Exhibit 99.1
FIRST UNITED CORPORATION ANNOUNCES
FOURTH QUARTER 2025 FINANCIAL RESULTS
OAKLAND, MARYLAND— February 4, 2026:
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 twelve-month periods ended December 31, 2025. Generally Accepted Accounting Principles (“GAAP”)
net income was $24.5 million for the year, or $3.77 per diluted share compared to $20.6 million, or $3.15 per diluted share for the same
period of 2024. GAAP net income was $5.8 million for the fourth quarter of 2025, or $0.89 per diluted share, compared to $6.2 million,
or $0.95 per diluted share, for the fourth quarter of 2024 and $6.9 million, or $1.07 per diluted share, for the third quarter of 2025.
Non-GAAP net income, exclusive of losses on contracted sale of a retail branch office, write-downs of other real estate owned (“OREO”),
and net gains on sales of investments, was $25.8 million, or $3.97 per diluted share yielding record core earnings for the year ended
December 31, 2025. Non-GAAP net income, exclusive of accelerated depreciation of fixed assets associated with branch closures, was
$21.0 million, or $3.21 per diluted share for the year ended December 31, 2024. Non-GAAP net income was $7.2 million, or $1.10 per
diluted share, for the fourth quarter of 2025 compared to $6.2 million, or $0.95 per diluted share for the fourth quarter of 2024 and
$6.9 million, or $1.07 per diluted share, for the third quarter of 2025. GAAP Return on Average Assets and Return on Average Equity for
the year ended December 31, 2025, were 1.21% and 12.70%, respectively.
According to Carissa L. Rodeheaver, Executive
Chairman of the Board, “2025 was a truly remarkable year for First United as we celebrated our 125th anniversary—an extraordinary
milestone in our history. Throughout the year, we had the privilege of honoring the relationships we’ve built with our clients
while highlighting our ongoing commitment to future generations through trust, innovation, and meaningful community impact. In addition
to commemorating our legacy, we delivered a record year of core earnings, excluding a non-recurring markdown on a foreclosure property.
Our performance was driven by a strong net interest margin, robust loan, deposit and trust production, and our continued disciplined approach
to expense management. As we look to the future, I am pleased to recognize Jason B. Rush as First United’s newly appointed
President and Chief Executive Officer. We are confident that Jason will continue to advance our mission and uphold our uncommon commitment
to exceptional service and comprehensive financial solutions for our clients and communities.”
Fourth Quarter Financial Highlights:
| · | Net interest margin, on a non-GAAP, fully tax
equivalent (“FTE”) basis, was 3.75% for the fourth quarter of 2025, reflecting increased loan yields and stable funding costs. |
| · | Strong loan production during the quarter, with
$108.0 million in commercial loan originations and $25.3 million in residential mortgage originations, offset by unusually high payoffs
in the commercial loan portfolio. |
| · | Provision expense was $0.7 million in the fourth
quarter resulting from increased loan growth and increased off-balance sheet loan commitments, partially offset by improved qualitative
factors. |
| · | Operating income, including net gains/(losses),
for the fourth quarter decreased slightly by $0.1 million when compared to the linked quarter. |
| · | Operating expenses for the fourth quarter increased
by $1.9 million when compared to the linked quarter related to a write-down of $1.6 million on a legacy loan participation now residing
in other real estate owned (“OREO”). |
| · | A cash dividend of $0.26 per share was declared
in the fourth quarter. |
Income Statement Overview
On a GAAP basis, net income for the fourth quarter
of 2025 was $5.8 million, which was inclusive of a $1.2 million, net of tax, write-down on an OREO property and a $0.2 million, net of
tax, contracted sale of a retail branch office compared to $6.9 million, which was inclusive of $0.1 million, net of tax, in net gains
on sales of investment securities for the third quarter of 2025 and $6.2 million for the fourth quarter of 2024. The write-down was attributable
to a legacy participation loan, originated in 2013, that was taken into OREO several years ago. The property is serviced by another lender
and, following the cancellation of a previous contract, the Company made the decision, alongside other participants, to entertain a new
letter of intent and to mark the property based on the new fair value. Exclusive of these items, net income for the fourth quarter of
2025 was $7.2 million on a non-GAAP basis.
| | |
YTD
2025 | | |
YTD
2024 | | |
Q4
2025 | | |
Q3
2025 | | |
Q4
2024 | |
| Net Income, GAAP (millions) | |
$ | 24.5 | | |
$ | 20.6 | | |
$ | 5.8 | | |
$ | 6.9 | | |
$ | 6.2 | |
| Net Income, non-GAAP (millions) | |
$ | 25.8 | | |
$ | 21.0 | | |
$ | 7.2 | | |
$ | 6.8 | | |
$ | 6.2 | |
| Diluted earnings per share, GAAP | |
$ | 3.77 | | |
$ | 3.15 | | |
$ | 0.89 | | |
$ | 1.07 | | |
$ | 0.95 | |
| Diluted earnings per share, non-GAAP | |
$ | 3.97 | | |
$ | 3.21 | | |
$ | 1.11 | | |
$ | 1.06 | | |
$ | 0.95 | |
Fourth Quarter 2025 Compared to Fourth Quarter
2024
On a GAAP basis, the $0.4 million decrease in
quarterly net income when compared to the fourth quarter of 2024 was primarily driven by increases in provision expense of $0.2 million
and non-interest expense of $2.8 million, offset by a $2.3 million increase in net interest income, primarily attributable to disciplined
loan and deposit pricing and repricing of adjustable-rate loans and a $0.2 million increase in non-interest income. Interest and fees
on loans increased by $1.9 million primarily due to the repricing of adjustable-rate loans and new production booked at higher rates.
Quarterly interest expense increased slightly by $0.1 million on a year-over-year basis despite strong growth in deposits. This minimal
increase was a result of our strategic focus on reducing deposit costs along with the rate cuts by the Federal Reserve as well as reduced
interest expense of $0.3 million on long-term borrowings due to the repayment of a $25.0 million Federal Home Loan Bank (“FHLB”)
advance at its maturity in September 2025. Other operating income increased by $0.2 million primarily driven by a $0.4 million increase
in wealth management income offset by a $0.2 million increase in net losses on the contracted sale of a retail branch office. Other operating
expenses increased by $2.8 million due to a $0.7 million increase in salaries and benefit expenses, a $0.3 million increase in equipment
and occupancy expenses, a $0.2 million increase in professional services, and a $1.8 million increase in OREO expenses primarily driven
by the $1.6 million fair value write-down discussed above. These increases were partially offset by reductions in investor relations and
other miscellaneous expenses, such as miscellaneous loan fees and employee benefits expenses.
Fourth Quarter 2025 Compared to Third Quarter
2025
Compared to the linked quarter, net income decreased
by $1.2 million. Net interest income increased by $0.6 million due to an increase in interest and fees on loans of $0.2 million, an increase
in interest on Federal Funds sold of $0.2 million, and a decrease of interest expense on long-term borrowings of $0.2 million. Provision
for credit losses increased by $0.2 million due to increased loan growth and an increase in unfunded loan commitment balances quarter
over quarter. Other operating income decreased by $0.1 million as a result of increases in wealth management income of $0.2 million and
debit card income of $0.2 million, offset by a $0.2 million loss on the contracted sale of a retail branch office in the fourth quarter
of 2025 and a decrease in other income of $0.1 million. Non-interest expense increased by $1.9 million when comparing the fourth quarter
to the linked quarter and was driven by the $1.6 million write-down and related expenses of the OREO property discussed above, slight
increases in occupancy, data processing, marketing and professional services, offset by decreased salaries and benefits. Income tax expense
decreased by $0.4 million.
