Share-Based Payment Plan

12 Months Ended

Dec. 31, 2019

Share-Based Payment Plan

Share-Based Payment Plan

Note 20: Share‑Based Payment Plan

Equity-based incentive awards are currently issued pursuant to the 2017 Equity Incentive Plan (the “2017 Incentive Plan”). Prior to the adoption of the 2017 Incentive Plan, the equity awards issued historically consisted of restricted stock awards issued pursuant to the Incentive Plan for Merchants Bank Executive Officers (the “Prior Incentive Plan”). As of the effective date of the 2017 Equity Incentive Plan, no further awards will be granted under the Prior Incentive Plan. However, any previously outstanding incentive award granted under the Prior Incentive Plan remains subject to the terms of such plans until the time it is no longer outstanding. During the years ended December 31, 2019 and 2018, the Company issued 10,127 and 7,039 shares, respectively, pursuant under these plans. Expense recognized for these plans totaled $533,000, $171,000, and $458,000 for the years ended December 31, 2019,  2018, and 2017, respectively. At December 31, 2019 and 2018, there were 91,266 and 83,708 unvested shares awarded under the 2017 Plan, respectively. Unrecognized compensation cost totaled $1.3 million and $1.1 million at December 31, 2019 and 2018, respectively. 

During 2018, the Compensation Committee of the Board of Directors approved a plan for non-executive directors to receive a portion of their annual fees in the form of common stock equal to $10,000, rounded up to the nearest whole share. Accordingly, there were 2,275 total shares issued during the year ended December 31, 2019, reflecting $50,000 in expenses. There were 1,830 total shares issued during the year ended December 31, 2018, reflecting $50,000 in expenses.