Stock Compensation Plans

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

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 $450,299 and $310,430 has been recognized for these Plans for the three-month periods ended June 30, 2026, and 2025, respectively, and $913,999 and $609,703 has been recognized for these Plans for the six-month periods ended June 30, 2026, and 2025, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings. As of June 30, 2026, the total unrecognized compensation expense related to the options issued was $783,164 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

June 30, 2026 (Unaudited)

18) Stock Compensation Plans (Continued)

The activity of the Plans during the six-month period ended June 30, 2026, 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, 2025			760,838			$	6.50				2,366,291			$	7.16
Adjustment for the effect of stock dividends			36,267								116,778
Granted			7,500								-
Exercised			(36,610	)							(30,750	)
Cancelled			(6,598	)							-
Outstanding at June 30, 2026			761,397			$	6.63				2,452,319			$	7.22

As of June 30, 2026:
Options exercisable			625,419			$	6.30				2,115,150			$	7.07

As of June 30, 2026:
Available options for future grant			1,466,152								529,417

Weighted average contractual term of options outstanding at June 30, 2026			6.49 years								6.53 years

Weighted average contractual term of options exercisable at June 30, 2026			5.89 years								6.10 years

Aggregated intrinsic value of options outstanding at June 30, 2026 (1)		$	2,109,231							$	5,909,686

Aggregated intrinsic value of options exercisable at June 30, 2026 (1)		$	1,961,826							$	5,537,788

(1)	The Company used a stock price of $9.23 as of June 30, 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

June 30, 2026 (Unaudited)

18) Stock Compensation Plans (Continued)

The activity of the Plans during the six-month period ended June 30, 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			$	5.63				1,724,400			$	6.87
Adjustment for the effect of stock dividends			27,898								80,571
Granted			24,000								-
Exercised			(112,735	)							(113,023	)
Cancelled			76								-
Outstanding at June 30, 2025			585,833			$	5.93				1,691,948			$	7.13

As of June 30, 2025:
Options exercisable			546,483			$	5.48				1,526,948			$	8.64

As of June 30, 2025:
Available options for future grant			2,156,404								678,550

Weighted average contractual term of options outstanding at June 30, 2025			5.30 years								6.39 years

Weighted average contractual term of options exercisable at June 30, 2025			4.99 years								6.11 years

Aggregated intrinsic value of options outstanding at June 30, 2025 (1)		$	1,811,956							$	3,200,152

Aggregated intrinsic value of options exercisable at June 30, 2025 (1)		$	1,933,277							$	3,780,038

(1)	The Company used a stock price of $9.02 as of June 30, 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 six-month periods ended June 30, 2026, and 2025 were $269,074 and $1,357,776, respectively.

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2026 (Unaudited)

18) Stock Compensation Plans (Continued)

Restricted Stock Units (“RSUs”)

Stock based compensation expense for RSUs issued of $7,071 and $9,949 has been recognized under these plans for the three-month periods ended June 30, 2026, and 2025, respectively, of $12,503 and $19,936 has been recognized under these plans for the six-month periods ended June 30, 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 June 30, 2026, the total unrecognized compensation expense related to the RSUs issued was $14,123, which is expected to be recognized over the remaining vesting period.

Activity of the RSUs during the six-month period ended June 30, 2026, is summarized as follows:

		Number of Class A Shares				Weighted Average Grant Date Fair Value
Non-vested at December 31, 2025			17,568			$	9.33
Granted			-
Vested			(6,706	)
Non-vested at June 30, 2026			10,862			$	8.53

Available RSUs for future grant			489,706

Activity of the RSUs during the six-month period ended June 30, 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			(3,547	)
Non-vested at June 30, 2025			9,266			$	13.08

Available RSUs for future grant			504,187

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2026 (Unaudited)