Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 117

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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(1) Represents RSU forfeitures primarily related to the
execution of the separation agreement with the former Chief Executive Officer and former Senior Vice President of Operations.

The following table shows the impact of RSU activity
to the Company’s financial results:

    Three Months Ended March 31, 

    2025  
    2024 
  
    RSU compensation expense 
    $463  
    $396 
  
    Income tax benefit 
     (105) 
     (90)
  
    RSU compensation expense, net of income taxes 
    $358  
    $306 

At March 31, 2025, there was $2,093 of unrecognized
compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 2.66 years.

Performance Share Units

The Compensation Committee has awarded PSUs to select
executives. PSUs are promises to issue actual shares of common stock at the end of a vesting period, if certain performance conditions
are met. The PSUs granted to employees under the Plan are based on salary and, prior to 2024, include a three-year adjusted book value
cumulative growth target with threshold and stretch goals. For grants made in 2024, the performance metric is calculated based on an adjusted
return on equity over a three-year period, with annual resets. There were no PSUs granted in 2025. They will vest on the third anniversary
of the grant date, subject to the participant’s continuous employment through the vesting date and the level of performance achieved.
Dividend equivalents on PSUs are accrued and paid in cash at the end of the performance period in accordance with the level of performance
achieved but are subject to forfeiture until the underlying shares become vested. Participants do not have voting rights with respect
to PSUs.

The Company recognizes stock-based compensation costs
for PSUs based on the grant date fair value over the performance period of the awards. Estimated forfeitures are included in the determination
of compensation costs. The current cost estimates represent the Company’s forecasted performance against cumulative growth targets.

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A summary of the Company’s outstanding PSUs is presented below:

    PSUs  
    Weighted-Average 
Grant-Date 
Fair Value 
Per Share 
  
    Units outstanding at January 1, 2024 
     213,800  
    $16.53 
  
    PSUs granted during