XML 52 R40.htm IDEA: XBRL DOCUMENT v3.23.1
Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Investments

The Company’s investments as of December 31, 2022 are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2022:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $93,182,210   $180,643   $(2,685,277)  $90,677,576 
                     
Obligations of states and political subdivisions   6,675,071    13,869    (458,137)   6,230,803 
                     
Corporate securities including public utilities   229,141,544    1,909,630    (11,930,773)   219,120,401 
                     
Mortgage-backed securities   33,501,686    168,700    (4,100,674)   29,569,712 
                     
Redeemable preferred stock   250,000    10,000    -    260,000 
                     
Total fixed maturity securities available for sale  $362,750,511   $2,282,842   $(19,174,861)  $345,858,492 
                     
Equity securities at estimated fair value:                    
                     
Common stock:                    
                     
Industrial, miscellaneous and all other  $9,942,265   $2,688,375   $(948,114)  $11,682,526 
                     
Total equity securities at estimated fair value  $9,942,265   $2,688,375   $(948,114)  $11,682,526 
                     
Mortgage loans held for investment at amortized cost:                    
Residential  $93,355,623                
Residential construction   172,516,125                
Commercial   46,311,955                
Less: Unamortized deferred loan fees, net   (1,746,605)               
Less: Allowance for loan losses   (1,970,311)               
Less: Net discounts   (342,860)               
                     
Total mortgage loans held for investment  $308,123,927                
                     
Real estate held for investment - net of accumulated depreciation:                    
Residential  $38,437,960                
Commercial   152,890,656                
                     
Total real estate held for investment  $191,328,616                
                     
Real estate held for sale:                    
Residential  $11,010,029                
Commercial   151,553                
                     
Total real estate held for sale  $11,161,582                
                     
Other investments and policy loans at amortized cost:                    
Policy loans  $13,095,473                
Insurance assignments   46,942,536                
Federal Home Loan Bank stock (1)   2,600,300                
Other investments   9,479,798                
Less: Allowance for doubtful accounts   (1,609,951)               
                     
Total policy loans and other investments  $70,508,156                
                     
Accrued investment income  $10,299,826                
                     
Total investments  $948,963,125                

 

(1)Includes $938,500 of Membership stock and $1,661,800 of Activity stock due to short-term advances and letters of credit.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2022 and 2021

 

2) Investments (Continued)

 

The Company’s investments as of December 31, 2021 are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2021:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $22,307,736   $578,567   $-   $22,886,303 
                     
Obligations of states and political subdivisions   4,649,917    212,803    (1,989)   4,860,731 
                     
Corporate securities including public utilities   174,711,061    21,791,370    (353,668)   196,148,763 
                     
Mortgage-backed securities   34,365,382    905,159    (161,332)   35,109,209 
                     
Redeemable preferred stock   269,214    13,383    -    282,597 
                     
Total fixed maturity securities available for sale  $236,303,310   $23,501,282   $(516,989)  $259,287,603 
                     
Equity securities at estimated fair value:                    
                     
Common stock:                    
                     
Industrial, miscellaneous and all other  $8,275,772   $3,626,444   $(305,802)  $11,596,414 
                     
Total equity securities at estimated fair value  $8,275,772   $3,626,444   $(305,802)  $11,596,414 
                     
Mortgage loans held for investment at amortized cost:                    
Residential  $53,533,712                
Residential construction   175,117,783                
Commercial   51,683,022                
Less: Unamortized deferred loan fees, net   (918,586)               
Less: Allowance for loan losses   (1,699,902)               
Less: Net discounts   (409,983)               
                     
Total mortgage loans held for investment  $277,306,046                
                     
Real estate held for investment - net of accumulated depreciation:                    
Residential  $41,972,462                
Commercial   155,393,335                
                     
Total real estate held for investment  $197,365,797                
                     
Real estate held for sale:                    
Residential  $1,190,602                
Commercial   2,540,698                
                     
Total real estate held for sale  $3,731,300                
                     
Other investments and policy loans at amortized cost:                    
Policy loans  $13,478,214                
Insurance assignments   48,632,808                
Federal Home Loan Bank stock (1)   2,547,100                
Other investments   4,983,251                
Less: Allowance for doubtful accounts   (1,686,218)               
                     
Total policy loans and other investments  $67,955,155                
                     
Accrued investment income  $6,313,012                
                     
Total investments  $823,555,327                

 

(1)Includes $905,700 of Membership stock and $1,641,400 of Activity stock due to short-term advances and letters of credit.

