OAKLAND, Md., July 21, 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 six-month periods ended June 30, 2025. Consolidated net income was $6.0 million for the second quarter of 2025, or $0.92 per diluted common share, compared to $4.9 million, or $0.75 per diluted common share, for the second quarter of 2024 and $5.8 million, or $0.89 per diluted common share, for the first quarter of 2025. Net income for the first six months of 2025 was $11.8 million, or $1.81 per diluted common share, compared to $8.6 million, or $1.31 per diluted common share, for the same period of 2024. Annualized Return on Average Assets and Return on Average Equity for the six-month period ended June 30, 2025 were 1.20% and 12.78%, respectively.
According to Carissa Rodeheaver, Chairman, President and CEO, "The second quarter remained strong, driven by our increasing net interest margin. We were successful in controlling funding costs and the higher-than-expected interest rate environment led to favorable interest income in our loan portfolio. Loan production increased during the quarter and pipelines remain strong. We are excited to have expanded our Morgantown team during the first half of this year and are optimistic about the growth potential of that market. We will continue to add talent when the opportunity presents itself and to focus on technologies that will improve efficiencies long-term and to enhance our customer experience."
Second Quarter Financial Highlights:
- Net interest margin, on a non-GAAP, fully tax equivalent ("FTE") basis, was 3.65% for the second quarter of 2025, reflecting increased loan yields and stable funding costs.
- Strong loan production during the quarter, with $65.1 million in commercial loan originations and $19.2 million in residential mortgage originations.
- Provision expense was $0.9 million in the second quarter driven by growth in both the loan portfolio and unfunded commitments and uncertainty of current economic conditions, partially offset by stable asset quality and improved qualitative factors.
- Operating income, including net gains, increased slightly by $0.2 million when compared to the linked quarter.
- Operating expenses increased by $0.4 million when compared to the linked quarter primarily due to data processing, other real estate owned ("OREO") expenses and professional services expenses.
- A cash dividend of $0.22 per common share was declared in the second quarter.
Income Statement Overview
On a GAAP basis, net income for the second quarter of 2025 was $6.0 million. This compares to $5.8 million for the first quarter of 2025 and $4.9 million for the second quarter of 2024.
Q2 2025 | Q1 2025 | Q2 2024 | |
Net Income, GAAP (millions) | $ 6.0 | $ 5.8 | $ 4.9 |
Diluted net income per share, GAAP | $ 0.92 | $ 0.89 | $ 0.75 |
The $1.1 million increase in quarterly net income when compared to the second quarter of 2024 was primarily driven by a $1.5 million increase in net interest income, a $0.3 million decrease in provision for credit loss, and a $0.2 million increase in non-interest income, partially offset by increases in non-interest expense of $0.6 million and income tax expense of $0.4 million. Comparing the second quarter of 2025 to the same period of 2024, interest and fees on loans increased by $2.1 million due to from the repricing of adjustable-rate loans and growth in our loan portfolio. Interest expense increased by $0.3 million when comparing year-over-year quarterly expense as increased funding was offset by reductions in deposit rates and borrowing costs. Other operating income increased by $0.2 million driven primarily by increases in wealth management income, and other operating expenses increased by $0.6 million driven by a $0.2 million increase in net OREO expenses, a $0.2 million increase in professional services and contract labor expenses, and a $0.2 million increase in data processing costs.
Compared to the linked quarter, net income increased slightly as net interest income increased by $0.7 million due to interest and fees on loans, and other operating income increased by $0.2 million due to increases in gains in sales of residential mortgages, trust department income and debit card income. These increases were partially offset by a $0.2 million increase in the provision for credit losses and a $0.4 million increase in other operating expenses driven by increased net OREO expenses and data processing, professional services, and investor relations expenses.
Net income for the first six months of 2025 was $11.8 million compared to $8.6 million for the same period in 2024. Net interest income increased by $3.7 million. Provision for credit losses decreased by $0.6 million related due primarily to a $1.1 million charge-off related to equipment loans of one commercial relationship in 2024. Other operating income increased by $0.3 million primarily due to increases in gains on sales of residential mortgages and wealth management income. These increases were partially offset by a $0.3 million increase in other operating expenses that was primarily related to a $0.2 million increase in salaries and employee benefits, a $0.1 million increase in marketing and professional services expenses, and a $0.2 million increase in net OREO costs.
Net Interest Income and Net Interest Margin
Net interest income, on a non-GAAP, FTE basis, increased by $1.5 million for the second quarter of 2025 when compared to the second quarter of 2024. This increase was driven by an increase of $1.8 million in interest income due to a $2.1 million increase in interest income on loans that resulted from an increase of 26 basis points in the overall yield on the loan portfolio, upward repricing of adjustable-rate loans, and an increase in average balances of $74.1 million. Interest income on Federal funds sold decreased by $0.4 million due to a decrease of 129 basis points in average rates and a decrease of $16.0 million in average balances. Interest expense increased by $0.3 million when compared to the second quarter of 2024. Interest expense paid on deposits increased by $0.4 million due to a $73.3 million increase in average balances, partially offset by a decrease of 2 basis points on the rate paid. Interest paid on short-term borrowings decreased by $0.5 million when compared to the same period of 2024 due to the repayment of the $40.0 million from the Bank Term Funding Program ("BTFP") late in the third quarter of 2024. Interest paid on long-term borrowings increased by $0.4 million when compared to the second quarter of 2024 due to a $50.0 million increase in average balances, partially offset by a decrease in 100 basis points on rates paid.
Comparing the second quarter of 2025 to the first quarter of 2025, net interest income, on a non-GAAP, FTE basis, increased by $0.7 million. This increase was driven by a $0.8 million increase in interest income that resulted from an increase in interest and fees on loans of $0.5 million as average loan balances increased by $6.3 million and average yield increased by 6 basis points. Interest expense was stable when comparing the second quarter of 2025 to the linked quarter.
