FIRST UNITED CORPORATION ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

Rhea-AI Summary

First United (NASDAQ: FUNC) reported strong Q4 2024 financial results with consolidated net income of $6.2 million ($0.95 per diluted share), compared to $1.8 million ($0.26 per diluted share) in Q4 2023. Full-year 2024 net income reached $20.6 million ($3.15 per diluted share), up from $15.1 million in 2023.

The quarter saw robust loan growth with $72.2 million in commercial loan originations and $23.3 million in residential mortgage originations. Net interest margin was 3.48% for Q4 2024. Deposits increased by $34.4 million due to seasonal municipal deposit fluctuations, partly offset by retail certificate runoff. The company maintained strong pricing and expense discipline, resulting in a solid efficiency ratio despite intense market competition.

Total assets reached $2.0 billion, representing a $67.2 million increase since December 2023. Outstanding loans grew by $74.1 million year-over-year, while total deposits increased by $23.9 million.

Positive

• Net income increased significantly to $6.2M in Q4 2024 from $1.8M in Q4 2023
• Full-year net income grew to $20.6M in 2024 from $15.1M in 2023
• Strong loan growth with $72.2M in commercial and $23.3M in residential mortgage originations
• Net interest margin improved to 3.48% in Q4 2024
• Total assets increased by $67.2M year-over-year

Negative

• Retail certificates of deposit experienced runoff due to competitive pricing
• Operating expenses increased due to loan workout costs
• Data processing expenses increased due to higher core processing system costs

Insights

Financial Analyst

The Q4 2024 results demonstrate remarkable financial strength and operational execution. The 244% year-over-year increase in quarterly net income to $6.2 million reflects fundamental improvements rather than just one-time gains.

Key performance indicators reveal sustainable growth drivers:

• Net interest margin of 3.48% shows resilient pricing power despite intense competition
• Strong loan production with $72.2 million in commercial and $23.3 million in residential originations indicates robust market demand
• Wealth management's growing contribution highlights successful diversification of revenue streams
• Efficiency improvements through strategic branch consolidation and cost management

The balance sheet positioning is particularly noteworthy, with total assets reaching $2.0 billion. The $74.1 million increase in gross loans, funded partially by investment portfolio optimization, demonstrates effective capital allocation. The deposit base remains stable with a $23.9 million increase, despite intense competition.

Most importantly, asset quality remains strong with stable credit metrics, while the strategic use of FHLB advances at favorable rates shows prudent liability management. The dividend maintenance at $0.22 per share reflects management's confidence in sustained profitability.

OAKLAND, Md., Feb. 5, 2025 /PRNewswire/ -- First United Corporation (the "Corporation, "we", "us", and "our") (NASDAQ: FUNC), a bank holding company and the parent company of First United Bank & Trust (the "Bank"), today announced financial results for the three- and 12-month periods ended December 31, 2024.  Consolidated net income was $6.2 million for the fourth quarter of 2024, or $0.95 per diluted share, compared to $1.8 million, or $0.26 per diluted share, for the fourth quarter of 2023 and $5.8 million, or $0.89 per diluted share, for the third quarter of 2024. For the year ended December 31, 2024, net income was $20.6 million, or $3.15 per diluted share, compared to $15.1 million, or $2.25 per diluted share, for the year ended December 31, 2023.

According to Carissa Rodeheaver, Chairman, President and CEO, "We are proud to announce another strong quarter to conclude the 2024 year.  Loan growth was robust during the quarter as we were able to close a few loans that had been in the pipeline for several months.  Our wealth department was a large contributor to our success during the year as they continue to establish new and grow existing customer relationships.  Throughout 2024 we maintained our pricing and expense discipline ending the year with a strong margin, despite the intense competition in our markets, and a solid efficiency ratio.  Our teams collaborated and demonstrated the First United values as they worked to customize financial solutions for our customers and to support the communities that we serve.  We are excited to enter 2025 with a focus on investing additional resources to grow our loan and deposit market share and increase our wealth presence."   

Financial Highlights:

• Net interest margin, on a non-GAAP, fully tax equivalent ("FTE") basis, was 3.48% for the fourth quarter of 2024
• Loan production was strong, with $72.2 million in commercial loan originations and $23.3 million in residential mortgage originations in the fourth quarter
• Provision expense increased in the fourth quarter due to loan growth, partially offset by stable asset quality and qualitative factors
• Deposits increased by $34.4 million due to seasonal fluctuations in municipal deposit balances, partially offset by runoff of retail certificates of deposit due to competitive pricing
• Operating income, including net gains, was stable compared to the linked quarter
• Operating expenses decreased by $0.2 million when compared to the linked quarter
• A cash dividend of $0.22 per common share was declared in the fourth quarter

Income Statement Overview

On a GAAP basis, net income for the fourth quarter of 2024 was $6.2 million.  This compares to $5.8 million for the third quarter of 2024 and $1.8 million for the fourth quarter of 2023.

	Q4 2024	Q3 2024	Q4 2023
Net Income, non-GAAP (millions)	$ 6.2	$ 5.8	$ 5.5
Net Income, GAAP (millions)	$ 6.2	$ 5.8	$ 1.8
Diluted net income per share, non-GAAP	$0.95	$0.89	$0.82
Diluted net income per share, GAAP	$0.95	$0.89	$0.26

The $4.4 million increase in quarterly net income year over year was primarily driven by a restructuring of the investment portfolio leading to the recognition of a $3.3 million loss, net of tax, and $0.5 million, net of tax, in accelerated depreciation and lease termination expenses related to branch closures in the fourth quarter of 2023.   Net interest income increased by $1.5 million year-over-year driven by a $2.0 million increase in interest and fees on loans resulting from new loans booked at higher rates, the repricing of adjustable-rate loans, and growth in our loan portfolio during 2024.  Interest expense was stable when comparing year-over-year quarterly expense.  Comparing the fourth quarter of 2024 to the same period of 2023, other operating income was stable and other operating expenses decreased by $0.2 million as a result of a $1.0 million reduction in occupancy and equipment expense related to the accelerated depreciation and lease expenses for the branch closures in the fourth quarter of 2023 and decreased marketing and professional services expenses.  These decreases were partially offset by a $0.4 million increase in net other real estate owned ("OREO") expenses related to gains on sales recognized in 2023 and a $0.3 million increase in data processing expenses due to timing of invoices.

Compared to the linked quarter, net income increased by $0.4 million due primarily to a $0.5 million increase in net interest income driven by a $0.3 million increase in interest and fees on loans as interest expense remained stable.  Additionally, salaries and employee benefits decreased by $0.7 million due to reduced incentive pay and health insurance claims. Occupancy and equipment expenses decreased by $0.3 million.  These decreases were partially offset by a $0.3 million increase in provision for credit losses related primarily to growth in our loan portfolio, a $0.4 million increase in data processing expenses as a result of increased costs for the core processing system, and timing of invoices for software agreements.  We also experienced a $0.4 million increase in other expenses driven primarily by loan workout costs that we deemed to be uncollectible through collateral liquidation.

