Security National Financial Corporation Reports Financial Results for the Quarter Ended March 31, 2017
For the three months ended
"Our Mortgage segment, after having delivered excellent results for the last several years, struggled with profitability in the first
quarter. The main issue is our considered strategy for growth versus the market changes we have seen come to a head over the last 5 months. Our goal is always double-digit profitable growth and we undertook expansion plans, with their attendant costs, with that goal in mind. We did anticipate rising rates with our purchase mortgage strategy, but did not anticipate the rather severe housing inventory issues and the consequent lack of growth in purchase mortgage volume that we have experienced in almost all of our markets. By way of illustration, CBRE estimates that since 2010 in
"It is axiomatic that if there is not a home to buy, a mortgage is not needed. We clearly saw household growth and the consequent need for purchase transactions, and positioned ourselves well in that market, but we have been stymied by the lower than expected activity which has resulted from inventory shortages. Margins have been compressed, as we expected, due to the rise in interest rates and decline in refinance's, but the costs that were undertaken with purchase mortgage expansion in mind are simply too high for our volume. Our pipelines are full of approved borrowers with no available home to buy. We are working to bring our strategy back into line with what the market can provide.
"On a positive note, our Life segment's first year sales remain strong and on track, mortality and persistency are within assumptions, expenses
remain at acceptable levels even after absorbing the
SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three 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 15,035,153 Class A equivalent shares outstanding as of
If there are any questions, please contact Mr.
Garrett S. Sill, Mr. Brian Nelsenor Mr. Scott Quistat: Security National Financial CorporationP.O. Box 57250 Salt Lake City, Utah84157 Phone (801) 264-1060 Fax (801) 265-9882
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