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Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Tables)
 3 Months Ended
Mar. 31, 2024
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Investments

The Company’s investments as of March 31, 2024 are summarized as follows:

  

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses (1)   Allowance for Credit Losses   Estimated Fair Value 
March 31, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $108,273,666   $21,718   $(1,168,930)  $-   $107,126,454 
                          
Obligations of states and political subdivisions   6,314,947    327    (312,669)   -    6,002,605 
                          
Corporate securities including public utilities   231,778,966    2,770,637    (7,446,098)   (398,500)   226,705,005 
                          
Mortgage-backed securities   39,788,398    342,124    (4,379,130)   (12,049)   35,739,343 
                          
Redeemable preferred stock   250,000    10,000    -    -    260,000 
                          
Total fixed maturity securities available for sale  $386,405,977   $3,144,806   $(13,306,827)  $(410,549)  $375,833,407 
                          
Equity securities at estimated fair value:                         
                          
Common stock:                         
                          
Industrial, miscellaneous and all other  $11,160,744   $4,284,537   $(283,282)       $15,161,999 
                          
Total equity securities at estimated fair value  $11,160,744   $4,284,537   $(283,282)       $15,161,999 
                          
Mortgage loans held for investment at amortized cost:                         
Residential  $106,764,632                     
Residential construction   99,748,408                     
Commercial   67,076,085                     
Less: Unamortized deferred loan fees, net   (1,711,491)                    
Less: Allowance for credit losses   (2,921,614)                    
Less: Net discounts   (319,236)                    
                          
Total mortgage loans held for investment  $268,636,784                     
                          
Real estate held for investment - net of accumulated depreciation:                         
Residential  $54,638,976                     
Commercial   128,923,346                     
                          
Total real estate held for investment  $183,562,322                     
                          
Real estate held for sale:                         
Residential  $859,599                     
Commercial   12,263,325                     
                          
Total real estate held for sale  $13,122,924                     
                          
Other investments and policy loans at amortized cost:                         
Policy loans  $13,248,999                     
Insurance assignments   46,710,578                     
Federal Home Loan Bank stock (2)   2,325,900                     
Other investments   9,813,032                     
Less: Allowance for credit losses for insurance assignments   (1,587,525)                    
                          
Total other investments and policy loans  $70,510,984                     
                          
Accrued investment income  $8,961,065                     
                          
Total investments  $935,789,485                     

 

 

(1)Gross unrealized losses are net of allowance for credit losses
(2)Includes $552,600 of Membership stock and $1,773,300 of Activity stock attributable to short-term borrowings and letters of credit.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2024 (Unaudited)

 

3) Investments (Continued)

 

The Company’s investments as of December 31, 2023 are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses (1)   Allowance for Credit Losses   Estimated Fair Value 
December 31, 2023:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $111,450,753   $344,425   $(1,416,448)  $-   $110,378,730 
                          
Obligations of states and political subdivisions   6,524,083    500    (319,260)   -    6,205,323 
                          
Corporate securities including public utilities   232,299,727    3,688,642    (7,145,507)   (308,500)   228,534,362 
                          
Mortgage-backed securities   40,359,878    506,647    (4,702,905)   (6,049)   36,157,571 
                          
Redeemable preferred stock   250,000    10,000    -    -    260,000 
                          
Total fixed maturity securities available for sale  $390,884,441   $4,550,214   $(13,584,120)  $(314,549)  $381,535,986 
                          
Equity securities at estimated fair value:                         
                          
Common stock:                         
                          
Industrial, miscellaneous and all other  $10,571,505   $3,504,141   $(439,575)       $13,636,071 
                          
Total equity securities at estimated fair value  $10,571,505   $3,504,141   $(439,575)       $13,636,071 
                          
Mortgage loans held for investment at amortized cost:                         
Residential  $103,153,587                     
Residential construction   104,052,748                     
Commercial   74,176,538                     
Less: Unamortized deferred loan fees, net   (1,623,226)                    
Less: Allowance for credit losses   (3,818,653)                    
Less: Net discounts   (324,157)                    
                          
Total mortgage loans held for investment  $275,616,837                     
                          
Real estate held for investment - net of accumulated depreciation:                         
Residential  $40,924,865                     
Commercial   142,494,427                     
                          
Total real estate held for investment  $183,419,292                     
                          
Real estate held for sale:                         
Residential  $-                     
Commercial   3,028,973                     
                          
Total real estate held for sale  $3,028,973                     
                          
Other investments and policy loans at amortized cost:                         
Policy loans  $13,264,183                     
Insurance assignments   45,605,322                     
Federal Home Loan Bank stock (2)   2,279,800                     
Other investments   9,809,148                     
Less: Allowance for credit losses for insurance assignments   (1,553,836)                    
                          
