Note 18—STOCK OPTIONS, RESTRICTED STOCK, RESTRICTED STOCK UNITS, AND DEFERRED COMPENSATION

At December 31, 2025, unrecognized compensation cost related to non-vested restricted stock and units totaled $3.1 million, expected to be recognized over a weighted average period of 1.0 years. The table below shows the components of “nonvested restricted stock and stock units” as of the years ended December 31, 2025 and 2024.

 

(Dollars in thousands)  As of December 31, 
Nonvested restricted stock and stock units  2025   2024 
Non-employee director deferred compensation stock plan deferred stock units  $1,823   $1,600 
Time-based restricted stock units - officer   525    481 
Performance-based restricted stock units - officer   921    561 
Restricted stock – officer and director   (204)   (3)
Total nonvested restricted stock and stock units  $3,065   $2,639 

 

Non-Employee Director Deferred Compensation Plan

Under the Company’s Non-Employee Director Deferred Compensation Plan, as amended and restated effective as of January 1, 2021, a director may elect to defer all or any part of annual retainer and monthly meeting fees payable with respect to service on the board of directors or a committee of the board. Units of common stock are credited to the director’s account as of the last day of such calendar quarter during which the compensation is earned and are included in dilutive securities in the table above. The non-employee director’s account balance is distributed by issuance of common stock within 30 days following such director’s separation from service from the board of directors.

 

The table below shows the following information related to First Community Corporation’s Non-Employee Director Deferred Compensation Plan: accumulated share units and accrued amounts as of the years ended December 31, 2025, 2024 and 2023; and the related director compensation expense for the twelve months ended 2025, 2024, and 2023.

 

                       
   Twelve Months ended December 31, 
   2025   2024   2023 
Non-employee director deferred compensation plan accumulated share units   120,575    111,166    103,133 
Accrued amounts (dollars in thousands)1  $1,823   $1,600   $1,439 
Related director compensation expense (dollars in thousands)  $152   $90   $125 

  

First Community Corporation 2021 Omnibus Equity Incentive Plan

In 2021, the Company and its shareholders adopted an omnibus equity incentive plan whereby 225,000 shares were reserved for issuance by the Company to help the company attract, retain and motivate directors, officers, employees, consultants and advisors of the Company and its subsidiaries (the “2021 Plan”). The 2021 Plan replaced the 2011 Plan. All awards granted during 2025, 2024, and 2023 were granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan.

 

The table below shows stock awards granted during the twelve months ended December 31, 2025, 2024, and 2023.

          
(In shares/units)  Twelve Months ended December 31, 
   2025   2024   2023 
Time-based restricted stock units - officer   14,126    15,095    12,562 
Performance-based restricted stock units – officer   18,8341   20,1262   16,7493
Restricted stock – officer   10,689    206    259 
Restricted stock – director   8,400    13,464    7,590 

 

1 18,834 units represent the target payout with a maximum payout of 37,668 units.

2 20,126 units represent the target payout with a maximum payout of 40,253 units.

3 16,749 units represent the target payout with a maximum payout of 33,500 units.

 

The table below shows the fair value of stock awards granted during the periods.

 

          
(Dollars in thousands)  Twelve months ended December 31, 
   2025   2024   2023 
Time-based restricted stock units - officer  $370   $271   $255 
Performance-based restricted stock units – officer   4931   3622   3403
Restricted stock – officer   286    3    5 
Restricted stock – director  $220   $242   $154 

 

1 $493 thousand represents the target payout with a maximum payout of $986 thousand.

2 $362 thousand represents the target payout with a maximum payout of $723 thousand.

3 $340 thousand represents the target payout with a maximum payout of $680 thousand.

 

At December 31, 2025, unrecognized compensation cost related to non-vested restricted stock and units totaled $, expected to be recognized over a weighted average period of x.x years. The weighted average grant-date fair value of awards granted in 2025 was $XX.XX per share.

 

The table below shows the compensation expense related to stock awards granted during the twelve months ended December 31, 2025, 2024 and 2023.

 

(Dollars in thousands)  Year ended December 31, 
Compensation expense related to stock awards  2025   2024   2023 
Time-based restricted stock units – officer1  $290   $246   $163 
Performance-based restricted stock units – officer2   605    314    264 
Restricted stock – officer3   90    6    120 
Restricted stock – director4  $220   $242   $167 

 

1 Expense in 2025 and 2024 was related to stock awards granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan. Expense in 2023 consists of $159.8 thousand related stock awards granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan and $3.2 thousand related stock awards granted under the First Community Corporation 2011 Stock Incentive Plan.
2 Expense in 2025 was related to stock awards granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan. Expense in 2024 consists of $300.7 thousand related stock awards granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan and $13 thousand related stock awards granted under the First Community Corporation 2011 Stock Incentive Plan. Expense in 2023 consists of $186.0 thousand related stock awards granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan and $78.0 thousand related stock awards granted under the First Community Corporation 2011 Stock Incentive Plan.
3 Expense in 2025 was related to stock awards granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan. Expense in 2024 consists of $3.4 thousand related stock awards granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan and $2.5 thousand related stock awards granted under the First Community Corporation 2011 Stock Incentive Plan. Expense in 2023 consists of $17.2 thousand related stock awards granted under the First Community Corporation 2021 Omnibus Equity Incentive Plan and $102.8 thousand related stock awards granted under the First Community Corporation 2011 Stock Incentive Plan.
4 Expense in 2025, 2024, and 2023 was related to stock awards granted under the Community Corporation 2021 Omnibus Equity Incentive Plan.

 

The table below shows the First Community Corporation 2021 Omnibus Equity Incentive Plan (“2021 Incentive Plan”) initial reserve at May 19, 2021; stock awards granted under the 2021 Incentive Plan from its inception through December 31, 2025; and the remaining reserve under such plan at December 31, 2025.

 

(In shares / units)    
First Community Corporation 2021 Omnibus Equity Incentive Plan  2025 
Initial reserve – May 19, 2021   225,000 
Additional reserve – May 20, 2025   450,000 
Shares / units granted     
Time-based restricted stock units - officer   (53,521)
Performance-based restricted stock units – officer1   (67,447)
Restricted stock – officer   (13,355)
Restricted stock – director   (36,813)
Remaining reserve – December 31, 2025   503,864 

 

1 Performance-based restricted stock units are initially granted and expensed at target levels; however, they are reserved at maximum levels. The maximum level for 2025 was 37,668.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 14, 2025
2023Mar 21, 2024
2022Mar 22, 2023
2021Mar 16, 2022
2020Mar 12, 2021
2019Mar 13, 2020

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.