Share-Based Payment Plan

9 Months Ended

Sep. 30, 2017

Share-Based Payment Plan

Share-Based Payment Plan

Note 7:   Share-Based Payment Plan

During 2016, the Board of Directors adopted an incentive restricted stock plan for certain executive officers of the Company (the “2016 Plan”).  Awards under the 2016 Plan could be earned subject to certain performance metrics and the participating executive officer could elect annually to receive the plan benefit in the form of Company common shares or a combination of 50% each of common shares and cash. At December 31, 2016, 3,200 shares were vested pursuant to the 2016 Plan. Expense recognized for the 2016 Plan totaled $26,000 and $96,000 for the three and nine months ended September 30, 2017. No expense was recognized for the 2016 Plan during the three and nine months ended September 30, 2016. At both September 30, 2017 and December 31, 2016, there were 17,910 unvested shares awarded under the 2016 Plan. Unrecognized compensation cost totaled $190,000 and $286,000 at September 30, 2017 and December 31, 2016, respectively. No additional awards will be made under the 2016 Plan. On July 5, 2017 the Company’s shareholders approved and the Company adopted the Merchants Bancorp 2017 Equity Incentive Plan (“2017 Plan”).  At September 30, 2017, the Company had not issued any awards under the 2017 Plan.