Comparing the six months ended June 30, 2025 to the six months ended June 30, 2024, net interest income, on a non-GAAP, FTE basis, increased by $3.7 million. Interest income increased by $3.9 million and was driven by an increase of $4.6 million on interest and fees on loans as average loan balances increased by $74.7 million and the overall yield increased by 36 basis points in correlation with upward repricing of adjustable-rate loans. Interest expense on deposits increased by $0.8 million as the average deposit balances increased by $75.3 million, driven by increases of $4.8 million in demand deposit accounts, $76.6 million in money market balances and $15.9 million in brokered time deposits, partially offset by decreases in savings balances of $16.1 million and $6.1 million in retail time deposits. Interest expense on short-term borrowings decreased by $0.9 million due to the Bank's utilization of the BTFP program in 2024 and subsequent repayment late in the third quarter of 2024. The net interest margin for the six months ended June 30, 2025 was 3.61% compared to 3.31% for the six months ended June 30, 2024.
Non-Interest Income
Other operating income, including net gains, for the second quarter of 2025 increased by $0.2 million when compared to the same period of 2024. This increase was driven by a $0.1 million increase in wealth management income, reflecting higher market valuations and expanded relationships with both new and existing clients. Additionally, gains on sales of residential mortgages increased by $0.1 million due to growth in production year-over-year.
On a linked quarter basis, other operating income, including net gains, increased by $0.2 million. Debit card income increased by $0.1 million, and gains on sales of residential mortgages increased by $0.1 million due to higher production volumes. Wealth management income was stable when compared to the prior quarter.
Other operating income for the six months ended June 30, 2025 increased by $0.3 million when compared to the same period of 2024. This was attributable to a $0.2 million increase in wealth management income, driven by improving market conditions, increased annuity sales and growth in new and existing customer relationships. Gains on sales of residential mortgages increased by $0.1 million. Service charge and debit card income were both stable when comparing the first six months of 2025 to the same period of 2024.
Non-Interest Expense
Operating expenses increased by $0.6 million in the second quarter of 2025 when compared to the second quarter of 2024. Net OREO expenses increased by $0.2 million due to a $0.1 million gain on the sale of OREO property in the second quarter of 2024 and an increase in costs associated with one OREO property in the second quarter of 2025. Data processing fees increased by $0.2 million and professional services expenses increased by $0.1 million. Salaries and employee benefits increased by $0.1 million due to a $0.3 million increase in salary expense related to normal merit increases effective April 1, 2025, partially offset by decreases in employee life and health insurance expense due to decreased claims.
Operating expenses increased by $0.4 million for the second quarter of 2025 when compared to the linked quarter. Net OREO expenses increased by $0.1 million due primarily to costs associated with one OREO property in the second quarter of 2025. Additionally, data processing, professional services, and investor relations expenses each increased by $0.1 million when compared to the linked quarter.
For the six months ended June 30, 2025, non-interest expense increased by $0.3 million when compared to the six months ended June 30, 2024. Salaries and employee benefits increased by $0.2 million due to normal merit increases effective April 1, 2025, increases in stock compensation expense as a result of to increased stock prices and 401K expenses offset by reduced life and health insurance costs related to reduced claims in 2025. Net OREO expenses increased by $0.2 million due to a $0.1 million gain on the sale of OREO in 2024 as well as one-time expense associated with an OREO property recorded in the second quarter of 2025, increases of $0.1 million in marketing and professional services and an increase in data processing expenses of $0.9 million. These increases were partially offset by a $0.7 million decrease in occupancy and equipment expenses related to accelerated depreciation expense recognized in the first quarter of 2024 related to branch closures.
The effective income tax rates as a percentage of income for the six-month periods ended June 30, 2025 and June 30, 2024 were 24.7% and 24.3%, respectively.
Balance Sheet Overview
Total assets at June 30, 2025 were $2.0 billion, representing a $34.4 million increase since December 31, 2024. During the first six months of 2025, the investment portfolio increased by $9.6 million as bonds were purchased to gain yield in anticipation of potential declines in long-term rates. Gross loans increased by $21.7 million. Management expects stronger growth in the second half of the year due to strong loan pipelines. Other assets, including deferred taxes, premises and equipment, bank owned life insurance, pension assets, and accrued interest receivable, increased by $4.0 million.
Total liabilities at June 30, 2025 were $1.8 billion, representing a $22.6 million increase since December 31, 2024. Total deposits increased by $39.4 million when compared to December 31, 2024 due primarily to the $50.0 million in new brokered deposits that were obtained in January 2025 to fund the repayment of the $50.0 million in overnight borrowings that were outstanding at December 31, 2024. Savings and money market accounts increased by $25.5 million and retail time deposits increased by $3.9 million. Interest-bearing demand deposits, primarily our ICS product, decreased by $39.1 million due primarily to seasonal fluctuations in municipal deposit accounts, and non-interest-bearing deposits decreased by $0.9 million due to increased spending by businesses and consumers related to inflation. Short-term borrowings decreased by $14.5 million due to a $20.9 million decrease in overnight borrowings, partially offset by increases in balances of the overnight investment sweep product.
Outstanding loans of $1.5 billion at June 30, 2025 reflected a $21.7 million increase since December 31, 2024.
Loan Type (in millions) | Change since | Change since |
Commercial | $21.9 | $21.9 |
1 to 4 Family Mortgages | $1.9 | $3.2 |
Consumer | ($1.2) | ($3.4) |
Gross Loans | $22.6 | $21.7 |
Since December 31, 2024, commercial real estate loans increased by $24.4 million, acquisition and development loans increased by $3.6 million, commercial and industrial loans decreased by $6.1 million, residential mortgage loans increased by $3.2 million, and consumer loans decreased by $3.4 million.
New commercial loan production for the second quarter of 2025 was approximately $65.1 million. The pipeline of commercial loans as of June 30, 2025 was $32.3 million and unfunded, committed commercial construction loans totaled approximately $47.0 million. Commercial amortization and payoffs were approximately $27.0 million for the three months ended June 30, 2025, 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 second quarter of 2025 was approximately $19.2 million, with most of this production comprised of in-house mortgages. The pipeline of in-house, portfolio loans as of June 30, 2025 was $11.4 million. Unfunded commitments related to residential construction loans totaled $10.0 million at June 30, 2025.
Total deposits at June 30, 2025 increased by $39.4 million when compared to December 31, 2024.
