remediate where needed. And as has been noted, we continue to focus on growing top line while also improving overall profitability.

Next, we'll hear from Andrew Quist, President and Chief Executive Officer of Security National Mortgage.

Thank you, Garrett, and good afternoon, fellow shareholders. I'm Andrew Quist, President and CEO of Security National Mortgage Company. In the second quarter of 2026, Security National Mortgage Company had a pretax net income of $71,000 compared to a pretax net loss of $1,671,000 in the second quarter of 2025. This was a year-over-year increase of $1,742,000 or 104% from last year's results. While the net income result is modest, I was particularly proud of our first profitable quarter since Q3 of 2025. Furthermore, the over $3 million improvement year-to-date is noteworthy. This is evidence that the tireless work and effort of our employees have put in, in reshaping Security National Mortgage Company over the past several years is paying off.

Continuing our recent trend, this improvement in net income and profitability came on reduced year-over-year origination volumes. In the second quarter of 2026, we originated $548 million of loan volume compared to $617 million in the second quarter of 2025, an 11% year-over-year decrease.

On a sequential quarter basis, origination volumes were up 12%. Based on the Mortgage Bankers Association's reported total industry origination volumes for the second quarter, SNMC's market share increased to 10 basis points, up from 9 basis points in Q1. The sequential quarter increase in origination volume outpaced the overall industry origination volume increase as indicated by our increased market share. While the year-over-year decline continues to be impacted by the company separating from a large group of loan originators in the third quarter of last year. While the separation has negatively impacted origination volumes, it's contributed significantly to our profitability.

As interest rates rose steadily through much of the second quarter, SNMC's purchase transaction volume remains strong. While refinance volume and percentage of overall volume declined from multiyear highs in Q1, both refinance volume and refinance percentage of overall volume were up over Q2 in 2025, 17% refinance percentage in Q2 2026 versus 14% refinance percentage in Q2 2025. I believe this shows tangible proof that our increased focus on repeat borrowers over the past 9 months has been effective. In 2026, our percentage of borrowers who are repeat borrowers is higher than it's been in the past 3-plus years. This percentage should continue to increase as we strengthen our skill set in serving past borrowers of SNMC with their future lending needs, whatever they may be.

A corollary of this activity is offering our past borrowers home equity lines of credit, helping them tap the historic equity in today's housing market. We have averaged 1 HELOC transaction a day in the second quarter, up from virtually 0 as recently as the fourth quarter in 2025.

In summary, in the second quarter of 2026, Security National had pretax net income of $71,000 despite lower origination volumes year-over-year. This was the first profitable quarter for SNMC since Q3 of 2025. I believe a quick survey of other publicly traded retail independent mortgage banks second quarter results will further demonstrate the strength of our profitable quarter. I'd like to conclude by thanking our loan officers and employees for their wonderful work improving Security National in this challenging environment. The progress is exciting, and I couldn't be more proud. Thank you.

I'll now turn the time over to Adam Quist.

Thank you, Andrew, and congratulations on the profitable quarter and the improvement. As Andrew mentioned, my name is Adam Quist, and I'm the President and CEO of the Security National Life Insurance Company. My remarks today will focus on how our life companies have performed year-to-date with some additional context on the second quarter itself.

For the 6 months ended June 30, 2026, our Life segment generated total revenues of approximately $98.4 million compared to $104 million a year ago or a decrease of about 5%. Net earnings before taxes were $16.1 million compared to $18.6 million, a decrease of approximately 13%. For the second quarter alone, revenues were approximately $49.5 million versus $53.4 million and net earnings before taxes were $8.5 million versus $10.6 million. Those are real decreases and decreases are, of course, not our goal. But in my opinion, when evaluating our company's performance, it is also worth retaining the context that 2025 was our best operational year in our company's history. And year-to-date, 2026 is our second best operating year in our company's history. I believe our team is executing well, making deliberate choices and building towards a stronger future.

I now want to discuss the main factors driving those top line numbers. As Scott mentioned, the pressure on our top line this year is concentrated in 2 identifiable places, namely a decrease in single premiums and lower net investment income, primarily associated with homebuilder profit share. Let me start with the smaller of the 2 factors, premiums. For the 6 months, insurance premiums and other considerations were approximately $57.6 million compared to $60 million a year ago, a decrease of about 4%. In the second quarter, premiums were $28.7 million versus $30.2 million, a decrease of roughly 5%.

The largest single factor of the year-to-date decline is our single premium business. Single premium is our least profitable product. And as we have discussed before, we are currently emphasizing growing our modal-pay sales, which we believe is the business that builds more durable value over time. Our renewal premium base, the truest measure of the health of our in-force book, grew year-to-date, up about 1.5% on our individual whole life block. This means our existing policyholders are staying with us, persistency remains solid and the foundation of our business is strong.

Looking at our year-to-date new sales results, our first year modal-pay premium production, or in other words, the multi-pay new business we are writing this year is now running ahead of where it was at this point last year. It is important to keep in mind, however, that because modal premiums feather into our financial statements gradually over time as the policyholders make their monthly premium payments, it will take time for this increase in modal-pay sales to show up in our reported premium revenues. But this increase reflects the early-stage success of the sales leadership changes we have made and the investments in our distribution platforms we've been making over the last 2 years.

Now let me turn to the largest factor affecting both our revenue and net income, our net investment income. For the 6 months, net investment income was $33.4 million compared to $38.6 million, a decrease of about $5.2 million or 14%. In the second quarter, it was $15.7 million versus $20 million, down roughly 21%. There are 2 distinct pieces at play here, and I want to separate them clearly because they behave differently. The largest single factor is a decline in homebuilder profit share income, which on a net basis was down about $2.8 million year-to-date and about $2.5 million in the second quarter alone. The second factor is interest and fee income associated with our residential construction lending, which was down about $1 million on the quarter and about $1.1 million year-to-date.

However, I should point out that construction loan origination activity picked up meaningfully during the second quarter after a slower start to the year, which we view as an encouraging sign heading into the second half, even though it has not yet fully worked its way through to our outstanding balances and reported interest income. We have deliberately grown our investment in land and residential subdivision development to approximately $122 million as of June 30, up from about $98 million at year-end. That capital is not yet generating reported investment income under GAAP since that only happens once a lot is sold or a construction loan is originated, but we view it as a leading indicator of future builder profit sharing income. We believe this capital is deployed in projects that will result in greater profitability in future periods, even if it is not showing up on our current numbers.

Gains on our equities and other assets were $3.7 million year-to-date compared to $1.2 million a year ago, an approximate $2.5 million increase, which was driven mainly by a $1.9 million increase in unrealized gains in our equity portfolio relative to 2025. These are market-driven and can move in either direction, but they have partially offset the headwinds I just described in our builder profit share income and speak to the quality of the portfolio we hold and the benefits of having a diversified investment strategy. We also saw a year-over-year increase in realized gains on real estate of about $850,000 as a result of construction starts or lot sales.

Turning to expenses. I am pleased with the discipline our team continues to show. Total selling, general and administrative expenses for the segment were down about 3.3% year-to-date to $25.9 million from $26.8 million and down 3.4% in the second quarter alone. Personnel expense increased modestly, up about 2.8% year-to-date and 3.2% in the second quarter. That increase is intentional and reflects our continued investment in sales leadership talent, the same investment that is driving the modal-pay sales trend I mentioned earlier. I am encouraged that our overall expense base is stable even as we continue to invest in the people and systems that will grow this business.

Policyholder benefits and claims were also lower, down about 4% year-to-date and roughly 5% in the second quarter, reflecting continued favorable claims experience. That is a credit to our underwriting and claims teams and reflects mortality and surrender experience that remains close to pre-COVID trends. All total benefits and expenses for the segment were down about 3.7% year-to-date.

In closing, year-to-date, our revenue and earnings are lower because we shifted deliberately away from our least profitable premium product and saw a sharp though partially offset decline in builder profit sharing income. I believe our company's foundation is strong. Our team is making deliberate decisions, exercising discipline, strengthening our sales force and making investments that position ourselves for better performance in the future. While I recognize that our year-to-date numbers are down from 2025, we are still experiencing our second best operational year in the company's history, a testament to the great work of our team. I remain confident in the direction of our life companies and in the team executing our strategy. I look forward to sharing our continued progress with you on future calls. Thank you for your continued support.

I will now turn the time over to Steve Kehl to discuss our funeral home and cemetery division.

Thank you, Adam. Good afternoon, everyone. I'm Steve Kehl, Chief Operating Officer of Security National's Funeral Homes and Cemeteries. Today, I'll walk you through our second quarter results as Scott has touched on several first half comparisons in his remarks.

For the second quarter, earnings before tax increased 69.5% to $3 million from $1.8 million a year ago. Revenue increased 20.7% to $9.8 million from the $8.1 million a year ago. Now as Scott noted is looking under the hood, I want to be clear at the outset about what is driving what. That growth in our earnings before tax came from investments. Excluding our investment results, our revenue increased 5.5% in the second quarter of 2026 from $7.4 million to $7.8 million, and operating earnings before tax decreased 4.8% to $963,000 from just over $1 million. Our operating businesses grew revenue and improved on several key indicators. At the same time, we absorbed deliberate investments in both talent and technology. Those investments carry costs today, and they are intended to support growth and efficiency going forward.

As we review our funeral homes, revenue increased 7.4% to $3.5 million from $3.3 million, while earnings before tax decreased 3.2% to $375,000. Our earnings before tax declined because costs outpaced revenue. Total operating costs increased 8.8% against revenue growth of 7.4%. I want to be direct about that cost increase. It was led by compensation, and that was a decision, not a surprise. We have invested in talent in this segment, and that investment is already showing up in our customer service experience feedback.

Three metrics matter most to us in this segment, and all 3 moved in the right direction. Families served increased 1.1%. Average revenue per call increased $323 or 6.2% to $5,549. And the share of cremation families choosing a memorial or funeral service rose to 41.9%. That last measure is one we are pushing the hardest on because we know a cremation with a service is a better experience for the family and a better economic outcome for us. However, even at an impressive 49.9%, we have room to improve. The work from here is to leverage what we have already invested in our people, our training and our technology across a growing revenue base and to convert that into stronger margins as we continue to navigate a headwind of declining death rates.

In cemeteries, revenue increased 4% to $4.3 million from $4.1 million, while earnings before tax decreased 5.8% to $588,000. Earnings before tax declined because costs once again outpaced revenue. Cost of goods sold increased 3.1% as we face ongoing wholesale margin pressures and operating expenses increased 6.7%. The main driver within our revenue growth was from our net preneed land sales increasing 6.1% to $2.34 million. Within the quarter, we continued to focus on our prospecting metrics, community seminars and providing events within our memorial parks. Also important to note that our interment activity within our memorial parks was also positive. Placements increased 5.1% to 348. Even more impressive within that figure, I felt it was important to note that traditional interments in the quarter increased 12.1% to 268. So we saw increase in both volume and a richer mix.

Our priorities in cemeteries are consistent. We will continue to focus on building family relationships, generating steady preneed production, sharpening our sales execution, recruiting talent, maintain our properties well and keep adding capacity through garden developments. As noted, our investment revenue increased 169.5% to $2 million from $758,000 a year ago. The increase was driven primarily by higher unrealized gains within our portfolio. Now we are pleased with that contribution, but we are also clear-eyed about it. Unrealized gains can move in either direction. That is why we evaluate our operating businesses separately from short-term changes in investment valuations and why I have intentionally separated the 2 for you today.

