Tony C. McKim
About Tony C. McKim
Tony C. McKim, age 57, has served as Director since January 2005, and President & CEO of The First Bancorp, Inc. and First National Bank since January 2015 after joining as EVP/COO via the FNB Bankshares merger in 2005 . In 2024, The First delivered net income of $27.0M (down 8.4% YoY) and diluted EPS of $2.43, with net interest margin improving in H2 and PTPP ROAA of 1.09% and PTPP ROATCE of 15.12%; efficiency ratio was 56.66% and tangible book value rose to $19.87 per share . Over the 5-year pay-versus-performance window, cumulative TSR index stood at 116.01 in 2024, with net income of $27,045K and company-selected metric ROATCE of 12.35% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| FNB Bankshares | President & CEO | Pre-2005–Jan 2005 | Led FNB prior to merger into The First; experience as former CEO cited as qualification . |
| The First Bancorp / First National Bank | EVP & COO; Director | Jan 2005–2014 | Joined via FNB merger; operational leadership and board service . |
| The First Bancorp / First National Bank | President & CEO; Director | Jan 2015–Present | 10th anniversary as CEO in 2025; senior risk officer; oversaw margin improvement in H2 2024 . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Harbor House | Community involvement | N/A | Local association engagement . |
| Ellsworth Business Development Corporation | Board/association involvement | N/A | Economic/community engagement . |
| Acadian Youth Sports | Community involvement | N/A | Community engagement . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 670,000 | 775,000 | 812,000 |
| All Other Compensation ($) | 21,108 | 22,653 | 23,739 |
| CEO Pay Ratio (x median employee) | 17.38x (calc range context) | 19.06x (context) | 20.89x |
Notes:
- Compensation benchmarking targets CEO base just above the 75th percentile of a defined Northeast bank peer group; Pearl Meyer advises and fees are < $30,000 .
- Other benefits include Safe Harbor 401(k) contributions, Company vehicle for CEO, and BOLI split-dollar value .
Performance Compensation
| Metric | Weight | Threshold | Target | Stretch | Actual | Payout Allocation | Weighted Payout % | Actual Payout ($) |
|---|---|---|---|---|---|---|---|---|
| Net Income ($000s) | 15% | 26,130 | 31,130 | 36,130 | 28,048 | 69.2% | 10.4% | 37,918 |
| PTPP ROATCE (%) | 15% | 12.97 | 17.97 | 22.97 | 15.79 | 78.2% | 11.7% | 42,861 |
| Efficiency Ratio (%) | 10% | 54.73 | 52.23 | 49.73 | 55.67 | — | — | — |
| Fee Income ($000s) | 10% | 11,140 | 13,140 | 15,140 | 13,033 | 97.3% | 9.7% | 35,563 |
| Strategic Plan Implementation | 30% | 50% | 100% | 150% | 100% | 100% | 30.0% | 109,620 |
| Discretionary | 20% | 50% | 100% | 150% | 100% | 100% | 20.0% | 73,080 |
| Total | 100% | — | — | — | — | — | 81.8% | 299,042 |
Additional context:
- 2024 incentive target was 45% of base salary ($365,400); actual payout was 36.83% of base salary ($299,042) .
- Short-Term Incentive Plan pays cash by March 15 following the plan year; awards range 0–150% of target and use balanced measures to deter excessive risk; clawback applies for material noncompliance leading to restatement .
Multi‑Year Total Compensation Mix (CEO)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Short-Term Bonus ($) | 300,145 | 226,068 | 299,042 |
| Stock Awards ($) | 201,000 | 232,500 | 243,600 |
| Total Compensation ($) | 1,192,253 | 1,256,221 | 1,378,381 |
Program design notes:
- Long-term incentives are restricted stock; no options currently; equity awards feature conservative vesting (primarily 3-year cliff) and are intended to align with long-term shareholder value .
- Target mix places base at 50–80% of total, short-term incentives 15–50%, long-term incentives 10–30% depending on role/performance .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership (CEO) | 135,984 shares; 1.21% of outstanding . |
| Shares outstanding | 11,195,768 (record date) . |
| Unvested restricted stock (as of 12/31/2024) | 21,326 shares across grants on 1/27/2022; 1/26/2023; 1/30/2024 . |
| 2024 vested RS and value realized | 7,073 shares; $186,656 . |
| Options outstanding | None . |
| Ownership guidelines | CEO: 2× base salary; all Directors/NEOs met guidelines as of 12/31/2024 (except new Director Kachmar) . |
| Hedging/Pledging | Hedging prohibited by Insider Trading Policy; no pledging disclosed for McKim; directors Smith and Ward have pledged shares (Smith: 72,216; Ward: 20,718) . |
Restricted stock grant history and vesting mechanics:
- 2024 performance awards granted 1/30/2025 at $26.01 per share; CEO received 9,366 shares ($243,600); three-year cliff vesting .
