Restricted Assets

6 Months Ended

Jun. 30, 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 June 30, 2026, are summarized as follows:

		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
June 30, 2026:
Fixed maturity securities, available for sale, at estimated fair value:
Obligations of states and political subdivisions		$	228,584			$	104			$	(1,630	)		$	227,058
Corporate securities including public utilities			51,207				-				(257	)			50,950
Total fixed maturity securities available for sale		$	279,791			$	104			$	(1,887	)		$	278,008

Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other		$	15,013,259			$	3,847,895			$	(410,089	)		$	18,451,065
Total equity securities at estimated fair value		$	15,013,259			$	3,847,895			$	(410,089	)		$	18,451,065

Mortgage loans held for investment at amortized cost:
Residential construction		$	777,490
Less: Allowance for credit losses			(1,498	)
Total mortgage loans held for investment		$	775,992

Other investments		$	1,674,516

Cash and cash equivalents (1)		$	12,065,713

Accrued investment income		$	18,732

Total restricted assets		$	33,264,026

(1)	Including cash and cash equivalents of $10,215,805 for the life insurance and mortgage segments.

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 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

June 30, 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 June 30, 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 June 30, 2026
Obligations of states and political subdivisions		$	-			$	-			$	1,630			$	101,954			$	1,630			$	101,954
Corporate securities including public utilities			-				-				257				50,951				257				50,951
Total unrealized losses		$	-			$	-			$	1,887			$	152,905			$	1,887			$	152,905

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 98.8% of the aggregate amortized cost as of June 30, 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 and six month periods ended June 30, 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 June 30, 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		$	125,000			$	125,104
Due in 2-5 years			-				-
Due in 5-10 years			-				-
Due in more than 10 years			154,791				152,904
Total		$	279,791			$	278,008

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

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2026 (Unaudited)