Stepping back, this quarter showed both progress and opportunity. Reported earnings benefited significantly from investment performance, while operating profitability came in slightly below the prior year. Underneath that, families served revenue per call, cremation with service, cemetery preneed land production and interment activity all improved. Our job now is to control what we can control and convert those operating improvements into earnings growth.

In closing, I want to thank our funeral homes, cemetery grounds and operational support teams. The results that I just described are their work. It is an honor to work alongside such talented professionals. We are realistic about what lies ahead, encouraged by the underlying business and confident that consistent execution creates long-term value for our shareholders. Thank you for your time and your continued confidence.

I'll now turn the time back over to Heather Street, our Vice President of Human Resources.

Thank you, Steve. Before we conclude today's call, we would like to open the floor for questions. As a reminder, to ask a question, please use the Zoom platform to raise your hand to unmute or you may submit questions through the Zoom Q&A panel, include your name and organization and will take us as many as time permits.

Not seeing any questions. Are there any further questions either in the chat or if you'd like to unmute.

All right. If we have no questions, we'll note the end of our Q&A. Thank you again for your participation. We value engagement and thoughtful input. For more information about the meeting, our latest financial reports or any other investor materials, we invite you to visit the Investor Relations section of our website at www.securitynational.com. We appreciate your continued support of Security National Financial Corporation.

This concludes our second quarter 2026 earnings call. We look forward to speaking with you again soon. Thank you, and have a great day.

I believe the hour has come. Ladies and gentlemen, my name is Scott Quist. I am the Chairman and Chief Executive Officer of Security National Financial Corporation. It is now 10:00 a.m., and I hereby call this Annual Meeting of the Stockholders to order. On behalf of my fellow directors, officers and employees, it's my pleasure to welcome you this morning.

At this time, I'd like to introduce the people, the fellow officers and directors here at the head table or tables. First, we'll start with Alexandra Mysoor. Alexandra has been a director since 2021. She is the Founder and CEO of Alix, that's A-L-I-X, which is a fintech platform providing estate planning and succession services. Alexandra is all-things tech and adds a wonderful component to our Board and a degree of energy, which is very -- anyway, it's very nice. She has a Bachelor of Arts from the University of California at Berkeley in interdisciplinary field studies.

Next, we'll go to Mr. John Cook on my right. He's a Director of the company since 2013. So 13 years, co-owner and operator of Cook Brothers Painting. He attended the University of Utah. That's an important -- not the University of Utah. I'm more of a BYU fellow myself. But the -- being in the contracting trades, a lot of our work, a lot of our investments are in real estate and specifically construction lending. And John helps us keep our ear to the ground, as it were, in those areas.

Next, we have Mr. Gil Fuller, next to Mr. John, Director of the company since 2012, so 1 year longer than Mr. Cook, so 14 years. He's retired from USANA Health Sciences, where he was the CFO and the Executive Vice President. He has a BS degree in accounting and MBA degree from the University of Utah. Gil is also our designated financial expert and serves as Chair of the Audit Committee, serves on the Compensation Committee and Executive Committees. And I'm probably forgetting a few there, Gil. But a welcome addition. Thank you, Gil. Nice to have you here.

Next to Mr. Gil, we have Dr. Robert Hunter. He's a Director. He's been a director since 1998, so 28 years, so considerably longer than Gil, just making a note. He's a member of the Compensation, Nominating and Corporate Governance Committee and the Medical Committee. Dr. Hunter has been the Chairman of the Board of Governors of St. Mark's Surgical Center. He's a prior adjunct professor, Department of Surgery, University of Utah. He had the honor of one of his children graduated with their medical degree, and Dr. Hunter had the privilege of hooding him.

He's past Department Head of Otolaryngology. I really tried this year to get that right. Is that -- 98%? That's good enough for me. I never went -- if I got an A, I got an A. Past Department Head of Otolaryngology, Head and Neck Surgery at Intermountain Medical Center and President of the Medical Staff of Intermountain Medical Center and Cottonwood Hospital. Prior delegate of the Utah Medical Association to the American Medical Association. He has degrees in microbiology and biochemistry and an MD from the University of Utah.

Next to Mr. Hunter -- to Dr. Hunter is Mr. Craig Moody. He's been a Director since 1995, which makes him our Senior Director. He's a member of the Compensation Committee, Nominating and Corporate Governance Committee, Audit Committee and Executive Committee. He's a former Field Manager of Cutco, former National Sales Manager of Magic Mill and Bosch, Direct Sales division of Stratford Squire. He's President and CEO of H.C. Moody & Associates, Real Estate Brokerage; owner of Moody & Associates, a political consulting and asset management company; former Speaker of the House of Representatives for the State of Utah, Majority Leader; Rules Committee Chairman, Executive Appropriations Committee member, all of the Utah House of Representatives; former Utah Republican Party Chairman; and former Republican National Committee member; and he comes with the political -- with a BS degree in political science from the University of Utah. Mr. Craig?

Going around now to the far end of the far table, Mr. Jason Overbaugh. He's been a Director of the company since 2013. He's Vice President and National Marketing Director of Security National Life Insurance Company, and he's President of our Real Estate Services. He has a degree -- a BS degree in finance from the University of Utah.

Next to Mr. Overbaugh, coming this way now, is Mr. Andrew Quist. He's a Director. He is the President and Chief Executive Officer of Security National Mortgage Company. He's the Vice President of SNFC and serves on the Executive Committee and on the Non-Qualified Deferred Compensation Plan Committee. He has also been a Director since 2013. He's been a Vice President of the company since 2010, and he has a BS degree in accounting from Brigham Young University and a JD from the University of Southern California.

Next to Andrew is Mr. Adam Quist. He is a Director. He is President and Chief Executive Officer of Security National Life Insurance companies, and I believe all our Life Insurance Company subsidiaries and of Memorial Mortuaries and Cemeteries. He's Vice President of SNFC, is on the Executive Committee, the 401(k) Investment Committee and the Non-Qualified Deferred Compensation Plan Committee. He has been a Director for 5 years, and he's been a President -- he has been President of Security National Life and of Memorial since 2023. I believe Andrew has been President of Security National Mortgage since 2022. Is that accurate?

Adam has a Bachelor of Science and a Master of Science degrees in accounting from Brigham Young University. He always said he was going to have more degrees than his brother, so he did. And he has this JD degree from the University of Utah. He wasn't talking -- well, never mind.

Thank you. Let's go to Mr. Garrett Sill. Mr. Garrett Sill is our Chief Financial Officer and Treasurer. He's on the 401(k) Investment Committee, the Non-Qualified Deferred Compensation Plan Investment Committee. He's been the Chief Financial Officer and Treasurer since 2013. He's a CPA, certified public accountant. He has a BA degree in accounting from Weber State, go Wildcats, and an MBA from the University of Utah.

Next to Mr. Sill is Mr. Jeffrey Stephens. He's our Senior General Counsel of the company since 2006 and has been so since 2006. That makes it 20 years this year. Secretary of the company since 2008. He has a BA degree in geography. I often wondered why that qualified him for legal studies. But nevertheless, a JD from Brigham Young University. Mr. Stephens has served with the company for 20 years. I don't think this is the time to announce his retirement, so I won't, but I will say it is in his plan that this year, he will be retiring. So 20 years of service. Thank you very much, Mr. Jeff. Let's -- again, we'll have a more formal to do, if you will, at the appropriate time, but I did want to express, in the context of a shareholders' meeting, our appreciation for the years of work.

Other guests, Wes Yeomans and Andrew Smith from Deloitte & Touche, if you could stand. Thank you. And then Dane Johansen from Holland & Hart. Dane, thank you, and appreciate your attendance.

As Chairman of the Annual Meeting of the Stockholders, I hereby appoint Richard Dahl. Mr. Richard Dahl, could you stand, Kevin Cantwell and Laurie Earl to serve as members of the Attendance and Balloting Committee, and I appoint Richard Dahl as the Chairperson thereof. Thank you. If there is anyone present desiring to vote in person, you should have already registered your name and received your ballot. If you have not, please register with Mr. Dahl at the registration table. I hereby appoint Mr. Jeffrey Stephens to act as Parliamentarian of the meeting.

In order to conduct this meeting in an orderly manner, I would ask that all questions from the floor, other than specific questions, related to a motion being considered, be limited to a general question session that shall follow my report. Accordingly, at that time, so that all stockholders will have an opportunity to participate. Each individual stockholder will only be permitted to ask one question at a time. When a question has been answered, the stockholder who has asked the question must then relinquish the floor to any other stockholder who desires to ask a question. Any questions, however, that relate to items personal or unique to the stockholder such as questions regarding number of shares owned, mortgage properties, Pre-Need products, policies of insurance, should be held until after the meeting. At that time, you may direct such questions to the appropriate officers.

I would now like to call upon Mr. Jeffrey Stephens, Secretary of the company, to report to the stockholders on the formal steps taken in connection with this -- with the calling of this Annual Meeting of the Stockholders and to present evidence of the giving of the necessary notices. Mr. Stephens?

Mr. Chairman, our Board of Directors adopted a resolution authorizing that the Annual Meeting of Stockholders be held today, June 26, 2026, at 10:00 a.m. in Salt Lake City, Utah, and to fix the record date for the meeting as of the close of business on April 20, 2026. Representatives from our transfer agent, Zions Bank, are available at this meeting with a listing of all stockholders in their addresses.

As of the record date of April 20, 2026, there were 21,320,751 votable shares of Class A common stock and 3,482,633 votable shares of Class C common stock, for a total of 24,803,384 votable shares of the company's common stock outstanding. Accordingly, under the bylaws of the company, 12,401,693 votable shares are a majority of the outstanding common stock and constitute a quorum for this meeting. I have provided a certificate executed as an officer of the company certifying that notice and instructions regarding voting were duly and properly sent to each holder of Class A and Class C common stock entitled to notice thereof.

Thank you, Mr. Stephens. I will direct the Secretary to file a copy of the minutes of this meeting together with a certificate evidencing the service of the notice. The Attendance and Balloting Committee has been asked to make a report of the stock represented here either in person or by proxy. Will the committee please report?

Mr. Chairman, the Attendance and Balloting Committee reports that shares of both the Class A outstanding common stock and the Class C outstanding common stock, representing more than a majority of such shares are present either in person or by proxy.

Thank you, Mr. Dahl. Since a quorum has been established, we will proceed with the business to be conducted at this meeting. Anyone desiring to vote in person, please identify yourself by raising your hand. If you change your mind and desire to vote in person later on, you can raise your hand, and Mr. Dahl will take notice and get you a ballot.

With that, we'll move on. Copies of the minutes of last year's Annual Meeting of the shareholders are available for any stockholder to meet -- to read. My heavens. They do give me a script so that I make sure I hit certain items, and sometimes I have a hard time following them. We would entertain any questions later in the meeting with respect to those minutes. At this time, however, the Chair will ask for a motion to dispense with the reading of the minutes of last year's Annual Meeting of the Stockholders.

Mr. Chairman, I move that we dispense with the reading of the minutes of last year's Annual Meeting of the Stockholders.

We have a motion. We have a second. All in favor, signify by saying aye. Opposed, nay.

The ayes have it. So Mr. Stephens, you don't have to read the minutes.

The Chair knows of no old business pending, and accordingly, we will open the floor for new business. Proposal #1, by direction of the Board of Directors of the company, the following 9 persons have been nominated to serve as directors of the company until the next annual meeting and until their successors are elected and qualified. Scott M. Quist by the Class A shareholders exclusively; Gilbert A. Fuller by the Class A shareholders exclusively; Adam G. Quist by the Class A shareholders exclusively; Alexandra Mysoor by the -- to serve as -- to be elected by the Class A and Class C stockholders voting together; S. Andrew Quist also to be elected to represent the Classes A and C; John L. Cook, also Classes A and C; H. Craig Moody by Classes A and C; Robert G. Hunter by Classes A and C; and Jason G. Overbaugh by Classes A and C. And if anyone is voting in person, please raise your hand, and we can distribute those ballots to you. If you voted by proxy, those have already been counted.

