XML 49 R37.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Investments

The Company’s investments as of June 30, 2024 are summarized as follows:

  

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses (1)   Allowance for Credit Losses   Estimated Fair Value 
June 30, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $84,577,137   $92,975   $(961,257)  $-   $83,708,855 
                          
Obligations of states and political subdivisions   6,030,338    348    (289,225)   -    5,741,461 
                          
Corporate securities including public utilities   232,747,782    2,272,483    (7,783,014)   (382,211)   226,855,040 
                          
Mortgage-backed securities   36,994,344    260,021    (4,449,645)   (12,049)   32,792,671 
                          
Redeemable preferred stock   250,000    10,000    -    -    260,000 
                          
Total fixed maturity securities available for sale  $360,599,601   $2,635,827   $(13,483,141)  $(394,260)  $349,358,027 
                          
Equity securities at estimated fair value:                         
                          
Common stock:                         
                          
Industrial, miscellaneous and all other  $11,266,705   $4,219,352   $(466,878)       $15,019,179 
                          
Total equity securities at estimated fair value  $11,266,705   $4,219,352   $(466,878)       $15,019,179 
                          
Mortgage loans held for investment at amortized cost:                         
Residential  $103,667,890                     
Residential construction   112,571,713                     
Commercial   73,221,774                     
Less: Unamortized deferred loan fees, net   (1,952,616)                    
Less: Allowance for credit losses   (2,853,852)                    
Less: Net discounts   (311,378)                    
                          
Total mortgage loans held for investment  $284,343,531                     
                          
Real estate held for investment - net of accumulated depreciation:                         
Residential  $60,200,289                     
Commercial   128,120,364                     
                          
Total real estate held for investment  $188,320,653                     
                          
Real estate held for sale:                         
Residential  $858,977                     
Commercial   151,553                     
                          
Total real estate held for sale  $1,010,530                     
                          
Other investments and policy loans at amortized cost:                         
Policy loans  $13,472,198                     
Insurance assignments   48,406,690                     
Federal Home Loan Bank stock (2)   2,350,500                     
Other investments   9,826,523                     
Less: Allowance for credit losses for insurance assignments   (1,535,324)                    
                          
Total other investments and policy loans  $72,520,587                     
                          
Accrued investment income  $8,838,006                     
                          
Total investments  $919,410,513                     

 

 
(1)Gross unrealized losses are net of allowance for credit losses
(2)   Includes $553,900 of Membership stock and $1,796,600 of Activity stock attributable to short-term borrowings and letters of credit.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 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

 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 
June 30, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $112,212   $42,279,344   $849,045   $22,526,803   $961,257   $64,806,147 
Obligations of states and political subdivisions   -    -    289,225    5,291,113    289,225    5,291,113 
Corporate securities   593,138    31,797,535    7,189,876    117,820,419    7,783,014    149,617,954 
Mortgage-backed securities   9,481    2,816,918    4,440,164    22,812,836    4,449,645    25,629,754 
Totals  $714,831   $76,893,797   $12,768,310   $168,451,171   $13,483,141   $245,344,968 
                               
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 June 30, 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  $28,273,026   $28,077,221 
Due in 2-5 years   127,055,688    124,443,548 
Due in 5-10 years   102,523,947    101,192,513 
Due in more than 10 years   65,502,596    62,592,074 
Mortgage-backed securities   36,994,344    32,792,671 
Redeemable preferred stock   250,000    260,000 
Total  $360,599,601   $349,358,027 
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 June 30, 2024, are as follows:

  

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Allowance for Credit Losses   Estimated Fair Value 
June 30, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $443,508   $1,481   $(1,975)  $-   $443,014 
Obligations of states and political subdivisions   167,073    20    (6,908)               -    160,185 
Total fixed maturity securities available for sale  $610,581   $1,501   $(8,883)  $-   $603,199 
                          
Equity securities at estimated fair value:                         
Common stock:                         
Industrial, miscellaneous and all other  $3,739,763   $1,059,494   $(204,627)       $4,594,630 
Total equity securities at estimated fair value  $3,739,763   $1,059,494   $(204,627)       $4,594,630 
                          
Mortgage loans held for investment at amortized cost:                         
Residential construction  $115,000                     
Commercial   1,920,000                     
Less: Allowance for credit losses   (4,070)                    
Total mortgage loans held for investment  $2,030,930                     
                          
Accrued investment income  $20,248                     
                          
Cash and cash equivalents  $1,203,075                     
                          
Total cemetery perpetual care trust investments  $8,452,082                     
                          
Cemetery perpetual care obligation  $(5,487,676)                    
                          
Trust investments in excess of trust obligations  $2,964,406                     

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 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 June 30, 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 
June 30, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $1,975   $144,156   $-   $-   $1,975   $144,156 
Obligations of states and political subdivisions   -    -    6,908    120,165    6,908    120,165 
Totals  $1,975   $144,156   $6,908   $120,165   $8,883   $264,321 
                               
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 June 30, 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  $297,377   $298,857 
Due in 2-5 years   260,123    252,508 
Due in 5-10 years   -    - 
Due in more than 10 years   53,081    51,834 
Total  $610,581   $603,199 
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 June 30, 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 
June 30, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $3,440   $251,111   $-   $-   $3,440   $251,111 
Obligations of states and political subdivisions   2,161    230,634    4,774    289,322    6,935    519,956 
Corporate securities including public utilities   81    25,331    2,727    168,571    2,808    193,902 
Totals  $5,682   $507,076   $7,501   $457,893   $13,183   $964,969 
                               
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 June 30, 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  $542,305   $545,540 
Due in 2-5 years   362,834    356,778 
Due in 5-10 years   101,523    100,716 
Due in more than 10 years   563,523    557,232 
Total  $1,570,185   $1,560,266 
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

Restricted assets as of June 30, 2024, are summarized as follows:

  

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Allowance for Credit Losses   Estimated Fair Value 
June 30, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $796,855   $3,235   $(3,440)  $-   $796,650 
Obligations of states and political subdivisions   551,620    6    (6,935)   -    544,691 
Corporate securities including public utilities   221,710    23    (2,808)              -    218,925 
Total fixed maturity securities available for sale  $1,570,185   $3,264   $(13,183)  $-   $1,560,266 
                          
Equity securities at estimated fair value:                         
Common stock:                         
Industrial, miscellaneous and all other  $7,435,400   $1,487,896   $(376,325)       $8,546,971 
Total equity securities at estimated fair value  $7,435,400   $1,487,896   $(376,325)       $8,546,971 
                          
Mortgage loans held for investment at amortized cost:                         
Residential construction  $639,061                     
Less: Allowance for credit losses   (1,278)                    
Total mortgage loans held for investment  $637,783                     
                          
Accrued investment income  $5,908                     
                          
Cash and cash equivalents (1)  $11,849,488                     
                          
Total restricted assets  $22,600,416                     

 

 

(1)Including cash and cash equivalents of $8,178,110 for the life insurance and mortgage segments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2024 (Unaudited)

 

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

 

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.