The MBT Financial Corp. Stock Incentive Plan was approved by shareholders at the Annual meeting of shareholders of MBT Financial Corp. This plan authorized the Board of Directors to grant equity incentive awards to key employees and non-employee directors. Such grants be made until for up to shares of the Corporation’s common stock. At the Annual Meeting of Shareholders, this plan was amended to increase the number of shares available for awards to The amount that be awarded to any individual is limited to shares in any calendar year. As of the number of shares available under the plan is This includes shares that were previously awarded that have been forfeited.

Grants under the Stock Incentive Plan can be in the form of Stock Options, Stock Only Stock Appreciation Rights (SOSARs), Restricted Stock Awards, or Restricted Stock Unit Awards.

On Stock Only Stock Appreciation Rights (SOSARs) were awarded to certain officers in accordance with the MBT Financial Corp. Stock Incentive Plan. The SOSARs have a term of years and vest in equal annual installments beginning on SOSARs granted under the plan are structured as fixed grants with the exercise price equal to the market value of the underlying stock on the date of the grant, but providing for a cashless exercise. Upon exercise, the officers will generally receive common shares equal in value to the excess of the market value of the shares over the exercise price on the exercise date. The Stock Incentive Plan allows participants to cover their tax obligations by returning shares to the Company at the current fair market value at the time of exercise, which result in a reduction in equity at the time of issuance.

The fair value of each SOSAR grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used for grants in and expected option lives of years for all expected volatility of and risk-free interest rates of and and dividend yields of and

A summary of the status of SOSARs under the plan is presented in the table below. SOSARs Exercisable at each year end excludes SOSARs that are vested but not in the money.

 

The SOSARs exercisable as of are exercisable at prices ranging from to The number of SOSARs and remaining life at each exercise price are as follows:

A summary of the status of the Corporation’s non-vested SOSARs as of and changes during the year ended is as follows:

As of there was of total unrecognized compensation cost related to nonvested SOSARs granted under the Plan. The cost is expected to be recognized over a weighted average period of years.

On restricted shares were awarded to certain non-employee directors and in accordance with the MBT Financial Corp. Stock Incentive Plan. On restricted shares were forfeited due to the director’s retirement. On restricted shares vested early due to the director’s death. The remaining shares vested on

A summary of the status of the Corporation’s non-vested restricted stock awards as of and and changes during the years then ended is as follows:

The total expense recorded for the restricted stock awards was in in and in The amount of unrecognized compensation cost related to the nonvested portion of restricted stock awards under the plan was as of as of and as of

Restricted stock units granted under the plan result in an award of common shares to key employees based on selected performance metrics during the performance period.

Key executives were granted Restricted Stock Units (RSUs) on The RSUs will vest on according to the following schedule based on the Bank’s cumulative earnings per share in the year performance period ending

Restricted stock units are valued based on the share price at the date of grant multiplied by the number of units granted. The performance objective is expected to be met and shares are expected to be awarded upon completion of the vesting period. One executive is not expected to meet the vesting requirement due to retirement. As a result, RSUs are expected to be forfeited and shares of stock are expected to be issued. The grant date value of the stock was and the total value of the restricted stock units granted in was

Key executives were granted Restricted Stock Units (RSUs) on The RSUs will vest on based on the Bank achieving the performance target of cumulative earnings per share in the year performance period ending Restricted stock units are valued based on the share price at the date of the grant multiplied by the number of units granted. The performance objective was achieved, and as a result, RSUs were earned and will be awarded upon completion of the vesting period. One executive is not expected to meet the vesting requirement due to retirement. As a result, RSUs are expected to be forfeited and shares of stock are expected to be issued. The grant date value of the stock was per share and the total value of the restricted stock units granted in was

Accordingly, the Company recorded expenses of in and in for the RSUs granted. The RSU expense is accrued ratably over the performance and vesting period. The total unrecognized compensation costs associated with non-vested restricted stock units was as of The Stock Incentive Plan allows participants to cover their tax obligations by returning shares to the Company at the current fair market value at the time of exercise, which result in a reduction in equity at the time of issuance.

 

The following table presents the recorded expense for all Stock Based Compensation awards for the years ended and the unrecognized compensation expense for all Stock Based Compensation Plans as of for each year

 

 

In addition to the stock based awards noted above, the Company has stock options outstanding with an exercise price of that will expire on