| Stock Compensation Plans |
18)
Stock Compensation Plans
The
Company has three active equity incentive plans (the “2013 Plan”, the “2014 Director Plan” and the “2022
Plan” or “the Plans”).
Stock
Options
Stock
based compensation expense for stock options issued of $463,699 and $299,272 has been recognized for these Plans for the three-month
periods ended March 31, 2026, and 2025, respectively, and is included in personnel expenses on the condensed consolidated statements
of earnings. As of March 31, 2026, the total unrecognized compensation expense related to the options issued was $1,233,463 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.
SECURITY
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2026 (Unaudited)
18)
Stock Compensation Plans (Continued)
The
activity of the Plans during the three-month period ended March 31, 2026, is summarized as follows:
Schedule of Activity of Stock Option Plans
| | |
Number of
Class A Shares | | |
Weighted Average Exercise Price (2) | | |
Number of
Class C Shares | | |
Weighted Average Exercise Price (2) | |
| | |
| | |
| | |
| | |
| |
| Outstanding at December 31, 2025 | |
| 760,838 | | |
$ | 6.85 | | |
| 2,366,291 | | |
$ | 7.54 | |
| Granted | |
| 7,500 | | |
| | | |
| - | | |
| | |
| Exercised | |
| (1,051 | ) | |
| | | |
| - | | |
| | |
| Cancelled | |
| (6,598 | ) | |
| | | |
| - | | |
| | |
| Outstanding at March 31, 2026 | |
| 760,689 | | |
$ | 6.88 | | |
| 2,366,291 | | |
$ | 7.54 | |
| | |
| | | |
| | | |
| | | |
| | |
| As of March 31, 2026: | |
| | | |
| | | |
| | | |
| | |
| Options exercisable | |
| 557,659 | | |
$ | 6.28 | | |
| 1,860,534 | | |
$ | 7.26 | |
| | |
| | | |
| | | |
| | | |
| | |
| As of March 31, 2026: | |
| | | |
| | | |
| | | |
| | |
| Available options for future grant | |
| 1,896,335 | | |
| | | |
| 4,207 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average contractual term of options | |
| | | |
| | | |
| | | |
| | |
| outstanding at March 31, 2026 | |
| 6.64 years | | |
| | | |
| 6.75 years | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average contractual term of options | |
| | | |
| | | |
| | | |
| | |
| exercisable at March 31, 2026 | |
| 5.54 years | | |
| | | |
| 5.99 years | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Aggregated intrinsic value of options | |
| | | |
| | | |
| | | |
| | |
| outstanding at March 31, 2026 (1) | |
$ | 2,136,093 | | |
| | | |
$ | 5,659,342 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Aggregated intrinsic value of options | |
| | | |
| | | |
| | | |
| | |
| exercisable at March 31, 2026 (1) | |
$ | 1,952,408 | | |
| | | |
$ | 5,192,461 | | |
| | |
| (1)
|
The
Company used a stock price of $9.48 as of March 31, 2026 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, 2026 (Unaudited)
18)
Stock Compensation Plans (Continued)
The
activity of the 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. |
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, 2026, and 2025 were $2,449 and $1,357,776,
respectively.
SECURITY
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2026 (Unaudited)
18)
Stock Compensation Plans (Continued)
Restricted
Stock Units (“RSUs”)
Stock
based compensation expense for RSUs issued of $5,431 and $9,988 has been recognized under these plans for the three-month periods ended
March 31, 2026, and 2025, 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, 2026, the total
unrecognized compensation expense related to the RSUs issued was $21,194, which is expected to be recognized over the remaining vesting
period.
Activity
of the RSUs during the three-month period ended March 31, 2026, is summarized as follows:
Schedule of Activity Restricted Stock Units
| | |
Number of
Class A Shares | | |
Weighted Average Grant Date Fair Value | |
| Non-vested at December 31, 2025 | |
| 17,568 | | |
$ | 9.33 | |
| Granted | |
| - | | |
| | |
| Vested | |
| (3,087 | ) | |
| | |
| Non-vested at March 31, 2026 | |
| 14,481 | | |
$ | 8.53 | |
| | |
| | | |
| | |
| Available RSUs for future grant | |
| 489,706 | | |
| | |
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 | | |
| | |
SECURITY
NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2026 (Unaudited)
|