Schedule of Fair Value of Fixed Maturity Securities

The following table summarizes unrealized losses on fixed maturities securities available for sale that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities:

 

   Unrealized Losses for Less than Twelve Months   Fair Value   Unrealized Losses for More than Twelve Months   Fair Value   Total Unrealized Loss   Fair Value 
At December 31, 2022                              
U.S. Treasury securities and obligations of U.S. Government agencies  $2,685,277   $79,400,753   $-   $-   $2,685,277   $79,400,753 
Obligations of States and Political Subdivisions   378,067    5,467,910    80,070    429,020    458,137    5,896,930 
Corporate Securities   10,935,114    162,995,969    995,659    5,781,822    11,930,773    168,777,791 
Mortgage and other asset-backed securities   2,884,731    19,909,907    1,215,943    6,978,745    4,100,674    26,888,652 
Total unrealized losses  $16,883,189   $267,774,539   $2,291,672   $13,189,587   $19,174,861   $280,964,126 
                               
At December 31, 2021                              
Obligations of States and Political Subdivisions  $1,989   $548,715   $-   $-   $1,989   $548,715 
Corporate Securities   73,507    4,638,750    280,161    3,771,813    353,668    8,410,563 
Mortgage and other asset-backed securities   72,952    7,934,760    88,380    1,582,804    161,332    9,517,564 
Total unrealized losses  $148,448   $13,122,225   $368,541   $5,354,617   $516,989   $18,476,842 
Schedule of Investments Classified by Contractual Maturity Date

The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

   Amortized
Cost		   Estimated Fair
Value		 
Due in 1 year  $-   $- 
Due in 2-5 years   139,431,212    135,093,083 
Due in 5-10 years   87,552,213    84,011,366 
Due in more than 10 years   102,015,400    96,924,331 
Mortgage-backed securities   33,501,686    29,569,712 
Redeemable preferred stock   250,000    260,000 
Total  $362,750,511   $345,858,492 
Restricted Assets [Member]  
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Fair Value of Fixed Maturity Securities

The following tables summarize unrealized losses on fixed maturities securities that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities:

 

   Unrealized Losses for Less than Twelve Months   Fair Value   Unrealized Losses for More than Twelve Months   Fair Value   Total Unrealized Loss   Fair Value 
At December 31, 2022                                           
Obligations of states and political subdivisions  $11,891   $760,255   $    3,469   $58,072   $15,360   $818,327 
Corporate securities including public utilities   3,016    198,755    -    -    3,016    198,755 
Total unrealized losses  $14,907   $959,010   $3,469   $58,072   $18,376   $1,017,082 
                               
At December 31, 2021                              
Obligations of states and political subdivisions  $309   $114,208   $-   $-   $309   $114,208 
Corporate securities including public utilities   1,761    232,239    -    -    1,761    232,239 
Total unrealized losses  $2,070   $346,447   $-   $-   $2,070   $346,447 
Schedule of Investments Classified by Contractual Maturity Date

The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

   Amortized   Estimated Fair 
   Cost   Value 
Due in 1 year  $-   $- 
Due in 2-5 years   320,972    312,708 
Due in 5-10 years   153,284    152,191 
Due in more than 10 years   760,562    752,409 
Total  $1,234,818   $1,217,308 
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

Restricted assets as of December 31, 2022 are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2022:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
Obligations of states and political subdivisions  $1,033,047   $866   $(15,360)  $1,018,553 
Corporate securities including public utilities   201,771    -    (3,016)   198,755 
Total fixed maturity securities available for sale  $1,234,818   $866   $(18,376)  $1,217,308 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $4,955,360   $703,049   $(310,165)  $5,348,244 
Total equity securities at estimated fair value  $4,955,360   $703,049   $(310,165)  $5,348,244 
                     
Mortgage loans held for investment at amortized cost:
Residential construction		  $1,731,469                
                     