Deposit Type (in millions) | Change since | Change since |
Non-Interest-Bearing | $3.4 | ($0.9) |
Interest-Bearing Demand | ($21.2) | ($39.1) |
Savings and Money Market | $6.7 | $25.5 |
Time Deposits- Retail | $1.7 | $3.9 |
Tim Deposits- Brokered | $0.0 | $50.0 |
Total Deposits | ($9.4) | $39.4 |
In January 2025, $50.0 million in brokered time deposits with an average interest rate of 4.24% were obtained to fund the repayment of $50.0 million in overnight borrowings that were outstanding at December 31, 2024. Savings and money market accounts increased by $25.5 million due primarily to the expansion of current and new relationships throughout the first six months of 2025. Non-interest-bearing checking deposits decreased by $0.9 million and interest-bearing checking deposits decreased by $39.1 million due primarily to seasonal fluctuations in municipal and commercial account balances and increased spending by businesses and consumers related to inflation. Retail time deposits increased by $3.9 million since December 31, 2024.
The book value of the Corporation's common stock was $29.43 per share at June 30, 2025 compared to $27.71 per share at December 31, 2024. At June 30, 2025, there were 6,494,611 basic outstanding shares and 6,506,493 diluted outstanding shares of common stock. The increase in the book value at June 30, 2025 was due to the undistributed net income of $8.9 million for the first six months of 2025.
Asset Quality
The allowance for credit losses ("ACL") was $19.0 million at June 30, 2025 compared to $17.9 million at June 30, 2024 and $18.2 million at December 31, 2024. The provision for credit losses was $0.9 million for the quarter ended June 30, 2025 compared to $1.2 million for the quarter ended June 30, 2024 and $0.7 million for the first quarter of 2025. The decreased provision expense recorded in the second quarter of 2025 when compared to the same period in 2024 was primarily due to $1.1 million in charge-offs related to one non-accrual commercial loan relationship that occurred in 2024. The increase in provision expense compared to the linked quarter was due to an increase of $22.6 in unfunded loan commitments quarter over quarter. Asset quality remained strong during the second quarter of 2025. Net charge-offs of $0.2 million were recorded for the quarter ended June 30, 2025 compared to net charge-offs of $1.3 million for the quarter ended June 30, 2024. The ratio of the ACL to loans outstanding has been consistent at 1.27% at June 30, 2025 compared to1.25% at March 31, 2025 and 1.26% at June 30, 2024.
The ratio of net charge offs to average loans was 0.07% for the six months ended June 30, 2025, and 0.25% for the six months ended June 30, 2024. The commercial and industrial portfolio had net charge offs of 0.25% and 0.89% for the six-month periods ended June 30, 2025 and 2024, respectively. This shift was due primarily to charge offs of equipment loan balances on one non-accrual commercial relationship during 2024. The acquisition and development portfolio had net recoveries of 0.13% and 0.01% for the six-month periods ended June 30, 2025 and 2024, respectively. This shift was due primarily to recoveries recognized in 2025 related to one relationship that was previously charged off in 2021. The decrease in net charge offs in consumer loans in the first six months of 2025 was primarily driven by approximately $0.3 million in charge offs of demand deposit balances during the first quarter of 2024. 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 | ||
6/30/2025 | 6/30/2024 | |
Loan Type | (Charge Off) / Recovery | (Charge Off) / Recovery |
Commercial Real Estate | 0.00 % | 0.01 % |
Acquisition & Development | 0.13 % | 0.01 % |
Commercial & Industrial | (0.25 %) | (0.89 %) |
Residential Mortgage | 0.01 % | (0.01 %) |
Consumer | (0.96 %) | (2.02 %) |
Total Net (Charge Offs)/Recoveries | (0.07 %) | (0.25 %) |
Non-accrual loans totaled $3.8 million at June 30, 2025 compared to $4.9 million at December 31, 2024. The decrease in non-accrual balances at June 30, 2025 was related to principal reductions.
Non-accrual loans that have been subject to partial charge-offs totaled $0.7 million at both June 30, 2025 and December 31, 2024. Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $0.1 million and $1.6 million at June 30, 2025 and December 31, 2024, respectively. As a percentage of the loan portfolio, accruing loans past due 30 days or more was 0.27% at June 30, 2025 compared to 0.32% at December 31, 2024 and 0.26% as June 30, 2024.
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 ("Trust II" and 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 "MCC Fund"). 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 and the impact that any such events have on our critical accounting assumptions and estimates made as of June 30, 2025, 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 | Six Months Ended | ||||||||
June 30, | June 30, | June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||||
