v3.26.1
Restricted Assets
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Restricted Assets

5) Restricted Assets

 

The Company has also established certain restricted assets to provide for future merchandise and service obligations incurred in connection with its pre-need sales for its funeral home and cemetery segment.

 

Additionally, restricted cash represents escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company elected to maintain its medical benefit fund without change from the prior year and has included this amount as a component of restricted cash. These restricted cash items are for the Company’s life insurance and mortgage segments.

 

Restricted assets as of March 31, 2026, are summarized as follows:

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
March 31, 2026:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $269,363   $-   $-   $269,363 
Obligations of states and political subdivisions   229,553    125    (2,003)   227,675 
Corporate securities including public utilities   51,481    -    (487)   50,994 
Total fixed maturity securities available for sale  $550,397   $125   $(2,490)  $548,032 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $14,065,145   $2,724,027   $(504,294)  $16,284,878 
Total equity securities at estimated fair value  $14,065,145   $2,724,027   $(504,294)  $16,284,878 
                     
Mortgage loans held for investment at amortized cost:                     
Residential construction  $788,778                
Less: Allowance for credit losses   (1,578)               
Total mortgage loans held for investment  $787,200                
                     
Other investments  $1,654,250                
                     
Cash and cash equivalents (1)  $10,659,181                
                     
Accrued investment income  $20,092                
                     
Total restricted assets  $29,953,633                

 

 

(1)Including cash and cash equivalents of $8,965,571 for the life insurance and mortgage segments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)

 

5) Restricted Assets (Continued)

 

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

 

   Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses   Estimated Fair Value 
December 31, 2025:                    
Fixed maturity securities, available for sale, at estimated fair value:                    
U.S. Treasury securities and obligations of U.S. Government agencies  $895,817   $1,735   $-   $897,552 
Obligations of states and political subdivisions   228,512    124    (8)   228,628 
Corporate securities including public utilities   52,030    -    (959)   51,071 
Total fixed maturity securities available for sale  $1,176,359   $1,859   $(967)  $1,177,251 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $12,582,890   $2,690,346   $(344,319)  $14,928,917 
Total equity securities at estimated fair value  $12,582,890   $2,690,346   $(344,319)  $14,928,917 
                     
Mortgage loans held for investment at amortized cost:                    
Residential construction  $812,427                
Less: Allowance for credit losses   (1,625)               
Total mortgage loans held for investment  $810,802                
                     
Other investments  $1,957,888                
                     
Cash and cash equivalents (1)  $9,919,800                
                     
Accrued investment income  $11,288                
                     
Total restricted assets  $28,805,946                

 

 
(1)Including cash and cash equivalents of $8,383,847 for the life insurance and mortgage segments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)

 

5) Restricted Assets (Continued)

 

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, 2026, and December 31, 2025. 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, 2026                              
Obligations of states and political subdivisions  $-   $-   $2,003   $102,549   $2,003   $102,549 
Corporate securities including public utilities   -    -    487    50,995    487    50,995 
Total unrealized losses  $-   $-   $2,490   $153,544   $2,490   $153,544 
                               
At December 31, 2025                              
Obligations of states and political subdivisions  $-   $-   $8   $103,504   $8   $103,504 
Corporate securities including public utilities   -    -    959    51,071    959    51,071 
Total unrealized losses  $       -   $    -   $967   $154,575   $967   $154,575 

 

Relevant holdings were comprised of three securities with fair values aggregating 98.4% of the aggregate amortized cost as of March 31, 2026. Relevant holdings were comprised of two securities with fair values aggregating 99.4% of the aggregate amortized cost as of December 31, 2025. No credit losses have been recognized for the three-month periods ended March 31, 2026, and 2025, since the unrealized losses are primarily the result of increases in interest rates. See Note 2 for additional information regarding the Company’s evaluation of the allowance for credit losses for fixed maturity securities available for sale.

 

The table below presents the amortized cost and estimated fair value of fixed maturity securities available for sale as of March 31, 2026, by contractual maturity. Actual or expected maturities may differ from contractual maturities because certain securities afford the issuer the right to call or prepay their obligations.

 

   Amortized   Estimated Fair 
   Cost   Value 
Due in 1 year  $319,363   $319,376 
Due in 2-5 years   -    - 
Due in 5-10 years   75,000    75,112 
Due in more than 10 years   156,034    153,544 
Total  $550,397   $548,032 

 

See Notes 2 and 17 for additional information regarding restricted assets.
 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)