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Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet as of March 31, 2025:

 

   Total   Quoted Prices in Active Markets for Identical Assets
(Level 1)		   Significant Observable Inputs
(Level 2)		   Significant Unobservable Inputs
(Level 3)		 
Assets accounted for at fair value on a recurring basis                    
Fixed maturity securities available for sale  $371,212,032   $-   $370,061,728   $1,150,304 
Equity securities   15,973,782    15,973,782    -    - 
Loans held for sale   139,834,226    -    -    139,834,226 
Restricted assets (1)   2,352,472    -    2,352,472    - 
Restricted assets (2)   10,558,353    10,558,353    -    - 
Cemetery perpetual care trust investments (1)   769,914         769,914    - 
Cemetery perpetual care trust investments (2)   5,071,739    5,071,739    -    - 
Derivatives - loan commitments (3)   3,016,606    -    -    3,016,606 
Total assets accounted for at fair value on a recurring basis  $548,789,124   $31,603,874   $373,184,114   $144,001,136 
                     
Liabilities accounted for at fair value on a recurring basis                    
Derivatives - loan commitments (4)   (228,856)   -    -    (228,856)
Total liabilities accounted for at fair value on a recurring basis  $(228,856)  $-   $-   $(228,856)

 

 

(1)Fixed maturity securities available for sale
(2)Equity securities
(3)Included in other assets on the condensed consolidated balance sheets
(4)Included in other liabilities and accrued expenses on the condensed consolidated balance sheets

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2025 (Unaudited)

 

8) Fair Value of Financial Instruments (Continued)

 

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet as of December 31, 2024:

 

   Total   Quoted Prices in Active Markets for Identical Assets
(Level 1)		   Significant Observable Inputs
(Level 2)		   Significant Unobservable Inputs
(Level 3)		 
Assets accounted for at fair value on a recurring basis                    
Fixed maturity securities available for sale  $366,546,129   $-   $365,396,203   $1,149,926 
Equity securities   15,771,681    15,771,681    -    - 
Loans held for sale   131,181,148    -    -    131,181,148 
Restricted assets (1)   2,351,369    -    2,351,369    - 
Restricted assets (2)   9,972,166    9,972,166    -    - 
Cemetery perpetual care trust investments (1)   769,662    -    769,662    - 
Cemetery perpetual care trust investments (2)   4,920,044    4,920,044    -    - 
Derivatives - loan commitments (3)   5,348,089    -    -    5,348,089 
Total assets accounted for at fair value on a recurring basis  $536,860,288   $30,663,891   $368,517,234   $137,679,163 
                     
Liabilities accounted for at fair value on a recurring basis                    
Derivatives - loan commitments (4)  $(3,034,879)  $-   $-   $(3,034,879)
Total liabilities accounted for at fair value on a recurring basis  $(3,034,879)  $-   $-   $(3,034,879)

 

 

(1)Fixed maturity securities available for sale
(2)Equity securities
(3)Included in other assets on the condensed consolidated balance sheets
(4)Included in other liabilities and accrued expenses on the condensed consolidated balance sheets
Schedule of Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2025, the significant unobservable inputs used in the fair value measurements were as follows:

 

   Fair Value at      Significant  Range of Inputs     
   March 31,   Valuation  Unobservable  Minimum   Maximum   Weighted 
   2025   Technique  Input(s)  Value   Value   Average 
Loans held for sale  $139,834,226   Market approach  Investor contract pricing as a percentage of unpaid principal balance   84.0%   110.0%   102.0%
                           
Derivatives - loan commitments (net)   2,787,750   Market approach  Pull-through rate   65.0%   95.0%   82.0%
           Initial-Value   N/A    N/A    N/A 
           Servicing   0 bps    241 bps    43 bps 
                           
Fixed maturity securities available for sale   1,150,304   Broker quotes  Pricing quotes  $100.00   $101.46   $100.19 

 

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2024, the significant unobservable inputs used in the fair value measurements were as follows:

 

   Fair Value at      Significant  Range of Inputs     
   December 31,    Valuation  Unobservable  Minimum   Maximum   Weighted 
   2024   Technique  Input(s)  Value   Value   Average 
Loans held for sale  $131,181,148   Market approach  Investor contract pricing as a percentage of unpaid principal balance   84.0%   109.0%   102.0%
                           
Derivatives - loan commitments (net)   2,313,210   Market approach  Pull-through rate   63.0%   100.0%   83.0%
           Initial-Value   N/A    N/A    N/A 
           Servicing   0 bps    242 bps    47 bps 
                           