Results of Operations: | |||||||||
Interest income | $ 24,871 | $ 23,113 | $ 48,933 | $ 45,011 | |||||
Interest expense | 8,164 | 7,875 | 16,210 | 15,961 | |||||
Net interest income | 16,707 | 15,238 | 32,723 | 29,050 | |||||
Provision for credit losses | 860 | 1,194 | 1,516 | 2,140 | |||||
Other operating income | 4,940 | 4,782 | 9,762 | 9,575 | |||||
Net gains | 146 | 59 | 238 | 141 | |||||
Other operating expense | 12,974 | 12,364 | 25,550 | 25,245 | |||||
Income before taxes | $ 7,959 | $ 6,521 | $ 15,657 | $ 11,381 | |||||
Income tax expense | 1,975 | 1,607 | 3,867 | 2,769 | |||||
Net income | $ 5,984 | $ 4,914 | $ 11,790 | $ 8,612 | |||||
Per share data: | |||||||||
Basic net income per share | $ 0.92 | $ 0.75 | $ 1.82 | $ 1.31 | |||||
Diluted net income per share | $ 0.92 | $ 0.75 | $ 1.81 | $ 1.31 | |||||
Adjusted Basic net income (1) | $ 0.92 | $ 0.75 | $ 1.82 | $ 1.37 | |||||
Adjusted Diluted net income (1) | $ 0.92 | $ 0.75 | $ 1.81 | $ 1.37 | |||||
Dividends declared per share | $ 0.22 | $ 0.20 | $ 0.44 | $ 0.40 | |||||
Book value | $ 29.43 | $ 25.39 | |||||||
Diluted book value | $ 29.38 | $ 25.34 | |||||||
Tangible book value per share | $ 27.64 | $ 23.55 | |||||||
Diluted Tangible book value per share | $ 27.59 | $ 23.49 | |||||||
Closing market value | $ 31.01 | $ 20.42 | |||||||
Market Range: | |||||||||
High | $ 32.09 | $ 22.88 | |||||||
Low | $ 25.90 | $ 19.40 | |||||||
Shares outstanding at period end: Basic | 6,494,611 | 6,465,601 | |||||||
Shares outstanding at period end: Diluted | 6,506,493 | 6,479,624 | |||||||
Performance ratios: (Year to Date Period End, annualized) | |||||||||
Return on average assets | 1.20 % | 0.89 % | |||||||
Adjusted return on average assets | 1.20 % | 0.98 % | |||||||
Return on average shareholders' equity | 12.78 % | 10.48 % | |||||||
Adjusted return on average shareholders' equity | 12.78 % | 11.52 % | |||||||
Net interest margin (Non-GAAP), includes tax exempt income of $104 and $116 | 3.61 % | 3.31 % | |||||||
Net interest margin GAAP | 3.60 % | 3.29 % | |||||||
Efficiency ratio - non-GAAP (1) | 59.66 % | 63.48 % | |||||||
(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. | June 30, | December 31 | |||||||
2025 | 2024 | ||||||||
Financial Condition at period end: | |||||||||
Assets | $ 2,007,471 | $ 1,973,022 | |||||||
Earning assets | $ 1,789,747 | $ 1,758,665 | |||||||
Gross loans | $ 1,502,481 | $ 1,480,793 | |||||||
Commercial Real Estate | $ 550,717 | $ 526,364 | |||||||
Acquisition and Development | $ 98,937 | $ 95,314 | |||||||
Commercial and Industrial | $ 281,484 | $ 287,534 | |||||||
Residential Mortgage | $ 521,968 | $ 518,815 | |||||||
Consumer | $ 49,375 | $ 52,766 | |||||||
Investment securities | $ 279,541 | $ 269,991 | |||||||
Total deposits | $ 1,614,207 | $ 1,574,829 | |||||||
Noninterest bearing | $ 425,784 | $ 426,737 | |||||||
Interest bearing | $ 1,188,423 | $ 1,148,092 | |||||||
Shareholders' equity | $ 191,147 | $ 179,295 | |||||||
Capital ratios: | |||||||||
Tier 1 to risk weighted assets | 15.22 % | 14.70 % | |||||||
Common Equity Tier 1 to risk weighted assets | 13.32 % | 12.79 % | |||||||
Tier 1 Leverage | 12.08 % | 11.88 % | |||||||
Total risk based capital | 16.47 % | 15.92 % | |||||||
Asset quality: | |||||||||
Net charge-offs for the quarter | $ (151) | $ (362) | |||||||
Nonperforming assets: (Period End) | |||||||||
Nonaccrual loans | $ 3,813 | $ 4,931 | |||||||
Loans 90 days past due and accruing | 535 | 918 | |||||||
Total nonperforming loans and 90 day past due | $ 4,348 | $ 5,849 | |||||||
Other real estate owned | $ 3,035 | $ 3,062 | |||||||
Other repossessed assets | $ 2,802 | $ 2,802 | |||||||
Modified loans | $ 1,198 | $ 1,006 | |||||||
Allowance for credit losses to gross loans | 1.27 % | 1.23 % | |||||||
Allowance for credit losses to non-accrual loans | 499.45 % | 368.49 % | |||||||
Allowance for credit losses to non-performing assets | 186.98 % | 155.13 % | |||||||
Non-performing and 90 day past due loans to total loans | 0.29 % | 0.39 % | |||||||
Non-performing loans and 90 day past due loans to total assets | 0.22 % | 0.30 % | |||||||
Non-accrual loans to total loans | 0.25 % | 0.33 % | |||||||
Non-performing assets to total assets | 0.51 % | 0.59 % | |||||||
FIRST UNITED CORPORATION | |||||||
Oakland, MD | |||||||
Stock Symbol: FUNC | |||||||
Financial Highlights - Unaudited | |||||||
June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||
(Dollars in thousands, except per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | 2024 | |
Results of Operations: | |||||||
Interest income | $ 24,871 | $ 24,062 | $ 23,725 | $ 23,257 | $ 23,113 | $ 21,898 | |
Interest expense | 8,164 | 8,046 | 8,025 | 8,029 | 7,875 | 8,086 | |
Net interest income | 16,707 | 16,016 | 15,700 | 15,228 | 15,238 | 13,812 | |
Provision for credit losses | 860 | 656 | 529 | 264 | 1,194 | 946 | |
Other operating income | 4,940 | 4,822 | 4,924 | 4,912 | 4,782 | 4,793 | |
Net gains | 146 | 92 | 132 | 141 | 59 | 82 | |
Other operating expense | 12,974 | 12,576 | 12,081 | 12,314 | 12,364 | 12,881 | |