Cash and cash equivalents (1)  $10,638,034                
                     
Total restricted assets  $18,935,055                

 

 
(1)Including cash and cash equivalents of $8,527,620 for the life insurance and mortgage segments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2022 and 2021

 

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Continued)

 

Restricted assets as of December 31, 2021 are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2021:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
Obligations of states and political subdivisions  $1,058,449   $42,456   $(309)  $1,100,596 
Corporate securities including public utilities   489,714    13,139    (1,761)   501,092 
Total fixed maturity securities available for sale  $1,548,163   $55,595   $(2,070)  $1,601,688 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $2,781,041   $852,443   $(29,662)  $3,603,822 
Total equity securities at estimated fair value  $2,781,041   $852,443   $(29,662)  $3,603,822 
                     
Mortgage loans held for investment at amortized cost:                     
Residential construction  $2,732,319                
                     
Cash and cash equivalents (1)  $9,000,293                
                     
Total restricted assets  $16,938,122                

 

(1)Including cash and cash equivalents of $7,869,295 for the life insurance and mortgage segments.
Cemetery Perpectual Care Oblication [Member]  
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Investments

The components of the cemetery perpetual care investments and obligation as of December 31, 2022 are as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2022:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $89,004   $42   $(38)  $89,008 
Obligations of states and political subdivisions   174,201    -    (8,478)   165,723 
Total fixed maturity securities available for sale  $263,205   $42   $(8,516)  $254,731 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $3,195,942   $584,383   $(175,163)  $3,605,162 
Total equity securities at estimated fair value  $3,195,942   $584,383   $(175,163)  $3,605,162 
                     
Mortgage loans held for investment at amortized cost:                     
Residential construction  $1,506,517                
                     
Real estate held for investment: Residential  $(16,178)               
                     
Cash and cash equivalents  $1,925,978                
                     
Total cemetery perpetual care trust investments  $7,276,210                
                     
Cemetery perpetual care obligation  $(5,099,542)               
                     
Trust investments in excess of trust obligations  $2,176,668                

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2022 and 2021

 

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Continued)

 

The components of the cemetery perpetual care investments and obligation as of December 31, 2021 are as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2021:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
Obligations of states and political subdivisions  $280,023   $4,872   $(928)  $283,967 
Corporate securities including public utilities   492,770    8,028    -    500,798 
Total fixed maturity securities available for sale  $772,793   $12,900   $(928)  $784,765 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $2,597,745   $737,696   $(32,961)  $3,302,480 
Total equity securities at estimated fair value  $2,597,745   $737,696   $(32,961)  $3,302,480 
                     
Mortgage loans held for investment at amortized cost:
Residential construction		  $1,823,533                
                     
Real estate held for investment: Residential  $865,424                
                     
Cash and cash equivalents  $1,059,519                
                     
Total cemetery perpetual care trust investments  $7,835,721                
                     
Cemetery perpetual care obligation  $(4,915,285)               
                     
Trust investments in excess of trust obligations  $2,920,436                
Schedule of Fair Value of Fixed Maturity Securities

The following tables summarize unrealized losses on fixed maturities securities that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities:

 

   Unrealized Losses for Less than Twelve Months   Fair Value   Unrealized Losses for More than Twelve Months   Fair Value   Total Unrealized Loss   Fair Value 
At December 31, 2022                                            
U.S. Treasury securities and obligations of U.S. Government agencies  $38   $59,392   $-   $-   $38   $59,392 
Obligations of states and political subdivisions   1,845    94,612    6,633    71,112    8,478    165,724 
Total unrealized losses  $1,883   $154,004   $6,633   $71,112   $8,516   $225,116 
                               
At December 31, 2021                              
Obligations of states and political subdivisions  $928   $105,060   $-   $-   $928   $105,060 
Total unrealized losses  $928   $105,060   $-   $-   $928   $105,060 
Schedule of Investments Classified by Contractual Maturity Date

The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

   Amortized   Estimated Fair 
   Cost   Value 
Due in 1 year  $89,004   $89,008 
Due in 2-5 years   77,745    71,112 
Due in 5-10 years   41,621    40,816 
Due in more than 10 years   54,835    53,795 
Total  $263,205   $254,731