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Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Investments and Obligation

The Company’s investments as of March 31, 2025 are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses (1)   Allowance for Credit Losses   Estimated Fair Value 
March 31, 2025:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $67,730,345   $168,247   $(369,412)  $-   $67,529,180 
                          
Obligations of states and political subdivisions   3,554,218    12,021    (216,520)   -    3,349,719 
                          
Corporate securities including public utilities   278,660,923    4,042,114    (5,058,561)   (495,251)   277,149,225 
                          
Mortgage-backed securities   26,707,539    99,349    (3,860,931)   (12,049)   22,933,908 
                          
Redeemable preferred stock   250,000    -    -    -    250,000 
                          
Total fixed maturity securities available for sale  $376,903,025   $4,321,731   $(9,505,424)  $(507,300)  $371,212,032 
                          
Equity securities at estimated fair value:                         
                          
Common stock:                         
                          
Industrial, miscellaneous and all other  $11,548,300   $4,887,671   $(462,189)       $15,973,782 
                          
Total equity securities at estimated fair value  $11,548,300   $4,887,671   $(462,189)       $15,973,782 
                          
Mortgage loans held for investment at amortized cost:                        
Residential  $93,910,555                     
Residential construction   169,877,471                     
Commercial   60,191,978                     
Less: Unamortized deferred loan fees, net   (2,251,280)                    
Less: Allowance for credit losses   (2,008,592)                    
Less: Net discounts   (274,851)                    
                          
Total mortgage loans held for investment  $319,445,281                     
                          
Real estate held for investment - net of accumulated depreciation:                         
Residential  $77,755,199                     
Commercial   124,874,527                     
                          
Total real estate held for investment  $202,629,726                     
                          
Real estate held for sale:                         
Residential  $2,561,487                     
Commercial   151,553                     
                          
Total real estate held for sale  $2,713,040                     
                          
Other investments and policy loans at amortized cost:                         
Policy loans  $14,183,492                     
Insurance assignments   50,727,040                     
Federal Home Loan Bank stock (2)   630,200                     
Other investments   12,522,969                     
Less: Allowance for credit losses for insurance assignments   (1,517,783)                    
                          
Total other investments and policy loans  $76,545,918                     
                          
Accrued investment income  $9,574,599                     
                          
Total investments  $998,094,378                     

 

 

(1)Gross unrealized losses are net of allowance for credit losses
(2)Includes $580,700 of Membership stock and $49,500 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, 2025 (Unaudited)

 

3) Investments (Continued)

 

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

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses (1)   Allowance for Credit Losses   Estimated Fair Value 
December 31, 2024:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $74,680,606   $327,618   $(486,976)  $-   $74,521,248 
                          
Obligations of states and political subdivisions   6,416,751    1,762    (290,448)   -    6,128,065 
                          
Corporate securities including public utilities   262,954,278    2,444,842    (6,922,871)   (408,944)   258,067,305 
                          
Mortgage-backed securities   31,710,436    125,764    (4,244,640)   (12,049)   27,579,511 
                          
Redeemable preferred stock   250,000    -    -    -    250,000 
                          
Total fixed maturity securities available for sale  $376,012,071   $2,899,986   $(11,944,935)  $(420,993)  $366,546,129 
                          
Equity securities at estimated fair value:                         
                          
Common stock:                         
                          
Industrial, miscellaneous and all other  $11,386,454   $4,976,567   $(591,340)       $15,771,681 
                          
Total equity securities at estimated fair value  $11,386,454   $4,976,567   $(591,340)       $15,771,681 
                          
Mortgage loans held for investment at amortized cost:                         
Residential  $92,061,787                     
Residential construction   151,172,733                     
Commercial   62,753,085                     
Less: Unamortized deferred loan fees, net   (2,082,241)                    
Less: Allowance for credit losses   (1,885,390)                    
Less: Net discounts   (272,616)                    
                          
Total mortgage loans held for investment  $301,747,358                     
                          
Real estate held for investment - net of accumulated depreciation:                         
Residential  $71,618,410                     
Commercial   126,074,928                     
                          
Total real estate held for investment  $197,693,338                     
                          
Real estate held for sale:                         
Residential  $1,126,480                     
Commercial   151,553                     
                          