Year to Date 2025 Compared to Year to Date
2024
For the year ended December 31, 2025, net
income increased by $3.9 when compared to the year ended December 31, 2024. Net interest income increased by $8.1 million due to
an $8.6 million increase in interest and fees on loans resulting from loans repricing at higher rates and new loan production booked at
higher rates. Interest expense increased by only $0.7 million despite strong deposit growth, driven by a $1.7 million increase in interest
on deposits related to the strong growth in existing balances and new deposit accounts, primarily our money market product, and the purchase
of a $50.0 million brokered certificate of deposit in January 2025. Interest expense on long-term borrowings increased by $0.4 million
as a result of new borrowings late in the third quarter of 2024. These increases were partially offset by a reduction in short-term borrowing
costs of $1.4 million resulting from the repayment of $40.0 million in Bank Term Funding Program (“BTFP”) balances late in
the third quarter of 2024. Provision for credit losses decreased by $0.2 million due primarily to strong credit quality, lower charge-offs,
and lower loan growth in 2025 when compared to 2024. Other operating income increased by $0.7 million primarily due to a $0.7 million
increase in wealth management income driven by strong production. Net gains were stable year over year, as a $0.2 million increase on
gains from the sales of residential mortgages and investment securities was offset by a $0.2 million loss on the sale of a retail branch
office. These increases were partially offset by a $3.8 million increase in other operating expenses that was attributable to increases
of $1.3 million in salaries and employee benefits related to growth of our sales teams, $0.5 million in data processing expenses related
to software agreements, $0.2 million in marketing expenses related to increased awareness of our 125th Anniversary, $0.5 million
in professional services expenses from increased audit fees, and $1.9 million in net OREO expenses driven by the fair value write-down
of $1.6 million as discussed above. These increases were partially offset by a $0.5 million decrease in equipment and occupancy expenses
as a result of accelerated depreciation expense related to the closure of four branches early in 2024.
Net Interest Income and Net Interest Margin
Fourth Quarter 2025 Compared to Fourth Quarter
2024
Net interest income, on a non-GAAP, FTE basis,
increased by $2.3 million for the fourth quarter of 2025 when compared to the fourth quarter of 2024. This increase was driven by an increase
of $2.4 million in interest income due primarily to a $1.9 million increase in interest and fees on loans that resulted from an increase
of 26 basis points in the overall yield on the loan portfolio. This increase in yield was attributable to upward repricing of adjustable-rate
loans and an increase in average balances of $57.3 million. Interest income on investment securities increased by $0.2 million due to
an increase in average balances of $9.9 million and an increase in yield of 17 basis points. The increase in the investment portfolio
resulted from management’s strategic decision to reinvest cashflows in the higher rate environment to increase the yield on the
portfolio. Interest income from Federal funds sold increased by $0.3 million due to an increase of $31.3 million in average balances,
partially offset by a decrease of 30 basis points in average rates. Interest expense increased by $0.1 million when compared to the fourth
quarter of 2024. Interest expense paid on deposits increased by $0.5 million related to a $107.3 million increase in average balances
driven by growth in money market accounts and the purchase of a $50.0 million brokered certificate of deposit in January 2025, partially
offset by a decrease of 6 basis points on the rate paid. Interest paid on long-term borrowings decreased by $0.3 million when compared
to the fourth quarter of 2024 due to a $25.0 million decrease in average balances related to the repayment of a $25.0 million FHLB advance
at its maturity in the third quarter of 2025 and a decrease of 4 basis points on rates paid.
Fourth Quarter 2025 Compared to Third Quarter
2025
Comparing the fourth quarter of 2025 to the third
quarter of 2025, net interest income, on a non-GAAP, FTE basis, increased by $0.6 million. This increase was driven by a $0.4 million
increase in interest income as a result of an increase in interest and fees on loans of $0.2 million, as average loan balances increased
by $7.8 million and average yield increased by 1 basis point. Interest income from Federal funds sold increased by $0.2 million due to
an increase of $17.1 million in average balances and an increase of 21 basis points in average rates. Cash balances increased during the
quarter due to repayment of loans late in the year and loan closings that were anticipated to occur in the fourth quarter of 2025 but
were delayed until the first quarter of 2026. Interest expense decreased by $0.2 million when compared to the third quarter of 2025. Interest
expense paid on deposits was stable as a $38.1 million increase in average balances was partially offset by a decrease of 6 basis points
on the rate paid. Interest paid on long-term borrowings decreased by $0.2 million when compared to the third quarter of 2025 due to a
$21.7 million decrease in average balances related to the repayment of a $25.0 million FHLB advance at its maturity late in the third
quarter, partially offset by an increase of 8 basis points on rates paid.
Year to Date 2025 Compared to Year to Date
2024
Comparing the year ended December 31, 2025,
to the year ended December 31, 2024, net interest income, on a non-GAAP, FTE basis, increased by $8.1 million. Interest income increased
by $8.8 million driven by an increase of $8.6 million on interest and fees on loans, as average loan balances increased by $68.8 million
and the overall yield increased by 31 basis points in correlation with upward repricing of adjustable-rate loans. Interest income on the
investment portfolio increased by $0.5 million as a result of reinvesting the cashflow back into the portfolio in an effort to increase
the overall yield in the current rate environment. The overall yield on the investment portfolio increased 17 basis points. Interest expense
increased by $0.7 million as a result of a $1.7 million increase in interest on deposits, as the average deposit balances increased by
$90.0 million, driven by a $70.9 million increase in retail money market average balances and $30.9 million increase in average brokered
time deposits, partially offset by decreases in average savings balances of $14.8 million. The overall rate paid on deposits decreased
3 basis points. Interest expense on short-term borrowings decreased by $1.4 million due to the Bank’s utilization of the BTFP program
in 2024 and subsequent repayment of the balances due under that program late in the third quarter of 2024. Long-term borrowing costs increased
by $0.4 million as a result of an increase of $21.6 million in FHLB average balances due to borrowings obtained in the third quarter of
2024 and subsequent repayment of a $25.0 million advance at its maturity in September 2025, partially offset by a decrease in rate
paid of 60 basis points. The net interest margin was 3.67% and 3.38% for the years ending December 31, 2025, and 2024, respectively.
Management continues to place a strong focus on margin management as we move into 2026. Higher cash levels at December 31, 2025,
should allow us to repay outstanding debt and brokered deposits at their maturities. In January 2026, a $25.0 million brokered certificate
of deposit was repaid at its maturity.
Non-Interest Income
Fourth Quarter 2025 Compared to Fourth Quarter
2024
Other operating income, including net gains, for
the fourth quarter of 2025 increased by $0.2 million when compared to the same period of 2024. This increase was driven by a $0.4 million
increase in wealth management income, reflecting higher market valuations and expanded relationships with both new and existing clients.
This was partially offset by a $0.2 million increase in net losses related to the sale of a retail branch office due to the relocation
to a more convenient site in Morgantown, WV, to better serve our customers.
Fourth Quarter 2025 Compared to Third Quarter
2025
On a linked quarter basis, other operating income,
including net gains, decreased by $0.1 million. A $0.2 million loss on the sale of the retail branch office was recognized in the fourth
quarter of 2025, and net gains on sales of investment securities decreased by $0.1 million due to a gain on sales of available-for-sale
securities recognized in the third quarter of 2025. Wealth management income increased by $0.2 million and debit card income increased
by $0.2 million due primarily to the receipt of an annual VISA cash incentive in the fourth quarter of 2025.
Year to Date 2025 Compared to Year to Date
2024
Other operating income for the year ended December 31,
2025 increased by $0.7 million when compared to the same period of 2024. This increase was attributable to a $0.7 million increase in
wealth management income, driven by improving market conditions, increased annuity sales, and growth in new and existing customer relationships.
