Security National Financial Corporation (SNFCA) Earnings Call Transcript & Summary

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 Alix, which is a fintech platform providing the state 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 the 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. Gill. We have Mr. Dr. Robert Hunter. He's a Director he's part -- he's been a director since 1998. So 28 years. So considerably longer than Gil, just making the note, he's -- 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 hudding him. He's past Department Head of Otolaryngology 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 is 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 and Associates Real Estate Brokerage owner of media and associates, a political consulting and asset management company, former Speaker of the House of Representatives for the State of Utah, majority leader, rurals 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 a political -- with a BS degree from the -- 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 of 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 is the Vice President of SNFC and serves on the Executive Committee and on the nonqualified 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 nonqualified 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 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 -- 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 and the nonqualified 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 Weaver 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, in the 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 -- it is in his plan that this year, he will be retiring 20 years of service. Thank you very much, Mr. [ Ji ]. 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 Johnson 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 Lorie 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, preneed, 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 calling -- 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 Saltake 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 2, 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 the 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 up both the Class A outstanding common stock and the Class C outstanding common stock, representing more than majorities 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 to give you -- get you a ballot. With that, we'll move on. Copies of the minutes of last year's annual meeting -- 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 class, by the -- to service to be elected by the Class A and Class C stockholders voting together as and request 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 the company's 2022 plan to provide up to 500,000 shares previously authorized to be issued only as Class A common stock issued Class B common stock as contemplated by the company's proxy statement filed with the Securities and Exchange Commission on April 28, 2023.

I have a motion. Do I have a second?

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

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? And 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. Stevens? 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 who 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'll be followed by Mr. Overbaugh regarding insurance sales and builder relationships be followed by Mr. Jamie Meredith reporting on insurance assignment investments to be followed by Mr. Stephen 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. 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 -- little bit quicker. But I want to highlight just a couple of things. For our '25 -- for the past 4 years, our average annual earnings has been about $25 million. If we look at what we earned in 2025, were up about 25% over the 4-year average. And when compared to 2024, were up about 10% year-over-year. So from that perspective, the 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 block. So I love the trend line that we're seeing for Security National Financial and 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 earn assets, and we ended 2025 and with $1.5 billion 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 two 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 is going to be these two 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 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 two key areas in and 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 marketed. So that represents about 80% of our liabilities now have that same effect on our equity in our balance sheet as the bonds and other assets do. So we will see, as we report in future quarters, as I mentioned, 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 calls. If you compare our Q1 2026 to 2023, it was a phenomenal quarter for us. If you compare it against 2024, 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 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 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 trade in excess of 2 million shares at close of that. But I will note a new this year is a semiannual reconstitution. So in the past, this win 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, 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 QMs 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 our 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 are two 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 me of their own mortality, but also many times, they've just been through the process of planning of 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 it 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 three main business channels. Our first is our preneed 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 purchased 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 preneed has our highest average issue age that's generally because it is associated with the funeral homes. So it's someone that has often recently visited funeral home. But it currently also has our lowest average face amount. 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 three 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 and 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 on 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 two 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 to be concentrated. But the broader picture is that this was largely -- our premium decline was largely driven by our preneed 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, I had just had it sit in the cash account, that's earning today for ground number, 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 preneed, 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 preneed 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, our preneed 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 business 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 preneed 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 preneed division, and then I'll turn the time over to Jason, is -- this is some of our preneed 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 preneed. We Sam, 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 after care 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 preneed 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 very difficult circumstance in their lives and a very expensive one. And as he mentioned, 2025 was definitely a year of transition for our organization, particularly in preneed. 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 the 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 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, preneed 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 two of our three 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 preneed organization, historically, our relationship with our funeral home partners and to be clear, when we sell preneed, 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 turn funeral -- 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 and 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 after-care 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 a 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 it 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 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 was talking about with our preneed group. We've changed underwriting and we 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 two of those in just a second. Today our 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 two of these technologies I'd like to touch on, our text design 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 in 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. And 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 with insurance. And going back to the expense of 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 habit 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 leader 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're continuing to build on the momentum of our home service group. And I would say underlying all this, I would echo Adam's comments 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 two 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, 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 and 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 and 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 admins to 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 it's 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 on a 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 is 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 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 and 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 the 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 am a huge believer that behind every number is 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. I 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 an 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 a company's 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 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 are 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 very high performance where 2024 was our top core 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 at 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 two specific perceived weaknesses 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 two 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 has 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 as 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 four 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 that 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 is 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. This is our 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 accomplished 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 have 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 6,834 loans. And what that represents are individuals that bought their first house. It represents individuals that we're 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 6,844x 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 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 have actually revised April the further 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. 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 two 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 are 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 we're 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 to refinance volume. But I think what best illustrates our -- we'll 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 refinanced 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, of 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 were. Now this chart, and I'll have a similar burden 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 two 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, Prime Lending and Loan Depot, net production income matched prime lending's net production income, it's a loss, net production loss. And we were better than Loan Depot. 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 Prime Lending's 20 basis point net production loss included a sizable legal settlement that was in Prime Lending's favor. So if you exclude that, that net loss would have been about 30 basis points. So as far as benchmarking goes, matching Prime Lending's results and bettering Loan Depot's results by half. For origination volume, you can see that we are behind in 2025 both Prime Lending's increase and Loan Depots increase. As far as first quarter goes, sequential origination volume behind Loan Depots decreased at 9% and but ahead of Prime Lending'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. 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 in 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 a portion of the meeting. We are subject to a Security National, the macroeconomic events that surround us. And not only events but environment. What you saw today was 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 characterized 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. And 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 our 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 $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 revenues 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 Acxiom 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 take 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. The 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 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 [ adoption ] or taken since last to be adopted.

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 that...

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.