Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 111

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 111
---
Each employee of Nodak Insurance automatically becomes a participant
in the ESOP if such employee is at least 21 years old, has completed a minimum of one thousand hours of service with Nodak Insurance,
and has completed an Eligibility Computation Period. Employees are not permitted to make any contributions to the ESOP. Participants in
the ESOP receive annual reports from the Company showing the number of shares of common stock of the Company allocated to the participants’
accounts and the market value of those shares. The shares are allocated to participants based on compensation as provided for in the ESOP.

In connection with the establishment of the ESOP, the Company created
a contra-equity account on the Consolidated Balance Sheet equal to the ESOP’s basis in the shares. The basis of those shares was
set at $10.00 per share as part of the IPO. As shares are released from the ESOP suspense account, the contra-equity account is credited,
which reduces the impact of the contra-equity account on the Company’s Consolidated Balance Sheets over time. The Company records
compensation expense related to the shares released, equal to the number of shares released from the suspense account multiplied by the
average market value of the Company’s stock during the period.

The Company recognized compensation expense related to the ESOP of
$89 and $84 during the three months ended March 31, 2025 and 2024, respectively, related to the ESOP.

Through March 31, 2025, and December 31, 2024, the Company had released
and allocated 194,520 ESOP shares to participants, with a remainder of 45,480 ESOP shares in suspense at March 31, 2025 and December 31,
2024. Using the Company’s quarter-end market price of $14.26 per share, the fair value of the unearned ESOP shares was $649 at March
31, 2025.

  12.
  Line of Credit

NI Holdings has a $3,000 line of credit with Wells Fargo Bank,
N.A. The terms of the line of credit include a floating interest rate of 2.50% above the daily simple secured overnight financing rate.
There were no outstanding amounts during the three months ended March 31, 2025, or the year ended December 31, 2024. This line of credit
is scheduled to expire on December 13, 2025.

  13.
  Income Taxes