Total real estate held for sale  $1,278,033                     
                          
Other investments and policy loans at amortized cost:                         
Policy loans  $14,019,248                     
Insurance assignments   48,493,858                     
Federal Home Loan Bank stock (2)   2,404,900                     
Other investments   11,473,961                     
Less: Allowance for credit losses for insurance assignments   (1,536,926)                    
                          
Total policy loans and other investments  $74,855,041                     
                          
Accrued investment income  $8,499,168                     
                          
Total investments  $966,390,748                     

 

(1)Gross unrealized losses are net of allowance for credit losses
(2)Includes $553,900 of Membership stock and $1,851,000 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, 2025                              
U.S. Treasury securities and obligations of U.S. Government agencies  $17,078   $4,202,295   $352,334   $12,890,048   $369,412   $17,092,343 
Obligations of states and political subdivisions   7,192    192,808    209,328    2,211,591    216,520    2,404,399 
Corporate securities   810,597    63,857,548    4,247,964    79,610,636    5,058,561    143,468,184 
Mortgage-backed securities   4,946    220,459    3,855,985    18,098,828    3,860,931    18,319,287 
Totals  $839,813   $68,473,110   $8,665,611   $112,811,103   $9,505,424   $181,284,213 
                               
December 31, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $8,737   $986,365   $478,239   $22,110,495   $486,976   $23,096,860 
Obligations of states and political subdivisions   15,003    2,167,918    275,445    3,008,385    290,448    5,176,303 
Corporate securities including public utilities   1,888,022    93,562,219    5,034,849    77,975,776    6,922,871    171,537,995 
Mortgage-backed securities   32,150    2,915,192    4,212,490    19,041,442    4,244,640    21,956,634 
Totals  $1,943,912   $99,631,694   $10,001,023   $122,136,098   $11,944,935   $221,767,792 
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, 2025, by contractual maturity. Actual or expected maturities may differ from contractual maturities because certain securities afford the issuer the right to call or prepay its obligations.

 

   Amortized
Cost		   Estimated Fair
Value		 
Due in 1 year  $22,159,707   $22,003,935 
Due in 2-5 years   71,242,437    70,452,145 
Due in 5-10 years   135,956,272    135,838,014 
Due in more than 10 years   120,587,070    119,734,030 
Mortgage-backed securities   26,707,539    22,933,908 
Redeemable preferred stock   250,000    250,000 
Total  $376,903,025   $371,212,032 
Cemetery Perpectual Care Oblication [Member]  
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Investments and Obligation

The components of cemetery perpetual care investments and obligation as of March 31, 2025, are as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
March 31, 2025:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $650,126   $1,323   $(1,117)  $650,332 
Obligations of states and political subdivisions   123,933    -    (4,351)   119,582 
Total fixed maturity securities available for sale  $774,059   $1,323   $(5,468)  $769,914 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $3,917,228   $1,356,226   $(201,715)  $5,071,739 
Total equity securities at estimated fair value  $3,917,228   $1,356,226   $(201,715)  $5,071,739 
                     
Mortgage loans held for investment at amortized cost:                    
Residential construction  $1,195,310                
Less: Allowance for credit losses   (405)               
Total mortgage loans held for investment  $1,194,905                
                     
Other investments  $1,106,768                
                     
Cash and cash equivalents  $891,086                
                     
Accrued investment income  $3,767                
                     
Total cemetery perpetual care trust investments  $9,038,179                
                     
Cemetery perpetual care obligation  $(5,704,613)               
                     
Trust investments in excess of trust obligations  $3,333,566                

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2025 (Unaudited)

 

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

 

The components of cemetery perpetual care investments and obligation as of December 31, 2024, are as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2024:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $651,428   $-   $(2,010)  $649,418 
Obligations of states and political subdivisions   125,194    -    (4,950)   120,244 
Total fixed maturity securities available for sale  $776,622   $-   $(6,960)  $769,662 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $3,874,522   $1,271,529   $(226,007)  $4,920,044 
Total equity securities at estimated fair value  $3,874,522   $1,271,529   $(226,007)  $4,920,044 
                     
Mortgage loans held for investment at amortized cost:                    
Residential construction  $202,600                
Less: Allowance for credit losses   (405)               
Commercial   1,939,269                
Less: Allowance for credit losses   -                
Total mortgage loans held for investment  $2,141,464                
                     
