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Equity Compensation Plan Information | 9 Months Ended
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Sep. 30, 2024
Equity Compensation Plan [Abstract] |
Equity Compensation Plan Information | ​ Note 8 - Equity Compensation Plan Information ​ At the 2018 Annual Meeting of Shareholders, First United Corporation’s shareholders approved the First United Corporation 2018 Equity Compensation Plan (the “Equity Plan”), which authorizes the issuance of up to 325,000 shares of common stock to employees, directors and qualifying consultants pursuant to stock options, stock appreciation rights, stock awards, dividend equivalents, and other stock-based awards. The Corporation complies with the provisions of ASC Topic 718, Compensation-Stock Compensation, in measuring and disclosing stock compensation cost. The measurement objective in ASC Paragraph 718-10-30-6 requires public companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The cost is recognized in expense over the period in which an employee is required to provide service in exchange for the award (the vesting period). Pursuant to First United Corporation’s director compensation policy, each director receives an annual retainer of 1,000 shares of First United Corporation common stock, plus $15,000 to be paid, at the director’s election, in cash or additional shares of common stock. In May 2024, a total of 14,325 fully vested shares of common stock were issued to directors, which had a grant date fair value of $21.94 per share. In May 2023, a total of 16,931 fully vested shares of common stock were issued to directors, which had a grant date fair value of $13.23 per share. In January 2023, a total of 333 fully vested shares of common stock were issued to a new director, which had a grant date fair value of $19.36 per share. In October 2023, a total of 852 fully vested shares of common stock were issued to a new director which had a grant date fair value of $16.26 per share. Director stock compensation was $213,536 and $194,001 for the nine-month periods ended September 30, 2024 and 2023, respectively. Director stock compensation expense was $78,573 and $56,000 for the three-month periods ended September 30, 2024 and 2023, respectively. Employee stock compensation expense was $8,240 and $12,092 for the nine-month periods ended September 30, 2024 and 2023, respectively. Employee stock compensation expense was $2,483 and $4,892 for the three-month periods ended September 30, 2024 and 2023, respectively. Restricted Stock Units On March 26, 2020, pursuant to the Corporation’s Long Term Incentive Plan (the "LTIP"), which is a sub-plan of the Equity Plan, the Compensation Committee of First United Corporation’s Board of Directors (the "Compensation Committee") granted RSUs to the Corporation’s principal executive officer, its principal financial officer, and certain of its other executive officers. An RSU contemplates the issuance of shares of common stock of First United Corporation if and when the RSU vests. The RSUs granted to each of the foregoing officers consist of (i) a performance vesting award for a three year performance period and (ii) a time-vesting award that will vest ratably over a three year period. Target performance levels were set based on the annual budget which supports the Corporation’s long-term objective of achieving high performance as compared to peers. Threshold performance is the minimum level of acceptable performance as defined by the Compensation Committee and maximum performance represented a level potentially achievable under ideal circumstances. Achievement of all threshold performance levels would result in each executive participant earning a payout at 50% of his or her respective target award opportunity. Achievement of all target performance levels would result in the executive participant earning the target award. Achievement at or above all maximum performance levels would result in the executive participant earning 150% of the target opportunity. Actual results for any goal that falls between performance levels would be interpolated to calculate a proportionate award. To receive any shares under an RSU, a grantee must be employed by the Corporation or one of its subsidiaries on the applicable vesting date, except that a grantee whose employment terminates prior to such vesting date due to death, disability or retirement will be entitled to a pro-rated portion of the shares subject to the RSUs, assuming that, in the case of performance-vesting RSUs, the performance goals had been met at their "target" levels. In May 2021, RSUs relating to 7,389 performance vesting shares and 3,693 time vesting shares (target level) for plan year 2021 were granted, which had a grant date fair market value of $17.93 per share of common stock underlying each RSU. The performance period for the performance-vesting RSUs was the three-year period ended December 31, 2023. On March 9, 2024, it was determined that 7,389 performance-vesting RSUs failed to vest. The time-vesting RSUs will vest ratably over a three year period that began on May 5, 2022. On May 5, 2022, 1,230 shares of the 3,693 time-vesting RSUs were issued to participants. On May 5, 2023, 1,230 additional shares of the 3,693 time-vesting RSUs were issued to participants. On May 5, 2024, the remaining 1,233 shares of the 3,693 time-vesting RSUs were issued to participants. Stock compensation expense was $7,365 and $49,714 for the nine-month periods ended September 30, 2024 and 2023, respectively. Stock compensation expense was $0 and $16,571 for the three-month periods ended September 30, 2024 and 2023, respectively. All compensation expense related to the 2021 LTIP plans was recognized as of September 30, 2024. In March 2022, RSUs relating to 8,096 performance vesting shares and 6,238 time vesting shares (target level) for plan year 2022 were granted, which had a grant date fair market value of $21.88 per share of common stock underlying each RSU. The performance period for the performance-vesting RSUs is the three-year period ending December 31, 2024. The time-vesting RSUs will vest ratably over a three year period that began on March 9, 2023. On March 9, 2023, 2,079 shares of the 6,238 time-vesting RSUs were issued to participants. On March 9, 2024, 2,079 additional shares of the 6,238 time-vesting RSUs were issued to participants. In the third quarter of 2024, it was projected that the performance metric will fail to vest; and, the stock compensation expense was adjusted accordingly. Net stock compensation (credit)/expense was ($69,228) and $78,436 for the nine-month periods ended September 30, 2024 and 2023, respectively. Net stock compensation (credit)/expense was ($121,518) and $26,145 for the three-month periods ended September 30, 2024 and 2023, respectively. Unrecognized compensation expense as of September 30, 2024 related to unvested RSUs was $22,758. In March 2023, RSUs relating to 10,214 performance vesting shares and 7,920 time vesting shares (target level) for plan year 2023 were granted, which had a grant date fair market value of $18.25 per share of common stock underlying each RSU. The performance period for the performance-vesting RSUs is the three-year period ending December 31, 2025. The time-vesting RSUs will vest ratably over a three year period that began on March 15, 2024. On March 15, 2024, 2,639 shares of the 7,920 time-vesting RSUs were issued to participants. Stock compensation expense was $82,755 and $55,170 for the nine-month periods ended September 30, 2024 and 2023, respectively. Stock compensation expense was $27,585 for both of the three-month periods ended September 30, 2024 and 2023. Unrecognized compensation expense as of September 30, 2024 related to unvested RSUs was $165,509. In May 2024, RSUs relating to 8,593 performance vesting shares and 6,662 time vesting shares (target level) for plan year 2024 were granted, which had a grant date fair market value of $22.26 per share of common stock underlying each RSU. The performance period for the performance-vesting RSUs is the three-year period ending December 31, 2026. The time-vesting RSUs will vest ratably over a three-year period that began on May 20, 2025. Stock compensation expense was $37,752 for the nine-month period ended September 30, 2024. Stock compensation expense was $28,314 for the three-month period ended September 30, 2024. Unrecognized compensation expense as of September 30, 2024 related to unvested RSUs was $302,016.

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