Net gains were stable year over year, as a $0.2 million increase in gains from the sales of residential mortgages and investment securities
was offset by a $0.2 million loss on the sale of a retail office. Service charge and debit card income were both stable when comparing
the year ended December 31, 2025 to the same period of 2024.
Non-Interest Expense
Fourth Quarter 2025 Compared to Fourth Quarter
2024
Operating expenses increased by $2.8 million in
the fourth quarter of 2025 when compared to the fourth quarter of 2024. Net OREO expenses increased by $1.8 million as a result of the
$1.6 million fair value write-down discussed above and an additional expense of $0.2 million associated with the same OREO property in
2025. Salaries and employee benefits increased by $0.6 million due to a $0.4 million increase in salary expense related to normal merit
increases effective April 1, 2025 and increased staffing levels, as we enhanced our sales presence in Morgantown, WV, and a $0.1
million increase in incentive expense, partially offset by decreases in employee life and health insurance expense due to decreased claims.
Additionally, occupancy and equipment expenses increased by $0.3 million and professional services increased by $0.2 million.
Fourth Quarter 2025 Compared to Third Quarter
2025
Compared to the linked quarter, operating expenses
increased by $1.9 million. Net OREO expenses increased by $1.8 million related to the $1.6 million fair value write-down and an additional
expense of $0.2 million associated with the same OREO property in the fourth quarter. Equipment and occupancy expense increased by $0.2
million. These increases were partially offset by a $0.5 reduction in salaries and employee benefits due primarily to reduced incentive
expense and reduced health insurance costs on account of decreased claims.
Year to Date 2025 Compared to Year to Date
2024
For the year ended December 31, 2025, non-interest
expense increased by $3.8 million when compared to the year ended December 31, 2024. Salaries and employee benefits increased by
$1.3 million related to normal merit increases effective April 1, 2025, increased salary expense as a result of increased staffing
levels as we enhanced our sales presence in Morgantown, WV, increases in incentives, and 401(k) expenses, offset by reduced life
and health insurance costs related to reduced claims in 2025. Net OREO expenses increased by $2.0 million due to the previously mentioned
fair value write-down and expenses recorded in the fourth quarter of 2025. Data processing expenses increased by $0.5 million due primarily
to increased software agreements, and professional services expenses increased by $0.5 million driven by increased audit fees. These increases
were partially offset by a $0.5 million decrease in occupancy and equipment expenses related to accelerated depreciation expense related
to branch closures that were recognized in the first quarter of 2024.
The effective income tax rates as a percentage
of income for the years ended December 31, 2025 and December 31, 2024 remained stable at 24.6% and 24.5%, respectively.
Balance Sheet Overview
Total assets at December 31, 2025 were $2.1
billion, representing a $114.4 million increase since December 31, 2024. During the year, the investment portfolio increased by $9.5
million as bonds were purchased to lock in yield in anticipation of potential declines in long-term rates. Gross loans increased by $40.9
million as new production during the year was mitigated by amortization and unusually high payoffs in the commercial portfolio. These
payoffs were a result of sales of businesses of approximately $10.5 million and approximately $33.5 million related to refinancings and
balance sheet restructurings. Other assets, including deferred taxes, premises and equipment, bank owned life insurance, pension assets,
accrued trust income receivable, and accrued interest receivable, increased by $13.6 million.
Total liabilities at December 31, 2025 were
$1.9 billion, representing a $90.1 million increase since December 31, 2024. Total deposits increased by $160.3 million when compared
to December 31, 2024. Brokered time deposits increased by $50.0 million as new brokered time deposits were obtained in January 2025
to fund the repayment of the $50.0 million in overnight borrowings outstanding at December 31, 2024. In addition, savings and money
market accounts increased by $70.2 million, retail time deposits increased by $7.8 million, and non-interest-bearing deposits increased
by $26.3 million. Interest-bearing demand deposits, primarily our IntraFi Cash Service product, increased by $6.0 million due primarily
to seasonal fluctuations in municipal deposit accounts. Short-term borrowings decreased by $47.7 million due to the purchase of the brokered
time deposit mentioned above, which was partially offset by increases in the overnight investment sweep product. Long-term borrowings
decreased by $25.0 million due to the full repayment of a matured $25.0 million FHLB borrowing in September 2025.
Outstanding loans of $1.5 billion at December 31,
2025 reflected a $40.9 million increase since December 31, 2024.
Loan Type
(in
millions) | |
Change since
September 30, 2025 | | |
Change since
December 31, 2024 | |
| Commercial | |
$ | 10.6 | | |
$ | 28.9 | |
| Residential Mortgages | |
$ | 15.6 | | |
$ | 18.1 | |
| Consumer | |
$ | (1.3 | ) | |
$ | (6.1 | ) |
| Gross Loans | |
$ | (24.9 | ) | |
$ | 40.9 | |
Since December 31, 2024, commercial real
estate loans increased by $44.4 million, acquisition and development loans decreased by $5.0 million as construction projects were completed
and rolled into permanent financing, commercial and industrial loans decreased by $10.5 million, residential mortgage loans increased
by $18.1 million, and consumer loans decreased by $6.1 million as production continued to be outpaced by amortization. Commercial growth
was offset during 2025 by unusually high payoffs as a result of clients utilizing cash to repay or consolidate debt.
New commercial loan production for the fourth
quarter of 2025 was approximately $108.0 million. Commercial production for the year ended December 31, 2025 was approximately
$247.0 million, which compares to $189.5 million for the year ended December 31, 2024. The commercial pipeline continued to be strong
at December 31, 2025 at $61.0 million, and unfunded, commercial construction loans totaled approximately $46.5 million. Commercial
amortization and payoffs were approximately $79.1 million for the three months ended December 31, 2025.
New consumer mortgage loan production for the
fourth quarter of 2025 was approximately $25.3 million, most of which was comprised of in-house mortgages booked to our portfolio.
The pipeline of in-house, portfolio loans at December 31, 2025 was $4.5 million. Unfunded commitments related to residential construction
loans totaled $15.3 million at December 31, 2025.
Total deposits at December 31, 2025 increased
by $160.3 million when compared to December 31, 2024.
Deposit Type
(in
millions) | |
Change since
September 30, 2025 | | |
Change since
December 31, 2024 | |
| Non-Interest-Bearing | |
$ | 23.1 | | |
$ | 26.3 | |
| Interest-Bearing Demand | |
$ | 6.8 | | |
$ | 6.0 | |
| Savings and Money Market | |
$ | 28.2 | | |
$ | 70.2 | |
| Time Deposits- Retail | |
$ | (1.9 | ) | |
$ | 7.8 | |
| Time Deposits- Brokered | |
$ | 0.0 | | |
$ | 50.0 | |
| Total Deposits | |
$ | 56.2 | | |
$ | 160.3 | |
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 on December 31, 2024. Savings and money market accounts increased by $70.2 million due primarily to the expansion
of current and new relationships throughout 2025. Non-interest-bearing checking deposits increased by $26.3 million due primarily to seasonal
fluctuations of deposit balances of two commercial customers in the healthcare sector, and interest-bearing checking deposits increased
by $6.0 million as we experienced seasonal fluctuations in municipal and commercial account balances. Retail time deposits increased by
$7.8 million since December 31, 2024. Subsequently in January 2026, a $25.0 million brokered certificate of deposit was fully
repaid at its maturity.
The book value of the Corporation’s common
stock was $31.33 per share at December 31, 2025 compared to $27.71 per share at December 31, 2024. At December 31, 2025,
there were 6,499,476 basic outstanding shares of common stock and 6,511,358 diluted outstanding shares of common stock. The increase in
the book value at December 31, 2025 was primarily due to the undistributed net income of $18.3 million. The Board of Directors of
the Corporation increased the quarterly dividend to $0.26 per share in the third quarter of 2025.