For the year ended December 31, 2024, net income increased by $5.5 million when compared to the year ended December 31, 2023.   Net interest income increased by $3.1 million driven by a $12.2 million increase in interest and fees on loans, partially offset by a $0.9 million decrease in interest income on investments and a $7.7 million increase in interest expense resulting from continued pricing pressure on deposits and our use of the Bank Term Funding Program ("BTFP").  Operating income, including net gains/(losses), increased by $5.4 million due primarily to the $4.2 million loss recognized in 2023 related to the investment portfolio restructuring mentioned above and a $1.1 million increase in wealth management income.   Operating expenses decreased by $0.6 million as occupancy and equipment expenses decreased by $1.0 million and other miscellaneous expenses decreased by $0.4 million due primarily to reduced check fraud expenses.  These decreases were partially offset by a $0.5 million increase in salaries and employee benefits, a $0.4 million increase in data processing expenses, and a $0.4 million increase in net OREO expenses due to gains on sales of OREO properties recognized in 2023.

Net Interest Income and Net Interest Margin

Net interest income, on a non-GAAP, FTE basis, increased by $1.5 million for the fourth quarter of 2024 when compared to the fourth quarter of 2023.  This increase was driven by a $1.5 million increase in interest income.   Interest income on loans increased by $2.0 million due to the increase in average balances of $53.9 million and a 36-basis point increase in the overall yield on the loan portfolio as new loans booked at higher rates as well as adjustable-rate loans repricing in correlation to the elevated rate environment.   Investment income decreased by $0.2 million due to a decrease of $58.1 million in average balances related to the balance sheet restructuring of our investment portfolio in the fourth quarter of 2023 and the maturity of $37.5 million in U.S. Treasury bonds in the first four months of 2024.  We also experienced principal paydowns and maturities in our municipal and mortgage-backed securities ("MBS") portfolios.  The overall yield on the investment portfolio increased by 23 basis points primarily driven by the increased rate on the trust preferred portfolio and the maturity and sale of lower rate investments.   Interest expense was stable year over year while increases in interest on demand deposits and money markets were offset by a decrease in interest on brokered certificates of deposit. The average deposit balances increased by $2.6 million when compared to the fourth quarter of 2023.  The average balance of interest-bearing demand deposits increased by $22.0 million and retail money market accounts increased by $80.8 million.  Average savings deposit balances decreased by $24.4 million and retail time deposits decreased by $19.8 million.   Average brokered time deposits decreased by $56.0 million compared to 2023 due to the maturity and repayment of brokered certificates of deposit during 2024.

Comparing the fourth quarter of 2024 to the third quarter of 2024, net interest income, on a non-GAAP, FTE basis, increased by $0.5 million.  Interest income increased by $0.5 million during the quarter, primarily due to a $0.3 million increase in interest and fees on loans related to an $18.8 million increase in average balances during the fourth quarter.  Interest income on cash balances increased by $0.2 million related to increased balances of $23.2 million, which was partially offset by a 96-basis point decrease in rate in conjunction with rate cuts made by the Federal Reserve to the overnight Federal Funds rate.  Interest expense remained stable when comparing the two quarters.  During the fourth quarter of 2024, average deposit balances increased by $31.3 million and the cost of deposits decreased by 6 basis points.

Comparing the year ended December 31, 2024 to the year ended December 31, 2023, net interest income, on a non-GAAP, FTE basis, increased by $2.7 million.  Interest income increased by $10.4 million.   Average loan balances increased by $87.2 million and the overall yield increased by 53 basis points in correlation with the elevated rate environment as new loans were booked at higher rates as well as the repricing of adjustable-rate loans.  Interest expense on deposits increased by $6.6 million while the average deposit balances increased by $19.4 million, driven by increases of $6.7 million in demand deposits and $80.1 million in money market balances, partially offset by decreases in savings balances of $39.1 million and brokered time deposits of $33.5 million.  Interest expense on short-term borrowings increased by $1.3 million due to the Bank's utilization of the BTFP program in 2024.  The increased interest expense resulted in an overall increase of 56 basis points on the cost of interest-bearing liabilities.  The net interest margin was 3.38% and 3.26% for the years ended December 31, 2024 and 2023, respectively.

Non-Interest Income

Other operating income, including net gains/(losses), for the fourth quarter of 2024 increased by $4.4 million when compared to the same period of 2023.   The Corporation recognized $4.2 million in losses related to the investment portfolio restructuring in the fourth quarter of 2023 to reinvest lower-yielding securities to fund higher-yielding loan production.   Gains on sales of residential mortgages increased by $0.1 million and wealth management increased by $0.2 million when compared to the same period in 2023.  

On a linked quarter basis, other operating income, including net gains, was stable.  Debit card income increased by $0.1 million due to an annual commission received in the fourth quarter.  Miscellaneous income decreased by $0.1 million due to a $0.1 million cash incentive received in the third quarter in connection with check fees.

For the year ended December 31, 2024, other operating income increased by $5.4 million when compared to the same period of 2023.   Net gains/(losses) increased by $4.3 million primarily due to the loss recognized in 2023 on the investment portfolio restructuring.  Wealth management income increased by $1.1 million due to improving market conditions, increased annuity sales and growth in new and existing customer relationships.  Service charge and debit card income was stable when comparing 2024 to 2023.

Non-Interest Expense

Operating expenses decreased by $0.2 million in the fourth quarter of 2024 when compared to the fourth quarter of 2023.  Occupancy and equipment expenses decreased by $1.0 million related to depreciation and lease termination expenses recognized in conjunction with announced branch closures in the final quarter of 2023.  Marketing and professional services decreased by $0.1 million.  These decreases were partially offset by a $0.3 million increase in data processing expenses related to new technology agreements, a $0.4 million increase in net OREO related expenses due to gains from sales of OREO recognized during 2023, and by a $0.1 million increase in salaries and benefits.

Operating expenses decreased by $0.2 million when compared to the linked quarter.  Salaries and employee benefits decreased by $0.7 million driven by decreases in incentive pay and life and health insurance expenses due to decreased claims.  Equipment and occupancy expenses decreased by $0.3 million when comparing the linked quarters.  These decreases were partially offset by a $0.4 million increase in data processing expenses related to increased costs for the core processing system and timing of invoices for software agreements. We also experienced a $0.4 million increase in other expenses driven primarily by loan workout costs that we deemed to be uncollectible through collateral liquidation.

For the year ended December 31, 2024, operating expenses decreased by $0.6 million when compared to the year ended December 31, 2023.  The decrease was primarily attributable to a $1.0 million decrease in occupancy and equipment expenses related primarily to the branch closures announced in 2023, a $0.2 million decrease in marketing, and a $0.2 million decrease in professional services expenses. Other miscellaneous expenses decreased by $0.4 million driven by a $0.5 million decrease in check fraud expenses.  These decreases were partially offset by $0.5 million in increased salaries and employee benefits related to increased incentives, 401(k) expenses, wellness expenses, and reduced offsets related to loan origination, which were partially offset by reductions in life and health insurance costs.  Net OREO costs increased $0.4 million due to gains on the sale of OREO recognized in 2023, and $0.4 million in increased data processing expenses.

The effective income tax rates as a percentage of income for the years ended December 31, 2024 and December 31, 2023 were 24.5% and 22.7%, respectively. 

Balance Sheet Overview

Total assets at December 31, 2024 were $2.0 billion, representing a $67.2 million increase since December 31, 2023.  During 2024, cash and interest-bearing deposits in other banks increased by $28.6 million.  The investment portfolio decreased by $41.5 million due to the maturities of $37.5 million of U.S. Treasury bonds during the year and normal principal amortization and maturities of our MBS and municipal portfolios.  Cash proceeds from investments were shifted to gross loans, which increased by $74.1 million. OREO decreased by $1.4 million due to sales of properties.  Pension assets increased by $6.6 million resulting from increased market values and deferred tax assets decreased by $2.0 million as we experienced increased fair market values on available for sale ("AFS") securities and pension assets when compared to December 31, 2023.

