v3.26.1
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 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  $380,428,850   $-   $379,854,776   $574,074 
Equity securities   20,782,573    20,782,573    -    - 
Loans held for sale   146,871,985    -    -    146,871,985 
Restricted assets (1)   278,008    -    278,008    - 
Restricted assets (2)   18,451,065    18,451,065    -    - 
Cemetery perpetual care trust investments (1)   117,203    -    117,203    - 
Cemetery perpetual care trust investments (2)   7,024,235    7,024,235    -    - 
Derivatives - loan commitments (3)   2,588,911    -    -    2,588,911 
Total assets accounted for at fair value on a recurring basis  $576,542,830   $46,257,873   $380,249,987   $150,034,970 
                     
Liabilities accounted for at fair value on a recurring basis                    
Derivatives - loan commitments (4)   (89,307)   -    -    (89,307)
Total liabilities accounted for at fair value on a recurring basis  $(89,307)  $-   $-   $(89,307)

 

 

(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

June 30, 2026 (Unaudited)

 

17) Fair Value of Financial Instrument (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 June 30, 2026, 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 
   June 30, 2026   Technique  Input(s)  Value   Value   Average 
Loans held for sale  $146,871,985   Market approach  Investor contract pricing as a percentage of unpaid principal balance   87.0%   109.0%   102.0%
Derivatives - loan commitments (net)   2,499,604   Market approach  Pull-through rate   64.0%   100.0%   92.0%
           Initial-Value   N/A    N/A    N/A 
           Servicing   0 bps    226 bps    43 bps 
Fixed maturity securities available for sale   574,074   Broker quotes  Pricing quotes  $100.00   $100.00   $100.00 

 

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 June 30, 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 - March 31, 2026  $2,864,864   $137,607,689   $574,643 
Originations and purchases   -    547,528,180    - 
Sales, maturities and paydowns   -    (550,161,814)     
Total gains (losses):               
Included in earnings   (365,260)(1)   11,897,930(1)   -(2)
Included in other comprehensive income   -    -    (569)
Balance - June 30, 2026  $2,499,604   $146,871,985   $574,074 

 

 

(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 June 30, 2025:

 

   Net Loan Commitments   Loans Held for Sale   Fixed Maturity Securities Available for Sale 
Balance - March 31, 2025  $2,787,750   $139,834,226   $1,150,304 
Originations and purchases   -    616,896,709    - 
Sales, maturities and paydowns   -    (603,595,597)   - 
Transfer to mortgagte loans held for investment        (828,063)     
Loans held for sale foreclosed into real estate held for sale        (380,000)     
Total gains (losses):               
Included in earnings   132,404(1)   13,948,844(1)   -(2)
Included in other comprehensive income   -    -    (566)
Balance - June 30, 2025  $2,920,154   $165,876,119   $1,149,738 

 

 

(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

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2026 (Unaudited)

 

17) Fair Value of Financial Instrument (Continued)

 

The following table is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs for the six-month period ended June 30, 2026:

 

   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   -    1,036,088,480    - 
Sales, maturities and paydowns   -    (1,066,874,319)   - 
Total gains (losses):               
Included in earnings   1,019,467(1)   21,689,558(1)   -(2)
Included in other comprehensive income   -    -    (569)
Balance - June 30, 2026  $2,499,604   $146,871,985   $574,074 

 

 

(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 six-month period ended June 30, 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   -    1,134,783,086    - 
Sales, maturities and paydowns   -    (1,124,978,173)   - 
Transfer to mortgage loans held for investment        (828,063)     
Loans held for sale foreclosed into real estate held for sale        (380,000)     
Total gains (losses):               
Included in earnings   606,944(1)   26,098,121(1)   -(2)
Included in other comprehensive income   -    -    (188)
Balance - June 30, 2025  $2,920,154   $165,876,119   $1,149,738 

 

 

(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 June 30, 2026:

 

   Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value 
Assets                         
Mortgage loans held for investment                         
Residential  $83,478,108   $-   $-   $85,079,523   $85,079,523 
Residential construction   140,177,507    -    -    140,177,507    140,177,507 
Commercial   67,029,573    -    -    68,386,002    68,386,002 
Mortgage loans held for investment, net  $290,685,188   $-   $-   $293,643,032   $293,643,032 
Policy loans (1)   14,616,118    -    -    14,616,118    14,616,118 
Insurance assignments, net (1)   42,533,215    -    -    42,533,215    42,533,215 
Restricted assets (2)   775,992    -    -    775,992    775,992 
Cemetery perpetual care trust investments (2)   1,006,713    -    -    1,006,713    1,006,713 
Mortgage servicing rights, net   2,447,105    -    -    4,146,075    4,146,075 
                          
Liabilities                         
Bank and other loans payable  $(122,230,135)  $-   $-   $(110,534,559)  $(110,534,559)
Policyholder account balances - universal life   (34,990,504)   -    -    (35,015,185)   (35,015,185)
Policyholder account balances - fixed annuities   (103,035,928)   -    -    (137,195,977)   (137,195,977)

 

 

(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

June 30, 2026 (Unaudited)

 

17) Fair Value of Financial Instrument (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