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The financial services industry has been in a situation of unrest in 2012 as banking institutions tried to adapt to be in accordance with the Dodd-Frank Act. Consequently, customers have remained cautious as these institutions continue to take such steps, which may not necessarily be positive for investors. One of the best ways to avoid companies that make poor decisions for investors is to pick companies with high insider ownership.

Discussed below are three companies that have more than 50% insider ownership and high dividend yield (greater than 5%) that were analyzed on their current performance and future outlook.

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* Prices as of 21st April

Source: Yahoo! Finance

Value Line (NASDAQ:VALU) is a dominant player in the investment research sector. Based in New York, approximately 86% of the company is owned by insiders. The company's investment surveys are one of the most popular sources of independent equity investment research. The company also produces research reports regarding mutual funds, options and convertible securities and provides specialized products like Value Line Select, Value Line Special Situations, Value Line Dividend Select and copyright data.

The board of directors of the company recently declared a quarterly cash dividend of $0.15 per share of common stock, in line with expectations. The net income for the latest quarter came in at $1.74M or $0.18 per share, a decrease from $1.84M, or $0.19 per share, for the third quarter of fiscal 2012. The income for the nine months ending January 31, 2013 was at $8.08M, a decline of 14% from $9.38M for the nine months ended January 31, 2012

The main reason for the decline in Value Line popularity has been the availability of other cheaper sources of information, which are easily available. Subscribing to the Value Line Investment survey costs $269 per year. In addition, the company refuses to adapt to the 21st century. For example, Value Line's main competitor, Morningstar, provides a large portion of information on its website for free.

Unico American Corp. (NASDAQ:UNAM) is a small holding company in comparison to its competitors. Based in Woodland Hills, California, approximately 53% of the company is owned by insiders. UNAM's main subsidiary is Crusader, which is a property and casualty insurance company. This company writes insurance only in California, and primarily focuses on multi-peril insurance writing. The other subsidiaries of UNAM operate in different insurance-related industries.

The net income for the company was recorded at $0.6M or $0.10 diluted income per share on revenues of $7.9M against revenues of $8.3M and net income of $0.6M or $0.12 diluted income per share for the corresponding quarter of fiscal 2011. For full fiscal 2012, the revenues came in at $32.8M and net income was posted at $2.0M, in comparison to revenue of $34.6M and net income of $3.7M or $0.70 diluted income per share for fiscal 2011.

UNAM entered into an agreement with Insurance System Inc. of Ontario, Canada, ("ISI") to roll out the latest policy administration for its subsidiary Crusader Insurance Company. The new administration system will also support the operations of other subsidiaries. UNICO is seeking to implement ISI Enterprise as its core operating system, which will help to strengthen its services.

UNAM has a good management that is both disciplined and conservative, which is of utmost importance in the insurance industry. Another positive for the company is that it has earned underwriting profit every year since 2004, which becomes even more important considering the fact that 2004 started a soft market for the insurance industry. Also, the company has enough cushion to bear a catastrophic insurance event. UNAM has more statutory capital and surplus than its current total market cap. Apart from these, the company looks adequately reinsured, which is positive news for any investor.

California First National Bancorp (NASDAQ:CFNB) is in the business of commercial banking, lease financing and personal banking. It is located in Orange County, California, and approximately 82% is owned by insiders. CFNB is presently the 107th-largest bank in California and 1738th-largest bank in the United States.

For the second quarter of 2013, the company's net earnings were $1.81M, a decline of 12% from net earnings of $2.06M for the second quarter of fiscal 2012. The primary reason behind the lower net earnings this past quarter was less direct finance income, which was fueled by decline in the average yields earned during the second quarter and offset the growth of 17% in its lease portfolio, a 25% decline in interest expense and a 7% decrease in non-interest expense.

However, the health of the company is improving despite the lower earnings in the second quarter. The portfolios and loans are growing, which will help the company garner more revenues in the future. CFNB's expenses are narrowing, which will improve its profit margins in the future. The company is sitting on a healthy cash balance of $110 M and dividend yield is supported by the earnings per share.

Disclaimer: Black Coral Research is not a registered investment advisor or broker/dealer. Readers are advised that the material contained herein should be used solely for informational purposes. Investing involves risk, including the loss of principal. Readers are solely responsible for their own investment decisions.

Source: 3 Financials With High Insider Ownership And Dividend Yields Greater Than 5%