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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The Company recorded total stock-based compensation expense of $536,000 and $605,000 for the three months ended September 30, 2021 and 2020, respectively, and $1,764,000 and $2,013,000 for the nine months ended September 30, 2021 and 2020, respectively, which includes the value of the stock grants to directors as discussed below. The Company recognized $123,000 and $139,000 of income tax benefits related to stock-based compensation expense in the income statement for the three months ended September 30, 2021 and 2020, respectively, and $405,000 and $463,000 for the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021, the sole equity-based compensation plan for the Company is the First Bancorp 2014 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 8, 2014. As of September 30, 2021, the Equity Plan had 485,695 shares remaining available for grant. The Equity Plan is intended to serve as a means to attract, retain and motivate key employees and directors and to associate the interests of the Plans' participants with those of the Company and its shareholders. The Equity Plan allows for both grants of stock options and other types of equity-based compensation, including stock appreciation rights, restricted and unrestricted stock, restricted performance stock, unrestricted stock, and performance units. For the last several years, the only equity-based compensation granted by the Company has been shares of restricted stock, as it relates to employees, and unrestricted stock as it relates to non-employee directors. Recent restricted stock awards to employees typically include service-related vesting conditions only. Compensation expense for these awards is recorded over the requisite service periods. Upon forfeiture, any previously recognized compensation cost is reversed. Upon a change in control (as defined in the Equity Plan), unless the awards remain outstanding or substitute equivalent awards are provided, the awards become immediately vested. Certain of the Company’s equity grants contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. The Company recognizes compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service period for each incremental award. Compensation expense is based on the estimated number of stock awards that will ultimately vest. Over the past five years, there have been insignificant amounts of forfeitures, and therefore the Company assumes that all awards granted with service conditions only will vest. The Company issues new shares of common stock when stock is granted. In addition to employee equity awards, the Company's practice is to grant unrestricted common shares, valued at approximately $32,000, to each non-employee director (currently 10 in total) in June of each year. Compensation expense associated with these director awards is recognized on the date of award since there are no vesting conditions. On June 1, 2021, the Company granted 7,050 shares of common stock to non-employee directors (705 shares per director), at a fair market value of $45.41 per share, which was the closing price of the Company's common stock on that date, and resulted in $320,000 in expense. On June 1, 2020, the Company granted 14,146 shares of common stock to non-employee directors (1,286 shares per director), at a fair market value of $24.87 per share, which was the closing price of the Company's common stock on that date, and resulted in $352,000 in expense. The expense associated with director grants is classified as "other operating expense" in the Consolidated Statements of Income. The following table presents information regarding the activity for the first nine months of 2021 related to the Company’s outstanding restricted stock:
|  | Long-Term Restricted Stock
| Number of Units |  | Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2021 |  | 172,105 |  |  | $ | 33.80 |
Granted during the period |  | 63,950 |  |  | 37.29 |
Vested during the period |  | (43,166) |  |  | 41.27 |
Forfeited or expired during the period |  | (8,011) |  |  | 38.00 |
Nonvested at September 30, 2021 |  | 184,878 |  |  | $ | 33.08 |
Total unrecognized compensation expense as of September 30, 2021 amounted to $2,986,000 with a weighted-average remaining term of 2.1 years. For the nonvested awards that are outstanding at September 30, 2021, the Company expects to record $1,550,000 in compensation expense in the next twelve months, $504,000 of which is expected to be recorded in the fourth quarter of 2021.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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