Asset Quality
The allowance for credit losses (“ACL”)
was $19.5 million at December 31, 2025 compared to $18.2 million at December 31, 2024. The provision for credit losses was $0.7
million for the quarter ended December 31, 2025 compared to $0.5 million for both of the quarters ended December 31, 2024 and
September 30, 2025. Provision for credit losses was $2.7 million for the year ended December 31, 2025 and $2.9 million for the
year ended December 31, 2024. The decreased provision expense in 2025 was primarily related to charge-offs in our commercial and
consumer loan portfolios during 2024, partially offset by growth in our loan portfolio and an increase of $18.7 million in unfunded loan
commitments during 2025. Asset quality remained strong during the fourth quarter of 2025. The ratio of the ACL to loans outstanding remained
stable at 1.28% at both December 31, 2025 and September 30, 2025 and 1.23% at December 31, 2024.
The ratio of net charge offs to average loans
was 0.07% for the year ended December 31, 2025 and 0.16% for the year ended December 31, 2024. The commercial and industrial
portfolio had net charge offs of 0.33% and 0.50% for the years ended December 31, 2025 and 2024, respectively, due primarily to charge
offs on one non-accrual commercial relationship. The acquisition and development portfolio had net recoveries of 0.33% and 0.06% for the
years ended December 31, 2025 and 2024, respectively. This shift was due primarily to recoveries recognized in 2025 related to one
relationship previously charged off in 2016 as additional collateral was brought into OREO in the third quarter of 2025. The decrease
in net charge offs in consumer loans in 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
| | |
12/31/2025 | | |
12/31/2024 | |
| Loan Type | |
(Charge Off) / Recovery | | |
(Charge Off) / Recovery | |
| Commercial Real Estate | |
| 0.00 | % | |
| 0.02 | % |
| Acquisition & Development | |
| 0.33 | % | |
| 0.06 | % |
| Commercial & Industrial | |
| (0.33 | )% | |
| (0.50 | )% |
| Residential Mortgage | |
| 0.00 | % | |
| 0.01 | % |
| Consumer | |
| (0.88 | )% | |
| (1.76 | )% |
| Total Net (Charge Offs)/Recoveries | |
| (0.07 | )% | |
| (0.16 | )% |
Non-accrual loans totaled $4.2 million at December 31,
2025 compared to $4.9 million at December 31, 2024. The decrease in non-accrual balances at December 31, 2025 was due to principal
paydowns and the charge-off of $0.6 million related to a non-accrual commercial and industrial relationship that was recorded during the
second half of 2025.
Non-accrual loans that have been subject to partial
charge-offs totaled $0.2 million and $0.7 million at December 31, 2025 and December 31, 2024, respectively. Loans secured
by 1-4 family residential real estate properties in the process of foreclosure totaled $0.5 million and $1.6 million at December 31,
2025 and December 31, 2024, respectively. As a percentage of the loan portfolio, accruing loans past due 30 days or more were 0.32%
at both December 31, 2025 and 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 one subsidiary that it uses to hold real estate acquired through foreclosure or by deed in lieu of foreclosure
– First OREO Trust, a Maryland statutory trust. 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 and Mineral County,
West Virginia. 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, 2025 and the impact that any such events have on our critical accounting assumptions and estimates
made as of December 31, 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
| | |
Three Months Ended | | |
Twelve
Months Ended | |
| | |
December 31, | | |
December 31, | | |
December 31, | | |
December 31, | |
| (Dollars
in thousands, except per share data) | |
2025 | | |
2024 | | |
2025 | | |
2024 | |
| Results of Operations: | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
$ | 26,153 | | |
$ | 23,725 | | |
$ | 100,848 | | |
$ | 91,993 | |
| Interest expense | |
| 8,166 | | |
| 8,025 | | |
| 32,735 | | |
| 32,015 | |
| Net interest income | |
| 17,987 | | |
| 15,700 | | |
| 68,113 | | |
| 59,978 | |
| Provision for credit losses | |
| 717 | | |
| 529 | | |
| 2,743 | | |
| 2,933 | |
| Other operating income | |
| 5,330 | | |
| 4,924 | | |
| 20,166 | | |
| 19,411 | |
| Net (losses)/gains | |
| (97 | ) | |
| 132 | | |
| 402 | | |
| 414 | |
| Other operating expense | |
| 14,869 | | |
| 12,081 | | |
| 53,405 | | |
| 49,640 | |
| Income before taxes | |
$ | 7,634 | | |
$ | 8,146 | | |
$ | 32,533 | | |
$ | 27,230 | |
| Income tax expense | |
| 1,857 | | |
| 1,960 | | |
| 8,018 | | |
| 6,661 | |
| Net income | |
$ | 5,777 | | |
$ | 6,186 | | |
$ | 24,515 | | |
$ | 20,569 | |
| | |
| | | |
| | | |
| | | |
| | |
| Per share data: | |
| | | |
| | | |
| | | |
| | |
| Basic net income per share | |
$ | 0.89 | | |
$ | 0.95 | | |
$ | 3.78 | | |
$ | 3.15 | |
| Diluted net income per share | |
$ | 0.89 | | |
$ | 0.95 | | |
$ | 3.77 | | |
$ | 3.15 | |
| Adjusted Basic net income (1) | |
$ | 1.10 | | |
$ | 0.95 | | |
$ | 3.98 | | |
$ | 3.21 | |
| Adjusted Diluted net income (1) | |
$ | 1.10 | | |
$ | 0.95 | | |
$ | 3.97 | | |
$ | 3.21 | |
| Dividends declared per share | |
$ | 0.26 | | |
$ | 0.22 | | |
$ | 0.96 | | |
$ | 0.84 | |
| Book value | |
$ | 31.33 | | |
$ | 27.71 | | |
| | | |
| | |
| Diluted book value | |
$ | 31.27 | | |
$ | 27.65 | | |
| | | |
| | |
| Tangible book value per share | |
$ | 29.56 | | |
$ | 25.89 | | |
| | | |
| | |
| Diluted Tangible book value per share | |
$ | 29.50 | | |
$ | 25.83 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Closing market value | |
$ | 37.19 | | |
$ | 33.71 | | |
| | | |
| | |
| Market Range: | |
| | | |
| | | |
| | | |
| | |
| High | |
$ | 40.79 | | |
$ | 36.17 | | |
| | | |
| | |
| Low | |
$ | 33.63 | | |
$ | 29.63 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Shares outstanding at period end: Basic | |
| 6,499,476 | | |
| 6,471,096 | | |
| | | |
| | |
| Shares outstanding at period end: Diluted | |
| 6,511,358 | | |
| 6,485,119 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Performance ratios: (Year to Date Period End) | |
| | | |
| | | |
| | | |
| | |
| Return on average assets | |
| 1.21 | % | |
| 1.06 | % | |
| | | |
| | |
| Adjusted return on average assets | |
| 1.28 | % | |
| 1.08 | % | |
| | | |
| | |
| Return on average shareholders’ equity | |
| 12.70 | % | |
| 12.16 | % | |
| | | |
| | |
| Adjusted return on average shareholders’ equity | |
| 13.39 | % | |
| 12.42 | % | |
| | | |
| | |
| Net interest margin (Non-GAAP), includes tax exempt income of $218 and $229 | |
| 3.67 | % | |
| 3.38 | % | |
| | | |
| | |
| Net interest margin GAAP | |
| 3.66 | % | |
| 3.36 | % | |
| | | |
| | |
| Efficiency ratio - non-GAAP (1) | |
| 58.19 | % | |
| 61.31 | % | |
| | | |
| | |
(1) Efficiency ratio is a non-GAAP measure calculated by dividing total operating expenses less write downs of OREO properties by
the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities, gains/(losses) on
disposals or accelerated depreciation of fixed assets.
