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Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Tables)
 6 Months Ended
Jun. 30, 2025
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Investments and Obligation

The Company’s investments as of June 30, 2025 are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses (1)   Allowance for Credit Losses   Estimated Fair Value 
June 30, 2025:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $77,652,340   $888,144   $(247,044)  $-   $78,293,440 
                          
Obligations of states and political subdivisions   3,550,803    15,484    (213,175)   -    3,353,112 
                          
Corporate securities including public utilities   284,854,952    5,161,683    (4,397,245)   (474,937)   285,144,453 
                          
Mortgage-backed securities   26,532,070    119,743    (3,743,849)   (12,049)   22,895,915 
                          
Redeemable preferred stock   750,000    4,800    -    -    754,800 
                          
Total fixed maturity securities available for sale  $393,340,165   $6,189,854   $(8,601,313)  $(486,986)  $390,441,720 
                          
Equity securities at estimated fair value:                         
                          
Common stock:                         
                          
Industrial, miscellaneous and all other  $11,657,063   $5,506,182   $(606,714)       $16,556,531 
                          
Total equity securities at estimated fair value  $11,657,063   $5,506,182   $(606,714)       $16,556,531 
                          
Mortgage loans held for investment at amortized cost:                         
Residential  $92,656,929                     
Residential construction   165,707,402                     
Commercial   71,180,249                     
Less: Unamortized deferred loan fees, net   (2,230,234)                    
Less: Allowance for credit losses   (2,640,744)                    
Less: Net discounts   (269,606)                    
                          
Total mortgage loans held for investment  $324,403,996                     
                          
Real estate held for investment - net of accumulated depreciation:                         
Residential  $88,976,901                     
Commercial   124,068,115                     
                          
Total real estate held for investment  $213,045,016                     
                          
Real estate held for sale:                         
Residential  $2,941,487                     
Commercial   151,553                     
                          
Total real estate held for sale  $3,093,040                     
                          
Other investments and policy loans at amortized cost:                         
Policy loans  $14,208,030                     
Insurance assignments   45,161,992                     
Federal Home Loan Bank stock (2)   1,324,800                     
Other investments   26,477,699                     
Less: Allowance for credit losses for insurance assignments   (1,481,032)                    
                          
Total other investments and policy loans  $85,691,489                     
                          
Accrued investment income  $9,659,711                     
                          
Total investments  $1,042,891,503                     

 

 

(1)Gross unrealized losses are net of allowance for credit losses
(2)Includes $581,600 of Membership stock and $743,200 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, 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 
June 30, 2025                              
U.S. Treasury securities and obligations of U.S. Government agencies  $26,314   $11,809,789   $220,730   $10,858,448   $247,044   $22,668,237 
Obligations of states and political subdivisions   5,234    194,766    207,941    2,209,174    213,175    2,403,940 
Corporate securities   572,966    38,970,717    3,824,279    71,639,210    4,397,245    110,609,927 
Mortgage-backed securities   5,410    638,290    3,738,439    18,084,388    3,743,849    18,722,678 
Totals  $609,924   $51,613,562   $7,991,389   $102,791,220   $8,601,313   $154,404,782 
                               
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 June 30, 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  $13,289,170   $13,145,351 
Due in 2-5 years   136,097,256    136,429,699 
Due in 5-10 years   131,592,054    133,912,390 
Due in more than 10 years   85,079,615    83,303,565 
Mortgage-backed securities   26,532,070    22,895,915 
Redeemable preferred stock   750,000    754,800 
Total  $393,340,165   $390,441,720 
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 June 30, 2025, are as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
June 30, 2025:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $652,304   $316   $(1,682)  $650,938 
Obligations of states and political subdivisions   123,331    -    (3,930)   119,401 
Total fixed maturity securities available for sale  $775,635   $316   $(5,612)  $770,339 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $4,026,314   $1,476,598   $(229,299)  $5,273,613 
Total equity securities at estimated fair value  $4,026,314   $1,476,598   $(229,299)  $5,273,613 
                     
Mortgage loans held for investment at amortized cost:                    
Residential construction  $1,727,091                
Less: Allowance for credit losses   (3,454)               
Total mortgage loans held for investment  $1,723,637                
                     
Other investments  $1,106,769                
                     
Cash and cash equivalents  $405,205                
                     
Accrued investment income  $3,078                
                     
Total cemetery perpetual care trust investments  $9,282,641                
                     
Cemetery perpetual care obligation  $(5,788,630)               
                     
Trust investments in excess of trust obligations  $3,494,011                

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 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 June 30, 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 
June 30, 2025                              
U.S. Treasury securities and obligations of U.S. Government agencies  $1,682   $500,140   $-   $-   $1,682   $500,140 
Obligations of states and political subdivisions   -    -    3,930    119,401    3,930    119,401 
Totals  $1,682   $500,140   $3,930   $119,401   $5,612   $619,541 
                               
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 June 30, 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  $501,823   $500,139 
Due in 2-5 years   221,939    218,960 
Due in 5-10 years   51,873    51,240 
Due in more than 10 years   -    - 
Total  $775,635   $770,339 
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, 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 June 30, 2025                              
U.S. Treasury securities and obligations of U.S. Government agencies  $1,508   $929,246   $-   $-   $1,508   $929,246 
Obligations of states and political subdivisions   99    233,740    2,999    25,208    3,098    258,948 
Corporate securities including public utilities   806    65,000    1,590    50,925    2,396    115,925 
Total unrealized losses  $2,413   $1,227,986   $4,589   $76,133   $7,002   $1,304,119 
                               
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 June 30, 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  $1,167,294   $1,165,242 
Due in 2-5 years   941,785    941,849 
Due in 5-10 years   100,307    100,283 
Due in more than 10 years   247,977    243,964 
Total  $2,457,363   $2,451,338 
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

Restricted assets as of June 30, 2025, are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
June 30, 2025:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $1,926,996   $887   $(1,508)  $1,926,375 
Obligations of states and political subdivisions   387,046    82    (3,098)   384,030 
Corporate securities including public utilities   143,321    8    (2,396)   140,933 
Total fixed maturity securities available for sale  $2,457,363   $977   $(7,002)  $2,451,338 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $9,601,907   $2,121,588   $(396,055)  $11,327,440 
Total equity securities at estimated fair value  $9,601,907   $2,121,588   $(396,055)  $11,327,440 
                     
Mortgage loans held for investment at amortized cost:                    
Residential construction  $1,146,280                
Less: Allowance for credit losses   (2,293)               
Total mortgage loans held for investment  $1,143,987                
                     
Other investments  $1,850,936                
                     
Cash and cash equivalents (1)  $12,680,488                
                     
Accrued investment income  $7,632                
                     
Total restricted assets  $29,461,821                

 

 

(1) Including cash and cash equivalents of $11,520,474 for the life insurance and mortgage segments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 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.