Total liabilities at December 31, 2024 were $1.8 billion, representing a $49.7 million increase since December 31, 2023.  Total deposits increased by $23.9 million when compared to December 31, 2023 related to increases in interest-bearing demand deposits of $35.9 million and money markets of $61.5 million, partially offset by the decrease of savings deposits by $20.3 million, retail time deposits of $22.4 million, and the repayment of $30.0 million in brokered certificates of deposits.  Short-term borrowings increased by $20.0 million since December 31, 2023, which were comprised of $50.0 million in overnight borrowings from the Federal Reserve offset by a shift of approximately $22.0 million from overnight investment sweep balances to FDIC insured accounts as a result of management's strategy to release pledging of investment securities for municipalities in order to allow those securities to be available for liquidity. The overnight borrowings were replaced with brokered certificates of deposit in January 2025.  Long-term borrowings increased by $10.0 million in 2024.  Maturities of Federal Home Loan Bank ("FHLB") advances of $40.0 million in March and $40.0 million in September were fully repaid.  During the third quarter and after the Federal Reserve's announcement that rates would be reduced by 50 basis points, management made the strategic decision to lock in borrowing costs by placing $90.0 million in FHLB advances with maturities of 12- and 18-months at a weighted average rate of 3.89%.  Of this amount, $41.1 million was utilized to prepay the principal and accrued interest of the BTFP borrowings at a rate of 4.87% that was scheduled to mature in January of 2025 and approximately $30.0 million was utilized to repay overnight borrowings related to the repayment of the $40.0 million FHLB advance that matured in September at a rate of 4.53%.  The remainder was used to fund loan growth in the fourth quarter of 2024.

Total AFS and held-to-maturity ("HTM") securities totaled $270.0 million at December 31, 2024, representing a $41.5 million decrease when compared to December 31, 2023.   In 2024, $37.5 million in U.S. Treasury bonds matured and the proceeds were used to repay the $40.0 million FHLB advance that matured in March.  Additionally, there were $4.0 million of maturities in our municipal portfolio and $11.0 million of other principal amortizations in our MBS portfolio.  $11.2 million of new investment purchases were made during 2024 to meet our community reinvestment act obligations and to add increased yield to the portfolio.  Management intends to hold the portfolio relatively stable in 2025 by reinvesting proceeds from amortization and maturities into new higher yielding securities.  The investment portfolio is primarily utilized for liquidity purposes, management of interest sensitivity and collateralization needs.

Outstanding loans of $1.5 billion at December 31, 2024 reflected growth of $32.9 million since September 30, 2024 and $74.1 million since December 31, 2023.

Loan Type (in millions)	Change since September 30, 2024	Change since December 31, 2023
Commercial	$35.5	$63.8
Residential Mortgages	($0.4)	$18.9
Consumer	($2.2)	($8.6)
Gross Loans	$32.9	$74.1

Since December 31, 2023, commercial real estate loans increased by $32.6 million, acquisition and development loans increased by $18.3 million, commercial and industrial loans increased by $12.9 million, residential mortgage loans increased $18.9 million, and consumer loans decreased by $8.6 million.

New commercial loan production for the three months ended December 31, 2024 was approximately $72.2 million.  The pipeline of commercial loans at December 31, 2024 was $11.5 million.  At December 31, 2024, unfunded, committed commercial construction loans totaled approximately $5.6 million.  Commercial amortization and payoffs were approximately $114.1 million through December 31, 2024, due primarily to pay-offs of short-term commercial loans as well as normal amortizations of the commercial loan portfolio.

New consumer mortgage loan production for the fourth quarter of 2024 was approximately $23.3 million, with most of this production comprised of mortgages to be held on balance sheet.  The pipeline of in-house, portfolio loans as of December 31, 2024 was $5.3 million.  The residential mortgage production level decreased in the fourth quarter of 2024 due to the seasonality of this line of business, particularly construction lending.  Unfunded commitments related to residential construction loans totaled $13.1 million at December 31, 2024.  

Total deposits at December 31, 2024 increased by $23.9 million when compared to December 31, 2023. 

Deposit Type (in millions)	Change since September 30, 2024	Change since December 31, 2023
Non-Interest-Bearing	$7.3	($0.9)
Interest-Bearing Demand	$4.4	$35.9
Savings and Money Market	$21.4	$41.2
Time Deposits	$1.3	($52.3)
Total Deposits	$34.4	$23.9

Interest-bearing demand deposits increased by $35.9 million in 2024, which included the shift of approximately $22.0 million from overnight investment sweep balances to FDIC insured accounts due to management's strategy to release pledging of investment securities for municipalities to provide additional liquidity.  Money market accounts increased by $61.5 million due primarily to the expansion of current and new relationships throughout the year and a shift from certificates of deposit.  Traditional savings accounts decreased by $20.3 million and time deposits decreased by $52.3 million.  The decrease in time deposits was due to a decrease of $22.4 million in retail CDs related to maturities of a nine-month special CD promotion in 2023 and the maturity and repayment of $30.0 million in brokered CDs during the year.  The Bank has worked closely with customers as these retail CDs mature to transition them to other deposit and wealth management products offered by the Bank.

Short-term borrowings increased by $20.0 million when compared to December 31, 2023 due to an increase of $50.0 million in overnight borrowings from the Federal Reserve offset by a shift of approximately $22.0 million in overnight investment sweep balances into FDIC insured accounts due to management's strategy to release pledging of investment securities for municipalities to provide additional liquidity.  The overnight borrowings were replaced with brokered certificates of deposit in January 2025.  Long-term borrowings increased by $10.0 million when compared to December 31, 2023.  Maturities of FHLB advances of $40.0 million in March and $40.0 million in September were fully repaid.  During the third quarter and after the Federal Reserve's announcement that rates would be reduced by 50 basis points, management made the strategic decision to lock in borrowing costs by placing $90.0 million in FHLB advances with maturities of 12- and 18-months and a weighted average rate of 3.89%.  Of this amount, $41.1 million was utilized to prepay the principal and accrued interest of the BTFP borrowing at a rate of 4.87% that was scheduled to mature in January of 2025 and approximately $30.0 million was utilized to repay overnight borrowings related to the repayment of the September $40.0 million maturity at a rate of 4.53%.   The remainder was used to fund loan growth in the fourth quarter of 2024.

The book value of the Corporation's common stock was $27.71 per basic share at December 31, 2024 compared to $24.38 per share at December 31, 2023.  At December 31, 2024, there were 6,471,096 of basic outstanding shares and 6,485,119 of diluted outstanding shares of common stock.  In 2024, the Company purchased and retired 201,800 shares of First United Corporation common stock as part of its previously announced stock repurchase plan at an average price of $19.99 per share.  The increase in the book value at December 31, 2024 was due to the undistributed net income of $15.1 million and a $5.6 million decrease in accumulated other comprehensive loss in 2024.