Cash and cash equivalents  $1,002,396                
                     
Accrued investment income  $2,937                
                     
Total cemetery perpetual care trust investments  $8,836,503                
                     
Cemetery perpetual care obligation  $(5,642,693)               
                     
Trust investments in excess of trust obligations  $3,193,810                
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, 2025 and December 31, 2024. 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, 2025                              
U.S. Treasury securities and obligations of U.S. Government agencies  $1,117   $500,705   $-   $-   $1,117   $500,705 
Obligations of states and political subdivisions   -    -    4,351    119,582    4,351    119,582 
Totals  $1,117   $500,705   $4,351   $119,582   $5,468   $620,287 
                               
December 31, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $2,010   $649,419   $-   $-   $2,010   $649,419 
Obligations of states and political subdivisions   4,950    120,243    -    -    4,950    120,243 
Totals  $6,960   $769,662   $-   $-   $6,960   $769,662 
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  $501,822   $500,705 
Due in 2-5 years   219,761    217,837 
Due in 5-10 years   52,476    51,372 
Due in more than 10 years   -    - 
Total  $774,059   $769,914 
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, 2025 and December 31, 2024. 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 March 31, 2025                              
U.S. Treasury securities and obligations of U.S. Government agencies  $675   $300,423   $-   $-   $675   $300,423 
Obligations of states and political subdivisions   240    25,366    4,528    289,979    4,768    315,345 
Corporate securities including public utilities   -    -    1,694    406,606    1,694    406,606 
Total unrealized losses  $915   $325,789   $6,222   $696,585   $7,137   $1,022,374 
                               
At December 31, 2024                              
U.S. Treasury securities and obligations of U.S. Government agencies  $1,511   $558,707   $-   $-   $1,511   $558,707 
Obligations of states and political subdivisions   2,004    237,636    2,219    129,358    4,223    366,994 
Corporate securities including public utilities   1,316    51,685    911    65,704    2,227    117,389 
Total unrealized losses  $4,831   $848,028   $3,130   $195,062   $7,961   $1,043,090 
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, 2025, 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  $1,614,956   $1,616,124 
Due in 2-5 years   308,335    310,642 
Due in 5-10 years   100,606    100,510 
Due in more than 10 years   329,781    325,196 
Total  $2,353,678   $2,352,472 
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

Restricted assets as of March 31, 2025, are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
March 31, 2025:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $1,740,244   $5,719   $(675)  $1,745,288 
Obligations of states and political subdivisions   470,113    172    (4,768)   465,517 
Corporate securities including public utilities   143,321    40    (1,694)   141,667 
Total fixed maturity securities available for sale  $2,353,678   $5,931   $(7,137)  $2,352,472 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $9,009,982   $2,100,071   $(551,700)  $10,558,353 
Total equity securities at estimated fair value  $9,009,982   $2,100,071   $(551,700)  $10,558,353 
                     
Mortgage loans held for investment at amortized cost:                     
Residential construction  $1,037,234                
Less: Allowance for credit losses   (2,074)               
Total mortgage loans held for investment  $1,035,160                
                     
Other investments  $2,313,436                
                     
Cash and cash equivalents (1)  $11,455,090                
                     
Accrued investment income  $8,387                
                     
Total restricted assets  $27,722,898                

 

 

(1)Including cash and cash equivalents of $10,828,570 for the life insurance and mortgage segments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2025 (Unaudited)

 

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

 

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

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2024:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $1,741,029   $2,256   $(1,511)  $1,741,774 
Obligations of states and political subdivisions   471,217    180    (4,223)   467,174 
Corporate securities including public utilities   144,616    32    (2,227)   142,421 
Total fixed maturity securities available for sale  $2,356,862   $2,468   $(7,961)  $2,351,369 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $8,547,709   $1,914,309   $(489,852)  $9,972,166 
Total equity securities at estimated fair value  $8,547,709   $1,914,309   $(489,852)  $9,972,166 
                     
Mortgage loans held for investment at amortized cost:                     
Residential construction  $985,806                
Less: Allowance for credit losses   (1,972)               
Total mortgage loans held for investment  $983,834                
                     
Other investments  $1,939,269                
                     
Cash and cash equivalents (1)  $8,553,803                
                     
Accrued investment income  $6,395                
                     
Total restricted assets  $23,806,836                

 

 

(1)Including cash and cash equivalents of $7,657,958 for the life insurance and mortgage segments.