Total policy loans and other investments  $69,404,617                     
                          
Accrued investment income  $10,170,790                     
                          
Total investments  $936,812,566                     

 

 

(1)Gross unrealized losses are net of allowance for credit losses
(2)Includes $530,900 of Membership stock and $1,748,900 of Activity stock due to short-term advances and letters of credit.
Schedule of Fair Value of Fixed Maturity Securities

  

   Unrealized Losses for Less than Twelve Months   Fair Value   Unrealized Losses for More than Twelve Months   Fair Value   Total Unrealized Loss   Combined Fair Value 
March 31, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $167,532   $53,312,759   $1,001,398   $29,735,785   $1,168,930   $83,048,544 
Obligations of states and political subdivisions   12,735    469,060    299,934    5,083,218    312,669    5,552,278 
Corporate securities   613,453    35,567,960    6,832,645    110,572,963    7,446,098    146,140,923 
Mortgage-backed securities   18,656    4,044,375    4,360,474    23,420,838    4,379,130    27,465,213 
Totals  $812,376   $93,394,154   $12,494,451   $168,812,804   $13,306,827   $262,206,958 
                               
December 31, 2023                              
U.S. Treasury securities and obligations of U.S. Government agencies  $29,394   $9,436,090   $1,387,054   $70,885,403   $1,416,448   $80,321,493 
Obligations of states and political subdivisions   11,105    470,325    308,155    5,284,498    319,260    5,754,823 
Corporate securities   529,660    32,507,773    6,615,847    107,556,216    7,145,507    140,063,989 
Mortgage-backed securities   29,799    2,260,445    4,673,106    22,184,174    4,702,905    24,444,619 
Totals  $599,958   $44,674,633   $12,984,162   $205,910,291   $13,584,120   $250,584,924 
Schedule of Investments Classified by Contractual Maturity Date

The table below presents the amortized cost and the estimated fair value of fixed maturity securities available for sale as of March 31, 2024, by contractual maturity. Actual or 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  $72,470,984   $72,077,712 
Due in 2-5 years   123,253,754    120,601,532 
Due in 5-10 years   85,540,964    84,576,263 
Due in more than 10 years   65,101,877    62,578,557 
Mortgage-backed securities   39,788,398    35,739,343 
Redeemable preferred stock   250,000    260,000 
Total  $386,405,977   $375,833,407 
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 March 31, 2024, are as follows:

  

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Allowance for Credit Losses   Estimated Fair Value 
March 31, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                                    
U.S. Treasury securities and obligations of U.S. Government agencies  $478,900   $458   $(786)  $-   $478,572 
Obligations of states and political subdivisions   168,209    -    (6,002)   -    162,207 
Total fixed maturity securities available for sale  $647,109   $458   $(6,788)  $-   $640,779 
                          
Equity securities at estimated fair value:                         
Common stock:                         
Industrial, miscellaneous and all other  $3,657,164   $1,066,760   $(147,635)       $4,576,289 
Total equity securities at estimated fair value  $3,657,164   $1,066,760   $(147,635)       $4,576,289 
                          
Mortgage loans held for investment at amortized cost:                         
Residential construction  $123,600                     
Less: Allowance for credit losses   (247)                    
Total mortgage loans held for investment  $123,353                     
                          
Accrued investment income  $6,968                     
                          
Cash and cash equivalents  $3,021,586                     
                          
Total cemetery perpetual care trust investments  $8,368,975                     
                          
Cemetery perpetual care obligation  $(5,384,115)                    
                          
Trust investments in excess of trust obligations  $2,984,860                     

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2024 (Unaudited)

 

15) Cemetery Perpetual Care Trust Investments and Obligations and Restricted Assets (Continued)

 

The components of the cemetery perpetual care investments and obligation as of December 31, 2023, are as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2023:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $477,797   $302   $(574)  $477,525 
Obligations of states and political subdivisions   115,792    -    (5,114)   110,678 
Corporate securities including public utilities   53,672    -    (171)   53,501 
Total fixed maturity securities available for sale  $647,261   $302   $(5,859)  $641,704 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $3,614,392   $859,680   $(146,771)  $4,327,301 
Total equity securities at estimated fair value  $3,614,392   $859,680   $(146,771)  $4,327,301 
                     
Mortgage loans held for investment at amortized cost:                    
Residential construction  $247,360                
Less: Allowance for credit losses   (495)               
Total mortgage loans held for investment  $246,865                
                     
Cash and cash equivalents  $2,867,047                
                     
Total cemetery perpetual care trust investments  $8,082,917                
                     
Cemetery perpetual care obligation  $(5,326,196)               
                     