Asset Quality

The allowance for credit losses ("ACL") was $18.2 million at December 31, 2024 compared to $17.5 million at December 31, 2023.  The provision for credit losses was $0.5 million for the quarter ended December 31, 2024 compared to $0.4 million for the quarter ended December 31, 2023 and $0.3 million for the third quarter of 2024.  The increased provision expense recorded year to date in 2024 was primarily related to $1.3 million in net charge-offs related to one non-accrual commercial loan relationship and growth in our loan portfolio, partially offset by improving qualitative risk factors.  Net charge-offs of $0.4 million and $0.2 million were recorded for the quarter ended December 31, 2024 and December 31, 2023, respectively. The ratio of the ACL to loans outstanding was 1.23% at December 31, 2024, which compares to 1.24% at both September 30, 2024 and December 31, 2023.

The ratio of year-to-date net charge offs to average loans was 0.16% for year ended December 31, 2024, and 0.07% for the year ended December 31, 2023.  The commercial and industrial portfolio had net charge offs of 0.50% for the year ended December 31, 2024 compared to net charge offs of 0.09% for the year ended December 31, 2023.  This increase was due primarily to charge offs of equipment loan balances on one non-accrual commercial relationship during 2024.  The consumer portfolio had net charge offs of 1.76% for the year ended December 31, 2024 compared to net charge offs of 1.04% for the year ended December 31, 2023.  The increase in net charge offs in consumer loans in 2024 was primarily driven by approximately $0.4 million in charge offs of overdrawn demand deposit balances during the first quarter of 2024 and $0.1 million in charge offs of student loan accounts in the second quarter.  Details of the ratios, by loan type, are shown below.  Our special assets team continues to actively collect on charged-off loans, resulting in overall low net charge-off ratios.

Ratio of Net (Charge Offs)/Recoveries to Average Loans
Loan Type	12/31/2024 (Charge Off) / Recovery	12/31/2023 (Charge Off) / Recovery
Commercial Real Estate	0.02 %	(0.02 %)
Acquisition & Development	0.06 %	0.01 %
Commercial & Industrial	(0.50 %)	(0.09 %)
Residential Mortgage	0.01 %	0.00 %
Consumer	(1.76 %)	(1.04 %)
Total Net (Charge Offs)/Recoveries	(0.16 %)	(0.07 %)

Non-accrual loans totaled $4.9 million at December 31, 2024 compared to $4.0 million at December 31, 2023.  The increase in non-accrual balances at December 31, 2024 was related to two commercial and industrial loan relationships totaling $12.1 million that were moved to non-accrual during the first quarter of 2024.  Subsequent to being moved to non-accrual, one of the borrowers liquidated collateral and reduced the balances by $5.5 million.  Additionally, a total of $2.8 million in collateral was moved to repossessed assets in the fourth quarter of 2024. $1.3 million in net charge-offs and $3.0 million in principal reduction related to the liquidation of collateral at depressed prices were recognized on the other commercial credit during 2024.  The Bank continues to liquidate collateral on both loan relationships.

Non-accrual loans that have been subject to partial charge-offs totaled $0.7 million at December 31, 2024 and $0.1 million at December 31, 2023.  Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $1.6 million at December 31, 2024 and $1.8 million at December 31, 2023.  As a percentage of the loan portfolio, accruing loans past due 30 days or more was 0.32% at December 31, 2024 compared to 0.24% at December 31, 2023. 

ABOUT FIRST UNITED CORPORATION

First United Corporation is a Maryland corporation chartered in 1985 and a financial holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended, that elected financial holding company status in 2021.  The Corporation's primary business is serving as the parent company of the Bank, First United Statutory Trust I ("Trust I") and First United Statutory Trust II (together with Trust I, "the Trusts"), both Connecticut statutory business trusts.  The Trusts were formed for the purpose of selling trust preferred securities that qualified as Tier 1 capital.  The Bank has two consumer finance company subsidiaries- Oak First Loan Center, Inc., a West Virginia corporation, and OakFirst Loan Center, LLC, a Maryland limited liability company – and two subsidiaries that it uses to hold real estate acquired through foreclosure or by deed in lieu of foreclosure – First OREO Trust, a Maryland statutory trust, and FUBT OREO I, LLC, a Maryland limited liability company.  In addition, the Bank owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland, and a 99.9% non-voting membership interest in MCC FUBT Fund, LLC, an Ohio limited liability company formed for the purpose of acquiring, developing and operating low-income housing units in Allegany County, Maryland.   The Corporation's website is www.mybank.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.  Forward-looking statements do not represent historical facts, but are statements about management's beliefs, plans and objectives about the future, as well as its assumptions and judgments concerning such beliefs, plans and objectives.  These statements are evidenced by terms such as "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions.  Although these statements reflect management's good faith beliefs and projections, they are not guarantees of future performance and they may not prove true.  The beliefs, plans and objectives on which forward-looking statements are based involve risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements.  For a discussion of these risks and uncertainties, see the section of the periodic reports that First United Corporation files with the Securities and Exchange Commission entitled "Risk Factors". In addition, investors should understand that the Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the consolidated financial statements included in its Annual  Report on Form 10-K for the year ended December 31, 2024 and the impact that any such events have on our critical accounting assumptions and estimates made as of December 31, 2024, which could require us to make adjustments to the amounts reflected in this press release.

FIRST UNITED CORPORATION
Oakland, MD
Stock Symbol :  FUNC
Financial Highlights - Unaudited
(Dollars in thousands, except per share data)
				Three Months Ended				Twelve Months Ended
				December 31,		December 31,		December 31,		December 31,
				2024		2023		2024		2023
Results of Operations:
	Interest income			$                 23,725		$                 22,191		$                 91,993		$                 81,156
	Interest expense			8,025		7,997		32,015		24,286
	Net interest income			15,700		14,194		59,978		56,870
	Provision for credit losses			529		419		2,933		1,620
	Other operating income			4,924		4,793		19,411		18,331
	Net gains/(losses)			132		(4,184)		414		(3,862)
	Other operating expense			12,081		12,309		49,640		50,243
	Income before taxes			$                   8,146		$                   2,075		$                 27,230		$                 19,476
	Income tax expense			1,960		317		6,661		4,416
	Net income			$                   6,186		$                   1,758		$                 20,569		$                 15,060
Per share data:
	Basic net income per share			$                     0.95		$                     0.26		$                     3.15		$                     2.25
	Diluted net income per share			$                     0.95		$                     0.26		$                     3.15		$                     2.24
	Adjusted Basic net income (1)			$                     0.95		$                     0.82		$                     3.21		$                     2.81
	Adjusted Diluted net income (1)			$                     0.95		$                     0.82		$                     3.21		$                     2.80
	Dividends declared per share			$                     0.22		$                     0.20		$                     0.84		$                     0.80
	Book value			$                   27.71		$                   24.38
	Diluted book value			$                   27.65		$                   24.33
	Tangible book value per share			$                   25.89		$                   22.56
	Diluted Tangible book value per share			$                   25.83		$                   22.51
	Closing market value			$                   33.71		$                   23.51
	Market Range:
	High			$                   36.17		$                   23.51
	Low			$                   29.63		$                   16.12
Shares outstanding at period end: Basic				6,471,096		6,639,888
Shares outstanding at period end: Diluted				6,485,119		6,653,200
Performance ratios: (Year to Date Period End, annualized)
Return on average assets				1.06 %		0.78 %
Adjusted return on average assets (1)				1.08 %		0.97 %
Return on average shareholders' equity				12.16 %		9.68 %
Adjusted return on average shareholders' equity (1)				12.42 %		12.08 %
Net interest margin (Non-GAAP), includes tax exempt income of $229 and $626				3.38 %		3.26 %
Net interest margin GAAP				3.36 %		3.22 %
Efficiency ratio - non-GAAP (2)				61.31 %		65.12 %
(1) See reconciliation of this non-GAAP financial measure provided elsewhere herein.
(2) Efficiency ratio is a non-GAAP measure calculated by dividing total operating expenses by the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities and/or fixed assets.				December 31,		December 31,
				2024		2023
Financial Condition at period end:
Assets				$            1,973,022		$            1,905,860
Earning assets				$            1,758,665		$            1,725,236
Gross loans				$            1,480,793		$            1,406,667
	Commercial Real Estate			$               526,364		$               493,703
	Acquisition and Development			$                 95,314		$                 77,060
	Commercial and Industrial			$               287,534		$               274,604
	Residential Mortgage			$               518,815		$               499,871
	Consumer			$                 52,766		$                 61,429
Investment securities				$               269,991		$               311,466
Total deposits				$            1,574,829		$            1,550,977
	Noninterest bearing			$               426,737		$               427,670
	Interest bearing			$            1,148,092		$            1,123,307
Shareholders' equity				$               179,295		$               161,873
						.
Capital ratios:
	Tier 1 to risk weighted assets			14.70 %		14.42 %
	Common Equity Tier 1 to risk weighted assets			12.79 %		12.44 %
	Tier 1 Leverage			11.88 %		11.30 %
	Total risk based capital			15.92 %		15.64 %
Asset quality:
Net charge-offs for the quarter				$                    (362)		$                    (195)
Nonperforming assets: (Period End)
	Nonaccrual loans			$                   4,931		$                   3,956
	Loans 90 days past due and accruing			918		543
	Total nonperforming loans and 90 day past due			$                   5,849		$                   4,499
	Other real estate owned			$                   3,062		$                   4,493
	Other repossessed assets			$                   2,802		$                        55
	Modified loans			$                   1,006		$                          -
Allowance for credit losses to gross loans				1.23 %		1.24 %
Allowance for credit losses to non-accrual loans				368.49 %		441.86 %
Allowance for credit losses to non-performing assets				155.13 %		193.21 %
Non-performing and 90 day past due loans to total loans				0.39 %		0.32 %
Non-performing loans and 90 day past due loans to total assets				0.30 %		0.24 %
Non-accrual loans to total loans				0.33 %		0.28 %
Non-performing assets to total assets				0.59 %		0.47 %

