v3.26.1
Cemetery Perpetual Care Trust Investments and Obligation
 3 Months Ended
Mar. 31, 2026
Cemetery Perpetual Care Trust Investments And Obligation  
Cemetery Perpetual Care Trust Investments and Obligation

6) Cemetery Perpetual Care Trust Investments and Obligation

 

State law requires the Company to pay into endowment care trusts a portion of the proceeds from the sale of certain cemetery property interment rights for cemeteries that have established an endowment care trust. These endowment care trusts are defined as Variable Interest Entities pursuant to GAAP. The Company is the primary beneficiary of these trusts, as it absorbs both the losses and any expenses associated with the trusts. The Company has consolidated cemetery endowment care trust investments with a corresponding amount recorded as Cemetery Perpetual Care Obligation in the accompanying consolidated balance sheets.

 

The components of cemetery perpetual care investments and obligation as of March 31, 2026, are 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  $154,594   $41   $-   $154,635 
Obligations of states and political subdivisions   119,677    -    (1,909)   117,768 
Total fixed maturity securities available for sale  $274,271   $41   $(1,909)  $272,403 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $5,000,830   $1,687,074   $(172,761)  $6,515,143 
Total equity securities at estimated fair value  $5,000,830   $1,687,074   $(172,761)  $6,515,143 
                     
Mortgage loans held for investment at amortized cost:                     
Residential construction  $612,154                
Less: Allowance for credit losses   (1,224)               
Total mortgage loans held for investment  $610,930                
                     
Other investments  $1,303,245                
                     
Cash and cash equivalents  $1,317,345                
                     
Accrued investment income  $7,540                
                     
Total cemetery perpetual care trust investments  $10,026,606                
                     
Cemetery perpetual care obligation  $(5,998,538)               
                     
Trust investments in excess of trust obligations  $4,028,068                

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)

 

6) Cemetery Perpetual Care Trust Investments and Obligation (Continued)

 

The components of cemetery perpetual care investments and obligation as of December 31, 2025, are 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  $152,738   $842   $-   $153,580 
Obligations of states and political subdivisions   121,423    -    (2,991)   118,432 
Total fixed maturity securities available for sale  $274,161   $842   $(2,991)  $272,012 
                     
Equity securities at estimated fair value:                    
Common stock:                    
Industrial, miscellaneous and all other  $4,835,663   $1,637,554   $(169,485)  $6,303,732 
Total equity securities at estimated fair value  $4,835,663   $1,637,554   $(169,485)  $6,303,732 
                     
Mortgage loans held for investment at amortized cost:                     
Residential construction  $66,342                
Less: Allowance for credit losses   (133)               
Total mortgage loans held for investment  $66,209                
                     
Cash and cash equivalents  $1,935,480                
                     
Other investments  $1,290,271                
                     
Accrued investment income  $4,243                
                     
Total cemetery perpetual care trust investments  $9,871,947                
                     
Cemetery perpetual care obligation  $(5,918,776)               
                     
Trust investments in excess of trust obligations  $3,953,171                

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)

 

6) Cemetery Perpetual Care Trust Investments and Obligation (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 
March 31, 2026                              
Obligations of states and political subdivisions  $       -   $      -   $1,909   $117,768   $1,909   $117,768 
Totals  $-   $-   $1,909   $117,768   $1,909   $117,768 
                               
December 31, 2025                              
Obligations of states and political subdivisions  $-   $-   $2,991   $118,432   $2,991   $118,432 
Totals  $-   $-   $2,991   $118,432   $2,991   $118,432 

 

Relevant holdings were comprised of two 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 97.5% of 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  $154,593   $154,634 
Due in 2-5 years   68,914    67,151 
Due in 5-10 years   50,764    50,618 
Due in more than 10 years   -    - 
Total  $274,271   $272,403 

 

See Notes 2 and 17 for additional information regarding cemetery perpetual care trust investments.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)