Company: NODK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001174947-25-001356
Chunk: 41

Company: NI Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 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 $80 and $93 during the three months ended September 30, 2025 and 2024, respectively, and $247 and $269 during the nine months ended
September 30, 2025 and 2024, respectively.

Through September 30, 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 September 30, 2025,
and December 31, 2024. Using the Company’s quarter-end market price of $13.57 per share, the fair value of the unearned ESOP shares
was $617 at September 30, 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 nine months ended September 30, 2025, or the year ended December 31, 2024. This line of credit
is scheduled to expire on December 13, 2025.

13.       Income
Taxes

We record any change to a previously recorded valuation allowance
as a result of re-measuring existing temporary differences and loss carryforwards as a component of