# EDGAR Filing Document

**Accession Number:** 0000763907
**File Stem:** 0001104659-26-027140
**Filing Date:** 2026-3
**Character Count:** 19365
**Document Hash:** aa76d7b35d03cfbc6e2a5bc85354e188
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-027140.hdr.sgml**: 20260312

**ACCESSION NUMBER**: 0001104659-26-027140

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260306

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260312

**DATE AS OF CHANGE**: 20260312

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FIRST UNITED CORP/MD/
- **CENTRAL INDEX KEY:** 0000763907
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 521380770
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-14237
- **FILM NUMBER:** 26748709

**BUSINESS ADDRESS:**
- **STREET 1:** 19 S SECOND ST
- **CITY:** OAKLAND
- **STATE:** MD
- **ZIP:** 21550
- **BUSINESS PHONE:** 800-470-4356

**MAIL ADDRESS:**
- **STREET 1:** 19 S SECOND ST
- **CITY:** OAKLAND
- **STATE:** MD
- **ZIP:** 21550

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE** 

**SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): March 6, 2026

<u>First United Corporation</u>

(Exact name of registrant as specified in its charter)

<u>Maryland</u> <u>0-14237</u> <u>52-1380770</u> <br> (State or other jurisdiction of (Commission file number) (IRS Employer <br> incorporation or organization) Identification No.)

<u>19 South Second Street, Oakland, Maryland 21550</u>

(Address of principal executive offices) (Zip Code)

<u>(301) 334-9471</u>

(Registrant's telephone number, including area code)

<u>N/A</u>

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

<u>Title of each class</u> <u>Trading Symbols</u> <u>Name of each exchange on which registered</u> <br> Common Stock FUNC Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

**INFORMATION TO BE INCLUDED IN THE REPORT**

---

| | |
|:---|:---|
| **Item 5.02** | **Departure of Directors or Certain Oﬃcers; Election of Directors; Appointment of Certain Oﬃcers; Compensatory Arrangements of Certain Oﬃcers.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp; <u>Compensatory Arrangements</u>.

*<u>Long-Term Incentive Plan</u>*

On March 6, 2026, in connection with the annual grant of restricted stock units ("RSUs") that include time-vesting RSUs and performance-vesting RSUs pursuant to the Long-Term Incentive Plan (the "LTIP"), which is a sub-plan of the First United Corporation 2018 Equity Compensation Plan, the Compensation Committee of the Board of Directors (the "Compensation Committee") of First United Corporation (the "Corporation") revised certain terms applicable to the performance-vesting RSUs. The revised terms are set forth in a new Appendix A to the LTIP, a copy of which is filed herewith as Exhibit 10.1.

An RSU contemplates the issuance of shares of common stock of the Corporation if and when the RSUs vest. The total values of awards are based on a specified percentage of the grantee's base salary as of December 31, 2025 and are composed of time-vesting RSUs and performance-vesting RSUs.

The performance-vesting RSUs contemplate a three-year performance period ending on December 31, 2028. Under the revised terms, the performance goals are now return on average equity ("ROAE") and growth in tangible book value per share ("TBVPSG") as measured against the ROAE and TBVPSG of a custom peer group consisting of 103 publicly-traded banks with total assets of between $1.0 billion and $4.2 billion at December 31, 2025. The performance goals, which may be individually achieved within the threshold, target and maximum performance levels, are now stated as percentiles of the peer group's performance. The peer group is closed, provided that any peer that is acquired will be removed from the group and any peer that fails will be recorded with a -99% performance result for both goals.

The table below outlines the threshold, target and maximum performance goals and related payout rates.

---

| | |
|:---|:---|
| **Performance Level** | **Payout Rate (of total Award)** |
| Threshold - ROAE 25<sup>th</sup> Percentile | 25% |
| Threshold - TBVPSG 25<sup>th</sup> Percentile | 25% |
| Target - ROAE 50<sup>th</sup> Percentile | 50% |
| Target – TBVPSG 50<sup>th</sup> Percentile | 50% |
| Maximum – ROAE 75<sup>th</sup> Percentile | 75% |
| Maximum – TBVPSG 75<sup>th</sup> Percentile | 75% |