The Chair will now entertain a motion to approve an amendment of the company's 2022 equity incentive plan to provide that up to 500,000 of the shares previously authorized under the plan to be issued -- the shares that were previously authorized to be issued only as Class A common stock may instead be issued as Class C common stock. So the plan will have the option of issuing either Class A or Class C. Do I have such a motion?

Mr. Chairman, I make a motion to approve the amendment of the company's 2022 equity incentive plan to provide that up to 500,000 of the shares previously authorized to be issued only as Class A common stock may instead be issued as Class C common stock as contemplated by the company's proxy statement filed with the Securities and Exchange Commission on April 28, 2026.

I have a motion. Do I have a second?

I second the motion.

I have a motion, I have a second to approve the amendment of the company's 2022 equity incentive plan to provide that up to 500,000 of the shares previously authorized to be issued only as Class A common stock may instead be issued as Class C common stock as contemplated by the company's proxy filed with the Securities and Exchange Commission on April 28, 2026.

We will wait for the voting on that.

[Voting]

Motion #3. The Chair will now entertain a motion to approve on an advisory basis the compensation of the company's named executive officers. Do I have such a motion?

Mr. Chairman, I make a motion that the compensation of the company's named executive officers be approved on an advisory basis.

I have a motion. Do I have a second?

I second the motion.

It has been moved and seconded that the company's named executive officers be approved on an advisory basis. Those of you voting in person, please mark your ballots, if any? All in favor signify by saying aye. Any opposed, by nay?

Let me go back. I think I should have taken a vote. I was thinking that the vote on the amendment to the equity incentive plan would come on a report of the proxies. Or should I take the vote now, Mr. Stephens?

[indiscernible]

It's all been voted by proxy? Okay. Thank you. That's why I need a script. The Chair will now entertain a motion to ratify the appointment of Deloitte & Touche as the company's independent registered public accountants for the fiscal year ended December 31, 2026.

Mr. Chairman, I make a motion to ratify the appointment of Deloitte & Touche LLP as the company's independent registered public accountants for the fiscal year ending December 31, 2026.

I have a motion. Do I have a second?

I second that motion.

It has been moved and seconded that the appointment of Deloitte & Touche LLP as the company's independent registered public accountants for the fiscal year ending December 31, 2026, be ratified. Those of you voting in person, please mark your ballots.

Reports will now be given by the following officers, and I will just list them and we'll proceed in that order. Mr. Garrett Sill will give a financial and the treasurer's report. He'll be followed by Mr. Adam Quist, who will report on insurance financials and operations. He will be followed by Mr. Overbaugh regarding insurance sales and builder relationships. He will be followed by Mr. Jamie Meredith, reporting on insurance assignment investments, to be followed by Mr. Steven Kehl, reporting on our Cemetery and Mortuary operations, to be followed by Mr. Andrew Quist, to report on the mortgage company.

We will proceed to that point. Mr. Sill.

Thank you, Mr. Chairman. Got it. Perfect. Thanks. Well, good morning, fellow shareholders and employees of Security National Financial Corp. It's a privilege to stand before you once again and to report on our earnings. This year is a little bit easier since we've implemented some earnings calls at the end of each year and after the end of each quarter. It will be a little bit easier because I won't have to go into as much detail on this and hopefully be a little bit quicker.

But I did want to highlight just a couple of things. For our -- for the past 4 years, our average annual earnings has been about $25 million. If we look at what we earned in 2025, we're up about 25% over the 4-year average. And when compared to 2024, we're up about 10% year-over-year. So from that perspective, on net earnings, 2025 was an excellent year for us. Doing a little bit larger look back, when we look back in 5-year increments, if we look back through the period of 2021 to 2025, the company earned on average annual earnings of $28 million and you compare that to the most recent 5-year, 2016 to 2020, it was $23 million. That represents about a 20% increase in just those average earnings for those 5-years blocks. So I love the trend line that we're seeing for Security National Financial on the earnings side of things.

Looking at revenues, I should say that those earnings were done in spite of -- although earnings in spite of revenues only increasing slightly. The trend line is positive from 2023 to 2025, but we do have some work to do to get revenues back up to the 2022 levels and surpass that. Looking at our assets, just going back to 2022, we ended the year with $1.4 billion in net assets or in assets, and we ended 2025 with $1.5 billion in assets, and that represents a 7% increase over those 5 years.

Just wanted to highlight just a couple of things for -- as you know, and we'll report about it because we'll have several reports that follow me about our investments for our Life Insurance companies. Investing on the Life Insurance side is very, very important. And these 2 charts here pretty much break down kind of where we were. I'm happy to report that we have $100 million more invested from 2022. And for the most part, most of our categories remained relatively flat. I will highlight just one item to look at, and it's going to be these 2 boxes here. That represents our cash position in each of those years. And so I'm happy to report that in the 4 years from 2022, cash is actually down, which means we've done a little bit better job this -- in 2025 getting that invested. But other things to note was bonds were up about 1%. And other than that, everything was pretty much flat or just slightly down.

Looking at our equity performance from 2022 comparing to 2025 over that same 4-year period, we ended up 2022 just shy of $300 million in equity, and we closed out 2025 with a 40% increase or $410 million. So a great increase in equity over that same period, once again, despite relatively flat revenue growth.

I hesitate to go over, let's see, this slide too much. I've kind of addressed this in some of the earnings call. I'll leave this slide in the slide deck that will be published. But I do just want to highlight 2 key areas in what is our equity position. New this year is this new line item here, interest rate remeasurement for our reserves. When you look at how the company operates, right now, about 50% of our assets are mark-to-market on a regular basis, so either quarterly or at year-end. That would be our bonds, our cash is mark-to-market per se and our loans held for sale and also our stock investments, are all mark-to-market. And that represents about 50% of our assets.

New to 2025 because of the implementation of LDTI, or Long Duration Targeted Improvement, to Life Insurance companies, we now have our reserves being marked to market. So that represents about 80% of our liabilities, now have that same effect on our equity and our balance sheet as the bonds and other assets do. And so we will see as we report in future quarters, as I mentioned in Q1, this line item here will be interest rate driven, just like this line item here is interest rate driven. So as interest rates change, our fair value of our bonds and also our liabilities or our reserves will also change.

Let's skip that. Real quick, just reporting on Q1 because like I said, we just recently had a good earnings call. If you compare our Q1 2026 to 2023, it was a phenomenal quarter for us. If you compare it against 2024, it was it was somewhat flat. But compared to 2025, it was a good quarter. So from my perspective, Q1 2026 was a good quarter for the company.

Just a couple of other things before I close. I talked about last year being -- joining the Russell 3000. We're still in it. Today is the reconstitution date for that. I've listed what the cutoff was for membership. It was $149 million, so just shy of $150 million in public float. Last year, it was $120 million. We surpassed that by a long ways. And today is the reconstitution of that membership. But because we're already in it, I don't anticipate that we'll have much movement in our stock, not like we had last year when I think we traded in excess of 2 million shares at the close of that.

But I will note new this year is a semiannual reconstitution. So in the past, this was an annual constitution. So every June, it would be reconstituted. Now it's going to take place both in June and November. So we'll watch it, and we'll see, but I don't anticipate any changes based on where our stock is trading. And then just finally on this that I think is important. The Board approved 7 years ago to buy back 1 million shares of the company's stock on the public market. We completed that this year, and it averaged about 142,000 shares repurchased.

So final item on this one. So that was the final item on that slide, as I saw Adam stand up. He thought that was it. One more slide. A couple of things that we implemented, and I'd be remiss if I didn't acknowledge both the actuary, the finance group and also the IT group in helping us implement not just LDTI, but moving us to an accelerated filing status. We now filed 2 weeks earlier for year-end and 5 business days earlier for our Q ends and also enhancing our internal controls, which can be audited now by Deloitte. So hats off to those departments for their work and heavy lift in that. And then finally, a couple of things coming up on the accounting side, nothing too significant, mainly just some disclosure items.

So with that, Mr. Chairman, that will conclude my report.

All right. Thank you, Garrett. Well, good morning, everyone. It is my pleasure to be here and report on our Life Insurance companies this morning. As Garrett mentioned, due to our now regularly scheduled earnings calls, I will be less focused on my remarks on the financial results just because we've already covered those. And if you want to hear my comments, you can go rewatch the video or read the transcript. And I'd like to focus more of my comments on the qualitative and strategic initiatives of our company.

So with that, I wanted to start kind of at our highest level, and that is why we do what we do. Our products are very simple, but they serve an important purpose. These products -- and I apologize if the wording is a bit small. But at the fundamental level, our products provide the ability for families to pay for their funeral services, and they provide protection for that family so that their loved ones are not confronted with a financial burden at their passing. And so to me, that is a very noble and significant purpose we serve in life. We generally serve those who are in underserved communities. And so I think that is a great attribute and something that we should be proud of as a company.

Now there's 2 main motivations that exist on virtually every policy we sell for the policy purchaser. The first is they don't want to leave a debt behind to their family. They know that death is an inevitability, and they know that it can oftentimes be expensive to have the proper services at the end of their life. And so they don't want to leave that debt. But they also generally have experienced a recent loss. And so they've been through an experience where it reminds them of their own mortality, but also many times, they've just been through the process of planning a funeral for someone that has just passed, and they have seen the difficulties that come when there's not a planned funeral in place and there's not available funds to fund those final expenses.

What I'd like to point out with both of these motivations is that they are not linked to economic cycles. And so these are very durable motivations. And what that does for our company is it provides what I would call a necessity-based business. And so we have a very stable long-term demand for our products. And so that is another competitive advantage that we have for our company.

So we've talked about the why. Now I want to touch on how we do that or the what that we do. We distribute these policies or sell these policies through 3 main business channels. Our first is our Pre-Need Insurance segment. In this segment, generally speaking, there is going to be a literal planning of a funeral where they're selecting their actual services, what caskets they'd like, things like that. And this is tied to a specific funeral home when they purchase this product.

Our next segment that we distribute is our Final Expense division. And in Final Expense, it's a simplified-whole issue policy. And really, the purpose of that policy is providing cash for the loved one at the time -- for their loved ones at the time of their death. So they don't have a preplanned funeral, but they do have access to that cash to satisfy their final expenses and things like medical needs.

And then lastly, we also distribute through Home Service. Again, this is a small face value product. What makes Home Service a bit unique is that many times, these premiums are literally collected door-to-door week after week, month after month. And so again, that is a product and service that is really targeted at the underserved communities that would not otherwise have that protection without our company.

Now diving a bit more into each sales channel, just to give you a few, I guess, key attributes of each channel. You can see that Pre-Need has our highest average issue age. That's generally because it is associated with the funeral home, so it's someone that has often recently visited a funeral home. But it currently also has our lowest average face amount. Now looking at Final Expense and Home Service, you can see that our average issue age is lower, and our average issue age is in the $11,000 to $12,000 range.

So that kind of gives you, hopefully, a high-level view of our 3 distribution channels. But what I would hope you can take from this is that this is how we generate all of our financial performance in the life company. This is really the engine that starts everything, is selling these small face value policies literally tens of thousands of times every single year. And so it is truly many, many incremental sales that build upon and build up our financial performance.