 

FIRST UNITED CORPORATION
Oakland, MD
Stock Symbol :  FUNC
Financial Highlights - Unaudited
				December 31,	September 30,	June 30,	March 31,	December 31,	September 30,	June 30,	March 31,
(Dollars in thousands, except per share data)				2024	2024	2024	2024	2023	2023	2023	2023
Results of Operations:
	Interest income			$                  23,725	$                  23,257	$             23,113	$             21,898	$             22,191	$                21,164	$          19,972	$        17,829
	Interest expense			8,025	8,029	7,875	8,086	7,997	7,180	5,798	3,311
	Net interest income			15,700	15,228	15,238	13,812	14,194	13,984	14,174	14,518
	Provision for credit losses			529	264	1,194	946	419	263	395	543
	Other operating income			4,924	4,912	4,782	4,793	4,793	4,716	4,483	4,339
	Net gains/(losses)			132	141	59	82	(4,184)	182	86	54
	Other operating expense			12,081	12,314	12,364	12,881	12,309	12,785	12,511	12,638
	Income before taxes			$                    8,146	$                    7,703	$               6,521	$               4,860	$               2,075	$                  5,834	$            5,837	$          5,730
	Income tax expense			1,960	1,932	1,607	1,162	317	1,321	1,423	1,355
	Net income			$                    6,186	$                    5,771	$               4,914	$               3,698	$               1,758	$                  4,513	$            4,414	$          4,375
Per share data:
	Basic net income per share			$                              0.95	$                              0.89	$                        0.75	$                        0.56	$                        0.26	$                           0.67	$                   0.66	$                 0.66
	Diluted net income per share			$                              0.95	$                              0.89	$                        0.75	$                        0.56	$                        0.26	$                           0.67	$                   0.66	$                 0.65
	Adjusted basic net income (1)			$                              0.95	$                              0.89	$                        0.75	$                        0.62	$                        0.82	$                           0.67	$                   0.66	$                 0.66
	Adjusted diluted net income (1)			$                              0.95	$                              0.89	$                        0.75	$                        0.62	$                        0.82	$                           0.67	$                   0.66	$                 0.65
	Dividends declared per share			$                              0.22	$                              0.22	$                 0.22	$                        0.20	$                        0.20	$                           0.20	$              0.62	$                 0.20
	Book value			$                            27.71	$                            26.90	$                     25.39	$                     24.89	$                     24.38	$                         23.08	$                 23.12	$               22.85
	Diluted book value			$                            27.65	$                            26.84	$                     25.34	$                     24.86	$                     24.33	$                         23.03	$                 23.07	$               22.81
	Tangible book value per share			$                            25.89	$                            25.06	$                     23.55	$                     23.08	$                     22.56	$                         21.27	$                 21.29	$               21.01
	Diluted Tangible book value per share			$                            25.83	$                            25.01	$                     23.49	$                     23.05	$                     22.51	$                         21.22	$                 21.25	$               20.96
	Closing market value			$                            33.71	$                            29.84	$                     20.42	$                     22.91	$                     23.51	$                         16.23	$                 14.26	$               16.89
	Market Range:
	High			$                            36.17	$                            30.77	$                     22.88	$                     23.85	$                     23.51	$                         17.34	$                 17.01	$               20.41
	Low			$                            29.63	$                            20.40	$                     19.40	$                     21.21	$                     16.12	$                         13.70	$                 12.56	$               16.75
Shares outstanding at period end: Basic				6,471,096	6,468,625	6,465,601	6,648,645	6,639,888	6,715,170	6,711,422	6,688,710
Shares outstanding at period end: Diluted				6,485,119	6,482,648	6,479,624	6,657,239	6,653,200	6,728,482	6,724,734	6,703,252
Performance ratios: (Year to Date Period End, annualized)
Return on average assets				1.06 %	0.99 %	0.89 %	0.76 %	0.78 %	0.93 %	0.95 %	0.94 %
Adjusted return on average assets (1)				1.08 %	1.01 %	0.98 %	0.85 %	0.94 %	0.93 %	0.95 %	0.94 %
Return on average shareholders' equity				12.16 %	11.52 %	10.48 %	9.07 %	9.68 %	11.44 %	11.43 %	11.87 %
Adjusted return on average shareholders' equity (1)				12.42 %	11.78 %	11.52 %	10.11 %	11.87 %	11.44 %	11.43 %	11.87 %
Net interest margin (Non-GAAP), includes tax exempt income of $53 and $76				3.38 %	3.34 %	3.31 %	3.12 %	3.26 %	3.30 %	3.39 %	3.53 %
Net interest margin GAAP				3.36 %	3.32 %	3.29 %	3.10 %	3.22 %	3.25 %	3.34 %	3.48 %
Efficiency ratio - non-GAAP (1)				61.31 %	62.46 %	63.48 %	65.71 %	65.12 %	66.41 %	66.00 %	67.02 %
(1) Efficiency ratio is a non-GAAP measure calculated by dividing total operating expenses by the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities and/or fixed assets.				December 31,	September 30,	June 30,	March 31,	December 31,	September 30,	June 30,	March 31,
				2024	2024	2024	2024	2023	2023	2023	2023
Financial Condition at period end:
Assets				$                    1,973,022	$                    1,916,126	$              1,868,599	$              1,912,953	$              1,905,860	$                 1,928,201	$         1,928,393	$       1,937,442
Earning assets				$                    1,758,665	$                    1,722,346	$              1,695,425	$              1,695,962	$              1,725,236	$                 1,717,244	$         1,707,522	$       1,652,688
Gross loans				$                    1,480,793	$                    1,447,883	$              1,422,975	$              1,412,327	$              1,406,667	$                 1,380,019	$         1,350,038	$       1,289,080
	Commercial Real Estate			$                       526,364	$                       502,828	$                 506,273	$                 492,819	$                 493,703	$                    491,284	$            483,485	$           453,356
	Acquisition and Development			$                         95,314	$                         92,909	$                   88,215	$                   83,424	$                   77,060	$                       79,796	$              79,003	$             76,980
	Commercial and Industrial			$                       287,534	$                       277,994	$                 260,168	$                 274,722	$                 274,604	$                    254,650	$            249,683	$           241,959
