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Stock Compensation Plans
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock Compensation Plans

13) Stock Compensation Plans

 

The Company has equity incentive plans (the “2013 Plan”, the “2014 Director Plan” and the “2022 Plan”).

 

Stock Options

 

Stock based compensation expense for stock options issued of $794,654 and $601,058 has been recognized under these plans for 2024 and 2023, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2024, the total unrecognized compensation expense related to the stock options issued was $1,096,891, which is expected to be recognized over the remaining vesting period.

 

The fair value of each stock option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A Common Stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant.

 

The following table summarizes the assumptions used in estimating the fair value of each stock option granted along with the weighted-average fair value of the stock options granted.

 

          Assumptions 
Grant Date  Plan  Weighted-
Average Fair Value
of Each Option		   Expected Dividend Yield (1)   Underlying stock FMV   Weighted-
Average Volatility		   Weighted-
Average Risk-Free Interest Rate		   Weighted-
Average Expected Life (years)		 
December 26, 2024  All Plans  $           3.01    5%  $11.87    38.41%   4.38%   5.31 
                                  
December 6, 2024  All Plans  $3.17    5%  $13.08    38.17%   4.00%   5.12 
                                  
January 12, 2024  All Plans  $2.01    5%  $8.35    37.51%   3.81%   5.31 
                                  
January 8, 2024  All Plans  $2.16    5%  $8.93    37.50%   3.93%   5.31 
                                  
December 1, 2023  All Plans  $1.88    5%  $7.99    36.76%   4.14%   4.90 
                                  
January 30, 2023  All Plans  $1.65    5%  $7.10    36.73%   3.64%   5.31 
                                  
January 18, 2023  All Plans  $1.70    5%  $7.37    36.79%   3.40%   5.31 

 

 
(1)Stock dividend

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2024 and 2023

 

13) Stock Compensation Plans (Continued)

 

The activity of the stock option plans is summarized as follows:

 

   Number of
Class A Shares		   Weighted Average Exercise Price (2)   Number of
Class C Shares		   Weighted Average Exercise Price (2) 
Outstanding at January 1, 2023   976,605   $4.33    1,157,203   $5.04 
Adjustment for the effect of stock dividends   38,266         57,859      
Granted   106,500         305,000      
Exercised   (286,965)        -      
Cancelled   (836)        -      
                     
Outstanding at December 31, 2023   833,570   $4.91    1,520,062   $5.57 
Adjustment for the effect of stock dividends   38,724         76,005      
Granted   59,200         330,000      
Exercised   (267,491)        (201,667)     
Cancelled   (17,409)        -      
                     
Outstanding at December 31, 2024   646,594   $5.93    1,724,400   $7.23 
                     
Exercisable at end of year   599,769   $5.42    1,394,400   $5.82 
                     
Available options for future grant   79,281         146,238      
                     
Weighted average contractual term of options outstanding at December 31, 2024   5.55 years         6.71 years      
                     
Weighted average contractual term of options exercisable at December 31, 2024   5.36 years         6.05 years      
                     
Aggregated intrinsic value of options outstanding at December 31, 2024 (1)  $3,944,715        $8,269,398      
                     
Aggregated intrinsic value of options exercisable at December 31, 2024 (1)  $3,962,435        $8,652,316      

 

 

(1)The Company used a stock price of $12.03 as of December 31, 2024 to derive intrinsic value.
(2)Adjusted for the effect of annual stock dividends.

 

The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during 2024 and 2023 was $3,104,163 and $657,354, respectively.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2024 and 2023

 

13) Stock Compensation Plans (Continued)

 

Restricted Stock Units (“RSUs”)

 

Stock based compensation expense for RSUs issued of $6,166 and $304 has been recognized under these plans for the 2024 and 2023, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2024, the total unrecognized compensation expense related to the RSUs issued was $37,299, which is expected to be recognized over the remaining vesting period.

 

The activity of the RSUs is summarized as follows:

 

   Number of
Class A Shares		   Weighted Average Grant Date Fair Value 
Non-vested at January 1, 2023   1,620   $6.48 
Granted   1,840      
Vested   (1,215)     
           
Non-vested at December 31, 2023   2,245   $7.72 
           
Granted   12,353      
Vested   (1,785)     
           
Non-vested at December 31, 2024   12,813   $12.90 
           
Available RSUs for future grant   4,187      

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2024 and 2023