So speaking of that financial performance, again, I won't spend a ton of time on this just because, again, we've already had our earnings calls. But we did have a fantastic year in 2025, earning just over $37 million. This is an 8% increase in earnings, and that was really driven by a revenue increase. Our revenues increased by 5% on the year, and that was mainly attributable to our investment earnings. Garrett's touched a little bit on our investments, and Jason will touch a bit more in his comments as well, but it was a really strong investment year for us in 2025. Our policy benefits were stable in 2025, but that was up from pre-COVID levels. And so we did still see a bit of an increase in policy benefits in 2025.

And then lastly, you can see that our total sales, general and administrative costs were up by about 13%. I'll touch more on this later, but there's many factors that went into that, but it's largely a strategic decision in the investment that we're making in our company.

Moving to first quarter of 2026. We earned $7.6 million compared to $8 million. So we did see a modest decline from our company's best operating history in 2025. As you can see, that was a 5% decline. Really, it was driven by our revenues, and I'll touch more on that in our next slide. On this slide, I'd just draw your attention that our total policy benefits were down 3.6% in the first quarter. This has brought us more in line with our pre-COVID trends. So we think we've seen a normalization in mortality there. And then you'll see that our total sales, general and administrative costs decreased by 3.2%. So the reason for the softness in our earnings in the first quarter on the life side was simply a revenue-driven factor.

Now looking at that revenue, again, we decreased by about 3.4%. Our premiums were down 3.1%. What I would point out on the premium side is 2 factors. One, about 60% of that decline came from our lowest margin products. Now of course, we don't like to see decreases anywhere. But if you're going to have a decrease, having it in a low-margin product is where you prefer it to be concentrated. But the broader picture is that this was largely -- our premium decline was largely driven by our Pre-Need segment. And I'll touch a bit more on that in just a moment of why we've seen that disruption there. But before we go into that in a little more detail, I did want to point out that our net investment income was down about 5% in the first quarter.

Now that's really, in my opinion, a result of us increasing our landholdings by about $45 million compared to the same period last year. Now just to put some context behind that $45 million, if that $45 million -- well, let me back up. So when you invest in land, land does not have any cash-generating capability in the current term, right? You have to develop that land and build homes on it. That's our long-term plan. But in the current period, there is no cash generated from that land. So if we had taken that $45 million and instead of investing it in land, had just had it sit in a cash account that's earning today, for round numbers, say, 3.5%, that's about $400,000 a quarter that, that would generate in terms of earnings. And so as you can see, that $400,000 deficit, one way to look at that is that's entirely a result of an investment strategy that we have employed. Now I believe that, that $45 million investment in land in the first quarter is going to be a net benefit to us in the long term, but it is important that we understand that it does come with short-term trade-offs.

Now looking at Pre-Need, again, kind of returning to where our premiums were down. 2025 and really the first quarter and really even the first half of 2026 has really been a year of change in our Pre-Need division. But to me, similar to our investment in land, it's been an investment in our future. It certainly has been disruptive. We've had about a 75% turnover in our senior leadership in our Pre-Need division. And any time you do that, it's going to be disruptive, but I believe it was absolutely necessary for us to get our company to the next level.

We have aligned ourselves with people who have a similar value set and a similar long-term vision as we do. And as Jason will talk about a bit more in his comments, really, our real advantage is that we have a strategy to become much more deeply integrated with our funeral home partners. And that as we bring value to our funeral home partners, that will increase our market share in our Pre-Need division. But it did require us making sure that we're aligned with leadership that has that same vision in our sales channels.

So to just give you a bit of a feel for the turnover and for the additions that we've had in our Pre-Need division, and then I'll turn the time over to Jason, is this is some of our Pre-Need leadership here. And anyone with a plus mark is someone that has been added within the last, say, 18 months. And so we've really added very key individuals. Just highlighting some of them, obviously, there's not time to go through all of them. Kevin Bitnoff, he is our Senior Vice President of Pre-Need. We have Sam, who's our Senior Vice President of Business Development. Business development is going to be a focus of ours going forward, and we have a dedicated team and leadership there to that initiative.

And then the last one I'll probably touch on is Hannah Macey. She heads up all of our CRM and aftercare initiatives. And as Jason will touch on in his comments, that is really one of our key initiatives to drive our integration and our value to the funeral home. And that as we do that, we'll also generate leads for our Pre-Need program.

So while there was a lot of disruption in the first quarter of 2026 and the back half of 2025 with our sales leadership, I think it was an absolutely necessary step. And I actually view -- while I never like being down in premiums, I view this as a net positive for our organization in the long term.

So with that, I'll turn the time over to Mr. Jason Overbaugh to talk a bit more about some of our sales initiatives and also some of our investments.

Thank you, Adam, and welcome, everyone. As Adam mentioned, in our business, it's very simple. When we sell life insurance, we help people through a very difficult circumstance in their lives and a very expensive one. And as you mentioned, 2025 was definitely a year of transition for our organization, particularly in Pre-Need. But it was also a year where we built and made investments in people and organizations that will set a foundation for the future.

So as we look at the performance, and I'm going to focus on core products. Adam noted that some of our drop in sales occurred in low-margin products. I'm going to be speaking specifically about those highest margin products that really drive the revenues at Security National. We generated last year approximately $20.4 million in annualized core premiums and submitted nearly 22,000 policies last year, again, in just core products. These results were below what we wanted to achieve, with the premium down about 3.8% year-over-year. But the story behind those numbers is important.

And as you kind of look at the different segments, Pre-Need declined about 6%, Final Expense was off by 7%, but our Home Service team grew almost 14% last year. I will note that in -- towards the end of Q1, we began to see strong growth in 2 of our 3 segments turning positive. So while 2025 was not a growth year in sales overall, I would characterize it as a very important year in setting the foundation for the future.

As we look a little deeper into our Pre-Need organization, historically, our relationship with our funeral home partners, and to be clear, when we sell Pre-Need, we need the retail outlet of a funeral home to distribute the product. And these are independent funeral homes, and we work with approximately 400 across the nation. And historically, our relationship with them had been delivering just a product, a commission and a salesperson. Today, that relationship is evolving, as Adam noted. We are investing in tools and services that help -- that help funeral home operations more effectively. By helping them connect with families they serve, we improve their online reputation, we generate additional business opportunities for them to grow their market share, and I'll get into a little more details on that. And we believe very strongly that the more value we create as a business partner in helping them run their day-to-day operations, that will only serve to improve our sales as an organization.

Adam noted Hannah Macey.

She was the architect behind helping us develop our Aftercare program with our funeral homes. The concept is quite simple. Following a funeral service, families receive a thoughtful follow-up text message from this digital platform. I will note that it's all humans behind the digital platform right now who are reaching out to these families.

The funeral home is asking them about their experience and if they can offer support. Now, for the funeral home, this obviously creates an intentional connection between the families and them. It also acts as a protection of sorts for online reputation defense. Should there have been a problem that occurred during the funeral home, we can quickly identify and help them solve that problem.

It's also keeping us both Funeral Home and Security National connected with these customers on really a very deliberate cadence versus their competitor reaching out to them. So, for Security National, what that creates is greater market share opportunities and greater sales opportunities. And let me discuss just a few of the results we've been seeing with Aftercare.

During the first quarter of 2026, the program reached nearly 2,400 families and generated response rates of 34.6%. Now to put that into perspective, traditionally, we've relied on mail, U.S. Postal Service to reach out to families and to try to engage them. That typically resulted in about a 1% to 2% response rate or an engagement rate. So to be seeing nearly 35% coming back is amazing, and it's something that we can definitely build our sales organization on and provide great value for our funeral home partner.

The program also generated 157 qualified preneed leads and directed hundreds of families to our funeral home partners online review pages. In summary, we believe that our team has developed the premier engagement tool for our funeral home partners and the Premier Aftercare Program for our funeral home partners, and it is creating value out in the marketplace today as we sit here.

Switching to our final expense organization. And this is, kind of, a preview, I believe, of where preneed is headed. The past 2 years have been quite disruptive in our final expense group. We have changed leadership quite a bit, similar to what Adam is talking about with our preneed group. We've changed underwriting, and we've changed processes quite a bit. And we've invested significantly in technology to drive this business forward.

Now the investments we have made, and I'll talk about 2 of those in just a second, today are attracting premier sales organizations that want to be a part of Security National because of the ease of doing business and because of the support they're getting. So 2 of these technologies I'd like to touch on are our text-to-sign tool and our point-of-sale insurance application.

These tools allow agents to quote a premium rate, complete an application, collect signatures, and submit business electronically, whether the agent is sitting in the home with the consumer or over the phone. And the benefits are very straightforward. The applications move faster, the customer experience improves, agents become more productive, and we reduce costs on the back end because of the digital platform.

Now this might sound simple, but it was a very complex process and a very intentional and difficult process of transitioning our company from a paper company to this digital platform and this instant decision platform. And I'll tell you, beyond the shadow of doubt in my mind, we have the premier digital platform in the final expense space right now.

And the results we're seeing are very, very strong in this group. So I'm grateful for the teams of engineers, our operations people who made these tools available to us this year. So thank you. Now finishing with our Home Service group. This was our bright spot in '25 with premiums up 13.5%. And I'll tell you what makes Home Service unique and special. As Adam noted, they are serving in some of the lower socioeconomic demographics in our country.

Without home service, there are many people who would go without insurance. And going back to the expense of a funeral, it would be a very difficult thing to endure. And so because of this group, many people who don't have access to financial tools have it because of Security National. And to me, that's something that's very special and noble. And I'm grateful for our field organization and our leaders out there today who are out collecting those premiums door-to-door.

With that, as we look forward in our sales organization, our strategy is not complicated. We are rebuilding and strengthening our preneed leadership team. We've become the most integrated and powerful funeral home partner becoming indispensable to our funeral home partners because of the tool of aftercare. Our final expense team has the best technology out there in the marketplace, in my opinion. And we are continuing to build on the momentum of our home service group.

And I would say underlying all this, I would echo Adam's comments. Our products -- it's a business of necessity. Families will continue to buy funerals despite economic circumstances because they have to. And it's a growing market, and we're there to facilitate it and to build on it and to grow our company.

With that, I'll just take a couple of minutes here to review the second key driver of revenues, one of the key driver of revenues at Security National Life, and that's our real estate and commercial Capital group. This team manages roughly 1/3 of life company assets right now. And our approach is simple. We invest in assets and lending opportunities where we believe we can attract attractive risk-adjusted rate returns.

And our focus is to generate consistent returns, not to hit home runs, but to do things that are in the best interest of our shareholders. Looking at our real estate portfolio, and these would be assets that we hold for investments, such as the building we're sitting in here. This portfolio generated $15 million of revenue last year and produced a 16.8% cash-on-cash return on the invested equity.

With those types of returns, we are really building value for Security National. And what I like most personally about these assets is, one, they're high quality. Two, we're dealing with high-quality tenants with leases that have built-in escalations to hedge any inflation that might occur. Looking at our commercial capital group. This is our investment and lending arm into really commercial loans, construction loans and builder partner relationships.

At year-end, the portfolio stood at approximately $237 million and generated nearly $32 million of gross investment income and earned a net yield of nearly 10% across the portfolio. This was achieved through really 2 investment strategies. During 2025, looking at the left side of the screen here, we originated approximately $242 million of new loans and finished the year with more than $157 million outstanding.

These loans, and this is all in residential space, supported the development of 31 active subdivisions, and we constructed more than 400 homes in 2025. This portion of our portfolio not only generated a net yield of nearly 15% to our life company, it directly supported the economic well-being of our sister company, Security National Mortgage, in helping with their loan volume. And in turn, they fed us more leads going into 2026 and beyond for future deal flow.