	Residential Mortgage			$                       518,815	$                       519,168	$                 511,354	$                 501,990	$                 499,871	$                    491,686	$            475,540	$           456,198
	Consumer			$                         52,766	$                         54,984	$                   56,965	$                   59,372	$                   61,429	$                       62,603	$              62,327	$             60,587
Investment securities				$                       269,991	$                       267,214	$                 267,151	$                 278,716	$                 311,466	$                    330,053	$            350,844	$           357,061
Total deposits				$                    1,574,829	$                    1,540,395	$              1,537,071	$              1,563,453	$              1,550,977	$                 1,575,069	$         1,579,959	$       1,591,285
	Noninterest bearing			$                       426,737	$                       419,437	$                 423,970	$                 422,759	$                 427,670	$                    429,691	$            466,628	$           468,554
	Interest bearing			$                    1,148,092	$                    1,120,958	$              1,113,101	$              1,140,694	$              1,123,307	$                 1,145,378	$         1,113,331	$       1,122,731
Shareholders' equity				$                       179,295	$                       173,979	$                 164,177	$                 165,481	$                 161,873	$                    154,990	$            155,156	$           152,868
Capital ratios:
	Tier 1 to risk weighted assets			14.70 %	14.61 %	14.51 %	14.58 %	14.42 %	14.60 %	14.40 %	14.90 %
	Common Equity Tier 1 to risk weighted assets			12.79 %	12.66 %	12.54 %	12.60 %	12.44 %	12.60 %	12.40 %	12.82 %
	Tier 1 Leverage			11.88 %	11.88 %	11.69 %	11.48 %	11.30 %	11.25 %	11.25 %	11.47 %
	Total risk based capital			15.92 %	15.83 %	15.75 %	15.83 %	15.64 %	15.81 %	15.60 %	16.15 %
Asset quality:
Net (charge-offs)/recoveries for the quarter				$                             (362)	$                             (109)	$                    (1,309)	$                       (459)	$                       (195)	$                             (83)	$                  (398)	$                 (245)
Nonperforming assets: (Period End)
	Nonaccrual loans			$                            4,931	$                            8,073	$                     9,438	$                   16,007	$                     3,956	$                         3,479	$                 2,972	$               3,258
	Loans 90 days past due and accruing			918	538	526	120	543	145	160	87
	Total nonperforming loans and 90 day past due			$                            5,849	$                            8,611	$                     9,964	$                   16,127	$                     4,499	$                         3,624	$                 3,132	$               3,345
	Other real estate owned			$                            3,062	$                            2,860	$                      2,978	$                      4,402	$                      4,493	$                         4,878	$                 4,482	$               4,598
	Other repossessed assets			$                            2,802	$                                 42	$                           32	$                           68	$                           55	$                              41	$                         -	$                       8
	Modified loans			$                            1,006	$                            1,016	$                         893	$                              -	$                              -	$                                  -	$                         -	$                        -
Allowance for credit losses to gross loans				1.23 %	1.24 %	1.26 %	1.27 %	1.24 %	1.24 %	1.25 %	1.31 %
Allowance for credit losses to non-accrual loans				368.49 %	223.09 %	189.90 %	112.34 %	441.86 %	492.84 %	568.81 %	517.83 %
Allowance for credit losses to non-performing assets				155.13 %	157.00 %	138.49 %	87.59 %	193.21 %	473.12 %	539.79 %	212.40 %
Non-performing and 90 day past due loans to total loans				0.39 %	0.59 %	0.70 %	1.14 %	0.32 %	0.26 %	0.23 %	0.26 %
Non-performing loans and 90 day past due loans to total assets				0.30 %	0.45 %	0.53 %	0.84 %	0.24 %	0.19 %	0.16 %	0.17 %
Non-accrual loans to total loans				0.33 %	0.56 %	0.66 %	1.13 %	0.28 %	0.25 %	0.22 %	0.25 %
Non-performing assets to total assets				0.59 %	0.60 %	0.69 %	1.07 %	0.47 %	0.44 %	0.39 %	0.41 %

 

Consolidated Statement of Condition
(Dollars in thousands - Unaudited)		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Assets
Cash and due from banks	$	77,020	$	61,140	$	43,635	$	85,578	$	48,343
Interest bearing deposits in banks		1,307		1,252		1,457		1,354		1,410
Cash and cash equivalents		78,327		62,392		45,092		86,932		49,753
Investment securities – available for sale (at fair value)		94,494		93,160		92,954		95,580		97,169
Investment securities – held to maturity (at cost)		175,497		174,054		174,197		183,136		214,297
Restricted investment in bank stock, at cost		5,768		5,765		3,395		3,390		5,250
Loans held for sale		806		232		447		175		443
Loans		1,480,793		1,447,883		1,422,975		1,412,327		1,406,667
Unearned fees		(442)		(333)		(306)		(314)		(340)
Allowance for credit losses		(18,170)		(18,010)		(17,923)		(17,982)		(17,480)
Net loans		1,462,181		1,429,540		1,404,746		1,394,031		1,388,847
Premises and equipment, net		30,081		30,704		29,688		30,268		31,459
Goodwill and other intangible assets		11,773		11,856		11,938		12,021		12,103
Bank owned life insurance		48,952		48,608		48,267		47,933		47,607
Deferred tax assets		9,989		9,357		11,214		10,736		11,948
Other real estate owned, net		3,062		2,860		2,978		4,402		4,493
Operating lease asset		1,204		1,163		1,230		1,299		1,367
Pension asset		17,824		16,268		12,850		13,022		11,208
Accrued interest receivable and other assets		33,064		30,167		29,603		30,028		29,916
Total Assets	$	1,973,022	$	1,916,126	$	1,868,599	$	1,912,953	$	1,905,860
Liabilities and Shareholders' Equity
Liabilities:
Non-interest bearing deposits	$	426,737	$	419,437	$	423,970	$	422,759	$	427,670
Interest bearing deposits		1,148,092		1,120,958		1,113,101		1,140,694		1,123,307
Total deposits		1,574,829		1,540,395		1,537,071		1,563,453		1,550,977
Short-term borrowings		65,409		50,206		62,564		79,494		45,418
Long-term borrowings		120,929		120,929		70,929		70,929		110,929
Operating lease liability		1,384		1,343		1,412		1,484		1,556
Allowance for credit loss on off balance sheet exposures		863		856		801		858		873
Accrued interest payable and other liabilities		28,889		26,994		30,352		29,925		32,904
Dividends payable		1,424		1,424		1,293		1,329		1,330
Total Liabilities		1,793,727		1,742,147		1,704,422	$	1,747,472		1,743,987
Shareholders' Equity:
Common Stock – par value $0.01 per share; Authorized 25,000,000 shares; issued and outstanding 6,471,096 shares at December 31, 2024 and 6,639,888 at December 31, 2023		65		65		65		66		66
Surplus		20,476		20,288		20,280		23,865		23,734
Retained earnings		189,002		184,239		179,892		176,272		173,900
Accumulated other comprehensive loss		(30,248)		(30,613)		(36,060)		(34,722)		(35,827)
Total Shareholders' Equity		179,295		173,979		164,177		165,481		161,873
Total Liabilities and Shareholders' Equity	$	1,973,022	$	1,916,126	$	1,868,599	$	1,912,953	$	1,905,860

