Security National Financial Corporation Reports Financial Results for the Year Ended December 31, 2016
For the twelve months ended
"As alluded to, the post-election rapid rise in interest rates hurt our Mortgage Segment profitability. Rapid rises in interest rates are difficult to hedge against because the rise in rates changes the loan origination to closing pull through metrics. Essentially, loans that are locked at the lower interest rates close at a higher than anticipated rate, and therefore not hedged, thereby causing losses. I think it fair to say that industry wide there were several mortgage companies that were thrown into a loss position due to the rise in rates. While our Mortgage Segment did suffer in the 4th quarter, we still were profitable for the quarter, and profitability for the year essentially equaled 2015's, which I took as a victory given the circumstances. For the year, revenue increased 7.3%. We continue to believe that our emphasis on purchase related loans is the more sustainable strategy and that our realtor and builder based marketing models are providing admirable results.
"As has been noted in many of our filings, the operating results of our Death Care Segment are difficult to analyze given the REO rental income and depreciation that is included in its statements. We have put much of our REO into that segment to take advantage of its property management expertise. Referring now to only the operational results of our Death Care Segment for 2016, we improved profitability 35% on basically a 6% revenue increase, and EBITDA as a percentage of gross revenue increased to over 15%. Our preneed cemetery sales, which are a primary profit driver, showed significant improvement, particularly in the 4th quarter, and I am quite optimistic that preneed cemetery sales will improve even more in the future."
SNFC has three business segments. The following table shows the revenues and earnings before taxes for the twelve months ended
|Revenues||Earnings before Taxes|
Net earnings per common share was
The Company has two classes of common stock outstanding, Class A and Class C. There were 15,017,113 Class A equivalent shares outstanding as of
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P.O. Box 57250
Phone (801) 264-1060
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