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

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

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses (1)   Allowance for Credit Losses   Estimated Fair Value 
September 30, 2025:                         
Fixed maturity securities, available for sale, at estimated fair value:                         
U.S. Treasury securities and obligations of U.S. Government agencies  $77,815,616   $941,844   $(154,207)  $-   $78,603,253 
                          
Obligations of states and political subdivisions   3,416,026    11,280    (175,233)   -    3,252,073 
                          
Corporate securities including public utilities   281,126,441    7,265,563    (3,263,456)   (378,819)   284,749,729 
                          
Mortgage-backed securities   25,532,582    110,226    (3,622,125)   (154,049)   21,866,634 
                          
Redeemable preferred stock   750,000    9,400    (37,500)   -    721,900 
                          
Total fixed maturity securities available for sale  $388,640,665   $8,338,313   $(7,252,521)  $(532,868)  $389,193,589 
                          
Equity securities at estimated fair value:                         
                          
Common stock:                         
                          
Industrial, miscellaneous and all other  $12,128,914   $5,898,600   $(336,490)       $17,691,024 
                          
Total equity securities at estimated fair value  $12,128,914   $5,898,600   $(336,490)       $17,691,024 
                          
Mortgage loans held for investment at amortized cost:                         
Residential  $91,948,455                     
Residential construction   165,869,176                     
Commercial   76,447,701                     
Less: Unamortized deferred loan fees, net   (2,159,279)                    
Less: Allowance for credit losses   (2,677,001)                    
Less: Net discounts   (264,361)                    
                          
Total mortgage loans held for investment  $329,164,691                     
                          
Real estate held for investment - net of accumulated depreciation:                         
Residential  $93,885,033                     
Commercial   122,678,848                     
                          
Total real estate held for investment  $216,563,881                     
                          
Real estate held for sale:                         
Residential  $1,467,850                     
Commercial   151,553                     
                          
Total real estate held for sale  $1,619,403                     
                          
Other investments and policy loans at amortized cost:                         
Policy loans  $14,372,484                     
Insurance assignments   42,278,320                     
Federal Home Loan Bank stock (2)   1,590,400                     
Other investments   26,417,783                     
Less: Allowance for credit losses for insurance assignments   (1,534,957)                    
                          
Total other investments and policy loans  $83,124,030                     
                          
Accrued investment income  $9,746,368                     
                          
Total investments  $1,047,102,986                     

 

 
(1)Gross unrealized losses are net of allowance for credit losses
(2)Includes $581,600 of Membership stock and $1,008,800 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, 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		 
September 30, 2025                              
U.S. Treasury securities and obligations of U.S. Government agencies  $5,286   $2,413,864   $148,921   $10,950,745   $154,207   $13,364,609 
Obligations of states and political subdivisions   322    199,678    174,911    2,107,032    175,233    2,306,710 
Corporate securities   456,904    28,709,675    2,806,552    51,662,199    3,263,456    80,371,874 
Mortgage-backed securities   6,859    360,565    3,615,266    18,132,086    3,622,125    18,492,651 
Redeemable preferred stock   37,500    212,500    -    -    37,500    212,500 
Totals  $506,871   $31,896,282   $6,745,650   $82,852,062   $7,252,521   $114,748,344 
                               
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 September 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  $5,431,523   $5,435,051 
Due in 2-5 years   138,658,507    139,348,247 
Due in 5-10 years   129,622,596    133,518,158 
Due in more than 10 years   88,645,457    88,303,599 
Mortgage-backed securities   25,532,582    21,866,634 
Redeemable preferred stock   750,000    721,900 
Total  $388,640,665   $389,193,589 
Cemetery Perpectual Care Obligation [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 September 30, 2025, are as follows:

 

 Schedule of Investments and Obligation 

  

Amortized

Cost

  

Gross

Unrealized

Gains

  

Gross

Unrealized

Losses

  

Estimated Fair

Value

 
September 30, 2025:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $150,482   $1,806   $-   $152,288 
Obligations of states and political subdivisions   122,043    -    (3,046)   118,997 
Total fixed maturity securities available for sale  $272,525   $1,806   $(3,046)  $271,285 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $4,439,406   $1,579,249   $(135,365)  $5,883,290 
Total equity securities at estimated fair value  $4,439,406   $1,579,249   $(135,365)  $5,883,290 
                     

Mortgage loans held for investment at amortized cost:

                    
Residential construction  $1,675,307                
Less: Allowance for credit losses   (3,351)               
Total mortgage loans held for investment  $1,671,956                
                     
Other investments  $1,168,269                
                     
Cash and cash equivalents  $686,777                
                     
Accrued investment income  $4,101                
                     
Total cemetery perpetual care trust investments  $9,685,678                
                     
Cemetery perpetual care obligation  $(5,838,879)               
                     
Trust investments in excess of trust obligations  $3,846,799                

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

September 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 September 30, 2025, and December 31, 2024. The tables set forth unrealized losses by duration with the fair value of the related 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

  

Fair

Value

 
September 30, 2025                              
Obligations of states and political subdivisions  $-   $-   $3,046   $118,998   $3,046   $118,998 
Totals  $-   $-   $3,046   $118,998   $3,046   $118,998 
                               
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 September 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.

 

 Schedule of Investments Classified by Contractual Maturity Date 

   Amortized   Estimated Fair 
   Cost   Value 
Due in 1 year  $-   $- 
Due in 2-5 years   220,652    220,389 
Due in 5-10 years   51,873    50,896 
Due in more than 10 years   -    - 
Total  $272,525   $271,285 
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, 2025, and December 31, 2024. The tables set forth unrealized losses by duration with the fair value of the related 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

  

Fair

Value

 
At September 30, 2025                              
Obligations of states and political subdivisions  $994   $100,305   $1,164   $103,492   $2,158   $203,797 
Corporate securities including public utilities   -    -    1,016    51,014    1,016    51,014 
Total unrealized losses  $994   $100,305   $2,180   $154,506   $3,174   $254,811 
                               
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 September 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.

 

 Schedule of Investments Classified by Contractual Maturity Date 

   Amortized   Estimated Fair 
   Cost   Value 
Due in 1 year  $810,104   $810,295 
Due in 2-5 years   941,887    945,094 
Due in 5-10 years   100,307    100,181 
Due in more than 10 years   156,685    154,506 
Total  $2,008,983   $2,010,076 
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

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

 Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

 

  

Amortized

Cost

  

Gross

Unrealized

Gains

  

Gross

Unrealized

Losses

  

Estimated Fair

Value

 
September 30, 2025:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $1,625,998   $4,147   $-   $1,630,145 
Obligations of states and political subdivisions   330,955    120    (2,158)   328,917 
Corporate securities including public utilities   52,030    -    (1,016)   51,014 
Total fixed maturity securities available for sale  $2,008,983   $4,267   $(3,174)  $2,010,076 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $10,790,554   $2,553,913   $(337,799)  $13,006,668 
Total equity securities at estimated fair value  $10,790,554   $2,553,913   $(337,799)  $13,006,668 
                     
Mortgage loans held for investment at amortized cost:                     
Residential construction  $1,178,890                
   Less: Allowance for credit losses   (2,358)               
Total mortgage loans held for investment  $1,176,532                
                     
Other investments  $1,912,436                
                     
Cash and cash equivalents (1)  $13,556,435                
                     
Accrued investment income  $10,892                
                     
Total restricted assets  $31,673,039                

 

 

(1) Including cash and cash equivalents of $12,375,579 for the life insurance and mortgage segments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

September 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.