 

Historical Income Statement
				2024										2023
	Year to Date			Q4		Q3		Q2		Q1	Year to Date			Q4		Q3	Q2		Q1
In thousands	(Unaudited)
Interest income
Interest and fees on loans	$	81,756	$	21,299	$	21,018	$	20,221	$	19,218	$	69,569	$	19,290	$	18,055	$	16,780	$	15,444
Interest on investment securities												—
Taxable		6,760		1,672		1,647		1,697		1,744		7,173		1,834		1,792		1,779		1,768
Exempt from federal income tax		209		47		56		53		53		714		53		123		268		270
Total investment income		6,969		1,719		1,703		1,750		1,797		7,887		1,887		1,915		2,047		2,038
Other		3,268		707		536		1,142		883		3,700		1,014		1,194		1,145		347
Total interest income		91,993		23,725		23,257		23,113		21,898		81,156		22,191		21,164		19,972		17,829
Interest expense
Interest on deposits		25,828		6,585		6,579		6,398		6,266		19,198		6,498		5,672		4,350		2,678
Interest on short-term borrowings		1,477		40		467		509		461		147		54		33		29		31
Interest on long-term borrowings		4,710		1,400		983		968		1,359		4,941		1,445		1,475		1,419		602
Total interest expense		32,015		8,025		8,029		7,875		8,086		24,286		7,997		7,180		5,798		3,311
Net interest income		59,978		15,700		15,228		15,238		13,812		56,870		14,194		13,984		14,174		14,518
Credit loss expense/(credit)
Loans		2,929		522		195		1,251		961		1,700		530		322		434		414
Debt securities held to maturity		14		—		14		—		—		45		—		45		—		—
Off balance sheet credit exposures		(10)		7		55		(57)		(15)		(125)		(111)		(104)		(39)		129
Provision for credit losses		2,933		529		264		1,194		946		1,620		419		263		395		543
Net interest income after provision for credit losses		57,045		15,171		14,964		14,044		12,866		55,250		13,775		13,721		13,779		13,975
Other operating income
Net losses on investments, available for sale		—		—		—		—		—		(4,214)		(4,214)		—		—		—
Gains on sale of residential mortgage loans		414		132		141		59		82		381		59		182		86		54
Losses on disposal of fixed assets		—		—		—		—		—		(29)		(29)		—		—		—
Net gains/(losses)		414		132		141		59		82		(3,862)		(4,184)		182		86		54
Other Income
Service charges on deposit accounts		2,220		553		555		556		556		2,198		567		569		546		516
Other service charges		887		211		236		225		215		929		223		230		244		232
Trust department		9,094		2,323		2,328		2,255		2,188		8,282		2,148		2,139		2,025		1,970
Debit card income		4,065		1,134		1,000		999		932		4,101		1,120		995		1,031		955
Bank owned life insurance		1,345		345		340		334		326		1,261		325		320		311		305
Brokerage commissions		1,449		295		297		362		495		1,160		360		245		258		297
Other		351		63		156		51		81		400		50		218		68		64
Total other income		19,411		4,924		4,912		4,782		4,793		18,331		4,793		4,716		4,483		4,339
Total other operating income		19,825		5,056		5,053		4,841		4,875		14,469		609		4,898		4,569		4,393
Other operating expenses
Salaries and employee benefits		28,029		6,456		7,160		7,256		7,157		27,520		6,390		6,964		6,870		7,296
FDIC premiums		1,070		260		256		285		269		992		268		254		277		193
Equipment		2,675		490		627		635		923		3,157		912		718		747		780
Occupancy		2,878		563		709		652		954		3,441		1,169		745		742		785
Data processing		5,761		1,688		1,333		1,422		1,318		5,384		1,384		1,388		1,306		1,306
Marketing		674		205		151		184		134		833		311		242		160		120
Professional services		1,948		536		477		449		486		2,133		631		488		520		494
Contract labor		597		181		149		84		183		616		170		155		157		134
Telephone		408		99		97		103		109		466		125		115		116		110
Other real estate owned		271		47		124		14		86		(89)		(370)		139		18		124
Investor relations		293		65		84		91		53		345		65		74		123		83
Contributions		234		53		65		66		50		229		12		74		79		64
Other		4,802		1,438		1,082		1,123		1,159		5,216		1,242		1,429		1,396		1,149
Total other operating expenses		49,640		12,081		12,314		12,364		12,881		50,243		12,309		12,785		12,511		12,638
Income before income tax expense		27,230		8,146		7,703		6,521		4,860		19,476		2,075		5,834		5,837		5,730
Provision for income tax expense		6,661		1,960		1,932		1,607		1,162		4,416		317		1,321		1,423		1,355
Net Income	$	20,569	$	6,186	$	5,771	$	4,914	$	3,698	$	15,060	$	1,758	$	4,513	$	4,414	$	4,375
Basic net income per common share	$	3.15	$	0.95	$	0.89	$	0.75	$	0.56	$	2.25	$	0.26	$	0.67	$	0.66	$	0.66
Diluted net income per common share	$	3.15	$	0.95	$	0.89	$	0.75	$	0.56	$	2.24	$	0.26	$	0.67	$	0.66	$	0.65
Weighted average number of basic shares outstanding		6,527		6,470		6,468		6,527		6,642		6,649		6,649		6,714		6,704		6,675
Weighted average number of diluted shares outstanding		6,540		6,484		6,482		6,537		6,655		6,663		6,663		6,728		6,718		6,697
Dividends declared per common share	$	0.84	$	0.22	$	0.22	$	0.20	$	0.20	$	0.80	$	0.20	$	0.20	$	0.20	$	0.20

 