- 2023 performance awards granted 1/30/2024 at $26.22 per share; CEO received 8,868 shares ($232,500); three-year cliff vesting .
- 2022 performance awards granted 1/26/2023 at $29.30 per share; CEO received 6,861 shares ($201,000); three-year cliff vesting .
Employment Terms
| Provision | Summary |
|---|---|
| Employment agreements | None for executives . |
| Severance/change-of-control | No contractual severance or change-of-control benefits; 2020 Equity Plan permits award assumption or acceleration/cash-out in certain reorganization events if not assumed . |
| Clawback | Incentive plan clawback for restatements due to material noncompliance . |
| Perquisites | Company-provided vehicle (taxable) to CEO; BOLI split-dollar; supplemental long-term disability insurance for CEO; Safe Harbor 401(k); employee stock purchase plan . |
| Insider trading policy | Pre-clearance, hedging disallowed; adopted in 2024 and filed as 10-K exhibit . |
Board Governance
- Director since 2005; not independent under NASDAQ rules; Board affirmed independence of all Directors except President McKim in January 2025 .
- Independent Chair of the Board (Bruce B. Tindal) since 2023; regular executive sessions of independent directors after each Board meeting .
- Committee memberships: CEO McKim is not listed as a member of Audit, Compensation, or Nominating & Governance Committees; he serves as Senior Risk Officer .
- Board/Committee attendance: all Directors attended at least 86% of meetings in 2024; aggregate attendance exceeded 95% .
Director Compensation (for context; CEO receives none for board service)
- Bank pays director fees; total paid to outside Directors was $256,200 in 2024; CEO McKim receives no additional compensation for board service .
- Chair annual fee $44,600 (2024); meeting and committee fees detailed; many Directors reinvest fees via ESPP .
Performance & Track Record
| Metric | 2024 Outcome |
|---|---|
| Total assets | $3.157B (+$210.3M YoY) |
| Total loans | $2.34B (+$211.5M, +9.9%) |
| Total deposits | $2.73B (+$125.6M) |
| AUM (Wealth Mgmt) | $727M (+10%) |
| Non-performing assets/total assets | 0.14% |
| Day-one liquidity capacity vs uninsured deposits | >156% |
| Tangible book value/share | $19.87 (vs $19.12 YE 2023) |
| Efficiency ratio (non-GAAP) | 56.66% |
Qualitative execution highlights:
- Net interest margin improved in Q3/Q4 2024 via asset repricing and funding cost stabilization, supporting improved net income trajectory into 2025 .
- 2024–2026 strategic plan executed with >880 action steps across succession, employee engagement, community, growth, and risk management .
Compensation Committee Analysis
- Committee comprised solely of independent Directors; uses Pearl Meyer for annual compensation benchmarking and peer group calibration; pay-for-performance philosophy with clawbacks and balanced metrics to limit risk .
- Say‑on‑Pay support: 2024 approval ~96% (7,538,051 For; 195,775 Against; 78,820 Abstain; 1,431,417 broker non‑votes) and Committee maintained approach; lowest recent approval noted at 88% .
Compensation Peer Group (2024)
Includes regional non-metropolitan bank holding companies such as ACNB, Bar Harbor Bankshares, Camden National, Citizens & Northern, Hingham Institution for Savings, Orrstown Financial Services, Penns Woods Bancorp, and others (approx. 20 institutions; 2/3x to 2x The First’s asset size) .
Related Party Transactions (for risk context)
- Loans to Directors/Executive Officers and affiliates totaled $32,182,000 (1.37% of total loans) at 12/31/2024; made on substantially the same terms as comparable transactions; no other related party transactions in 2024 .
Investment Implications
- Pay-for-performance alignment: CEO’s short-term bonus tied to balanced profitability/efficiency/fee income and strategic execution; strong clawback and hedging prohibitions reduce excessive risk incentives .
- Retention and insider supply: Significant unvested RS balances with three-year cliff vesting across 2023–2025 grants can both promote retention and create periodic vest-related supply events; 7,073 shares vested in 2024; future vesting follows 3-year cliffs from grant dates .
- Alignment and pledging: CEO meets 2× salary ownership guideline; no pledging disclosed for McKim (red-flag pledging appears for two Directors only); insider policy bans hedging, supporting alignment .
- Change-of-control economics: No employment agreements, severance, or standard golden parachutes; equity plan permits acceleration/cash‑out in certain reorg events, implying lower guaranteed exit payouts but potential accelerated RS value realization in a sale if awards aren’t assumed .
- Governance balance: Independent Chair and executive sessions mitigate CEO/director dual-role concerns; CEO as Senior Risk Officer centralizes risk oversight — investors should monitor risk governance disclosures for continued robustness .
- Performance trajectory: H2 2024 margin improvement and growth across loans/deposits suggest improving earnings momentum into 2025; however, 2024 net income and EPS declined YoY, warranting vigilance on NIM sustainability and efficiency gains .