| | |
December 31, | | |
December 31 | |
|
|
|
|
|
|
|
|
| | |
2025 | | |
2024 | |
|
|
|
|
|
|
|
|
| Financial Condition at period end: | |
| | | |
| | |
|
|
|
|
|
|
|
|
| Assets | |
$ | 2,087,453 | | |
$ | 1,973,022 | |
|
|
|
|
|
|
|
|
| Earning assets | |
$ | 1,807,780 | | |
$ | 1,758,665 | |
|
|
|
|
|
|
|
|
| Gross loans | |
$ | 1,521,704 | | |
$ | 1,480,793 | |
|
|
|
|
|
|
|
|
| Commercial Real Estate | |
$ | 570,808 | | |
$ | 526,364 | |
|
|
|
|
|
|
|
|
| Acquisition and Development | |
$ | 90,272 | | |
$ | 95,314 | |
|
|
|
|
|
|
|
|
| Commercial and Industrial | |
$ | 277,034 | | |
$ | 287,534 | |
|
|
|
|
|
|
|
|
| Residential Mortgage | |
$ | 536,912 | | |
$ | 518,815 | |
|
|
|
|
|
|
|
|
| Consumer | |
$ | 46,678 | | |
$ | 52,766 | |
|
|
|
|
|
|
|
|
| Investment securities | |
$ | 279,534 | | |
$ | 269,991 | |
|
|
|
|
|
|
|
|
| Total deposits | |
$ | 1,735,149 | | |
$ | 1,574,829 | |
|
|
|
|
|
|
|
|
| Noninterest bearing | |
$ | 453,036 | | |
$ | 426,737 | |
|
|
|
|
|
|
|
|
| Interest bearing | |
$ | 1,282,113 | | |
$ | 1,148,092 | |
|
|
|
|
|
|
|
|
| Shareholders’ equity | |
$ | 203,634 | | |
$ | 179,295 | |
|
|
|
|
|
|
|
|
| | |
| | | |
| | |
|
|
|
|
|
|
|
|
| Capital ratios: | |
| | | |
| | |
|
|
|
|
|
|
|
|
| | |
| | | |
| | |
|
|
|
|
|
|
|
|
| Tier 1 to risk weighted assets | |
| 15.36 | % | |
| 14.70 | % |
|
|
|
|
|
|
|
|
| Common Equity Tier 1 to risk weighted assets | |
| 13.52 | % | |
| 12.79 | % |
|
|
|
|
|
|
|
|
| Tier 1 Leverage | |
| 12.21 | % | |
| 11.88 | % |
|
|
|
|
|
|
|
|
| Total risk based capital | |
| 16.61 | % | |
| 15.92 | % |
|
|
|
|
|
|
|
|
| | |
| | | |
| | |
|
|
|
|
|
|
|
|
| Asset quality: | |
| | | |
| | |
|
|
|
|
|
|
|
|
| | |
| | | |
| | |
|
|
|
|
|
|
|
|
| Net charge-offs for the quarter | |
$ | (99 | ) | |
$ | (362 | ) |
|
|
|
|
|
|
|
|
| Nonperforming assets: (Period End) | |
| | | |
| | |
|
|
|
|
|
|
|
|
| Nonaccrual loans | |
$ | 4,192 | | |
$ | 4,931 | |
|
|
|
|
|
|
|
|
| Loans 90 days past due and accruing | |
| 477 | | |
| 918 | |
|
|
|
|
|
|
|
|
| Total nonperforming loans and 90 day past due | |
$ | 4,669 | | |
$ | 5,849 | |
|
|
|
|
|
|
|
|
| | |
| | | |
| | |
|
|
|
|
|
|
|
|
| Other real estate owned | |
$ | 1,083 | | |
$ | 3,062 | |
|
|
|
|
|
|
|
|
| Other repossessed assets | |
$ | 2,802 | | |
$ | 2,802 | |
|
|
|
|
|
|
|
|
| Modified loans | |
$ | 1,209 | | |
$ | 1,006 | |
|
|
|
|
|
|
|
|
| | |
| | | |
| | |
|
|
|
|
|
|
|
|
| Allowance for credit losses to gross loans | |
| 1.28 | % | |
| 1.23 | % |
|
|
|
|
|
|
|
|
| Allowance for credit losses to non-accrual loans | |
| 464.46 | % | |
| 368.49 | % |
|
|
|
|
|
|
|
|
| Allowance for credit losses to non-performing assets | |
| 227.61 | % | |
| 155.13 | % |
|
|
|
|
|
|
|
|
| Non-performing loans and 90 day past due loans to total loans | |
| 0.31 | % | |
| 0.39 | % |
|
|
|
|
|
|
|
|
| Non-performing loans and 90 day past due loans to total assets | |
| 0.22 | % | |
| 0.30 | % |
|
|
|
|
|
|
|
|
| Non-accrual loans to total loans | |
| 0.28 | % | |
| 0.33 | % |
|
|
|
|
|
|
|
|
| Non-performing assets to total assets | |
| 0.41 | % | |
| 0.59 | % |
|
|
|
|
|
|
|
|
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) | |
2025 | | |
2025 | | |
2025 | | |
2025 | | |
2024 | | |
2024 | | |
2024 | | |
2024 | |
| Results of Operations: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
$ | 26,153 | | |
$ | 25,762 | | |
$ | 24,871 | | |
$ | 24,062 | | |
$ | 23,725 | | |
$ | 23,257 | | |
$ | 23,113 | | |
$ | 21,898 | |
| Interest
expense | |
| 8,166 | | |
| 8,359 | | |
| 8,164 | | |
| 8,046 | | |
| 8,025 | | |
| 8,029 | | |
| 7,875 | | |
| 8,086 | |
| Net interest income | |
| 17,987 | | |
| 17,403 | | |
| 16,707 | | |
| 16,016 | | |
| 15,700 | | |
| 15,228 | | |
| 15,238 | | |
| 13,812 | |
| Provision for credit losses | |
| 717 | | |
| 510 | | |
| 860 | | |
| 656 | | |
| 529 | | |
| 264 | | |
| 1,194 | | |
| 946 | |
| Other operating income | |
| 5,330 | | |
| 5,074 | | |
| 4,940 | | |
| 4,822 | | |
| 4,924 | | |
| 4,912 | | |
| 4,782 | | |
| 4,793 | |
| Net (losses)/gains | |
| (97 | ) | |
| 261 | | |
| 146 | | |
| 92 | | |
| 132 | | |
| 141 | | |
| 59 | | |
| 82 | |
| Other operating
expense | |
| 14,869 | | |
| 12,986 | | |
| 12,974 | | |
| 12,576 | | |
| 12,081 | | |
| 12,314 | | |
| 12,364 | | |
| 12,881 | |
| Income before taxes | |
$ | 7,634 | | |
$ | 9,242 | | |
$ | 7,959 | | |
$ | 7,698 | | |
$ | 8,146 | | |
$ | 7,703 | | |
$ | 6,521 | | |
$ | 4,860 | |
| Income tax
expense | |
| 1,857 | | |
| 2,294 | | |
| 1,975 | | |
| 1,892 | | |
| 1,960 | | |
| 1,932 | | |
| 1,607 | | |
| 1,162 | |
| Net income | |
$ | 5,777 | | |
$ | 6,948 | | |
$ | 5,984 | | |
$ | 5,806 | | |
$ | 6,186 | | |
$ | 5,771 | | |
$ | 4,914 | | |
$ | 3,698 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Per share data: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic net income per share | |
$ | 0.89 | | |
$ | 1.07 | | |
$ | 0.92 | | |
$ | 0.90 | | |
$ | 0.95 | | |
$ | 0.89 | | |
$ | 0.75 | | |
$ | 0.56 | |
| Diluted net income per share | |
$ | 0.89 | | |
$ | 1.07 | | |
$ | 0.92 | | |
$ | 0.89 | | |
$ | 0.95 | | |
$ | 0.89 | | |
$ | 0.75 | | |
$ | 0.56 | |
| Adjusted basic net income (1) | |
$ | 1.10 | | |
$ | 1.07 | | |
$ | 0.92 | | |
$ | 0.90 | | |
