Security National Financial Corp.’s residential mortgage business saw a near 30% increase in revenue in 1Q13 on a year-over-year basis while the company’s other two segments (cemetery/mortuary and life insurance) barely broke even or had a slight decline.
Total revenue at the company was up 16% for the quarter, as mortgage contributed $35 million of the $55 million total.
On an earnings-before-taxes basis, mortgage had income of $2.3 million, up from $1.3 million one year prior. As a whole, SNFC had earnings before taxes of $3.3 million, up from $2.4 million. After-tax earnings were $2 million, up 22% from $1.6 million in 1Q12.
Scott Quist, chairman, president and CEO, said this was the second best first quarter in SNFC’s history. “Our mortgage segment had a 30% improvement in volume which demonstrates the ongoing advantage of our purchase mortgage emphasis as we continued to increase market share. That 30% volume improvement translated into a nearly 80% profitability improvement as we achieved greater operational leverage,” he continued.
For 1Q13, SNFC’s residential mortgage business originated and sold 2,895 loans for $537 million in total volume compared with 2,440 loans for $446 million total volume in 1Q12.
Last week, SNFC announced it had purchased a $3.8 million multifamily and mixed-use performing loan portfolio secured by six properties located in Southern California. The seller and the price were not disclosed.
It said it believes this portfolio to consist of “conservative, low-risk investments yielding a strong rate of return,” which aligns with its
Garrett Sill, acting chief financial officer, said “after thorough site visits and due diligence, we found this portfolio to be a great addition to our existing mortgage portfolio. The low loan-to-values and strong payment histories combined with an above market yield made this an attractive purchase.”
