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Stock Compensation Plans
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock Compensation Plans

5) 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 $299,272 and $198,998 has been recognized for these plans for the three month periods ended March 31, 2025 and 2024, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings. As of March 31, 2025, the total unrecognized compensation expense related to the options issued was $873,138 which is expected to be recognized over the remaining vesting period.

 

The fair value of each 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 activity of the stock option plans during the three month period ended March 31, 2025, 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 December 31, 2024   646,594   $5.93    1,724,400   $7.23 
Granted   24,000         -      
Exercised   (112,735)        (113,023)     
Cancelled   -         -      
Outstanding at March 31, 2025   557,859   $6.24    1,611,377   $7.50 
                     
As of March 31, 2025:                    
Options exercisable   501,834   $5.51    1,363,881   $6.47 
                     
As of March 31, 2025:                    
Available options for future grant   53,718         146,238      
                     
Weighted average contractual term of options outstanding at March 31, 2025   5.38 years         6.64 years      
                     
Weighted average contractual term of options exercisable at March 31, 2025   5.02 years         6.16 years      
                     
Aggregated intrinsic value of options outstanding at March 31, 2025 (1)  $3,269,071        $7,406,757      
                    
Aggregated intrinsic value of options exercisable at March 31, 2025 (1)  $3,305,118        $7,676,614      

 

 

 

(1)The Company used a stock price of $12.10 as of March 31, 2025 to derive intrinsic value.
(2)Adjusted for the effect of annual stock dividends.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2025 (Unaudited)

 

5) Stock Compensation Plans (Continued)

 

The activity of the stock option plans during the three month period ended March 31, 2024, is summarized as follows:

 

   Number of
Class A Shares		   Weighted Average Exercise Price (2)   Number of
Class C Shares		   Weighted Average Exercise Price 
                 
Outstanding at December 31, 2023   833,570   $5.22    1,520,062   $5.86 
Granted   16,500         -      
Exercised   -         -      
Cancelled   -         -      
Outstanding at March 31, 2024   850,070   $5.29    1,520,062   $5.86 
                     
As of March 31, 2024:                    
Options exercisable   765,695   $4.97    1,291,312   $5.47 
                     
As of March 31, 2024:                    
Available options for future grant   76,320         529,750      
                     
Weighted average contractual term of options outstanding at March 31, 2024   5.00 years         6.25 years      
                     
Weighted average contractual term of options exercisable at March 31, 2024   4.57 years         5.83 years      
                     
Aggregated intrinsic value of options outstanding at March 31, 2024 (1)  $2,230,953        $3,108,691      
                     
Aggregated intrinsic value of options exercisable at March 31, 2024 (1)  $2,246,543        $3,146,491      

 

 

(1)The Company used a stock price of $7.91 as of March 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 the three month periods ended March 31, 2025 and 2024 was $1,357,776 and nil, respectively.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2025 (Unaudited)

 

5) Stock Compensation Plans (Continued)

 

Restricted Stock Units (“RSUs”)

 

Stock based compensation expense for RSUs issued of $9,988 and $889 has been recognized under these plans for the three month periods ended March 31, 2025 and 2024, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings. The fair value of each RSU granted is determined by the Company’s stock price on the date of the grant. As of March 31, 2025, the total unrecognized compensation expense related to the RSUs issued was $27,311, which is expected to be recognized over the remaining vesting period.

 

Activity of the RSUs during the three month period ended March 31, 2025, is summarized as follows:

 

   Number of
Class A Shares		   Weighted Average Grant Date Fair Value 
Non-vested at December 31, 2024   12,813   $12.90 
Granted   -      
Vested   (460)     
Non-vested at March 31, 2025   12,353   $13.08 
           
Available RSUs for future grant   4,187      

 

 

Activity of the RSUs during the three month period ended March 31, 2024, is summarized as follows:

 

   Number of
Class A Shares		   Weighted Average Grant Date Fair Value 
Non-vested at December 31, 2023   2,245   $7.72 
Granted   -      
Vested   (405)     
Non-vested at March 31, 2024   1,840   $7.99 
           
Available RSUs for future grant   16,540      

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2025 (Unaudited)