Security National Financial Corporation Reports Financial Results for the Year Ended December 31, 2023
- Strong performance in the life insurance and cemetery/mortuary segments.
- After-tax earnings from operations decreased by 44% in 2023.
- Revenues dropped by 18% in 2023 compared to 2022.
- The mortgage segment experienced a significant loss of $17.5 million.
- Net earnings per common share decreased to $.64 in 2023.
- Book value per common share increased to $14.11 in 2023.
- Company emphasizes growth and improved profitability despite challenges.
- Mortgage segment reported a loss of $17.5 million.
- Net earnings per common share decreased in 2023.
- Revenues declined by 18% in 2023.
- Earnings before taxes decreased by 52.6% in 2023.
- Challenges in the mortgage segment due to market conditions.
Insights
The reported decrease in after-tax earnings by Security National Financial Corporation is indicative of a challenging fiscal period, particularly within their mortgage loan business. A 44% drop in earnings and an 18% decline in revenues are significant and the mortgage segment's $17.5 million loss reflects the broader impact of rising interest rates on the housing market. Investors should note that such a downturn, despite the prior years' profits, could signal a need for strategic reassessment within this segment.
On the positive side, the growth in the life insurance business, with a record operational year, shows resilience and potential for the company's diversification strategy. The success in the Cemetery and Mortuary segment also demonstrates the company's capability to adapt and find efficiencies in more stable markets. These segments could potentially offset losses in the mortgage division in the long run, but the immediate financial impact is clear.
Furthermore, the slight increase in book value per common share suggests that the company's net assets have grown, providing a slightly more robust equity position for shareholders. However, investors should carefully weigh the company's short-term challenges against its long-term growth strategies and market positioning.
Security National Financial Corporation's strategic moves, such as increasing premium rates in the insurance segment and improving operational efficiencies, are proactive measures in response to economic uncertainties. The company's focus on cost efficiencies and metrics is a step towards maintaining competitiveness in a tough mortgage loan environment.
Additionally, the strategic slimming down of office staff and the optimization of loan officer personnel could lead to a leaner, more efficient organization. However, the market should monitor whether these changes will be sufficient to navigate the persistently high-interest rates and their impact on mortgage volumes.
Investors should also consider the broader industry trends, such as the stabilization of death rates and their influence on the Cemetery and Mortuary segment, which had its best year ever. Understanding these trends can provide insights into the company's potential for sustainable growth in its diversified business segments.
SALT LAKE CITY, April 01, 2024 (GLOBE NEWSWIRE) -- Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the year ended December 31, 2023.
For the twelve months ended December 31, 2023, SNFC’s after-tax earnings from operations decreased
Scott Quist, Chairman of the Board, President, and Chief Executive Officer of SNFC, said, “2023 was a year where the financial balance of our company demonstrated itself. With the increasing interest rates and improving premium margins our life insurance business segment had its best operational year ever, earning
“We remain committed to the task of growth and improved profitability. We view this current economic uncertainty as a time to improve and expand in all our segments. In this tough mortgage loan environment, we have necessarily greatly slimmed down our office staffs, both pruned and increased our number of producing loan officers, while emphasizing cost efficiencies and metrics. In our Insurance segment we have increased premium rates and initiated better measurement metrics for mortality, persistency, and acquisition costs. In our Memorial segment we have added key personnel, who we believe will drive growth and improve operations. To be sure, growth in this environment is expensive, but is nevertheless our goal.”
SNFC has three business segments. The following table shows the revenues and earnings before taxes for the twelve months ended December 31, 2023, as compared to 2022, for each business segment:
| Full year | ||||||||||||||||
| Revenues | Earnings before Taxes | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Life Insurance | $ | 185,176,000 | $ | 169,183,000 | $ | 25,272,000 | $ | 14,196,000 | ||||||||
| Cemeteries/Mortuaries | $ | 31,938,000 | $ | 28,948,000 | $ | 8,444,000 | $ | 6,094,000 | ||||||||
| Mortgages | $ | 101,383,000 | $ | 191,521,000 | ( | $ | (17,416,000) | $ | 14,087,000 | ( | ||||||
| Total | $ | 318,497,000 | $ | 389,652,000 | ( | $ | 16,300,000 | $ | 34,377,000 | ( | ||||||
Net earnings per common share was $.64 for the twelve months ended December 31, 2023, compared to net earnings of
The Company has two classes of common stock outstanding, Class A and Class C. There were 22,177,828 Class A equivalent shares outstanding as of December 31, 2023.
This press release contains statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Security National Financial Corporation and its business. The predictions in the statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.
If there are any questions, please contact Mr. Garrett S. Sill or Mr. Scott Quist at:
Security National Financial Corporation
P.O. Box 57250
Salt Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 265-9882
FAQ
What was the percentage decrease in after-tax earnings from operations in 2023 for SNFCA?
How did the revenues for the mortgage segment change in 2023 compared to 2022?
What was the net earnings per common share for SNFCA in 2023?
What was the book value per common share for SNFCA as of December 31, 2023?
How did the earnings before taxes change in 2023 for SNFCA compared to 2022?