Income before taxes | $ 7,959 | $ 7,698 | $ 8,146 | $ 7,703 | $ 6,521 | $ 4,860 | |
Income tax expense | 1,975 | 1,892 | 1,960 | 1,932 | 1,607 | 1,162 | |
Net income | $ 5,984 | $ 5,806 | $ 6,186 | $ 5,771 | $ 4,914 | $ 3,698 | |
Per share data: | |||||||
Basic net income per share | $ 0.92 | $ 0.90 | $ 0.95 | $ 0.89 | $ 0.75 | $ 0.56 | |
Diluted net income per share | $ 0.92 | $ 0.89 | $ 0.95 | $ 0.89 | $ 0.75 | $ 0.56 | |
Adjusted basic net income (1) | $ 0.92 | $ 0.90 | $ 0.95 | $ 0.89 | $ 0.75 | $ 0.62 | |
Adjusted diluted net income (1) | $ 0.92 | $ 0.89 | $ 0.95 | $ 0.89 | $ 0.75 | $ 0.62 | |
Dividends declared per share | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.20 | |
Book value | $ 29.43 | $ 28.35 | $ 27.71 | $ 26.90 | $ 25.39 | $ 24.89 | |
Diluted book value | $ 29.38 | $ 28.27 | $ 27.65 | $ 26.84 | $ 25.34 | $ 24.86 | |
Tangible book value per share | $ 27.64 | $ 26.55 | $ 25.89 | $ 25.06 | $ 23.55 | $ 23.08 | |
Diluted Tangible book value per share | $ 27.59 | $ 26.47 | $ 25.83 | $ 25.01 | $ 23.49 | $ 23.05 | |
Closing market value | $ 31.01 | $ 30.02 | $ 33.71 | $ 29.84 | $ 20.42 | $ 22.91 | |
Market Range: | |||||||
High | $ 32.09 | $ 41.61 | $ 36.17 | $ 30.77 | $ 22.88 | $ 23.85 | |
Low | $ 25.90 | $ 29.38 | $ 29.63 | $ 20.40 | $ 19.40 | $ 21.21 | |
Shares outstanding at period end: Basic | 6,494,611 | 6,478,634 | 6,471,096 | 6,468,625 | 6,465,601 | 6,648,645 | |
Shares outstanding at period end: Diluted | 6,506,493 | 6,497,454 | 6,485,119 | 6,482,648 | 6,479,624 | 6,657,239 | |
Performance ratios: (Year to Date Period End, annualized) | |||||||
Return on average assets | 1.20 % | 1.19 % | 1.06 % | 0.99 % | 0.89 % | 0.76 % | |
Adjusted return on average assets (1) | 1.20 % | 1.19 % | 1.08 % | 1.01 % | 0.98 % | 0.85 % | |
Return on average shareholders' equity | 12.78 % | 12.83 % | 12.16 % | 11.52 % | 10.48 % | 9.07 % | |
Adjusted return on average shareholders' equity (1) | 12.78 % | 12.83 % | 12.42 % | 11.78 % | 11.52 % | 10.11 % | |
Net interest margin (Non-GAAP), includes tax exempt income of $104 and $116 | 3.61 % | 3.56 % | 3.38 % | 3.34 % | 3.31 % | 3.12 % | |
Net interest margin GAAP | 3.60 % | 3.55 % | 3.36 % | 3.32 % | 3.29 % | 3.10 % | |
Efficiency ratio - non-GAAP (1) | 59.66 % | 59.95 % | 61.31 % | 62.46 % | 63.48 % | 65.71 % | |
(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. | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | |
2025 | 2025 | 2024 | 2024 | 2024 | 2024 | ||
Financial Condition at period end: | |||||||
Assets | $ 2,007,471 | $ 1,979,753 | $ 1,973,022 | $ 1,916,126 | $ 1,868,599 | $ 1,912,953 | |
Earning assets | $ 1,789,747 | $ 1,762,891 | $ 1,758,665 | $ 1,722,346 | $ 1,695,425 | $ 1,695,962 | |
Gross loans | $ 1,502,481 | $ 1,479,869 | $ 1,480,793 | $ 1,447,883 | $ 1,422,975 | $ 1,412,327 | |
Commercial Real Estate | $ 550,717 | $ 532,764 | $ 526,364 | $ 502,828 | $ 506,273 | $ 492,819 | |
Acquisition and Development | $ 98,937 | $ 94,063 | $ 95,314 | $ 92,909 | $ 88,215 | $ 83,424 | |
Commercial and Industrial | $ 281,484 | $ 282,370 | $ 287,534 | $ 277,994 | $ 260,168 | $ 274,722 | |
Residential Mortgage | $ 521,968 | $ 520,072 | $ 518,815 | $ 519,168 | $ 511,354 | $ 501,990 | |
Consumer | $ 49,375 | $ 50,600 | $ 52,766 | $ 54,984 | $ 56,965 | $ 59,372 | |
Investment securities | $ 279,541 | $ 275,143 | $ 269,991 | $ 267,214 | $ 267,151 | $ 278,716 | |
Total deposits | $ 1,614,207 | $ 1,623,574 | $ 1,574,829 | $ 1,540,395 | $ 1,537,071 | $ 1,563,453 | |
Noninterest bearing | $ 425,784 | $ 422,415 | $ 426,737 | $ 419,437 | $ 423,970 | $ 422,759 | |
Interest bearing | $ 1,188,423 | $ 1,201,159 | $ 1,148,092 | $ 1,120,958 | $ 1,113,101 | $ 1,140,694 | |
Shareholders' equity | $ 191,147 | $ 183,694 | $ 179,295 | $ 173,979 | $ 164,177 | $ 165,481 | |
Capital ratios: | |||||||
Tier 1 to risk weighted assets | 15.22 % | 14.87 % | 14.70 % | 14.61 % | 14.51 % | 14.58 % | |
Common Equity Tier 1 to risk weighted assets | 13.32 % | 12.97 % | 12.79 % | 12.66 % | 12.54 % | 12.60 % | |
Tier 1 Leverage | 12.08 % | 11.94 % | 11.88 % | 11.88 % | 11.69 % | 11.48 % | |
Total risk based capital | 16.47 % | 16.10 % | 15.92 % | 15.83 % | 15.75 % | 15.83 % | |
Asset quality: | |||||||
Net (charge-offs)/recoveries for the quarter | $ (151) | $ (360) | $ (362) | $ (109) | $ (1,309) | $ (459) | |
Nonperforming assets: (Period End) | |||||||
Nonaccrual loans | $ 3,813 | $ 4,026 | $ 4,931 | $ 8,073 | $ 9,438 | $ 16,007 | |
Loans 90 days past due and accruing | 535 | 233 | 918 | 538 | 526 | 120 | |
Total nonperforming loans and 90 day past due | $ 4,348 | $ 4,259 | $ 5,849 | $ 8,611 | $ 9,964 | $ 16,127 | |
Other real estate owned | $ 3,035 | $ 3,062 | $ 3,062 | $ 2,860 | $ 2,978 | $ 4,402 | |
Other repossessed assets | $ 2,802 | $ 2,802 | $ 2,802 | $ 42 | $ 32 | $ 68 | |
Modified/restructured loans | $ 1,198 | $ 1,021 | $ 1,006 | $ 1,016 | $ 893 | $ - | |
Allowance for credit losses to gross loans | 1.27 % | 1.25 % | 1.23 % | 1.24 % | 1.26 % | 1.27 % | |