$ | 0.95 | | |
$ | 0.89 | | |
$ | 0.75 | | |
$ | 0.62 | |
| Adjusted diluted net income (1) | |
$ | 1.10 | | |
$ | 1.07 | | |
$ | 0.92 | | |
$ | 0.89 | | |
$ | 0.95 | | |
$ | 0.89 | | |
$ | 0.75 | | |
$ | 0.62 | |
| Dividends declared per share | |
$ | 0.26 | | |
$ | 0.26 | | |
$ | 0.22 | | |
$ | 0.22 | | |
$ | 0.22 | | |
$ | 0.22 | | |
$ | 0.22 | | |
$ | 0.20 | |
| Book value | |
$ | 31.33 | | |
$ | 30.65 | | |
$ | 29.43 | | |
$ | 28.35 | | |
$ | 27.71 | | |
$ | 26.90 | | |
$ | 25.39 | | |
$ | 24.89 | |
| Diluted book value | |
$ | 31.27 | | |
$ | 30.59 | | |
$ | 29.38 | | |
$ | 28.27 | | |
$ | 27.65 | | |
$ | 26.84 | | |
$ | 25.34 | | |
$ | 24.86 | |
| Tangible book value per share | |
$ | 29.56 | | |
$ | 28.87 | | |
$ | 27.64 | | |
$ | 26.55 | | |
$ | 25.89 | | |
$ | 25.06 | | |
$ | 23.55 | | |
$ | 23.08 | |
| Diluted Tangible book value per share | |
$ | 29.50 | | |
$ | 28.82 | | |
$ | 27.59 | | |
$ | 26.47 | | |
$ | 25.83 | | |
$ | 25.01 | | |
$ | 23.49 | | |
$ | 23.05 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Closing market value | |
$ | 37.19 | | |
$ | 36.77 | | |
$ | 31.01 | | |
$ | 30.02 | | |
$ | 33.71 | | |
$ | 29.84 | | |
$ | 20.42 | | |
$ | 22.91 | |
| Market Range: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| High | |
$ | 40.79 | | |
$ | 38.41 | | |
$ | 32.09 | | |
$ | 41.61 | | |
$ | 36.17 | | |
$ | 30.77 | | |
$ | 22.88 | | |
$ | 23.85 | |
| Low | |
$ | 33.63 | | |
$ | 32.02 | | |
$ | 25.90 | | |
$ | 29.38 | | |
$ | 29.63 | | |
$ | 20.40 | | |
$ | 19.40 | | |
$ | 21.21 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Shares outstanding at period
end: Basic | |
| 6,499,476 | | |
| 6,496,908 | | |
| 6,494,611 | | |
| 6,478,634 | | |
| 6,471,096 | | |
| 6,468,625 | | |
| 6,465,601 | | |
| 6,648,645 | |
| Shares outstanding at period
end: Diluted | |
| 6,511,358 | | |
| 6,508,790 | | |
| 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 | |
| 1.21 | % | |
| 1.24 | % | |
| 1.20 | % | |
| 1.19 | % | |
| 1.06 | % | |
| 0.99 | % | |
| 0.89 | % | |
| 0.76 | % |
| Adjusted return on average assets
(1) | |
| 1.28 | % | |
| 1.24 | % | |
| 1.20 | % | |
| 1.19 | % | |
| 1.08 | % | |
| 1.01 | % | |
| 0.98 | % | |
| 0.85 | % |
| Return on average shareholders’
equity | |
| 12.70 | % | |
| 13.23 | % | |
| 12.78 | % | |
| 12.83 | % | |
| 12.16 | % | |
| 11.52 | % | |
| 10.48 | % | |
| 9.07 | % |
| Adjusted return on average shareholders’
equity (1) | |
| 13.39 | % | |
| 13.23 | % | |
| 12.78 | % | |
| 12.83 | % | |
| 12.42 | % | |
| 11.78 | % | |
| 11.52 | % | |
| 10.11 | % |
| Net interest margin (Non-GAAP),
includes tax exempt income of $218 and $229 | |
| 3.67 | % | |
| 3.64 | % | |
| 3.61 | % | |
| 3.56 | % | |
| 3.38 | % | |
| 3.34 | % | |
| 3.31 | % | |
| 3.12 | % |
| Net interest margin GAAP | |
| 3.66 | % | |
| 3.63 | % | |
| 3.60 | % | |
| 3.55 | % | |
| 3.36 | % | |
| 3.32 | % | |
| 3.29 | % | |
| 3.10 | % |
| Efficiency ratio - non-GAAP (1) | |
| 58.19 | % | |
| 58.73 | % | |
| 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 less write downs of OREO properties by
the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities, gains/(losses) on
disposals or accelerated depreciation of fixed assets.
| | |
December 31, | | |
September 30, | | |
June 30, | | |
March 31, | | |
December 31, | | |
September 30, | | |
June 30, | | |
March 31, | |
| | |
2025 | | |
2025 | | |
2025 | | |
2025 | | |
2024 | | |
2024 | | |
2024 | | |
2024 | |
| Financial Condition at period
end: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Assets | |
$ | 2,087,453 | | |
$ | 2,023,974 | | |
$ | 2,007,471 | | |
$ | 1,979,753 | | |
$ | 1,973,022 | | |
$ | 1,916,126 | | |
$ | 1,868,599 | | |
$ | 1,912,953 | |
| Earning assets | |
$ | 1,807,780 | | |
$ | 1,784,056 | | |
$ | 1,789,747 | | |
$ | 1,762,891 | | |
$ | 1,758,665 | | |
$ | 1,722,346 | | |
$ | 1,695,425 | | |
$ | 1,695,962 | |
| Gross loans | |
$ | 1,521,704 | | |
$ | 1,496,762 | | |
$ | 1,502,481 | | |
$ | 1,479,869 | | |
$ | 1,480,793 | | |
$ | 1,447,883 | | |
$ | 1,422,975 | | |
$ | 1,412,327 | |
| Commercial Real Estate | |
$ | 570,808 | | |
$ | 554,418 | | |
$ | 550,717 | | |
$ | 532,764 | | |
$ | 526,364 | | |
$ | 502,828 | | |
$ | 506,273 | | |
$ | 492,819 | |
| Acquisition and Development | |
$ | 90,272 | | |
$ | 93,968 | | |
$ | 98,937 | | |
$ | 94,063 | | |
$ | 95,314 | | |
$ | 92,909 | | |
$ | 88,215 | | |
$ | 83,424 | |
| Commercial and Industrial | |
$ | 277,034 | | |
$ | 279,079 | | |
$ | 281,484 | | |
$ | 282,370 | | |
$ | 287,534 | | |
$ | 277,994 | | |
$ | 260,168 | | |
$ | 274,722 | |
| Residential Mortgage | |
$ | 536,912 | | |
$ | 521,317 | | |
$ | 521,968 | | |
$ | 520,072 | | |
$ | 518,815 | | |
$ | 519,168 | | |
$ | 511,354 | | |
$ | 501,990 | |
| Consumer | |
$ | 46,678 | | |
$ | 47,980 | | |
$ | 49,375 | | |
$ | 50,600 | | |
$ | 52,766 | | |
$ | 54,984 | | |
$ | 56,965 | | |
$ | 59,372 | |
| Investment securities | |
$ | 279,534 | | |
$ | 278,898 | | |
$ | 279,541 | | |
$ | 275,143 | | |
$ | 269,991 | | |
$ | 267,214 | | |
$ | 267,151 | | |
$ | 278,716 | |
| Total deposits | |
$ | 1,735,149 | | |
$ | 1,678,902 | | |
$ | 1,614,207 | | |
$ | 1,623,574 | | |
$ | 1,574,829 | | |
$ | 1,540,395 | | |
$ | 1,537,071 | | |
$ | 1,563,453 | |
| Noninterest bearing | |
