SECURITY NATIONAL FINANCIAL CORP Earnings Per Share Disclosure
| 19) | Earnings Per Share |
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Numerator: | ||||||||
| Net earnings | $ | 32,152,330 | $ | 29,119,165 | ||||
| Denominator: | ||||||||
| Denominator for basic earnings per share-weighted-average shares | 24,727,498 | 24,492,597 | ||||||
| Effect of dilutive securities | ||||||||
| Employee stock options | 756,696 | 693,877 | ||||||
| Unvested restricted stock units | 118 | 32 | ||||||
| Dilutive potential common shares | 756,814 | 693,908 | ||||||
| Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions | 25,484,312 | 25,186,505 | ||||||
| Basic earnings per share | $ | 1.30 | $ | 1.19 | ||||
| Diluted earnings per share | $ | 1.26 | $ | 1.16 | ||||
For 2025 and 2024, there were and of anti-dilutive employee stock option shares, respectively, that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive. Basic and diluted earnings per share are the same for each class of common stock.
SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Years Ended December 31, 2025 and 2024
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.