v3.26.1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet as of March 31, 2026:

Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis 

   Total   Quoted Prices in Active Markets for Identical Assets
(Level 1)		   Significant Observable Inputs
(Level 2)		   Significant Unobservable Inputs
(Level 3)		 
Assets accounted for at fair value on a recurring basis                    
Fixed maturity securities available for sale  $367,565,925   $-   $366,991,282   $574,643 
Equity securities   18,346,314    18,346,314    -    - 
Loans held for sale   137,607,689    -    -    137,607,689 
Restricted assets (1)   548,032    -    548,032    - 
Restricted assets (2)   16,284,878    16,284,878    -    - 
Cemetery perpetual care trust investments (1)   272,403    -    272,403    - 
Cemetery perpetual care trust investments (2)   6,515,143    6,515,143    -    - 
Derivatives - loan commitments (3)   2,959,819    -    -    2,959,819 
Total assets accounted for at fair value on a recurring basis  $550,100,203   $41,146,335   $367,811,717   $141,142,151 
                     
Liabilities accounted for at fair value on a recurring basis                    
Derivatives - loan commitments (4)   (94,955)   -    -    (94,955)
Total liabilities accounted for at fair value on a recurring basis  $(94,955)  $-   $-   $(94,955)

 

 

(1) Fixed maturity securities available for sale
(2) Equity securities
(3) Included in other assets on the condensed consolidated balance sheets
(4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2026 (Unaudited)

 

17) Fair Value of Financial Instruments (Continued)

 

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet as of December 31, 2025:

 

   Total   Quoted Prices in Active Markets for Identical Assets
(Level 1)		   Significant Observable Inputs
(Level 2)		   Significant Unobservable Inputs
(Level 3)		 
Assets accounted for at fair value on a recurring basis                    
Fixed maturity securities available for sale  $382,777,918   $-   $382,203,275   $574,643 
Equity securities   18,050,062    18,050,062    -    - 
Loans held for sale   155,968,266    -    -    155,968,266 
Restricted assets (1)   1,177,251    -    1,177,251    - 
Restricted assets (2)   14,928,917    14,928,917    -    - 
Cemetery perpetual care trust investments (1)   272,012    -    272,012    - 
Cemetery perpetual care trust investments (2)   6,303,732    6,303,732    -    - 
Derivatives - loan commitments (3)   1,700,742    -    -    1,700,742 
Total assets accounted for at fair value on a recurring basis  $581,178,900   $39,282,711   $383,652,538   $158,243,651 
                     
Liabilities accounted for at fair value on a recurring basis                    
Derivatives - loan commitments (4)  $(220,605)  $-   $-   $(220,605)
Total liabilities accounted for at fair value on a recurring basis  $(220,605)  $-   $-   $(220,605)

 

 

(1) Fixed maturity securities available for sale
(2) Equity securities
(3) Included in other assets on the condensed consolidated balance sheets
(4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets
Schedule of Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2026, the significant unobservable inputs used in the fair value measurements were as follows:

 

Schedule of Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis 

          Significant  Range of Inputs     
   Fair Value at   Valuation  Unobservable  Minimum   Maximum   Weighted 
   March 31, 2026   Technique  Input(s)  Value   Value   Average 
Loans held for sale  $137,607,689   Market approach  Investor contract pricing as a percentage of unpaid principal balance   87.0%   109.0%   101.0%
                           
Derivatives - loan commitments (net)   2,864,864   Market approach  Pull-through rate   51.0%   100.0%   91.0%
           Initial-Value   N/A    N/A    N/A 
           Servicing   0 bps    251 bps    50 bps 
                           
Fixed maturity securities available for sale   574,643   Broker quotes  Pricing quotes  $100.00   $100.07   $100.10 

 

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2025, the significant unobservable inputs used in the fair value measurements were as follows:

 

          Significant  Range of Inputs     
   Fair Value at   Valuation  Unobservable  Minimum   Maximum   Weighted 
   December 31, 2025   Technique  Input(s)  Value   Value   Average 
Loans held for sale  $155,968,266   Market approach  Investor contract pricing as a percentage of unpaid principal balance   86.0%   107.0%   102.0%
                           
Derivatives - loan commitments (net)   1,480,137   Market approach  Pull-through rate   60.0%   100.0%   89.0%
           Initial-Value   N/A    N/A    N/A 
           Servicing   0 bps    251 bps    52 bps 
                           