Trust investments in excess of trust obligations  $2,756,721                
Schedule of Fair Value of Fixed Maturity Securities

The table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as of March 31, 2024 and December 31, 2023. 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 
March 31, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $786   $143,234   $-   $-   $786   $143,234 
Obligations of states and political subdivisions   -    -    6,002    162,207    6,002    162,207 
Totals  $786   $143,234   $6,002   $162,207   $6,788   $305,441 
                               
December 31, 2023                              
U.S. Treasury securities and obligations of U.S. Government agencies  $574   $143,448   $-   $-   $574   $143,448 
Obligations of states and political subdivisions   -    -    5,114    110,678    5,114    110,678 
Corporate securities including public utilities   -    -     171    53,501    171    53,501 
Totals  $574   $143,448   $5,285   $164,179   $5,859   $307,627 
Schedule of Investments Classified by Contractual Maturity Date

The table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of March 31, 2024, 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  $334,878   $335,336 
Due in 2-5 years   258,559    252,489 
Due in 5-10 years   -    - 
Due in more than 10 years   53,672    52,954 
Total  $647,109   $640,779 
Restricted Assets [Member]  
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Fair Value of Fixed Maturity Securities

The table below summarizes unrealized losses on fixed maturity securities available for sale that were carried at estimated fair value as of March 31, 2024 and December 31, 2023. 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 
March 31, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $1,370   $249,507   $-   $-   $1,370   $249,507 
Obligations of states and political subdivisions   4,206    335,100    3,896    187,645    8,102    522,745 
Corporate securities including public utilities   684    75,757    3,371    219,442    4,055    295,199 
Totals  $6,260   $660,364   $7,267   $407,087   $13,527   $1,067,451 
                               
December 31, 2023                              
U.S. Treasury securities and obligations of U.S. Government agencies  $1,000   $249,877   $-   $-   $1,000   $249,877 
Obligations of states and political subdivisions   -    -    4,542    451,985    4,542    451,985 
Corporate securities including public utilities   -    -    2,740    221,334    2,740    221,334 
Totals  $1,000   $249,877   $7,282   $673,319   $8,282   $923,196 
Schedule of Investments Classified by Contractual Maturity Date

The table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of March 31, 2024, 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  $681,860   $687,133 
Due in 2-5 years   461,092    455,800 
Due in 5-10 years   102,422    101,308 
Due in more than 10 years   567,464    560,373 
Total  $1,812,838   $1,804,614 
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

Restricted assets as of March 31, 2024, are summarized as follows:

  

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Allowance for Credit Losses   Estimated Fair Value 
March 31, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                                   
U.S. Treasury securities and obligations of U.S. Government agencies  $932,737   $5,273   $(1,370)  $-   $936,640 
Obligations of states and political subdivisions   555,848    12    (8,102)   -    547,758 
Corporate securities including public utilities   324,253    18    (4,055)   -    320,216 
Total fixed maturity securities available for sale  $1,812,838   $5,303   $(13,527)  $-   $1,804,614 
                          
Equity securities at estimated fair value:                         
Common stock:                         
Industrial, miscellaneous and all other  $7,023,615   $1,506,405   $(251,408)       $8,278,612 
Total equity securities at estimated fair value  $7,023,615   $1,506,405   $(251,408)       $8,278,612 
                          
Mortgage loans held for investment at amortized cost:                         
Residential construction  $183,942                     
Less: Allowance for credit losses   (368)                    
Total mortgage loans held for investment  $183,574                     
                          
Accrued investment income  $13,377                     
                          
Cash and cash equivalents (1)  $10,598,384                     
                          
Total restricted assets  $20,878,561                     

 

 

(1)Including cash and cash equivalents of $6,925,987 for the life insurance and mortgage segments.

 

Restricted assets as of December 31, 2023, are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2023:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $932,737   $1,433   $(1,000)  $933,170 
Obligations of states and political subdivisions   652,770    305    (4,542)   648,533 
Corporate securities including public utilities   274,688    209    (2,740)   272,157 
Total fixed maturity securities available for sale  $1,860,195   $1,947   $(8,282)  $1,853,860 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $6,516,044   $1,117,155   $(247,996)  $7,385,203 
Total equity securities at estimated fair value  $6,516,044   $1,117,155   $(247,996)  $7,385,203 
                     
Mortgage loans held for investment at amortized cost:                    
Residential construction  $676,572                
Less: Allowance for credit losses   (1,353)               
Total mortgage loans held for investment  $675,219                
                     
Cash and cash equivalents (1)  $10,114,694                
                     
Total restricted assets  $20,028,976                

 

 

(1)Including cash and cash equivalents of $6,930,930 for the life insurance and mortgage segments.