First Bancorp, Inc /ME/FNLC

First Bancorp, Inc /ME/ Stock Compensation Disclosure

10-KFiled Mar 6, 20262 min read
Stock Options and Stock-Based Compensation
At the 2020 Annual Meeting, shareholders approved the 2020 Equity Incentive Plan (the "2020 Plan"). There are 400,000 shares of common stock reserved for issuance pursuant to the 2020 Plan in connection with stock options, restricted stock awards, and other equity based awards to attract and retain the best available personnel, provide additional incentive to officers, employees, and non-employee Directors, and promote the success of the Company. Such grants and awards will be structured in a manner that does not encourage the recipients to expose the Company to undue or inappropriate risk. Options issued under the 2020 Plan qualify for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code. Other compensation under the 2020 Plan qualifies as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and satisfies NASDAQ guidelines relating to equity compensation.
As of December 31, 2025, 172,916 shares of restricted stock had been granted under the 2020 Plan, of which 93,874 shares remain restricted as of December 31, 2025 as detailed in the following table:
Year
Granted		Vesting Term
(In Years)		SharesRemaining Term
(In Years)
20233.025,659 0.1
20243.026,937 1.1
20242.01,869 0.1
20253.036,732 2.1
20251.02,677 0.1
93,874 1.2
The compensation cost related to these restricted stock grants was $2,533,000 and will be recognized over the vesting terms of each grant. In 2025, $966,000 of expense was recognized for these restricted shares, leaving $872,000 in unrecognized expense as of December 31, 2025. In 2024, $895,000 of expense was recognized for restricted shares, leaving $770,000 in unrecognized expense as of December 31, 2024.

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 7, 2025

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.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EDebtCommitmentsNew Standards