Security Natl Stock Price, News & Analysis
Company Description
Security National Financial Corporation (NASDAQ: SNFCA) is a diversified financial services company that operates through three primary business segments: life insurance, cemeteries and mortuaries, and mortgages. According to company disclosures, it focuses on selling and servicing selected lines of life insurance and related products, operating funeral homes and memorial parks, and originating and underwriting residential and commercial mortgage loans in the United States.
Core Business Segments
The company’s life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. These products are marketed in multiple states through a commissioned sales force of independent licensed insurance agents who may also sell insurance products of other companies. This segment also generates investment income, including income related to real estate-based activities and public equity markets, as described in the company’s earnings releases.
The cemetery and mortuary segment operates funeral homes and memorial parks and provides related death care services. Based on company descriptions, this segment consists of mortuaries and cemeteries in Utah, New Mexico, and California. The company also engages in pre-need selling of funeral, cemetery, mortuary, and cremation services through these locations. Properties such as Singing Hills Memorial Park in El Cajon, California, are part of Security National’s Funeral Homes & Cemeteries division and offer burial, mausoleum, and cremation options in a landscaped, park-like setting.
The mortgage segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes, and other real estate projects. According to company information, this segment operates through a network of retail offices across numerous states and is an approved mortgage lender in several additional states. The mortgage business includes acquisition and development loans and can involve profit-sharing arrangements with homebuilders and real estate developers, as illustrated by the Arrowhead Ranch residential development loan in Utah.
Geographic Focus and Operations
Security National Financial Corporation states that its business activities are conducted in the United States. Its funeral and cemetery operations include mortuaries and cemeteries in Utah, New Mexico, and California. The mortgage segment operates through retail offices in multiple states and participates in residential and commercial real estate lending, including loans for new construction and existing properties. The life insurance segment markets its products in numerous states through independent agents.
Corporate Background and Market Presence
According to company disclosures, Security National Financial Corporation was founded in 1965. The company trades on the NASDAQ under the symbol SNFCA and has been included in the broad-market Russell 3000 Index, which captures a large set of U.S. stocks ranked by market capitalization. The company has two classes of common stock, Class A and Class C, and has a long history of issuing annual stock dividends on these shares, as reflected in its board resolutions and related SEC filings.
The company emphasizes the financial diversity of its three business segments. Management commentary in earnings releases notes that performance in one segment can offset challenges in another, particularly given the differing dynamics of life insurance, death care services, and mortgage lending. Investment income, including returns from real estate-related activities and equity investments, is also an important contributor to overall results and can vary between periods.
Life Insurance Segment Details
Within the life insurance segment, Security National Financial Corporation focuses on selected lines of life insurance, annuity products, and accident and health insurance. The company has discussed efforts to improve premium margins through adjustments in premium rates and has noted that these changes can affect profitability over time. Earnings releases also reference the impact of accounting standards such as Current Expected Credit Losses (CECL) and Long Duration Targeted Improvements (LDTI) on items like benefit reserves, deferred acquisition costs, and deferred profit liabilities.
Investment income in the life insurance segment includes returns from real estate-based activities, such as builder relationships and residential land holdings, as well as public equity investments. The company has described these investments as contributing to corporate-wide investment income, while also noting that such income can fluctuate due to the timing of home closings, lot sales, and market movements.
Cemeteries and Mortuaries Segment Details
The cemeteries and mortuaries segment includes multiple mortuaries and cemeteries in Utah, New Mexico, and California. The company offers burial, mausoleum, cremation, and related memorialization options, and engages in pre-need sales of funeral, cemetery, mortuary, and cremation services. Pre-need cemetery land sales are described by management as a major profit driver within this segment.
Properties such as Singing Hills Memorial Park in El Cajon, California, reflect the company’s approach to memorial park development. Singing Hills Memorial Park, established in 1996, includes acreage dedicated to burial, mausoleum, and cremation options, bordered by additional wildlife preserve. Security National’s Funeral Homes & Cemeteries division continues to invest in expansions such as the Mountain Vistas Mausoleum at this park, which is intended to provide additional memorialization choices for families.
Mortgage Segment Details
The mortgage segment originates and underwrites or otherwise purchases residential and commercial mortgage loans. Company disclosures describe activity in loans for new construction, existing homes, and other real estate projects, including acquisition and development financing. The segment operates through a network of retail offices in many states and is an approved mortgage lender in several others.
An example of this segment’s activities is the Arrowhead Ranch residential development loan in Payson, Utah. The company originated an acquisition and development loan related to a large planned residential project, earning interest and origination fees over the term of the loan and realizing additional profit-split income upon completion of the transaction. Management has indicated that such returns can be higher than those from general debt offerings and can position the company’s residential mortgage segment to provide long-term financing to homebuyers in the related developments.
Capital Markets and Corporate Actions
Security National Financial Corporation’s Class A and Class C common stock trade on NASDAQ under the symbol SNFCA. The company has a history of declaring stock dividends on its common shares, and an 8-K filing describes the board’s declaration of a 5% stock dividend on outstanding Class A and Class C common stock, continuing a pattern of annual stock dividends that has been in place for many years.
The company also holds annual meetings of stockholders at which directors are elected, equity incentive plans may be amended, and independent registered public accountants are ratified. An 8-K filing details the results of voting at an annual meeting, including the election of directors, approval of an amendment to the 2022 Equity Incentive Plan to authorize additional shares, and ratification of the appointment of Deloitte & Touche LLP as the company’s independent registered public accountants for a specified fiscal year.
Investor Communications and Segment Reporting
Security National Financial Corporation regularly issues earnings press releases for its quarters and year-to-date periods. These releases provide information on after-tax earnings, segment revenues, earnings before taxes, and other financial metrics, as well as commentary from management on segment performance, investment income, personnel costs, and accounting impacts. The company also hosts earnings calls to review its results and provide updates on its three business segments.
In these communications, management discusses factors affecting each segment, such as mortgage market conditions, changes in cremation and traditional service mix in the death care segment, and premium revenue and investment income trends in the life insurance segment. The company emphasizes the interaction between segments, noting that some investment successes in the life insurance segment are related to activities in the mortgage segment.