Non-GAAP Financial Measures (unaudited)
Reconciliation of as reported (GAAP) and non-GAAP financial measures
The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company's management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company's operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company's performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.
The following non-GAAP financial measures exclude losses on the sale of Available for Sale Securities and accelerated depreciation expenses related to the branch closures.
		Three months ended December 31,						Twelve months ended December 31,
		2024			2023			2024			2023
(in thousands, except for per share amount)
Net income - as reported		$	6,186		$	1,758		$	20,569		$	15,060
Adjustments:
			-			4,214			-			4,214
Accelerated depreciation expenses			—			623			562			623
Income tax effect of adjustments			—			(1,097)			(137)			(1,097)
Adjusted net income (non-GAAP)		$	6,186		$	5,498		$	20,994		$	18,800
Diluted earnings per share - as reported		$	0.95		$	0.26		$	3.15		$	2.24
Adjustments:
Loss on sale of securities			—			0.63			—			0.63
Accelerated depreciation expenses			—			0.09			0.08			0.09
Income tax effect of adjustments			—			(0.16)			(0.02)			(0.16)
Adjusted diluted earnings per share (non-GAAP)		$	0.95		$	0.82		$	3.21		$	2.80
		As of or for the three months ended							As of or for the twelve months ended
		December 31,							December 31,
(in thousands, except per share data)		2024			2023				2024			2023
Per Share Data
Basic net income per share (1) - as reported		$	0.95		$	0.26		$	3.15		$	2.25
Basic net income per share (1) - non-GAAP			0.95			0.82			3.21			2.81
Diluted net income per share (1) - as reported		$	0.95		$	0.26		$	3.15		$	2.24
Diluted net income per share (1) - non-GAAP			0.95			0.82			3.21			2.80
Basic book value per share		$	27.71		$	24.38
Diluted book value per share		$	27.65		$	24.33
Significant Ratios:			As of or for the twelve months ended
			December 31,
Return on Average Assets (1) - as reported			1.06	%		0.78	%
Loss on sale of securities			-	%		0.22	%
Accelerated depreciation expenses			0.03	%		0.03	%
Income tax effect of adjustments			(0.01)	%		(0.06)	%
Adjusted Return on Average Assets (1) (non-GAAP)			1.08	%		0.97	%
Return on Average Equity (1) - as reported			12.16	%		9.68	%
Loss on sale of securities			-	%		2.71	%
Accelerated depreciation expenses			0.34	%		0.40	%
Income tax effect of adjustments			(0.08)	%		(0.71)	%
Adjusted Return on Average Equity (1) (non-GAAP)			12.42	%		12.08	%
(1) See reconcilation of this non-GAAP financial measure provided elsewhere herein.

 

			Three Months Ended
			December 31
			2024								2023
	(dollars in thousands)		Average Balance			Interest			Average Yield/Rate		Average Balance			Interest			Average Yield/Rate
	Assets
	Loans		$	1,452,332		$	21,313		5.84	%	$	1,398,393		$	19,308		5.48	%
	Investment Securities:
	Taxable			275,785			1,672		2.41	%		332,545			1,834		2.19	%
	Non taxable			6,758			86		5.06	%		8,107			96		4.70	%
	Total			282,543			1,758		2.48	%		340,652			1,930		2.25	%
	Federal funds sold			56,552			628		4.42	%		60,400			907		5.96	%
	Interest-bearing deposits with other banks			3,138			16		2.03	%		1,867			22		4.68	%
	Other interest earning assets			5,767			63		4.35	%		5,251			85		6.42	%
	Total earning assets			1,800,332			23,778		5.25	%		1,806,563			22,252		4.89	%
	Allowance for credit losses			(18,199)								(17,304)
	Non-earning assets			162,438								194,309
	Total Assets		$	1,944,571							$	1,983,568
	Liabilities and Shareholders' Equity
	Interest-bearing demand deposits		$	388,451		$	1,747		1.79	%	$	366,450		$	1,440		1.56	%
	Interest-bearing money markets - retail			446,230			3,721		3.32	%		365,439			3,135		3.40	%
	Interest-bearing money markets - brokered			110			1		3.62	%		—			—		—	%
	Savings deposits			172,342			45		0.10	%		196,777			51		0.10	%
	Time deposits - retail			143,424			1,071		2.97	%		163,253			1,122		2.73	%
	Time deposits - brokered			—			—		—	%		56,006			751		5.32	%
	Short-term borrowings			12,797			40	1	1.24	%		43,693			55		0.50	%
	Long-term borrowings			120,928			1,400		4.61	%		110,929			1,445		5.17	%
	Total interest-bearing liabilities			1,284,282			8,025		2.49	%		1,302,547			7,999		2.44	%
	Non-interest-bearing deposits			449,878								487,012
	Other liabilities			33,904								35,957
	Shareholders' Equity			176,507								158,052
	Total Liabilities and Shareholders' Equity		$	1,944,571							$	1,983,568
	Net interest income and spread					$	15,753		2.76	%				$	14,253		2.45	%
	Net interest margin								3.48	%							3.13	%

 

		Twelve Months Ended
		December 31,
		2024								2023
(dollars in thousands)		Average Balance			Interest			Average Yield/ Rate		Average Balance			Interest			Average Yield/ Rate
Assets
Loans		$	1,427,351		$	81,819		5.73	%	$	1,340,118		$	69,631		5.20	%
Investment Securities:
Taxable			285,661			6,760		2.37	%		335,888			7,173		2.14	%
Non taxable			7,538			375		4.97	%		18,471			1,279		6.92	%
Total			293,199			7,135		2.43	%		354,359			8,452		2.39	%
Federal funds sold			55,117			2,874		5.21	%		65,131			3,409		5.23	%
Interest-bearing deposits with other banks			2,009			91		4.53	%		2,585			93		3.60	%
Other interest earning assets			4,565			303		6.64	%		4,048			198		4.89	%
Total earning assets			1,782,241			92,222		5.17	%		1,766,241			81,782		4.63	%
Allowance for loan losses			(18,064)								(16,561)
Non-earning assets			182,548								199,474
Total Assets		$	1,946,725							$	1,949,154
Liabilities and Shareholders' Equity
Interest-bearing demand deposits		$	368,725			6,288		1.71	%	$	362,070		$	4,814		1.33	%
Interest-bearing money markets - retail			413,353			14,287		3.46	%		333,274			8,672		2.60	%
Interest-bearing money markets - brokered			55			3		5.45	%		—			—		—	%
Savings deposits			180,393			183		0.10	%		219,516			240		0.11	%
Time deposits - retail			147,193			4,226		2.87	%		141,921			2,872		2.02	%
Time deposits - brokered			15,697			841		5.36	%		49,209			2,600		5.28	%
Short-term borrowings			58,444			1,477		2.53	%		47,968			147		0.31	%
Long-term borrowings			92,213			4,710		5.11	%		94,271			4,941		5.24	%
Total interest-bearing liabilities			1,276,073			32,015		2.51	%		1,248,229			24,286		1.95	%
Non-interest-bearing deposits			468,137								512,496
Other liabilities			33,326								32,320
Shareholders' Equity			169,189								156,109
Total Liabilities and Shareholders' Equity		$	1,946,725							$	1,949,154
Net interest income and spread					$	60,207		2.66	%				$	57,496		2.68	%
Net interest margin								3.38	%							3.26	%

 

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SOURCE First United Corporation

FAQ

What was First United 's (FUNC) net income for Q4 2024?

First United reported a net income of $6.2 million ($0.95 per diluted share) for Q4 2024.

How much did FUNC's loan portfolio grow in Q4 2024?

FUNC's loan portfolio grew by $32.9 million in Q4 2024 and $74.1 million for the full year 2024.

What was FUNC's net interest margin in Q4 2024?

FUNC's net interest margin was 3.48% for the fourth quarter of 2024.

How much did FUNC's deposits increase in 2024?

FUNC's total deposits increased by $23.9 million in 2024, with interest-bearing demand deposits growing by $35.9 million.

What was FUNC's full-year earnings per share for 2024?

FUNC reported earnings of $3.15 per diluted share for the full year 2024, compared to $2.25 per diluted share in 2023.