"Our mortgage segment struggled greatly in 2010 due to a number of factors. 2010 saw a significant reduction in overall demand as the refinance markets contracted due to fairly level interest rates, more stringent underwriting standards and property values. The purchase market has yet to rebound. Overall, the industry continues to struggle with credit losses and the responsibility for defaulted loans. We continue to receive pressure from our investors on those issues. Finally, new disclosure and pending compensation rules have further disrupted normal loan flow, further contracting our production capability. Those factors at this point seem to be extending into 2011."SNFC has three business segments. The following table shows the revenues and earnings (loss) before taxes for the 12 months ended December 31, 2010, as compared to 2009 for each of the three business segments:
|Revenues||Earnings (Loss) before Taxes|
The Company has two classes of common stock outstanding, Class A and Class C. The Class C shares share in distribution of earnings and capital on a 10-for-1 basis with the Class A shares; therefore, for earnings per share and book value per share calculations, the Class C shares are converted to Class A shares on a 10-for-1 basis. There were 8,822,886 Class A equivalent shares outstanding as of December 31, 2010.