---

The performance-vesting RSUs are evidenced by Restricted Stock Unit Award Agreements (Performance-Vesting) that contain customary terms and conditions for these types of equity awards, the forms of which were filed as Exhibit 10.1 to the Corporation's Current Report on Form 8-K that was filed with the Securities and Exchange Commission (the "SEC") on March 27, 2020. A summary of the material terms of the LTIP can be found in Item 5.02 of the Corporation's Current Report on Form 8-K, filed with the SEC on March 16, 2020 (the "2020 Form 8-K"), under the heading, "First United Corporation Long-Term Incentive Plan", which summary is incorporated herein by reference. A copy of the LTIP was filed as Exhibit 10.1 to the 2020 Form 8-K. A summary of the material terms of 2018 Equity Compensation Plan can be found in the Corporation's definitive proxy statement on Schedule 14A, filed with the SEC on March 20, 2018, under the heading, "APPROVAL OF THE EQUITY PLAN (Proposal 2)", which summary is incorporated herein by reference. A copy of the 2018 Equity Compensation Plan was filed as Exhibit 10.1 to the Corporation's Current Report on Form 8-K that was filed with the SEC on May 21, 2018.

*<u>Short-Term Incentive Plan</u>*

As disclosed in the 2020 Form 8-K, the Compensation Committee has also adopted a Short-Term Incentive Plan (the "STIP"), which is a cash incentive award program intended to reward executives for the Corporation's annual performance, with incentive goals selected each year by the Compensation Committee. A summary of the material terms of the STIP can be found in Item 5.02 of the 2020 Form 8-K under the heading, "First United Corporation Short-Term Incentive Plan", which summary is incorporated herein by reference. A copy of the STIP was filed as Exhibit 10.2 to the 2020 Form 8-K.

On March 6, 2026, the Compensation Committee revised the incentive goals when it granted award opportunities under the STIP for 2026 to the Corporation's principal executive officer (Jason B. Rush), its principal financial officer (Tonya K. Sturm), and its other executive officers, including Robert L. Fisher, II who is a named executive officer. For the 2026 award opportunities, the performance metrics are based on return on average assets, efficiency ratio, average delinquencies as a percentage of total loans, and individual performance criteria that are specific to each officer. Each officer's specific metrics for his or her 2026 award opportunity are set forth in a revised Appendix A to the STIP, a copy of which is filed as Exhibit 10.1 hereto, are not material, are considered confidential by the Corporation until the financial results for 2026 have been determined, and will be disclosed as and when required by Item 402 of the SEC's Regulation S-K. The following table provides information about the cash awards that could be earned by these officers for 2026 and paid in 2027 under the STIP:

**GRANTS OF PLAN-BASED AWARDS**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Year** | **Estimated Possible Annual Payouts** <br> **Under the STIP ($)** | **Estimated Possible Annual Payouts** <br> **Under the STIP ($)** | **Estimated Possible Annual Payouts** <br> **Under the STIP ($)** |
| | | <br> **Threshold** | <br> **Target** | **Maximum <br> (Stretch)** |
| Jason B. Rush | 2026 | $71250 | $142500 | $213750 |
| Tonya K. Sturm | 2026 | $36796 | $73593 | $110389 |
| Robert L. Fisher, II | 2026 | $39347 | $78693 | $118040 |

---

The Committee currently intends to also use the revised incentive goals for award opportunities granted in future years. The Corporation will file an amended Appendix A as an exhibit to a Current Report on Form 8-K if the goals materially change with respect to a future year.

---

| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.

The exhibits filed or furnished with this report are listed in the following Exhibit Index:

---

| | |
|:---|:---|
| Exhibit No. | Description |
| [10.1](tm268693d1_ex10-1.htm) | [Revised Appendix A to the First United Corporation Long-Term Incentive Plan (filed herewith)](tm268693d1_ex10-1.htm) |
| [10.2](tm268693d1_ex10-2.htm) | [Revised Appendix A to the First United Corporation Short-Term Incentive Plan (filed herewith)**\***](tm268693d1_ex10-2.htm) |
| 104 | Cover page interactive data file (embedded within the iXBRL document) |

---

\* Portions of Exhibit 10.2, identified in brackets, are excluded because they are both not material and would likely cause competitive harm to the Corporation if publicly disclosed. Such information will be disclosed as, if and when required pursuant to Item 402 of Regulation S-K.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  | FIRST UNITED CORPORATION | FIRST UNITED CORPORATION | FIRST UNITED CORPORATION |
| Dated: March 12, 2026 | By: | /s/ Tonya K. Sturm | /s/ Tonya K. Sturm |
|  |  | Name: | Tonya K. Sturm |
|  |  | Title: | Executive Vice President and CFO |