Fixed maturity securities available for sale   574,643   Broker quotes  Pricing quotes  $100.00   $100.77   $100.10 
Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs

The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the three-month period ended March 31, 2026:

Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs  

   Net Loan Commitments   Loans Held for Sale   Fixed Maturity Securities Available for Sale 
Balance - December 31, 2025  $1,480,137   $155,968,266   $574,643 
Originations and purchases   -    488,560,300    - 
Sales, maturities and paydowns   -    (516,712,505)   - 
Total gains (losses):               
Included in earnings   1,384,727(1)   9,791,628(1)   -(2)
Included in other comprehensive income   -    -    - 
                
Balance - March 31, 2026  $2,864,864   $137,607,689   $574,643 

 

 

(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings
(2) As a component of Net investment income on the condensed consolidated statements of earnings

 

The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the three-month period ended March 31, 2025:

 

   Net Loan Commitments   Loans Held for Sale   Fixed Maturity Securities Available for Sale 
Balance - December 31, 2024  $2,313,210   $131,181,148   $1,149,926 
Originations and purchases   -    517,886,377    - 
Sales, maturities and paydowns   -    (521,382,576)   - 
Total gains (losses):               
Included in earnings   474,540(1)   12,149,277(1)   -(2)
Included in other comprehensive income   -    -    378 
                
Balance - March 31, 2025  $2,787,750   $139,834,226   $1,150,304 

 

 

(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings
(2) As a component of Net investment income on the condensed consolidated statements of earnings
Schedule of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of March 31, 2026:

Schedule of Financial Instruments Carried at Other Than Fair Value 

   Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value 
Assets                         
Mortgage loans held for investment                         
Residential  $83,307,187   $-   $-   $85,877,780   $85,877,780 
Residential construction   149,053,960    -    -    149,053,960    149,053,960 
Commercial   72,907,293    -    -    74,030,925    74,030,925 
Mortgage loans held for investment, net  $305,268,440   $-   $-   $308,962,665   $308,962,665 
Policy loans (1)   14,536,305    -    -    14,536,305    14,536,305 
Insurance assignments, net (1)   44,797,734    -    -    44,797,734    44,797,734 
Restricted assets (2)   787,200    -    -    787,200    787,200 
Cemetery perpetual care trust investments (2)   610,930    -    -    610,930    610,930 
Mortgage servicing rights, net   2,460,261    -    -    3,994,484    3,994,484 
                          
Liabilities                         
Bank and other loans payable  $(108,760,032)  $-   $-   $(97,468,978)  $(97,468,978)
Policyholder account balances - universal life   (35,289,278)   -    -    (35,358,733)   (35,358,733)
Policyholder account balances - fixed annuities   (103,553,297)   -    -    (103,199,369)   (103,199,369)

 

 

(1) Included in other investments and policy loans on the condensed consolidated balance sheets
(2) Mortgage loans held for investment

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2026 (Unaudited)

 

17) Fair Value of Financial Instruments (Continued)

 

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2025:

 

   Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value 
Assets                         
Mortgage loans held for investment                         
Residential  $88,348,354   $-   $-   $89,318,434   $89,318,434 
Residential construction   156,744,272    -    -    156,744,272    156,744,272 
Commercial   77,342,759    -    -    78,683,341    78,683,341 
Mortgage loans held for investment, net  $322,435,385   $-   $-   $324,746,047   $324,746,047 
Policy loans (1)   14,467,357    -    -    14,467,357    14,467,357 
Insurance assignments, net (1)   44,507,531    -    -    44,507,531    44,507,531 
Restricted assets (2)   810,802    -    -    810,802    810,802 
Cemetery perpetual care trust investments (2)   66,209    -    -    66,209    66,209 
Mortgage servicing rights, net   2,528,459    -    -    4,035,635    4,035,635 
                          
Liabilities                         
Bank and other loans payable  $(98,387,919)  $-   $-   $(87,490,315)  $(87,490,315)
Policyholder account balances - universal life   (35,825,494)   -    -    (35,986,392)   (35,986,392)
Policyholder account balances - fixed annuities   (104,780,256)   -    -    (103,880,576)   (103,880,576)

 

 

(1) Included in other investments and policy loans on the consolidated balance sheets
(2) Mortgage loans held for investment