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Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Investments

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

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses (1)   Allowance for Credit Losses   Estimated Fair Value 
September 30, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $76,328,048   $1,233,362   $(451,493)  $-   $77,109,917 
                          
Obligations of states and political subdivisions   5,940,034    19,228    (145,441)   -    5,813,821 
                          
Corporate securities including public utilities   230,885,585    6,223,923    (3,885,889)   (402,553)   232,821,066 
                          
Mortgage-backed securities   33,740,031    361,640    (3,571,090)   (12,049)   30,518,532 
                          
Redeemable preferred stock   250,000    -    -    -    250,000 
                          
Total fixed maturity securities available for sale  $347,143,698   $7,838,153   $(8,053,913)  $(414,602)  $346,513,336 
                          
Equity securities at estimated fair value:                         
                          
Common stock:                         
                          
Industrial, miscellaneous and all other  $11,357,095   $5,299,178   $(270,702)       $16,385,571 
                          
Total equity securities at estimated fair value  $11,357,095   $5,299,178   $(270,702)       $16,385,571 
                          
Mortgage loans held for investment at amortized cost:                         
Residential  $88,452,336                     
Residential construction   130,683,596                     
Commercial   66,462,554                     
Less: Unamortized deferred loan fees, net   (1,978,564)                    
Less: Allowance for credit losses   (1,579,746)                    
Less: Net discounts   (305,994)                    
                          
Total mortgage loans held for investment  $281,734,182                     
                          
Real estate held for investment - net of accumulated depreciation:                         
Residential  $73,610,520                     
Commercial   126,880,036                     
                          
Total real estate held for investment  $200,490,556                     
                          
Real estate held for sale:                         
Residential  $849,900                     
Commercial   151,553                     
                          
Total real estate held for sale  $1,001,453                     
                          
Other investments and policy loans at amortized cost:                         
Policy loans  $13,735,282                     
Insurance assignments   45,954,394                     
Federal Home Loan Bank stock (2)   2,378,200                     
Other investments   9,692,608                     
Less: Allowance for credit losses for insurance assignments   (1,540,835)                    
                          
Total other investments and policy loans  $70,219,649                     
                          
Accrued investment income  $7,860,824                     
                          
Total investments  $924,205,571                     

 

 

(1)Gross unrealized losses are net of allowance for credit losses
(2)Includes $553,900 of Membership stock and $1,824,300 of Activity stock attributable to short-term borrowings and letters of credit.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

September 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

 

   Unrealized Losses for Less than Twelve Months   Fair Value   Unrealized Losses for More than Twelve Months   Fair Value   Total Unrealized Loss   Combined Fair Value 
September 30, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $534   $4,411,131   $450,959   $22,087,838   $451,493   $26,498,969 
Obligations of states and political subdivisions   -    -    145,441    4,162,052    145,441    4,162,052 
Corporate securities   171,711    15,096,035    3,714,178    83,653,386    3,885,889    98,749,421 
Mortgage-backed securities   5,712    695,868    3,565,378    19,827,317    3,571,090    20,523,185 
Totals  $177,957   $20,203,034   $7,875,956   $129,730,593   $8,053,913   $149,933,627 
                               
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 September 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  $7,981,489   $7,842,911 
Due in 2-5 years   136,017,903    136,085,053 
Due in 5-10 years   103,303,678    106,137,140 
Due in more than 10 years   65,850,597    65,679,700 
Mortgage-backed securities   33,740,031    30,518,532 
Redeemable preferred stock   250,000    250,000 
Total  $347,143,698   $346,513,336 
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 September 30, 2024, are as follows:

  

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Allowance for Credit Losses   Estimated Fair Value 
September 30, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                               
U.S. Treasury securities and obligations of U.S. Government agencies  $649,256   $1,815   $(385)  $-   $650,686 
Obligations of states and political subdivisions   125,798    -    (4,549)   -    121,249 
Total fixed maturity securities available for sale  $775,054   $1,815   $(4,934)  $-   $771,935 
                          
Equity securities at estimated fair value:                         
Common stock:                         
Industrial, miscellaneous and all other  $3,830,983   $1,362,684   $(121,246)       $5,072,421 
Total equity securities at estimated fair value  $3,830,983   $1,362,684   $(121,246)       $5,072,421 
                          
Mortgage loans held for investment at amortized cost:                         
Residential construction  $100,000                     
Less: Allowance for credit losses   (200)                    
Total mortgage loans held for investment  $99,800                     
                          
Accrued investment income  $2,369                     
                          
Cash and cash equivalents  $2,999,256                     
                          
Total cemetery perpetual care trust investments  $8,945,781                     
                          
Cemetery perpetual care obligation  $(5,565,003)                    
                          
Trust investments in excess of trust obligations  $3,380,778                     

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

September 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 September 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 
September 30, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $385   $502,740   $-   $-   $385   $502,740 
Obligations of states and political subdivisions   -    -    4,549    121,249    4,549    121,249 
Totals  $385   $502,740   $4,549   $121,249   $4,934   $623,989 
                               
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 September 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  $-   $- 
Due in 2-5 years   721,973    720,120 
Due in 5-10 years   -    - 
Due in more than 10 years   53,081    51,815 
Total  $775,054   $771,935 
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 September 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 
September 30, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $240   $301,644   $-   $-   $240   $301,644 
Obligations of states and political subdivisions   1,433    178,028    3,448    292,624    4,881    470,652 
Corporate securities including public utilities   327    50,090    1,052    118,564    1,379    168,654 
Totals  $2,000   $529,762   $4,500   $411,188   $6,500   $940,950 
                               
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 September 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  $-   $- 
Due in 2-5 years   1,109,780    1,114,228 
Due in 5-10 years   101,523    100,833 
Due in more than 10 years   536,846    532,523 
Total  $1,748,149   $1,747,584 
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

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

  

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Allowance for Credit Losses   Estimated Fair Value 
September 30, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                                  
U.S. Treasury securities and obligations of U.S. Government agencies  $1,002,584   $5,878   $(240)  $-   $1,008,222 
Obligations of states and political subdivisions   550,532    27    (4,881)   -    545,678 
Corporate securities including public utilities   195,033    30    (1,379)   -    193,684 
Total fixed maturity securities available for sale  $1,748,149   $5,935   $(6,500)  $-   $1,747,584 
                          
Equity securities at estimated fair value:                         
Common stock:                         
Industrial, miscellaneous and all other  $7,996,032   $2,075,560   $(210,681)       $9,860,911 
Total equity securities at estimated fair value  $7,996,032   $2,075,560   $(210,681)       $9,860,911 
                          
Mortgage loans held for investment at amortized cost:                         
Residential construction  $1,113,300                     
Less: Allowance for credit losses   (2,227)                    
Total mortgage loans held for investment  $1,111,073                     
                          
Accrued investment income  $5,167                     
                          
Cash and cash equivalents (1)  $15,232,601                     
                          
Total restricted assets  $27,957,336                     

 

 

(1)Including cash and cash equivalents of $12,032,252 for the life insurance and mortgage segments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

September 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.