Looking at our commercial and bridge over on the right-hand side of the screen, these products provide attractive yields ranging from 9% to 14% this past year. And looking specifically at our SBAs, you'll note that we have the benefit of government guarantees, which protects the risk and the downside of this lending activity and it produced by itself about a 14.5% held-to-term return within Security National.

In conclusion, when you step back and look at the overall picture, what stands out is the consistency of these businesses and the stability of these businesses. Our real estate portfolio is producing strong cash flows from high-quality assets. Our lending and builder portfolios are generating attractive yields and backed by real collateral and it's symbolic or synergistically helping support our Security National mortgage operations.

I'm very pleased with where we're at. I believe we've built a business that can continue to generate attractive returns for many years to come and serve to improve our shareholder value. Thank you.

Well, good morning, everyone. I am excited to present on the most exciting business segment in all of Security National. Insurance assignments, who knows what an insurance assignment is? We had two hands went up. Wow, that's great. So an insurance assignment is a vehicle in which a funeral home can accept the family's life insurance policy, as Jason and Adam covered the different types of life insurance policies that are available to cover funeral expenses.

And assignment is where a funeral home can take a portion of that life insurance proceeds from the family and use it to cover funeral expenses. Now there's a couple of options that a funeral home can take when utilizing an assignment. Traditionally, a funeral home would reach out to the insurance carrier, have one of their administrative admin contact the insurance company, verify that policy, make sure that it will cover the funeral amount, make sure there's no loans or premiums against it, find out who the actual beneficiary of the policy is, who can assign those benefits.

In other words, verify that the policy can be used to cover those funeral expenses. Then once a death certificate is issued, they can take the paperwork, file the claim with the insurance carrier and wait anywhere from 30 to 60, 90 days for that receivable to be paid. What many funeral homes choose to do today is to use our service. They can send that information to us when the family comes in to make arrangements. We'll verify that coverage with the insurance carrier of that policy.

And then we typically fund the funeral home on that funeral service within about 24 to 48 hours. It eliminates the administrative burden that the funeral home has in the verification process and obviously improves the cash flow of the funeral home. So there are several external factors that can affect our business.

One of those, obviously, is being death rate. So we started this program around about 2005. And so for the previous 15 years from, say, 2005 until 2020, the death rate in the United States was very stable. It may increase a little bit each year. But as you can see, big jump in 2020. That, of course, was COVID. And then COVID changed the death rate in America. It remained extremely elevated for several years, started to decline in 2022 and then kind of leveled out for the last 3 years.

Interestingly, the first quarter of this year, we've actually seen another decline in the death rate. And for those of you that follow funeral service and some of the larger providers in the space like SCI and Carriage and some of the larger corporate players, they've seen declines in the death-call volume in the first quarter by as much as 6% or 7%. And we're actually seeing that in our business as well.

Something else interesting that's happened since we started this program in 2005 is life insurance ownership rates. When we begin looking at this as a serious investment opportunity for Security National, about 70% of families in the United States own the life insurance policy.

That number now is at 51%. So there's been a steep decline. You can see how those numbers have declined over the years. So we really need Jason and Adam and the folks at Security National Life out there increasing sales and getting more utilization, more families insured. But that's something that we're certainly seeing out there today.

And then lastly, probably the biggest external factor that affects insurance assignments is the cremation rate. More families are choosing cremation than ever before. It's continuing to increase every single year. And those families that use cremation as their preferred funeral service typically don't use an insurance assignment to pay for funerals. What we find is families that are purchasing a $12,000 or $15,000 traditional funeral are generally the ones that are using an assignment. So cremation rate definitely affects our business.

Having said that, 2024 was the best performance that we've ever had with insurance assignments. You can see the numbers here. We did a lot of business in 2025. More than 58,000 funerals that we funded. That was a 4% increase over 2024, and we were just shy of $0.5 billion in fundings. That was a 6% increase over the previous year. Net investment income for Security National was about $5.2 million. That was a 14% increase over the previous year. And our receivables at the end of '25, we had about $46.5 million outstanding, that was about a 5% decrease.

Now what's interesting about the decrease is that means that we were funding more volume, about 6% more with about 5% fewer dollars. So we were much more efficient in collecting those receivables as we were funding them. And that's one of the reasons why our profitability on that block of business increased dramatically.

Now, as already stated, 2026 Q1 numbers, we've seen a decline in the death rate, and that's obviously impacted the amount of assignments that we've been able to fund so far. So we're at about $129 million through Q1. That's about a 5% decrease over Q1 of last year. Case-wise, we're off about 6.7%. Net investment income remained strong, about $1.4 million through the first 3 months. That's about a 12% decrease from Q1 of last year.

And we also have seen a bigger decrease in our receivables, which again shows the operational efficiencies that we're gaining. We had about $46.5 million outstanding in insurance assignments at the end of Q1. While this year has been a little bit less than last year as far as return and overall volume of business, our outlook for insurance assignments for the rest of the year remains really strong and extremely bullish over the next 5 to 10 years. So next up is Mr. Steve Kehl, who will be covering our mortuaries and cemeteries. Thank you.

Thank you, Mr. Meredith. Similar to Adam with the Security National Life side, I feel it's very appropriate before entering our results and comments around those to remind everybody of why we do what we do and the privilege associated with our work. We are committed to honoring every life by providing peace of mind, compassionate care and dignified support, both as they prepare for and experience end-of-life events.

I'm a huge believer that behind every number is a person. Behind every metric I'm going to share with you today is a family cared for. And behind every decision is a responsibility that weighs heavily on my shoulders. I have the privilege to be associated with 199 colleagues. We operate 15 funeral homes and 7 cemeteries. Within those operations, the results which we will talk about today would not be possible.

I want to extend a heartfelt appreciation for those team members for going above and beyond day in and day out. I also appreciate the cross-collaboration with the life company and the mortgage company and their leadership teams. The last 2 years as noted, specifically on the life side, and I'm sure Andrew will share with you on the mortgage side.

It is an honor to be in the trenches with this leadership team to band together through resilience and to overcome obstacles and headwinds. As we review 2025 and the results financially, on an earnings basis, you will note in 2025, we resulted our second best earnings on record for our segment. That is second to the previous year being 2024, which was our best earnings result in the history of our segment.

You'll also note that revenue in 2025, we achieved the highest revenue in our division on record -- and I think that's important notation when you listen to Mr. Meredith and what we have been encountering in both 2025 and the first quarter of 2026. I'd like to note, most of this has been disclosed in our earnings call, but I do feel that in 2025, there was exceptional results received by our funeral homes.

Revenue grew close to 4%. We cared for more families than we ever have. Our average revenue per call grew in a very challenging environment. And then our cremation with service ratio is a very impressive. We grew 4 percentage points on that. And that only happens when our team slows down and educates the families that we have the privilege to care for regarding all of their options possible when it comes to honoring the life lived.

On our cemetery sales side, 2025 was a very disruptive year. But when we have disruption, that usually accompanies innovation, and that's what we saw. Our management team doubled down. We recruited heavily. We trained heavily. And despite the setbacks in 2025, we were still able to grow in quantity of contracts on both our at-need business as well as our preneed business. Where we struggled is this theory of the latent -- the valley of latent potential, where as we build up our sales force, there's this natural acceptance that it's going to take time to get them up to speed.

We have to train them. We have to get them in front of families. They have to experience their role and be confident. 2025 was the year that we saw that in our cemetery sales division. In regards to our investments for 2025, on a net basis, both our realized and unrealized were advantageous when it comes to growth. Q1 2026, our earnings were the fourth best Q1 earnings performance in our company's segment's history.

It is important to note in the last 3 operating years, we have a very high performance where 2024 was our top Q1, followed by 2021 and then last year 2025. On the revenue side, it's our second best Q1 revenue in 2026, and that is only secondary to Q1 in 2024. Now we've seen a little bit of shift in Q1 of 2026. As Mr. Meredith pointed out, we are seeing a reduced death rate throughout North America.

If we look at our specific mortuary performance, our revenue was essentially flat, decreasing by 0.1% and we cared for 6.7% less families. Now that was being driven mostly from our New Mexico market. Here in Utah, we're seeing the opposite, where in a declining death rate, we've actually increased market share very handsomely. Also important to note, in a declining market, we were able to increase our average revenue per call, and that speaks to the importance of once again slowing down in the arrangement conference and educating our families in regards to their service options.

On our cemetery side, Q1, we're starting to see all of those efforts in 2025 come to fruition. In Q1 2026, we have increased revenue by 18.5%. A lot of that is being led out in our cemetery land sales segment, which is up 35% in Q1 of 2026. Our preneed contracts have grown by 24% and we've put a big emphasis on our preneed land, because our preneed land allows us to facilitate our partnerships with the life side and invest that revenue in a long-term perspective, which will ensure our vitality.

On the investment front in Q1, our realized investments have grown, but our unrealized decreased significantly. But as Adam had already stated, as most of that is being invested in land, we have a very much long-term outlook and approach to our strategy. Our goal is growth. If you look at it in our industry, on a consumer survey, there were 2 specific perceived weaknesses of our specific industry from our consumers.

One was the lack of technology integration in our day-to-day operations. Number two was what's called after-service support or what Jason referred to as aftercare programs. These are the 2 things that our consumers are telling us that we are behind the times in. With that response, on March 30, at the end of Q1, we made a very strategic hire to help us with growth.

Mr. Aaron Butler chose to come on board as our Senior Vice President of Growth. He has a very deep and breadth when it comes to his experience in our industry. He sat at the table of over 1,000 families selling and educating them around preneed. He left the industry for a little bit and went into the tech space. So he has a big technological background that he's going to help us implement in our operations.

He has a proven record of driving revenue growth, which is where we need to focus on in our particular segment to overcome those perceptions that the consumers have of our day-to-day. One thing is Adam and I had the privilege of interviewing him. This speaks to his character. He said growth initiatives are accountable to outcomes and not activities. I think that's a very important and self-reflective statement.

As our accountability is driven off of our outcomes, not necessarily our activities. I'm excited to see what we partner with Aaron for as he focuses specifically on customer technology nurturing campaigns as well as filling the holes in our sales funnels within our organization. Our motto is excellence. With this particular slide, once again, it's important to note this takes a team.

We have had the privilege to receive the Best of State award for the previous 9 years. More importantly to that is what's under the logo. For the past 3 years, we have received this award in both the mortuaries category for the State of Utah as well as the cemeteries category within the state of Utah. That is a significant achievement and that realizes and validates the efforts of an incredible team.

We strive for excellence in customer service experience. We do that through our community events and our community workshops. We strive for excellence in educating around all options when we have the privilege to sit in front of a family that is planning for or is experiencing a loss. And then we strive for excellence as we develop cemetery property based on consumer demand.

In 2026, this is our charge. The reality is, very little matters if we don't have the blocking and tackling right. Adam preaches that day in and day out. It's the basics. For the last 4 years, we have been advocating and training religiously on the importance of becoming brilliant at the basics and not overcomplicating our day-to-day operations.

We will continue to strive and focus on 4 initiatives. All of them are action-oriented. We will continue to build a culture of operational and service excellence by increasing our internal service standards, as well as increasing on a more consistent basis, our internal training modules.

Number two, we will continue to grow preneed cemetery sales. We will recruit and train top talent. We are not letting go. We have built an incredible team, but we will never be content with the results that we have. We will also develop our memorial parks to respond to that consumer demand. As Jamie shared, cremation is not going away.