Fixed maturity securities available for sale   1,149,926   Broker quotes  Pricing quotes  $100.00   $101.20   $100.16 
Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs

The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the three month period ended March 31, 2025:

 

   Net Loan Commitments   Loans Held for Sale   Fixed Maturity Securities Available for Sale 
Balance - December 31, 2024  $2,313,210   $131,181,148   $1,149,926 
Originations and purchases   -    517,886,377    - 
Sales, maturities and paydowns   -    (521,382,576)   - 
Total gains (losses):               
Included in earnings   474,540(1)   12,149,277(1)   -(2)
Included in other comprehensive income   -    -    378 
Balance - March 31, 2025  $2,787,750   $139,834,226   $1,150,304 

 

 

(1)As a component of Mortgage fee income on the condensed consolidated statements of earnings
(2)As a component of Net investment income on the condensed consolidated statements of earnings

 

The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the three month period ended March 31, 2024:

 

   Net Loan Commitments   Loans Held for Sale   Fixed Maturity Securities Available for Sale 
Balance - December 31, 2023  $1,583,262   $126,549,190   $1,238,656 
Originations and purchases   -    465,605,114    - 
Sales, maturities and paydowns   -    (486,050,938)   - 
Transfer to mortgage loans held for investment   -    (1,867,552)   - 
Foreclosed into real estate held for sale   -    (858,977)   - 
Total gains (losses):               
Included in earnings   561,778(1)   9,302,121(1)   -(2)
Included in other comprehensive income   -    -    (6,469)
Balance - March 31, 2024  $2,145,040   $112,678,958   $1,232,187 

 

 

(1)As a component of Mortgage fee income on the condensed consolidated statements of earnings
(2)As a component of Net investment income on the condensed consolidated statements of earnings
Schedule of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of March 31, 2025:

 

   Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value 
Assets                         
Mortgage loans held for investment                         
Residential  $91,797,424   $-   $-   $92,626,433   $92,626,433 
Residential construction   168,826,209    -    -    168,826,209    168,826,209 
Commercial   58,821,648    -    -    58,679,031    58,679,031 
Mortgage loans held for investment, net  $319,445,281   $-   $-   $320,131,673   $320,131,673 
Policy loans   14,183,492    -    -    14,183,492    14,183,492 
Insurance assignments, net (1)   49,209,257    -    -    49,209,257    49,209,257 
Restricted assets (2)   1,035,160    -    -    1,035,160    1,035,160 
Cemetery perpetual care trust investments (2)   1,194,905    -    -    1,194,905    1,194,905 
Mortgage servicing rights, net   2,839,548    -    -    4,288,738    4,288,738 
                          
Liabilities                         
Bank and other loans payable  $(122,823,346)  $-   $-   $(109,056,311)  $(109,056,311)
Policyholder account balances (3)   (36,925,691)   -    -    (36,981,073)   (36,981,073)
Future policy benefits - annuities (3)   (105,461,353)   -    -    (104,853,294)   (104,853,294)

 

 

(1)Included in other investments and policy loans on the condensed consolidated balance sheets
(2)Mortgage loans held for investment
(3)Included in future policy benefits and unpaid claims on the condensed consolidated balance sheets

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2025 (Unaudited)

 

8) Fair Value of Financial Instruments (Continued)

 

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2024:

 

   Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value 
Assets                         
Mortgage loans held for investment                         
Residential  $89,780,350   $-   $-   $90,168,328   $90,168,328 
Residential construction   150,211,240    -    -    150,211,240    150,211,240 
Commercial   61,755,768    -    -    60,864,775    60,864,775 
Mortgage loans held for investment, net  $301,747,358   $-   $-   $301,244,343   $301,244,343 
Policy loans   14,019,248    -    -    14,019,248    14,019,248 
Insurance assignments, net (1)   46,956,932    -    -    46,956,932    46,956,932 
Restricted assets (2)   983,834    -    -    983,834    983,834 
Cemetery perpetual care trust investments (2)   2,141,464    -    -    2,141,464    2,141,464 
Mortgage servicing rights, net   2,939,878    -    -    4,552,316    4,552,316 
                          
Liabilities                         
Bank and other loans payable  $(106,740,104)  $-   $-   $(90,455,678)  $(90,455,678)
Policyholder account balances (3)   (37,066,043)   -    -    (37,626,593)   (37,626,593)
Future policy benefits - annuities (3)   (105,716,087)   -    -    (104,611,544)   (104,611,544)

 

 

(1)Included in other investments and policy loans on the consolidated balance sheets
(2)Mortgage loans held for investment
(3)Included in future policy benefits and unpaid claims on the consolidated balance sheets