---

## Exhibit 10.1

**Exhibit 10.1**

**<u>APPENDIX A</u>**

**Long-Term Incentive Plan ("LTIP")**

**Performance and Award Opportunities – Three-Year Performance Period Beginning January 1, 2026**

The table below provides the Award opportunities as a percentage of base salary at December 31, 2025:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Tier** | &nbsp;&nbsp; **Annual Target Award Opportunity**<br> (% of Base Salary) |
| &nbsp;&nbsp;CEO | &nbsp;&nbsp;30% |
| &nbsp;&nbsp;I | &nbsp;&nbsp;20% |
| &nbsp;&nbsp;II | &nbsp;&nbsp;15% |

---

Tier I includes the following executive officers: Chief Financial Officer; Chief Banking Officer; Chief Credit Officer; and Chief Wealth Officer.

Tier II includes the Chief Operating Officer

For the CEO, two-thirds of the Award will be a Performance Award and one-third of the Award will be a Time Award. For Tier I and Tier II Awards, one-half of the Award will be a Performance Award and one-half of the Awrd will be a Time Award. A Time Award will vest ratably over a three-year period, beginning on the first anniversary of the grant date. A participant must be an employee in good standing on each vesting date to receive shares under a Time Award.

<u>2026 Performance Goals for Performance Awards</u>

The Performance Period will be deemed to have commenced on January 1, 2026 and will end on December 31, 2028. The targeted performance goals will be return on average equity ("ROAE") and growth in tangible book value per share ("TBVPSG") as measured against the ROAE and TBVPSG of a custom peer group consisting of 103 publicly-traded banks with total assets of between $1.0 billion and $4.2 billion at December 31, 2025. The performance goals, which may be individually achieved within the threshold, target and maximum performance levels, are stated as percentiles of the peer group's performance. The peer group is closed, provided that any peer that is acquired will be removed from the group and any peer that fails will be recorded with a -99% performance result for both goals. A list of the peers within the peer group will be provided to a grantee at the time of grant.

The table below outlines the threshold, target and maximum performance goals and related payout rates.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Performance Level** | &nbsp;&nbsp; <br> **Payout Rate (of total Award)** |
| &nbsp;&nbsp;Threshold - ROAE &nbsp;&nbsp;25<sup>th</sup> Percentile | &nbsp;&nbsp;25% |
| &nbsp;&nbsp;Threshold - TBVPSG &nbsp;&nbsp;25<sup>th</sup> Percentile | &nbsp;&nbsp;25% |
| &nbsp;&nbsp;Target - ROAE &nbsp;&nbsp;50<sup>th</sup> Percentile | &nbsp;&nbsp;50% |
| &nbsp;&nbsp;Target – TBVPSG &nbsp;&nbsp;50<sup>th</sup> Percentile | &nbsp;&nbsp;50% |
| &nbsp;&nbsp;Maximum – ROAE &nbsp;&nbsp;75<sup>th</sup> Percentile | &nbsp;&nbsp;75% |
| &nbsp;&nbsp;Maximum – TBVPSG &nbsp;&nbsp;75<sup>th</sup> Percentile | &nbsp;&nbsp;75% |

---

Threshold performance for at least one of the performance goals must be met for any portion of a Performance Award to vest. Actual vesting amounts will be pro-rated between threshold and target levels and target and maximum levels. Notwithstanding the provisions of the LTIP regarding vesting dates to the contrary, and pursuant to the Compensation Committee's authority granted by Section 3(b) and Section 4 of the 2018 Equity Compensation Plan, the vesting date for Performance Awards will be the date in 2029 on which the Committee has certified the results of the peer group and of the Corporation, provided that (i) the participant is an employee of the Corporation in good standing on such date and (ii) at least one of the performance goal has been achieved at the threshold level.

The Compensation Committee reserves the right to make adjustments to goal calculations for the Corporation and/or the members of the peer group, including, but not limited to, adjustments for merger expenses and share repurchases.