We are on the forefront of our developments for those families that select cremation as their disposition. And I am confident that as I have the privilege to visit dozens and dozens of memorial parks every year throughout North America, I would place our memorial parks in the top 10%. We will continue to realize operational efficiencies by strengthening our negotiating power with our vendor partners as well as constant expense management.

And then number four, we will continue to seek investment opportunities by partnering with the life company as well as entertaining and adequately doing due diligence for acquisition opportunities in our space. The last slide I'd like to share with you is probably the most important. These are people. This is our team. The numbers that we celebrate today tell the story of what we have accomplished.

But the people behind those numbers give us confidence in what we will accomplish tomorrow. I want to express my appreciation for your trust, for your partnership and for your investment in Security National. I am a firm believer that our future is bright and full of opportunities that are still ahead of us.

With that, Mr. Chairman, that concludes my report.

Good morning, fellow shareholders. How is everyone doing today? Good. Good. We having a little activity, a little energy in the room here. I have to say, and Jason said I shouldn't use this word, but I do hate the setup for this in-person meeting because I feel like everyone here with us in person is very far removed from the presentation and the speakers. But for those of you online, hopefully, you feel a little closer to the action. So thank you for joining us, those of you online as well.

I am pleased to be with you here this morning, and I am pleased to be reporting on the activities of Security National Mortgage in 2025 and in the first quarter of 2026. As a reminder, Security National Mortgage is a retail single-family lender. We're an independent mortgage bank. And with that, the foundation of what we do is turning houses into homes. And in 2025, we did that 6,844 times. We originated 6,844 loans.

And what that represents are individuals that bought their first house. It represents individuals that were able to achieve that dream house that they've been thinking about for years. It represents individuals that were able to lower the cost of being in that home they already love. And so for us, it is a privilege at Security National Mortgage to enable and to finance those transactions to make those moments happen in people's lives.

And I'm so proud that we were able to do that 6,844 times last year. With that and because of those homes, I always like to spend a little bit of time giving context to the housing market. And we are a purchase-focused lender at Security National Mortgage. The -- well, funny or not so funny part of this slide, I could have used the exact same slide I did last year, but I didn't. And the reason I could have used that is because in 2025, the existing home sales in the United States reached another 30-year low.

And they did that in 2024, and they did that in 2023. So I really could just repeat the same slide. I didn't. I didn't. I wanted to freshen it up a little bit. But 2025 represented a 30-year low in existing home sales, just by a little over 2024. What I wanted to do is provide a little more recent context. So I put this chart up from the National Association of Realtors. And you can see, I think they've actually revised April the furthest column over for those of you in the very back, is April's existing home sales.

I think they revised that up. But what you can see from this chart is that 4 of the past 6 months have had lower existing home sales than the month for the previous year. So it continues to be an extremely challenging environment for mortgage companies to operate in. Now in that environment, you can see that nevertheless, Industry origination volume increased in 2025. This is in billions here. So the industry originated $1.68 billion in 2024, and that was -- $1.6 trillion in 2024, and it was $2 trillion in 2025.

All of that growth and what I want to illustrate with this chart occurred in refinance mortgage originations. You can see that purchase mortgage originations represented by the middle block on this slide were flat year-over-year. And so while home sales continue to be challenged, there was an increase in refinance activity. So moving to Security National's origination volume. We originated $2.3 billion in mortgage loans in 2025. This was exactly flat from 2024.

And as I mentioned, nationwide originations were up 21%. And so as a purchase-focused lender, we did not get the boost that we saw in overall originations from the refinance activity. Moving to the first quarter. Our origination volume was $490 million. That was down 9% from the fourth quarter of 2025 or sequential quarters. In the middle block, you can see that nationwide originations were down 6% over that same period, fourth quarter of '25 to first quarter of 2026.

Now where there's some market underperformance was in the year-over-year origination numbers, where our origination volume compared to the first quarter of 2025 was down 6% and industry originations were up 43%. And that was for 2 reasons. In the third quarter of 2025, we had a large origination region that could not operate profitably. And so we made the decision of the choice to move on from that group, both financially and employment-wise. And so that impacted our origination volume.

It also impacted our net income, which you will see later on in the presentation. The second part of this is what I've already referenced. The growth in the market over the past 18 months has been in refinance transactions. And that is something that as a purchase lender, we are not skilled at. And so at the end of 2025, we made the decision that if we were going to take advantage or we were going to grow in these market conditions, we had to increase or sharpen our skill set in refinance transactions.

And so in October and November, we made investments in our lead generation capabilities. And we focused on generating leads and focusing on serving those borrowers that were looking to refinance their mortgages. And I'm happy to report in this slide that our refinance percentage in the first quarter of 2026 was the highest it's been in 4 years and represented 24% of all of our originations. That's a 10% increase from the first quarter of 2025.

Now there were lower interest rates in 2026 in the first quarter of 2026, which naturally helps the refinance volume. But I think what best illustrates our, I will call it, improved refinance skill set or capabilities is that if you use the industry benchmark, let's call it, 100 loans, if the industry benchmark was 100 refinance loans, in the first quarter of 2025, we would only be originating 48 of those loans, only 48% of the benchmark.

In the first quarter of 2026, we improved that if the industry's benchmark was 100 loans, we improved that to we were now originating 60 loans or 60% of that benchmark. So not only has the overall refinance volume increased in the industry, which we benefited, but we have increased our share of that refinance transaction. And as I said, this represents the highest percentage of refinance originations we've seen in 4 years.

Now I don't want this to sound like we are changing our focus as a purchase-focused lender. We are not. But given the realities of the market and the growth areas of the market, if we want to grow in this market, we need to get better at refinance transactions, and I believe we are doing exactly that. Given where the growth has occurred in the industry, as I've been talking about refinance, we took a step back in market share in 2025, which is disappointing for me to report and one of the reasons we were taking the actions at the end of 2025 that we were.

Now this chart, and I'll have a similar version on the next slide, represents our percentage of originations compared to the total originations in the United States. And we get those total originations through the Mortgage Bankers Association reported numbers. Now each of the past 3 years, the MBA, the Mortgage Bankers Association has revised industry originations down in the middle of the subsequent year. So that has had the impact of increasing our market share later on.

And this slide here represents the unrevised market share. The following slide, which includes 2025, includes the revised market shares for Security National Mortgage. So in 2025, our unrevised market share was 11.2 basis points. I fully expect that will be revised up, most likely eclipsing 2019's market share of 11.5 basis points, already ahead of 2011's market share at 9.8 basis points.

But in any event, under any circumstances, revision or not, we either had our second or third lowest market share in 15 years. And to me, that is unacceptable and something that we need to change. And so if the market originations are moving or the market home transactions are moving down, decreasing, we have to find other ways to increase our origination volume.

We're going to continue to focus and be primarily purchase-driven, but we are going to continue to offer alternate financing options to our borrowers and refinance is going to be a big part of that. I understand that we have to increase this market share, but we also have to do it profitably. And so with that, I want to turn to our financial results for the year and the quarter.

So in 2025, Security National Mortgage still was not profitable. And to me, that is extremely disappointing and something I take very personal and something that I want you to know, I believe is unacceptable, and our team is working extremely hard every day with laser-like focus to change and make sure we are profitable in 2026.

With that being said, we lost $4.7 million in 2025 compared to $6.2 million in 2024. So we did improve by $1.5 million or 23%. In the first quarter of 2026, we've lost $700,000, which was compared to $2 million in the first quarter of 2025. And so you can see that we've had a $1.3 million improvement over that period. And I would highlight, as I've already mentioned in the presentation, that was on flat volume and revenue in 2025.

And for the first quarter of 2026, that was on a 6% decrease in volume or revenue. And so I believe this is great progress. We are making progress. We are seeing the fruits of our labor, so to speak. But we are not there yet. And it is my commitment to you, my fellow shareholders, that we will continue on that path until we are profitable.

I wanted to highlight also the drivers of that improvement. And there's a lot of beneath-the-surface activity that occurs in these numbers. But the 2 biggest drivers for the improvement, and this is in 2025 and for the first quarter, we're in office salaries and wages, which were down almost $2 million in 2025 and in third-party office rent, which was down $1.3 million.

In 2026, the first quarter alone, our office salaries and wages are already down $1.5 million, and that is in 1 quarter of activity. So we are working extremely hard at bringing this number back into a positive net income.

Lastly, I want to finish with our public company comparison. So these are publicly traded mortgage companies that I like to benchmark Security National against. These are retail lenders like we are at Security National. And I benchmark both for origination volume and for profitability. And so, for our comparisons, oh, I should note, Guild Mortgage Company has been someone that we have compared against ever since I have been President of Security National Mortgage.

They were actually acquired last year. And so they no longer have a publicly available information. So I wanted to highlight them as dropping off of this comparison. So when next year comes, people aren't asking why weren't they up there. But they are no longer public and we do not have results for those companies. So for the remaining two, PrimeLending and loanDepot. Net production income matched PrimeLending's net production income. It's a loss, net production loss, and we were better than loanDepot.

Now this is net production income in basis points. And so we take our net loss, divide that by originations to get a comparable number for our peer group. The other thing I would highlight here is that PrimeLending's 20 basis point net production loss included a sizable legal settlement that was in PrimeLending's favor. So if you exclude that, that net loss would have been about 30 basis points. So as far as benchmarking goes, matching PrimeLending's results and bettering loanDepot's results by half.

For origination volume, you can see that we were behind in 2025, both PrimeLending's increase and loanDepot's increase. As far as first quarter goes, sequential origination volume behind loanDepot's decrease at 9%, but ahead of PrimeLending's decrease at 18%. So we are looking at what's going on in the industry, and we want to be industry-leading, and that is why I use these benchmarks and use them as a focal point for our company.

So with that, I want to thank you for your trust in Security National Mortgage Company. I can assure you that my team, our team is not complacent with the results that we have produced. We are not comfortable with another loss, and we will not have that in 2026. We are doing everything we can to rectify that in 2026. And I just want to give a heartfelt thank you to all of our employees at Security National Mortgage.

These have not been easy years. This has not been an easy environment to run a mortgage company in. And I am just so proud of the way our team has reacted in this environment and work to make sure that we will be profitable in future periods. So with that, thank you very much.

Thank you. And that's -- I appreciate those reports. And I've got a couple of thoughts. I'm not going to use my slides. That's -- I always send IT my slides late, then I don't use them anyway. So I'll just make a couple of comments, and then we'll go to the question-and-answer session or portion of the meeting. We are subject to at Security National, the macroeconomic events that surround us and not only events but environment.

What you saw today was a decreasing life insurance policy ownership rates, right? That's just a fact. Only half of the people today on their individual -- only half of the population today owns individual life insurance policies. So we've seen decreasing life policy ownership rates. We're seeing decreasing existing home sale volumes. That's just a fact. That's just a fact. That's the environment that we're in.

The refinance that we're talking about is a more difficult transaction today than the streamline refi. People aren't refinancing so much because I've got a lower rate that I can go to. It's a cash out refi mostly for debt consolidation or for improvements, home improvements. Those are more difficult loans. Those are more difficult loans. And we have a lower death rate, at least in 2026 than what we have experienced and affecting our cemetery mortuary side, we have an increasing cremation rate.

Now this is not a comment as to whether a full adult in-ground burial is better than a cremation. I think that's an individual decision. It does bring lower revenue. I'm not sure they're less profitable, but less profitable, but it does bring lower revenue. So we have these economic headwinds or macro environment that is some would characterize as tough. Against that environment -- against those -- that environment, I would note that excluding the years 2020 and 2021, where we had the pandemic-related tailwinds, we had our best net income year in company history in 2025.