$ | 453,036 | | |
$ | 429,986 | | |
$ | 425,784 | | |
$ | 422,415 | | |
$ | 426,737 | | |
$ | 419,437 | | |
$ | 423,970 | | |
$ | 422,759 | |
| Interest bearing | |
$ | 1,282,113 | | |
$ | 1,248,916 | | |
$ | 1,188,423 | | |
$ | 1,201,159 | | |
$ | 1,148,092 | | |
$ | 1,120,958 | | |
$ | 1,113,101 | | |
$ | 1,140,694 | |
| Shareholders’ equity | |
$ | 203,634 | | |
$ | 199,099 | | |
$ | 191,147 | | |
$ | 183,694 | | |
$ | 179,295 | | |
$ | 173,979 | | |
$ | 164,177 | | |
$ | 165,481 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Capital ratios: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Tier 1 to risk weighted assets | |
| 15.36 | % | |
| 15.59 | % | |
| 15.22 | % | |
| 14.87 | % | |
| 14.70 | % | |
| 14.61 | % | |
| 14.51 | % | |
| 14.58 | % |
| Common Equity Tier 1 to risk
weighted assets | |
| 13.52 | % | |
| 13.68 | % | |
| 13.32 | % | |
| 12.97 | % | |
| 12.79 | % | |
| 12.66 | % | |
| 12.54 | % | |
| 12.60 | % |
| Tier 1 Leverage | |
| 12.21 | % | |
| 12.10 | % | |
| 12.08 | % | |
| 11.94 | % | |
| 11.88 | % | |
| 11.88 | % | |
| 11.69 | % | |
| 11.48 | % |
| Total risk based capital | |
| 16.61 | % | |
| 16.84 | % | |
| 16.47 | % | |
| 16.10 | % | |
| 15.92 | % | |
| 15.83 | % | |
| 15.75 | % | |
| 15.83 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Asset quality: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net (charge-offs)/recoveries
for the quarter | |
$ | (99 | ) | |
$ | (435 | ) | |
$ | (151 | ) | |
$ | (360 | ) | |
$ | (362 | ) | |
$ | (109 | ) | |
$ | (1,309 | ) | |
$ | (459 | ) |
| Nonperforming assets: (Period
End) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Nonaccrual loans | |
$ | 4,192 | | |
$ | 3,825 | | |
$ | 3,813 | | |
$ | 4,026 | | |
$ | 4,931 | | |
$ | 8,073 | | |
$ | 9,438 | | |
$ | 16,007 | |
| Loans 90
days past due and accruing | |
| 477 | | |
| 801 | | |
| 535 | | |
| 233 | | |
| 918 | | |
| 538 | | |
| 526 | | |
| 120 | |
| Total
nonperforming loans and 90 day past due | |
$ | 4,669 | | |
$ | 4,626 | | |
$ | 4,348 | | |
$ | 4,259 | | |
$ | 5,849 | | |
$ | 8,611 | | |
$ | 9,964 | | |
$ | 16,127 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Other real estate owned | |
$ | 1,083 | | |
$ | 2,718 | | |
$ | 3,035 | | |
$ | 3,062 | | |
$ | 3,062 | | |
$ | 2,860 | | |
$ | 2,978 | | |
$ | 4,402 | |
| Other repossessed assets | |
$ | 2,802 | | |
$ | 3,043 | | |
$ | 2,802 | | |
$ | 2,802 | | |
$ | 2,802 | | |
$ | 42 | | |
$ | 32 | | |
$ | 68 | |
| Modified loans | |
$ | 1,209 | | |
$ | 998 | | |
$ | 1,198 | | |
$ | 1,021 | | |
$ | 1,006 | | |
$ | 1,016 | | |
$ | 893 | | |
$ | - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Allowance for credit losses to
gross loans | |
| 1.28 | % | |
| 1.28 | % | |
| 1.27 | % | |
| 1.25 | % | |
| 1.23 | % | |
| 1.24 | % | |
| 1.26 | % | |
| 1.27 | % |
| Allowance for credit losses to
non-accrual loans | |
| 464.46 | % | |
| 499.06 | % | |
| 499.45 | % | |
| 458.69 | % | |
| 368.49 | % | |
| 223.09 | % | |
| 189.90 | % | |
| 112.34 | % |
| Allowance for credit losses to
non-performing assets | |
| 227.61 | % | |
| 183.78 | % | |
| 186.98 | % | |
| 182.43 | % | |
| 155.13 | % | |
| 157.00 | % | |
| 138.49 | % | |
| 87.59 | % |
| Non-performing loans and 90 day
past due loans to total loans | |
| 0.31 | % | |
| 0.31 | % | |
| 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 | % | |
| 0.23 | % | |
| 0.22 | % | |
| 0.22 | % | |
| 0.30 | % | |
| 0.45 | % | |
| 0.53 | % | |
| 0.84 | % |
| Non-accrual loans to total loans | |
| 0.28 | % | |
| 0.26 | % | |
| 0.25 | % | |
| 0.27 | % | |
| 0.33 | % | |
| 0.56 | % | |
| 0.66 | % | |
| 1.13 | % |
| Non-performing assets to total
assets | |
| 0.41 | % | |
| 0.51 | % | |
| 0.51 | % | |
| 0.51 | % | |
| 0.59 | % | |
| 0.60 | % | |
| 0.69 | % | |
| 1.07 | % |
| (Dollars in thousands - Unaudited) | |
December 31,
2025 | | |
September 30,
2025 | | |
June 30,
2025 | | |
March 31,
2025 | | |
December 31,
2024 | |
| Assets | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cash and due from banks | |
$ | 129,830 | | |
$ | 92,268 | | |
$ | 77,313 | | |
$ | 82,813 | | |
$ | 77,020 | |
| Interest bearing deposits in banks | |
| 1,782 | | |
| 2,907 | | |
| 1,800 | | |
| 1,618 | | |
| 1,307 | |
| Cash and cash equivalents | |
| 131,612 | | |
| 95,175 | | |
| 79,113 | | |
| 84,431 | | |
| 78,327 | |
| Investment securities – available for sale (at fair value) | |
| 107,144 | | |
| 105,060 | | |
| 103,582 | | |
| 99,998 | | |
| 94,494 | |
| Investment securities – held to maturity (at cost) | |
| 171,361 | | |
| 172,818 | | |
| 174,951 | | |
| 174,144 | | |
| 175,497 | |
| Equity investments with readily determinable fair market values | |
| 1,029 | | |
| 1,020 | | |
| 1,008 | | |
| 1,001 | | |
| — | |
| Restricted investment in bank stock, at cost | |
| 4,630 | | |
| 4,628 | | |
| 5,815 | | |
| 5,815 | | |
| 5,768 | |
| Loans held for sale | |
| 130 | | |
| 861 | | |
| 110 | | |
| — | | |
| 806 | |
| Loans | |
| 1,521,704 | | |
| 1,496,762 | | |
| 1,502,481 | | |
| 1,479,869 | | |
| 1,480,793 | |
| Unearned fees | |
| (476 | ) | |
| (473 | ) | |
| (533 | ) | |
| (457 | ) | |
| (442 | ) |
| Allowance for credit losses | |
| (19,470 | ) | |
| (19,089 | ) | |
| (19,044 | ) | |
| (18,467 | ) | |