## Exhibit 10.2

**Exhibit 10.2**

**Portions of this Exhibit 10.1, identified by brackets, have been excluded from this Exhibit because they are both not material and would likely cause competitive harm to the registrant if publicly disclosed. Such information will be disclosed as, if and when required pursuant to Item 402 of Regulation S-K.**

**<u>Appendix A</u>**

**Short-Term Incentive Plan**

**2026 Plan Year Targets and Goals**

<u>Incentive Targets</u>

The incentive targets for the 2026 Plan year are set forth in the following table:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **2026 Short-Term Incentive Opportunities**<br> **(% of Base Salary)** | &nbsp;&nbsp; **2026 Short-Term Incentive Opportunities**<br> **(% of Base Salary)** | &nbsp;&nbsp; **2026 Short-Term Incentive Opportunities**<br> **(% of Base Salary)** | &nbsp;&nbsp; **2026 Short-Term Incentive Opportunities**<br> **(% of Base Salary)** | &nbsp;&nbsp; **2026 Short-Term Incentive Opportunities**<br> **(% of Base Salary)** |
| &nbsp;&nbsp;**Tier** | &nbsp;&nbsp;**Below Threshold** | &nbsp;&nbsp; **Threshold**<br> **(**50% **of Target)** | &nbsp;&nbsp; **Target**<br> **(100%)** | &nbsp;&nbsp; **Maximum**<br> **(**150**% of Target)** |
| &nbsp;&nbsp;CEO | &nbsp;&nbsp;0% | &nbsp;&nbsp;15.0% | &nbsp;&nbsp;30% | &nbsp;&nbsp;45.0% |
| &nbsp;&nbsp;Tier I | &nbsp;&nbsp;0% | &nbsp;&nbsp;12.5% | &nbsp;&nbsp;25% | &nbsp;&nbsp;37.5% |
| &nbsp;&nbsp;Tier II | &nbsp;&nbsp;0% | &nbsp;&nbsp;7.5% | &nbsp;&nbsp;15% | &nbsp;&nbsp;22.5% |

---

Tier I includes the following executives: Chief Financial Officer (CFO); Chief Banking Officer (CBO); Chief Credit Officer (CCO); and Chief Wealth Officer (CWO).

Tier II includes the following executive: Chief Operating Officer (COO).

<u>Performance Goals</u>

For Plan year 2026, the performance goals are return on average assets (ROAA), efficiency ratio, delinquencies as a percentage of total loans, and individual performance based upon the metric indicated for each position in the following table. The following table shows the performance goals at threshold, budget and maximum for Plan year 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Performance Measures** | &nbsp;&nbsp;**Wt.** | &nbsp;&nbsp;**2026 Performance Metrics** | &nbsp;&nbsp;**2026 Performance Metrics** | &nbsp;&nbsp;**2026 Performance Metrics** |
| &nbsp;&nbsp;**Performance Measures** | &nbsp;&nbsp;**Wt.** | &nbsp;&nbsp; **Threshold**<br> **(90% of target performance)<sup>[1]</sup>** | &nbsp;&nbsp; **Target**<br> **(100%)** | &nbsp;&nbsp; **Maximum**<br> **(110% of target performance)** |
| &nbsp;&nbsp;**ROAA** | &nbsp;&nbsp;40% | &nbsp;&nbsp;**[_]%** | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% |
| &nbsp;&nbsp;**Efficiency Ratio (non-GAAP)** | &nbsp;&nbsp;20% | &nbsp;&nbsp;**[_]%** | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% |
| &nbsp;&nbsp;**Average Delinquencies as % of total loans** | &nbsp;&nbsp;20% | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% |
| &nbsp;&nbsp;**Individual Performance** | &nbsp;&nbsp;20% |  |  |  |
| &nbsp;&nbsp;**CEO – Corporate Net Income (millions)** |  | &nbsp;&nbsp;**$[_]** | &nbsp;&nbsp;**$[_]** | &nbsp;&nbsp;**$[_]** |
| &nbsp;&nbsp;**CFO – Corporate Net Interest Margin** |  | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]%** |
| &nbsp;&nbsp;**COO – Corporate Operating Leverage Ratio** |  | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% |
| &nbsp;&nbsp;**CBO – Corporate Net Interest Margin** |  | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]%** |
| &nbsp;&nbsp;**CWO – Wealth Efficiency Ratio** |  | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% | &nbsp;&nbsp;**[_]**% |
| &nbsp;&nbsp; **CCO - Corporate**<br> **Loan Asset Quality** |  | &nbsp;&nbsp;**[_]%** | &nbsp;&nbsp;**[_]%** | &nbsp;&nbsp;**[_]%** |

---

<sup>1</sup> Performance goals are net of target level incentive payouts.

<u>Minimum Performance Trigger</u>

For Plan year 2026, the Corporation's net income must be at least 50% of the net income goal for 2026, which is $[ ], or the Plan will not pay out any awards, regardless of the performance with respect to the award metrics.