I think that deserves a little -- and against that environment, our Q1 results for 2026 are 9% -- between 9% and 10%, depending on how you want to measure it, ahead of our 2025 results. So we are executing from a profitability point of view at a pretty good pace from my standpoint. If you go to a financial metric measuring financial organizations like banks. I'm not sure that's a proper comparison because we do have our cemetery mortuary and real estate activities.

But nevertheless, if we were to measure against other financial services companies to have a net 2% return on assets is really astounding. That would be Goldman Sachs, that would be JPMorgan. Now they have more assets, but that's a high level of performance. Nevertheless, as you can see, so what I want to have you understand is we have some challenging macro factors which shouldn't be discounted.

And against those macro factors, on a relative basis, we are performing pretty well from a net income point of view. Now where we are lacking, in my view, or I shouldn't say lacking where we need to put more of our effort in which we are is in growing that top line because our top line revenue is basically flat. It peaked in 2021, I think, at $390 million. We're at about what were we $330 million, $340 million last year. That would have been a 20% decrease. I would note that the mortgage market decreased about 40%, and that's the bulk of that 20% decrease in top line.

And most of the images of people that you saw in today's presentations are people that we have actively recruited and asked them to join us to work on that top line growth because that's where we need to work. Now we can't ignore profitability. That is -- the ultimate goal is to make money. It isn't just to have revenue, it's to really make money off that revenue. But nevertheless, we need to grow our top line.

And I hope you got the sense from the different presentations that we have brought in a lot of people over the last 1.5 years, maybe 2 years to grow that top line, to grow that top line. So -- but I would not have you lose sight of the fact that, nevertheless, we did have our best year ever, excluding in 2021, and we had our best profitability year ever in 2025. And in 2026 Q1, we are ahead 9% over what 2025 would have been.

So our teams are operating in my view, at high levels. Lastly, I would note the integrated nature of our company. I do -- as I said in my press release, I do believe my father's axiom that every tub sits on its own bottom, meaning that each operating segment should be profitable on its own. Nevertheless, there is a synergy -- the life company wouldn't be having its profitability without the mortgage company.

There's -- the cemetery mortuary supports a number of segments, both through sales and then takes that money and supports different activities. You just wouldn't have that C&J. You wouldn't have that -- or rather that is an important part of how our company works. So with that, I wanted to make those points. We need to grow top line, but don't lose sight that these have been our best years from a profitability point of view ever.

With that, the Chair will open the floor to questions. Seeing none, I will now ask for a report from the attendance on balloting report from the attendance and balloting Committee, Mr. Richard Dahl.

Mr. Chairman, the 3 nominees for the Board of Directors of Security National Financial Corporation to be elected by the Class A common stockholders voting separately as a class have been elected by the Class A common stockholders represented either in person at this meeting or by proxy. Additionally, the 6 nominees to be elected by the Class A and Class C common stockholders voting together have been elected by the Class A and Class C common stockholders represented either in person at this meeting or by proxy.

The proposal to approve an amendment to the company's 2022 equity incentive plan to provide that up to 500,000 of the shares previously authorized to be issued only as Class A common stock may instead be issued as Class C common stock as contemplated by the company's proxy statement filed with the Securities and Exchange Commission on April 28, 2026, has been approved by a majority of the Class A and Class C common stockholders represented either in person at this meeting or by proxy voting together.

The proposal to approve on an advisory basis, the compensation of the company's named executive officers has been approved by a majority of the Class A and Class C common stockholders represented either in person at this meeting or by proxy voting together. A proposal to ratify the appointment of Deloitte & Touche LLP as the company's independent registered public accountants for the fiscal year ending December 31, 2026, has been approved by a majority of the Class A and Class C common stockholders represented either in person at this meeting or by proxy voting together.

Thank you, Mr. Dahl, and I extend my appreciation and thanks to the Attendance and Balloting Committee. The Chair will now entertain a motion as to the approval of the actions of the Board of Directors and management of the company taken since the last annual meeting.

I do the [indiscernible]

I have a motion. Do I have a second?

I second the motion.

It has been moved and seconded that the actions of management and Board of Directors taken since the last annual meeting be adopted and ratified. We will now vote on that motion. All those in favor signify by saying aye. Opposed, nay. The ayes have it. The Chair will now entertain a motion to adjourn this stockholders' meeting.

Mr. Chairman I move [indiscernible] [ meeting be adjourned.]

I have a motion. Do I have a second? All in favor, signify by saying aye. Opposed, nay. Motion carries. The meeting stands adjourned. Thank you very much for your support.

Good afternoon, everyone, and welcome to Security National Financial Corporation's First Quarter 2026 Earnings Call. We thank you for joining us today to review our financial and operational results for the period ended March 31, 2026. Before we begin, I'd like to remind everyone that our remarks today will include forward-looking statements.

These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially from those projected. Such risks include, but are not limited to, changes in economic conditions, interest rates, regulatory developments, competitive pressures and other factors detailed in our filings with the Securities and Exchange Commission. We caution you not to place undue reliance on these forward-looking statements, which speak only as of today's date. We undertake no obligation to publicly update or revise these statements to reflect future events or circumstances, except as required by law.

With that, I'd like to turn the call over to our Chairman, President and Chief Executive Officer, Scott Quist. Scott?

Thank you, Heather. To have an increase of over 9% in after-tax earnings despite the top line decrease is a testament to the operational efficiencies our teams have been implementing over the last several years. Of course, we are working diligently to increase our top line, and that is a very standard objective of all our units. Nevertheless, improved profitability is the ultimate goal as we did improve profitability.

Our mortgage segment had an outstanding quarter despite the fact that we were still not profitable, improving over 65% from Q1 of 2025. We were cautiously optimistic that we would be profitable in Q1 of 2026. Our teams have worked diligently to improve revenue and to rationalize costs in arguably the weakest quarter of the year. But our secondary investor pricing in March declined from what was indicated when we locked loans to what was realized when the loans were sold. That unexpected decline represented nearly 50 basis points of revenue or profit in this case or nearly $200 million in volume. So it was significant. Obviously, we are reevaluating our processes -- but it's fair to say that we have followed our customary policies and procedures and we were surprised at the ultimate investor pricing. Even with that unfortunate secondary result, I believe congratulations are due for an outstanding 65% quarter-over-quarter improvement.

Our Cemetery Mortuary group did improve their top line by 4.4% in Q1, but had a decrease in net income. That decrease, I think, deserves some explanation. On an ongoing operational basis, meaning before investment results, our operating income actually improved some 16% in Q1 2025 over -- excuse me, Q1 2026 over Q1 2025. This was accomplished primarily by a 35% improvement in preneed cemetery sales. The hard work that has been put in over the last year is showing up in sales, which argues for an even brighter future. Congratulations to our sales team for a fabulous result, in my opinion. The culprit leading to our decrease in net income, again, as opposed to operational income was our investment income with the largest factor there being an increase in unrealized losses in our common stock portfolio.

Our Cemetery and Mortuary segment because of consistently profitable operations, has a very considerable investment portfolio, which we intend to use as conditions warrant in financing future growth to include acquisitions. Our Life Insurance segment for the table had a 4% decrease in its top line. As has been noted in several press releases, we have been and are continuing to reorganize and improve our sales forces, which has necessitated reorganizations, terminations and turmoil. I believe I'm seeing a turnaround in all our marketing channels but progress continues to be somewhat considerate and somewhat considered and deliberate. I will note that the majority of the top line decrease is on our least profitable products. In fact, our underwriting profit as measured using statutory accounting principles, significantly increased due to our improved premium margins. That has been a very deliberate strategy over the last period of time.

If I were to point to a single factor leading to our net income decrease, it would be a decline in our builder profit split or phrased another way, similar to our Cemetery Mortuary segment, a decrease in net investment income. That characterization is somewhat nuanced and that we also increased our land holdings by some $37 million, which has the effect of decreasing all other things being equal, our investment income since profit on land holdings, at least in the current period, I should say, since profit on land holdings is only recognized either when the land is sold or when vertical construction begins. I think it's important to keep in mind our net portfolio yield for Q1, as near as I can tell, is still about 100 basis points above industry averages. So it is important to maintain perspective in the face of decreased investment income.

To summarize, our top line revenue did decrease some 4%, but our profitability did increase over 9%. I think all of our teams did a great job implementing efficiency. Make no mistake, top line growth continues to be a primary objective, but improved profitability is the primary objective, which objective we achieved. Thank you.

Thank you, Scott. Good afternoon, and thank you for joining us today. My name is Garrett Sill, and I am the Chief Financial Officer of Security National Financial Corporation. This was a good quarter for the company, and I want to highlight a few items regarding our consolidated financial statements.

First, on our balance sheet, most of our assets remained relatively flat compared to our year-end reporting. However, we did see a combined $32 million decrease in our bond and mortgage loan portfolios. I would note that the decrease in the mortgage portfolios was across all products in commercial, residential and construction lending. This decrease was offset by a $20 million increase in real estate investments. Just by way of clarification, Scott referenced $37 million increase in real estate investments. That was a quarter-over-quarter number, the $20 million is comparing year-end 2025 with Q1 and March 31, 2026.

Our cash balances also increased significantly in Q1, and we've been active in deploying that cash in Q2. Our total liabilities also remained relatively flat with a $9 million decrease in our future policy benefits, which was offset by increased bank debt of $10 million. This increase in bank debt was the result of increased borrowings on warehouse lines of credit and mortgage loan fundings. Our equity also increased $15 million or 3.7% when compared to year-end. And I'll discuss in a few minutes a few items related to our equity.

Moving to our statement of earnings. Revenues were down 3.6% as we saw decreases in insurance premiums, mortgage fee income and net investment income. This decrease in revenues was offset by a 5.6% decrease in total expenses as we saw decreases in nearly every category. The net result has been discussed was an increase in net earnings quarter-over-quarter of nearly $600,000 or 9.2%.

As mentioned in our last call, accelerated filing status and the implementation of ASU 2018-12, better known as targeted improvements to the accounting for long-duration contracts or LDTI, brought with it some significant changes and challenges to the company. I want to acknowledge and thank our finance, actuarial and information and technology groups for the work on SOX 404(b) compliance and the implementation of LDTI. It has been a significant lift for them in addition to all their other duties and responsibilities. Regarding the reporting of our adoption of LDTI, I would encourage you to review the statement of comprehensive income on Page 6 of our 10-Q as it provides the details behind our $15 million increase in equity when our net earnings were only $7 million. This additional $8 million in equity is a result of a $4 million decrease in the fair value of our bond portfolio, which was offset by a decrease in reserves of $14 million and a tax effect of $2 million.

This movement in fair values is a result of a decrease in interest rates as compared to year-end. Going forward, our statement of comprehensive income will be an important statement to review to better understand the movement in the company's equity. I would also draw your attention to Page 12, which contains a reconciliation of our restated Q1 2025 earnings, comprehensive income and equity. Throughout 2026, we will continue to restate our 2025 quarterly earnings for comparison purposes. For Q1 2025, earnings were restated nearly $2 million. This is primarily a result of our deferred acquisition costs or DAC being amortized over the life of the policy instead of the premium paying period. This result was lower DAC amortization, which resulted in an increase in earnings.

In closing, Q1 2026 was a good quarter for the company as we saw growth in total assets, stockholders' equity and net earnings. We still have a significant amount of work to do as we continue to test and improve and remediate our internal controls and financial reporting, but the future does look bright. Next, we'll hear from Andrew Quist. Thank you.

