Security National Financial Corporation Reports Financial Results for the Year Ended December 31, 2020
For the twelve months ended
“Our mortgage segment was able to take great advantage of the financial market circumstances presented this year. The pandemic-created interest rate declines spurred refinance volumes, made purchase transactions more affordable, and provided generally higher margins. However, taking advantage of the favorable conditions created great operational and staffing problems in the midst of the pandemic, where hiring and training were very difficult. Our hardworking staff met the challenge of the doubled volumes by increasing efficiency in a very difficult environment. Unexpectedly, towards the end of Q4 we were approached regarding the settlement of the 11-year-old Lehman litigation. The litigation had progressed to the point where expensive trial preparation was about to commence, and while we believed we had strong defenses to the claims, weighing the costs of trial versus the certainty of results via settlement, we elected to settle. While the settlement cost was ultimately greater than I anticipated, I feel strongly that the correct decision was to put the matter behind us. Lastly, during 2020 we kept our purchase mortgage strategy firmly in place. While the market naturally provided refinance transactions which we have taken advantage of, more notably we increased our purchase mortgage transactions by 60%. Suffice it to say, our Mortgage Segment provided spectacular results.
“Our Insurance Segment also provided spectacular results improving profitability 81% in, again, a very challenging year. While year-over-year death claim comparisons are difficult for a number of reasons, to include the acquisition of
“Our Memorial segment also provided spectacular results with operational income increasing 83% YOY. Again, this was accomplished during difficult COVID related circumstances where, for a period of time, traditional funeral services were essentially banned and even when bans were lifted there were significant size and other restrictions placed upon the funeral services. Substantially contributing to that profit improvement was increased preneed cemetery sales, but basic mortuary and cemetery operations were also significant contributors. This excellent performance is not an isolated instance. It is instructive to note that our Memorial segment has achieved an average 24% compound annual growth rate in operational income over the last six years. In my view, such excellent financial results are the natural consequence of continuously providing superb customer care and consumer experience during very difficult times.”
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 19,036,549 Class A equivalent shares outstanding as of
If there are any questions, please contact Mr.
P.O. Box 57250
Phone (801) 264-1060
Fax (801) 265-9882
Source: Security National Financial Corporation