In its early years, Security Financial was in the business of purchasing sales finance contracts, with a myriad of small accounts coming from dress shops, furniture stores, and car dealerships. In 1946, after 4 years of operations, the firm obtained its first loan license and began making personal loans. The period from 1948 to 1965 was an extraordinary growth phase in which 15 retail branches were opened, mostly in the Bay Area but in Sacramento County, Southern California and even Phoenix, AZ as well. Founder and President Earl R. Rouda not only oversaw day-to-day operations of Security Financial but was elected to the boards of several northern California banks.
In the 1970s, Security Financial transitioned from consumer to residential real estate lending and was one of the first lenders to offer 2nd position mortgages. Although 2nd mortgages are relatively common today, the move was considered innovative at the time because so few lenders and established banks could successfully negotiate the risks of originating this type of mortgage.
In 1981, Earl’s son, Byron, became President & CEO after having held several management positions with the company. Under his leadership for the past 30 years, Security Financial has established itself as one of Northern California’s premier bridge lenders, specializing in providing short-term loans for commercial and select residential income properties.
The Company has also established itself as one of the largest purchasers of small business debt during the last fifteen years. It has amassed one of the largest portfolios of seller-financed business Notes in the country.
Byron continues to oversee daily operations as President & CEO and the company has distinguised itself by becoming a third-generation family-run business as both of Byron’s sons, Marc and Alexis, have joined the firm in recent years.