Thank you, Garrett, and good afternoon, fellow shareholders. I'm Andrew Quist, President and CEO of Security National Mortgage Company. In the first quarter of 2026, Security National Mortgage Company had a pretax net loss of $698,000 compared to a pretax net loss of $1.995 million in the first quarter of 2025. This was a decrease to our loss of $1.297 million or a 65% reduction. The first quarter is historically the most difficult quarter in the mortgage industry. Nevertheless, I was disappointed we lost money in the quarter. At the same time, a 65% improvement in our net loss on the back of a 74% improvement in the fourth quarter is progress worth noting and something I do believe our employees should be congratulated on.

As in the fourth quarter, this improvement in net income came on reduced origination volumes. In the first quarter of 2026, we originated $489 million of loan volume compared to $518 million in the first quarter of 2025, a 6% year-over-year decrease. On a sequential quarter basis, origination volumes were down 9% -- based on the Mortgage Bankers Association reported total industry origination volumes for Q1, SNMC's market share held steady at 9 basis points, the same as in the fourth quarter. The sequential quarter reduction in origination volume was roughly in line with overall industry origination volumes, while the year-over-year decline continues to be impacted by the company separating from a large group of loan originators in the third quarter of last year.

As primarily a purchase transaction-based lender, a key concern for Security National in the first quarter was declining home sales. According to the National Association of Realtors, January, February and March each had lower existing home sales than the same month a year earlier. Affordability and uncertainty continue to weigh heavily on homebuyers. We are working hard to counteract these market forces. Last earnings call, I referenced our refinance volumes. In the most recent quarter, Security National increased to 24% refinance volume from 19% refinance volume in the fourth quarter. This marks another 3-year high in that metric. The first quarter also showed noticeable increases in HELOC and reverse mortgage lending activity.

Our team continues to focus and improve on assisting our past borrowers with their next financing needs regardless of what that might be. This broadening of our loan product lending has had the intended result of blunting the impact of fewer home sales. A corollary of broadening our loan product lending is improved productivity. In the first quarter, our average loans per loan officer per month increased 23% over the first quarter in 2025. In a quarter with declining home sales, this is a result I'm particularly proud of. Security National has helped our loan officers increase their transaction volume while at the same time, more fully serving our borrowers' needs.

In summary, in the first quarter of 2026, Security National reduced its pretax net loss by 65% despite lower origination volumes. This reduction was driven by improved productivity paired with expanded refinance and broadened loan product activity. I'd like to conclude by thanking our loan officers and our employees for their tireless work improving Security National in this challenging environment. The progress being made is tangible. Thank you. I'll now turn the time over to Adam Quist.

Thank you, Andrew. As Andrew said, my name is Adam Quist. I'm President and CEO of the Security National Life Insurance Companies. And my remarks will focus on the performance of our life companies in Q1 2026.

Coming off the strongest operational year in our company's history, Q1 2026 showed a modest step back in GAAP revenue and earnings relative to Q1 2025. I want to explain what drove those results and why they are largely expected short term -- as a short-term result of long-term strategic decision. But at the outset, I also wanted to highlight that, as Scott mentioned, from a statutory accounting standpoint, our underwriting profit improved from Q1 2025.

Now turning to and focusing on our GAAP results. Our total Life segment revenues were approximately $48.9 million, down about 3% from $50.6 million in Q1 2025. Segment net earnings were $5.9 million compared to $6.2 million a year ago, a decrease of roughly 5%, two factors account for substantially all of that variance. First, a decline in insurance premiums, which is concentrated in our lowest margin products; and second, a decrease in net investment income, driven primarily by our lower profit share distributions from our homebuilder partners.

Insurance premiums were approximately $28.9 million, down about 3% from $29.8 million in Q1 2025. Importantly, as mentioned, approximately 60% of that decrease is attributable to a decline in single premium business, which, as mentioned, is one of our least profitable product lines. The remainder reflects the effects of the ongoing reorganization of our sales force leadership. Over the past two years, we have made significant changes to and investments in our sales leadership talent and sales distribution infrastructure. Building a high-performing sales organization does not happen without some turmoil and that near-term disruption is visible in our top line. However, I want to emphasize that we have improved our premium margins, which is showing up in our results.

Additionally, our renewal premiums remain stable, which reflects the durability of our policyholder base. Of course, our goal is not to have stable premiums. Our goal is to grow premiums. I am encouraged by what I see across our marketing channels and I'm confident in the sales leadership and infrastructure investments we have made and are building the right foundation. Our net investment income was $17.7 million, down about 5% from $18.6 million in Q1 2025. There are several moving pieces, but the single largest driver was a decline in profit share distributions from our homebuilder partners. There is also a related dynamic worth noting our investment in land increased by approximately $37 million compared to Q1 2025. That is a meaningful capital commitment, and it carries a near-term opportunity cost because under GAAP income from land held for investment is not recognized until the lot is sold or a construction loan is taken out.

We have more capital deployed in land than a year ago, and that capital has not yet -- is not yet generating reportable net income. Land holdings may be considered a leading indicator. More land investment today may be more builder profits ahead, but it is nevertheless a net drag currently. And of course, we are subject to macroeconomic housing trends. Even with these headwinds, we believe our net portfolio yield remains approximately 100 basis points above industry averages. We remain confident in our investment strategy over the long term.

Despite adding significant talent and continuing to invest in our infrastructure, our overall life insurance segment expenses are up less than 3% year-over-year. That discipline reflects real operational efficiency gains across the organization. Our policyholder benefits and claims also declined by approximately $900,000 or 3.6% to $24.5 million. In conclusion, Q1 2026 presented real headwinds, a modestly lower top line premium revenue, which was driven primarily by lower margin premium single premium business and our sales force transition. And it was also driven by lower investment income driven by reduced builder profit share distributions and our growing land portfolio. These dynamics are understood and anticipated, but nevertheless, our goal and expectation is to grow both our top line and bottom.

Beneath those headline numbers, our premium margins improved. Our total expenses grew less than 3% despite meaningful talent additions. Our claims declined, and we believe our investment portfolio continues to yield well above industry benchmarks. I am confident in the direction of our life companies and in the talent of our team. I look forward to updating you on our progress throughout the year. I will now turn the time over to Steve Kehl, the COO of our Cemeteries & Mortuaries Division.

Thank you, Adam. Good afternoon, everyone. I'm Steve Kehl, Chief Operating Officer of Security National Funeral Homes and Cemeteries. I'd like to briefly walk you through our first quarter performance and highlight the key factors that shaped the quarter. For the first quarter of 2026, earnings before tax decreased 4% to $2.149 million compared with $2.238 million a year ago. Revenue increased 4.4% to $8.473 million from $8.119 million, led by strong cemetery performance and steady results across the broader business.

Importantly, operating earnings before tax, excluding investment results, increased 15.7% to $1.523 million from $1.317 million in the first quarter of 2025. That improvement reflects solid execution in the business and gives us confidence in the underlying trajectory of the segment. Let me review with you our funeral home performance. First quarter earnings before tax decreased 9.5% to $555,000 compared to $613,000 a year ago. Revenue was essentially flat at $3.671 million compared with $3.673 million in the first quarter of 2025. It's important to note that families served declined 6.7% year-over-year. However, the average funeral sales were able to increase 6.6%. We also saw a 22.5% increase in the percentage of our families choosing cremation with a memorial or funeral service. Those results reflect stronger service mix, excellent sales discipline and continued progress as we align our offerings with the changing customer preferences.

Over the past year, we have invested heavily in training and operational development to improve our arrangement conference effectiveness, strengthen our sales education and elevate our service quality across our funeral homes. That work is producing measurable improvement, and we believe it positions the Funeral Home segment for stronger long-term performance. Now turning to our cemeteries. First quarter earnings before tax increased 37.6% to $996,000 from $704,000 a year ago. Revenue increased 18.5% to $4.209 million from $3.553 million in the first quarter of 2025. That growth, as noted, was driven primarily by strong net preneed land sales, which increased 35.1% during the quarter. It's important to note that the number of preneed land contracts written also increased 15.8%, reflecting effective execution by our sales team and continued momentum with our overall preneed strategy.

We continue to invest heavily in recruiting top-tier talent, deploying consistent training programs and offering educational community seminars. At the same time, our cemetery placements during the first quarter 2026 declined 5.9% from prior year period, and this remains an area of focus for us. To address that, we are continuing to emphasize family education around permanent placement remembrance while improving the customer experience through stronger arrangement presentations, targeted outreach, enhanced cemetery tours and ongoing developmental team training.

Let me turn now to investment income. First quarter investment income decreased 33.5% to $591,000 from $889,000 a year ago. The key point is that the change was driven by investment results rather than operating performance. As noted in the press release, unrealized losses on common stock positions were the largest factor affecting net investment income this quarter. We continue to manage capital with a long-term perspective and remain committed to investing in internal growth opportunities, including cemetery garden expansions as well as external growth opportunities through acquisitions that we expect to support future returns.

Before I close, I want to take a moment to thank our funeral home, cemetery grounds and operational support teams. Their commitment, professionalism and care make these results possible and continue to strengthen the experience we provide to those families that we have the privilege to serve. Overall, we're encouraged by the quarter, confident in the direction of the business and focused on disciplined execution. Thank you for your time, your confidence and your continued partnership. I now turn the time back over to Heather Street, our Human Resources Director.

Thank you, Steve. Before we conclude today's call, we'd like to open the floor for questions.[Operator Instructions] From Alex Cardenas, question in regards to the roughly 50 basis point shortfall between lock loan rates and actual investor pricing on about $200 million in volume for March. What specific changes are you making in your hedging strategy or in your block sale timing process to prevent this from reoccurring? A following, if allowed, do you expect the conflict with Iran to impact volume going forward?

Thank you for the question, Alex. Yes, that was a difficult one in March. And the bottom line is there's not a lot we can do when the investor simply reduces their pricing from the time of block to the time of purchase. We're able to get our expected margins or our locked margins that are built into our pricing in that instance, but any additional pickup is hard to account for in a hedging strategy. So one of the things that we are doing is simply looking at that change day over day and gathering information on the cumulative impact of that change so that we can make changes in our built-in margins because that's the only way that we're going to be able to capture that. And it's simply something that we have to be more vigilant for.

As far as the conflict with Iran, yes, it's difficult to tell how that's going to impact volume going forward. Obviously, it has introduced an element of increasing interest rates, which, of course, impacts volume. I think the bigger issue is the volatility that is introduced. And any time that there is volatility, potential homebuyers typically don't like that. I think what we'll have to do to blunt that impact is simply be prepared for when those rate drops occur because there will be pockets of declining rates to take advantage of those opportunities that market gives us, we have to be prepared for those events and not wait for those events to occur to prepare for them, if that makes sense.

Thank you, Andrew, and thank you, Alex. Do we have any further questions? Thank you again for your questions and participation. We value the engagement and thoughtful input of our shareholders and analysts. As we've come to the end of our time, we'll note the end of our Q&A.

Before we officially close, I'd like to take this opportunity to remind everyone that our Annual Shareholder Meeting will be held on June 26, 2026 at 10:00 a.m. Mountain Daylight Time at 4:33 Ascension Way First Floor Salt Lake City, Utah. For those unable to attend in person, the meeting will also be available via Zoom. For more information about the meeting, our latest financial reports or any other investor materials, we invite you to visit the Investor Relations section of our website at www.securitynational.com.

We appreciate your continued support of Security National Financial Corporation. This concludes our first quarter 2026 earnings call. We look forward to speaking with you again soon. Thank you, and have a great day.