Capital Stock

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Capital Stock

12) Capital Stock

The Company has one class of preferred stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. The preferred stock is non-voting.

The Company has two classes of common stock with shares outstanding, Class A common shares and Class C common shares. Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares. Class C shares are convertible into Class A shares at any time on a one to one ratio.

Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2019, a 7.5% stock dividend in the year 2020, and a 5% stock dividend in the years 2021 and 2022, as authorized by the Company’s Board of Directors.

The Company has Class B common stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. Class B shares are non-voting stock except to any proposed amendment to the Articles of Incorporation which would affect Class B common stock.

The following table summarizes the activity in shares of capital stock.

	Class A		Class C
Outstanding shares at December 31, 2020		16,595,783		2,679,603
Exercise of stock options		160,282		104,656
Stock dividends		837,410		131,553
Conversion of Class C to Class A		49,247		(49,247	)
Outstanding shares at December 31, 2021		17,642,722		2,866,565
Exercise of stock options		109,587		-
Stock dividends		889,554		139,462
Conversion of Class C to Class A		116,168		(116,168	)
Outstanding shares at December 31, 2022		18,758,031		2,889,859

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2022 and 2021

12) Capital Stock (Continued)

Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share amounts were calculated as follows:

	Years Ended December 31
	2022		2021
Numerator:
Net earnings	$	25,690,302	$	39,518,990
Denominator:
Denominator for basic earnings per share-weighted-average shares		21,137,941		21,146,713
Effect of dilutive securities
Employee stock options		807,927		812,916
Unvested restricted stock units		374		-
Dilutive potential common shares		808,301		812,916
Denominator for diluted earnings per share-adjusted weighted-average
shares and assumed conversions		21,946,242		21,959,629
Basic earnings per share	$	1.22	$	1.87
Diluted earnings per share	$	1.17	$	1.80

For the years ended December 31, 2022 and 2021, there were 339,150 and 50,000 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 amounts are the same for each class of common stock.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2022 and 2021