Allowance for credit losses to non-accrual loans | 499.45 % | 458.69 % | 368.49 % | 223.09 % | 189.90 % | 112.34 % | |
Allowance for credit losses to non-performing assets | 186.98 % | 182.43 % | 155.13 % | 157.00 % | 138.49 % | 87.59 % | |
Non-performing and 90 day past due loans to total loans | 0.29 % | 0.29 % | 0.39 % | 0.59 % | 0.70 % | 1.14 % | |
Non-performing loans and 90 day past due loans to total assets | 0.22 % | 0.22 % | 0.30 % | 0.45 % | 0.53 % | 0.84 % | |
Non-accrual loans to total loans | 0.25 % | 0.27 % | 0.33 % | 0.56 % | 0.66 % | 1.13 % | |
Non-performing assets to total assets | 0.51 % | 0.51 % | 0.59 % | 0.60 % | 0.69 % | 1.07 % | |
Consolidated Statement of Condition | ||||||
(Dollars in thousands - Unaudited) | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||
Assets | ||||||
Cash and due from banks | $ | 77,313 | $ | 82,813 | $ | 77,020 |
Interest bearing deposits in banks | 1,800 | 1,618 | 1,307 | |||
Cash and cash equivalents | 79,113 | 84,431 | 78,327 | |||
Investment securities - available for sale (at fair value) | 103,582 | 99,998 | 94,494 | |||
Investment securities - held to maturity (at cost) | 174,951 | 174,144 | 175,497 | |||
Equity investments with readily determinable fair market values | 1,008 | 1,001 | - | |||
Restricted investment in bank stock, at cost | 5,815 | 5,815 | 5,768 | |||
Loans held for sale | 110 | - | 806 | |||
Loans | 1,502,481 | 1,479,869 | 1,480,793 | |||
Unearned fees | (533) | (457) | (442) | |||
Allowance for credit losses | (19,044) | (18,467) | (18,170) | |||
Net loans | 1,482,904 | 1,460,945 | 1,462,181 | |||
Premises and equipment, net | 29,644 | 30,010 | 30,081 | |||
Goodwill and other intangible assets | 11,609 | 11,691 | 11,773 | |||
Bank owned life insurance | 49,642 | 49,293 | 48,952 | |||
Deferred tax assets | 9,151 | 10,021 | 9,989 | |||
Other real estate owned, net | 3,035 | 3,062 | 3,062 | |||
Operating lease asset | 1,058 | 1,131 | 1,204 | |||
Pension asset | 18,537 | 16,064 | 17,824 | |||
Accrued interest receivable and other assets | 37,312 | 32,147 | 33,064 | |||
Total Assets | $ | 2,007,471 | $ | 1,979,753 | $ | 1,973,022 |
Liabilities and Shareholders' Equity | ||||||
Liabilities: | ||||||
Non-interest bearing deposits | $ | 425,784 | $ | 422,415 | $ | 426,737 |
Interest bearing deposits | 1,188,423 | 1,201,159 | 1,148,092 | |||
Total deposits | 1,614,207 | 1,623,574 | 1,574,829 | |||
Short-term borrowings | 50,954 | 20,342 | 65,409 | |||
Long-term borrowings | 120,929 | 120,929 | 120,929 | |||
Operating lease liability | 1,231 | 1,308 | 1,384 | |||
Allowance for credit loss on off balance sheet exposures | 995 | 863 | 863 | |||
Accrued interest payable and other liabilities | 26,579 | 27,617 | 28,889 | |||
Dividends payable | 1,429 | 1,426 | 1,424 | |||
Total Liabilities | 1,816,324 | 1,796,059 | 1,793,727 | |||
Shareholders' Equity: | ||||||
Common Stock - par value $0.01 per share; Authorized 25,000,000 shares; issued and outstanding 6,494,611 shares at June 30, 2025; 6,478,634 at March 31, 2025; and 6,471,096 at December 31, 2024 | 65 | 65 | 65 | |||
Surplus | 21,121 | 20,606 | 20,476 | |||
Retained earnings | 197,938 | 193,382 | 189,002 | |||
Accumulated other comprehensive loss | (27,977) | (30,359) | (30,248) | |||
Total Shareholders' Equity | 191,147 | 183,694 | 179,295 | |||
Total Liabilities and Shareholders' Equity | $ | 2,007,471 | $ | 1,979,753 | $ | 1,973,022 |
Historical Income Statement | ||||||||||||
2025 | 2024 | |||||||||||
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||
In thousands | (Unaudited) | |||||||||||
Interest income | ||||||||||||
Interest and fees on loans | $ | 22,294 | $ | 21,755 | $ | 21,299 | $ | 21,018 | $ | 20,221 | $ | 19,218 |
Interest on investment securities | ||||||||||||
Taxable | 1,776 | 1,763 | 1,672 | 1,647 | 1,697 | 1,744 | ||||||
Exempt from federal income tax | 57 | 45 | 47 | 56 | 53 | 53 | ||||||
Total investment income | 1,833 | 1,808 | 1,719 | 1,703 | 1,750 | 1,797 | ||||||
Other | 744 | 499 | 707 | 536 | 1,142 | 883 | ||||||
Total interest income | 24,871 | 24,062 | 23,725 | 23,257 | 23,113 | 21,898 | ||||||
Interest expense | ||||||||||||
Interest on deposits | 6,788 | 6,683 | 6,585 | 6,579 | 6,398 | 6,266 | ||||||
Interest on short-term borrowings | 21 | 20 | 40 | 467 | 509 | 461 | ||||||
Interest on long-term borrowings | 1,355 | 1,343 | 1,400 | 983 | 968 | 1,359 | ||||||
Total interest expense | 8,164 | 8,046 | 8,025 | 8,029 | 7,875 | 8,086 | ||||||
Net interest income | 16,707 | 16,016 | 15,700 | 15,228 | 15,238 | 13,812 | ||||||
Credit loss expense/(credit) | ||||||||||||
Loans | 728 | 657 | 522 | 195 | 1,251 | 961 | ||||||
Debt securities held to maturity | - | - | - | 14 | - | - | ||||||
Off balance sheet credit exposures | 132 | (1) | 7 | 55 | (57) | (15) | ||||||
Provision for credit losses | 860 | 656 | 529 | 264 | 1,194 | 946 | ||||||
Net interest income after provision for credit losses | 15,847 | 15,360 | 15,171 | 14,964 | 14,044 | 12,866 | ||||||
Other operating income | ||||||||||||
Gains on sale of residential mortgage loans | 146 | 92 | 132 | 141 | 59 | 82 | ||||||
Net gains/(losses) | 146 | 92 | 132 | 141 | 59 | 82 | ||||||
Other Income | ||||||||||||
Service charges on deposit accounts | 577 | 547 | 553 | 555 | 556 | 556 | ||||||
Other service charges | 214 | 206 | 211 | 236 | 225 | 215 | ||||||
Trust department | 2,386 | 2,323 | 2,323 | 2,328 | 2,255 | 2,188 | ||||||
Debit card income | 983 | 921 | 1,134 | 1,000 | 999 | 932 | ||||||
Bank owned life insurance | 348 | 341 | 345 | 340 | 334 | 326 | ||||||
Brokerage commissions | 370 | 421 | 295 | 297 | 362 | 495 | ||||||
Other | 62 | 63 | 63 | 156 | 51 | 81 | ||||||
Total other income | 4,940 | 4,822 | 4,924 | 4,912 | 4,782 | 4,793 | ||||||
Total other operating income | 5,086 | 4,914 | 5,056 | 5,053 | 4,841 | 4,875 | ||||||
Other operating expenses | ||||||||||||
Salaries and employee benefits | 7,319 | 7,331 | 6,456 | 7,160 | 7,256 | 7,157 | ||||||
FDIC premiums | 267 | 245 | 260 | 256 | 285 | 269 | ||||||
Equipment | 565 | 578 | 490 | 627 | 635 | 923 | ||||||
Occupancy | 675 | 689 | 563 | 709 | 652 | 954 | ||||||
Data processing | 1,600 | 1,503 | 1,688 | 1,333 | 1,422 | 1,318 | ||||||
Marketing | 196 | 238 | 205 | 151 | 184 | 134 | ||||||
Professional services | 589 | 476 | 536 | 477 | 449 | 486 | ||||||
Contract labor | 166 | 163 | 181 | 149 | 84 | 183 | ||||||
Telephone | 96 | 98 | 99 | 97 | 103 | 109 | ||||||
Other real estate owned | 208 | 92 | 47 | 124 | 14 | 86 | ||||||
Investor relations | 132 | 62 | 65 | 84 | 91 | 53 | ||||||
Contributions | 78 | 56 | 53 | 65 | 66 | 50 | ||||||
Other | 1,083 | 1,045 | 1,438 | 1,082 | 1,123 | 1,159 | ||||||
Total other operating expenses | 12,974 | 12,576 | 12,081 | 12,314 | 12,364 | 12,881 | ||||||
Income before income tax expense | 7,959 | 7,698 | 8,146 | 7,703 | 6,521 | 4,860 | ||||||
Provision for income tax expense | 1,975 | 1,892 | 1,960 | 1,932 | 1,607 | 1,162 | ||||||
Net Income | $ | 5,984 | $ | 5,806 | $ | 6,186 | $ | 5,771 | $ | 4,914 | $ | 3,698 |
Basic net income per common share | $ | 0.92 | $ | 0.90 | $ | 0.95 | $ | 0.89 | $ | 0.75 | $ | 0.56 |
Diluted net income per common share | $ | 0.92 | $ | 0.89 | $ | 0.95 | $ | 0.89 | $ | 0.75 | $ | 0.56 |
Weighted average number of basic shares outstanding | 6,489 | 6,474 | 6,470 | 6,468 | 6,527 | 6,642 | ||||||
Weighted average number of diluted shares outstanding | 6,506 | 6,490 | 6,484 | 6,482 | 6,537 | 6,655 | ||||||
Dividends declared per common share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 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 accelerated depreciation expenses related to the branch closures. | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
(in thousands, except for per share amount) | ||||||||||||
Net income - as reported | $ | 5,984 | $ | 4,914 | $ | 11,790 | $ | 8,612 | ||||
Adjustments: | ||||||||||||
Accelerated depreciation expenses | - | - | - | 562 | ||||||||
Income tax effect of adjustments | - | - | - | (137) | ||||||||
Adjusted net income (non-GAAP) | $ | 5,984 | $ | 4,914 | $ | 11,790 | $ | 9,037 | ||||
Diluted earnings per share - as reported | $ | 0.92 | $ | 0.75 | $ | 1.81 | $ | 1.31 | ||||
Adjustments: | ||||||||||||
Accelerated depreciation expenses | - | - | - | 0.08 | ||||||||
Income tax effect of adjustments | - | - | - | (0.02) | ||||||||
Adjusted basic and diluted earnings per share (non-GAAP) | $ | 0.92 | $ | 0.75 | $ | 1.81 | $ | 1.37 | ||||
As of or for the three months ended | As of or for the six months ended | |||||||||||
June 30, | June 30, | |||||||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||
Per Share Data | ||||||||||||
Basic net income per share - as reported | $ | 0.92 | $ | 0.75 | $ | 1.82 | $ | 1.31 | ||||
Basic net income per share - non-GAAP | 0.92 | 0.75 | 1.82 | 1.37 | ||||||||
Diluted net income per share - as reported | $ | 0.92 | $ | 0.75 | $ | 1.81 | $ | 1.31 | ||||
Diluted net income per share - non-GAAP | 0.92 | 0.75 | 1.81 | 1.37 | ||||||||
Basic book value per share | $ | 29.43 | $ | 25.39 | ||||||||
Diluted book value per share | $ | 29.38 | $ | 25.34 | ||||||||
As of or for the six months ended | ||||||||||||
Significant Ratios: | ||||||||||||
June 30, | ||||||||||||
Return on Average Assets - as reported | 1.20 % | 0.89 % | ||||||||||
Accelerated depreciation expenses | - | 0.12 % | ||||||||||
Income tax effect of adjustments | - | (0.03 %) | ||||||||||
Adjusted Return on Average Assets (non-GAAP) | 1.20 % | 0.98 % | ||||||||||
Return on Average Equity - as reported | 12.78 % | 10.48 % | ||||||||||
Accelerated depreciation expenses | - | 1.38 % | ||||||||||
Income tax effect of adjustments | - | (0.34 %) | ||||||||||
Adjusted Return on Average Equity (non-GAAP) | 12.78 % | 11.52 % | ||||||||||
(1) See reconcilation of this non-GAAP financial measure provided elsewhere herein. | ||||||||||||
Three Months Ended | |||||||||||||||||
June 30 | |||||||||||||||||
2025 | 2024 | ||||||||||||||||
(dollars in thousands) | Average | Interest | Average | Average | Interest | Average | |||||||||||
Assets | |||||||||||||||||
Loans | $ | 1,489,485 | 22,304 | 6.01 | % | $ | 1,415,353 | $ | 20,237 | 5.75 | % | ||||||
Investment Securities: | |||||||||||||||||
Taxable | 283,914 | 1,776 | 2.51 | % | 268,522 | 1,697 | 2.54 | % | |||||||||
Non taxable | 7,424 | 101 | 5.46 | % | 7,800 | 95 | 4.90 | % | |||||||||
Total | 291,338 | 1,877 | 2.58 | % | 276,322 | 1,792 | 2.61 | % | |||||||||
Federal funds sold | 50,675 | 628 | 4.97 | % | 66,658 | 1,037 | 6.26 | % | |||||||||
Interest-bearing deposits with other banks | 3,799 | 20 | 2.11 | % | 2,194 | 18 | 3.30 | % | |||||||||
Other interest earning assets | 5,815 | 96 | 6.62 | % | 3,390 | 87 | 10.32 | % | |||||||||
Total earning assets | 1,841,112 | 24,925 | 5.43 | % | 1,763,917 | 23,171 | 5.28 | % | |||||||||
Allowance for credit losses | (18,685) | (18,184) | |||||||||||||||
Non-earning assets | 175,323 | 198,749 | |||||||||||||||
Total Assets | $ | 1,997,750 | $ | 1,944,482 | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||
Deposits | |||||||||||||||||
Interest-bearing demand deposits | $ | 357,725 | $ | 1,520 | 1.70 | % | $ | 369,835 | $ | 1,495 | 1.63 | % | |||||
Interest-bearing money markets- retail | 473,262 | 3,578 | 3.03 | % | 400,747 | 3,515 | 3.53 | % | |||||||||
Interest-bearing money markets- brokered | 496 | 5 | 4.04 | % | 111 | 1 | 3.62 | % | |||||||||
Savings deposits | 168,854 | 45 | 0.11 | % | 182,988 | 46 | 0.10 | % | |||||||||
Time deposits - retail | 147,433 | 1,122 | 3.05 | % | 146,420 | 1,016 | 2.79 | % | |||||||||
Time deposits - brokered | 50,000 | 518 | 4.16 | % | 24,396 | 325 | 5.36 | % | |||||||||
Total deposits | 1,197,770 | 6,788 | 2.27 | % | 1,124,497 | 6,398 | 2.29 | % | |||||||||
Short-term borrowings | 19,811 | 21 | 0.43 | % | 71,900 | 509 | 2.85 | % | |||||||||
Long-term borrowings | 120,929 | 1,355 | 4.49 | % | 70,929 | 968 | 5.49 | % | |||||||||
Total interest-bearing liabilities | 1,338,510 | 8,164 | 2.45 | % | 1,267,326 | 7,875 | 2.50 | % | |||||||||
Non-interest-bearing deposits | 440,779 | 479,232 | |||||||||||||||
Other liabilities | 29,889 | 32,884 | |||||||||||||||
Shareholders' Equity | 188,572 | 165,040 | |||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,997,750 | $ | 1,944,482 | |||||||||||||
Net interest income and spread | $ | 16,761 | 2.98 | % | $ | 15,296 | 2.78 | % | |||||||||
Net interest margin | 3.65 | % | 3.49 | % | |||||||||||||
Six Months Ended | |||||||||||||||||
June 30, | |||||||||||||||||
2025 | 2024 | ||||||||||||||||
(dollars in thousands) | Average | Interest | Average | Average | Interest | Average | |||||||||||
Assets | |||||||||||||||||
Loans | $ | 1,486,334 | $ | 44,072 | 5.98 | % | $ | 1,411,619 | $ | 39,471 | 5.62 | % | |||||
Investment Securities: | |||||||||||||||||
Taxable | 284,612 | 3,539 | 2.51 | % | 281,524 | 3,441 | 2.46 | % | |||||||||
Non taxable | 6,977 | 182 | 5.26 | % | 7,803 | 189 | 4.87 | % | |||||||||
Total | 291,589 | 3,721 | 2.57 | % | 289,327 | 3,630 | 2.52 | % | |||||||||
Federal funds sold | 46,213 | 1,012 | 4.42 | % | 65,251 | 1,795 | 5.53 | % | |||||||||
Interest-bearing deposits with other banks | 3,174 | 35 | 2.22 | % | 1,352 | 49 | 7.29 | % | |||||||||
Other interest earning assets | 5,795 | 196 | 6.82 | % | 4,248 | 181 | 8.57 | % | |||||||||
Total earning assets | 1,833,105 | 49,036 | 5.39 | % | 1,771,797 | 45,126 | 5.12 | % | |||||||||
Allowance for loan losses | (18,550) | (17,940) | |||||||||||||||
Non-earning assets | 174,298 | 201,873 | |||||||||||||||
Total Assets | $ | 1,988,853 | $ | 1,955,730 | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||
Deposits | |||||||||||||||||
Interest-bearing demand deposits | $ | 366,170 | $ | 3,173 | 1.75 | % | $ | 361,358 | $ | 2,936 | 1.63 | % | |||||
Interest-bearing money markets- retail | 468,732 | 7,125 | 3.07 | % | 392,164 | 6,774 | 3.47 | % | |||||||||
Interest-bearing money markets- brokered | 316 | 6 | 3.83 | % | 55 | 1 | 3.66 | % | |||||||||
Savings deposits | 170,178 | 88 | 0.10 | % | 186,280 | 94 | 0.10 | % | |||||||||
Time deposits - retail | 145,984 | 2,176 | 3.01 | % | 152,049 | 2,134 | 2.82 | % | |||||||||
Time deposits - brokered | 43,059 | 903 | 4.23 | % | 27,198 | 724 | 5.35 | % | |||||||||
Total deposits | 1,194,439 | 13,471 | 2.27 | % | 1,119,104 | 12,663 | 2.28 | % | |||||||||
Short-term borrowings | 21,423 | 41 | 0.39 | % | 72,626 | 970 | 2.69 | % | |||||||||
Long-term borrowings | 120,929 | 2,698 | 4.50 | % | 86,973 | 2,327 | 5.38 | % | |||||||||
Total interest-bearing liabilities | 1,336,791 | 16,210 | 2.45 | % | 1,278,703 | 15,960 | 2.51 | % | |||||||||
Non-interest-bearing deposits | 435,362 | 478,655 | |||||||||||||||
Other liabilities | 30,682 | 33,624 | |||||||||||||||
Shareholders' Equity | 186,018 | 164,748 | |||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,988,853 | $ | 1,955,730 | |||||||||||||
Net interest income and spread | $ | 32,826 | 2.94 | % | $ | 29,166 | 2.61 | % | |||||||||
Net interest margin | 3.61 | % | 3.31 | % | |||||||||||||
SOURCE First United Corporation