| (18,170 | ) |
| Net loans | |
| 1,501,758 | | |
| 1,477,200 | | |
| 1,482,904 | | |
| 1,460,945 | | |
| 1,462,181 | |
| Premises and equipment, net | |
| 29,665 | | |
| 30,369 | | |
| 29,644 | | |
| 30,010 | | |
| 30,081 | |
| Goodwill and other intangible assets | |
| 11,444 | | |
| 11,526 | | |
| 11,609 | | |
| 11,691 | | |
| 11,773 | |
| Bank owned life insurance | |
| 50,360 | | |
| 49,997 | | |
| 49,642 | | |
| 49,293 | | |
| 48,952 | |
| Deferred tax assets | |
| 8,730 | | |
| 8,228 | | |
| 9,151 | | |
| 10,021 | | |
| 9,989 | |
| Other real estate owned, net | |
| 1,083 | | |
| 2,718 | | |
| 3,035 | | |
| 3,062 | | |
| 3,062 | |
| Operating lease asset | |
| 1,015 | | |
| 984 | | |
| 1,058 | | |
| 1,131 | | |
| 1,204 | |
| Pension asset | |
| 20,798 | | |
| 21,382 | | |
| 18,537 | | |
| 16,064 | | |
| 17,824 | |
| Accrued interest receivable and other assets | |
| 46,694 | | |
| 42,008 | | |
| 37,312 | | |
| 32,147 | | |
| 33,064 | |
| Total Assets | |
$ | 2,087,453 | | |
$ | 2,023,974 | | |
$ | 2,007,471 | | |
$ | 1,979,753 | | |
$ | 1,973,022 | |
| Liabilities and Shareholders’ Equity | |
| | | |
| | | |
| | | |
| | | |
| | |
| Liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-interest bearing deposits | |
$ | 453,036 | | |
$ | 429,986 | | |
$ | 425,784 | | |
$ | 422,415 | | |
$ | 426,737 | |
| Interest bearing deposits | |
| 1,282,113 | | |
| 1,248,916 | | |
| 1,188,423 | | |
| 1,201,159 | | |
| 1,148,092 | |
| Total deposits | |
| 1,735,149 | | |
| 1,678,902 | | |
| 1,614,207 | | |
| 1,623,574 | | |
| 1,574,829 | |
| Short-term borrowings | |
| 17,661 | | |
| 20,207 | | |
| 50,954 | | |
| 20,342 | | |
| 65,409 | |
| Long-term borrowings | |
| 95,929 | | |
| 95,929 | | |
| 120,929 | | |
| 120,929 | | |
| 120,929 | |
| Operating lease liability | |
| 1,180 | | |
| 1,152 | | |
| 1,231 | | |
| 1,308 | | |
| 1,384 | |
| Allowance for credit loss on off balance sheet exposures | |
| 1,218 | | |
| 982 | | |
| 995 | | |
| 863 | | |
| 863 | |
| Accrued interest payable and other liabilities | |
| 30,992 | | |
| 26,014 | | |
| 26,579 | | |
| 27,617 | | |
| 28,889 | |
| Dividends payable | |
| 1,690 | | |
| 1,689 | | |
| 1,429 | | |
| 1,426 | | |
| 1,424 | |
| Total Liabilities | |
| 1,883,819 | | |
| 1,824,875 | | |
| 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 6,499,476 at December 31, 2025; 6,496,908 at September 30, 2025; 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 | | |
| 65 | | |
| 65 | |
| Surplus | |
| 21,551 | | |
| 21,290 | | |
| 21,121 | | |
| 20,606 | | |
| 20,476 | |
| Retained earnings | |
| 207,284 | | |
| 203,197 | | |
| 197,938 | | |
| 193,382 | | |
| 189,002 | |
| Accumulated other comprehensive loss | |
| (25,266 | ) | |
| (25,453 | ) | |
| (27,977 | ) | |
| (30,359 | ) | |
| (30,248 | ) |
| Total Shareholders’ Equity | |
| 203,634 | | |
| 199,099 | | |
| 191,147 | | |
| 183,694 | | |
| 179,295 | |
| Total Liabilities and Shareholders’ Equity | |
$ | 2,087,453 | | |
$ | 2,023,974 | | |
$ | 2,007,471 | | |
$ | 1,979,753 | | |
$ | 1,973,022 | |
| | |
2025 | | |
2024 | |
| In thousands | |
Year
to date | | |
Q4 | | |
Q3 | | |
Q2 | | |
Q1 | | |
Year
to Date | | |
Q4 | | |
Q3 | | |
Q2 | | |
Q1 | |
| | |
| | |
| | |
| | |
(Unaudited) | |
| Interest
income | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest
and fees on loans | |
$ | 90,328 | | |
$ | 23,219 | | |
$ | 23,060 | | |
$ | 22,294 | | |
$ | 21,755 | | |
$ | 81,756 | | |
$ | 21,299 | | |
$ | 21,018 | | |
$ | 20,221 | | |
$ | 19,218 | |
| Interest
on investment securities | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Taxable | |
| 7,210 | | |
| 1,845 | | |
| 1,826 | | |
| 1,776 | | |
| 1,763 | | |
| 6,760 | | |
| 1,672 | | |
| 1,647 | | |
| 1,697 | | |
| 1,744 | |
| Exempt
from federal income tax | |
| 218 | | |
| 59 | | |
| 57 | | |
| 57 | | |
| 45 | | |
| 209 | | |
| 47 | | |
| 56 | | |
| 53 | | |
| 53 | |
| Total
investment income | |
| 7,428 | | |
| 1,904 | | |
| 1,883 | | |
| 1,833 | | |
| 1,808 | | |
| 6,969 | | |
| 1,719 | | |
| 1,703 | | |
| 1,750 | | |
| 1,797 | |
| Other | |
| 3,092 | | |
| 1,030 | | |
| 819 | | |
| 744 | | |
| 499 | | |
| 3,268 | | |
| 707 | | |
| 536 | | |
| 1,142 | | |
| 883 | |
| Total
interest income | |
| 100,848 | | |
| 26,153 | | |
| 25,762 | | |
| 24,871 | | |
| 24,062 | | |
| 91,993 | | |
| 23,725 | | |
| 23,257 | | |
| 23,113 | | |
| 21,898 | |
| Interest
expense | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest
on deposits | |
| 27,524 | | |
| 7,044 | | |
| 7,009 | | |
| 6,788 | | |
| 6,683 | | |
| 25,828 | | |
| 6,585 | | |
| 6,579 | | |
| 6,398 | | |
| 6,266 | |
| Interest
on short-term borrowings | |
| 75 | | |
| 17 | | |
| 17 | | |
| 21 | | |
| 20 | | |
| 1,477 | | |
| 40 | | |
| 467 | | |
| 509 | | |
| 461 | |
| Interest
on long-term borrowings | |
| 5,136 | | |
| 1,105 | | |
| 1,333 | | |
| 1,355 | | |
| 1,343 | | |
| 4,710 | | |
| 1,400 | | |
| 983 | | |
| 968 | | |
| 1,359 | |
| Total
interest expense | |
| 32,735 | | |
| 8,166 | | |
| 8,359 | | |
| 8,164 | | |
| 8,046 | | |
| 32,015 | | |
| 8,025 | | |
| 8,029 | | |
| 7,875 | | |
| 8,086 | |
| Net
interest income | |
| 68,113 | | |
| 17,987 | | |
| 17,403 | | |
| 16,707 | | |
| 16,016 | | |
| 59,978 | | |
| 15,700 | | |
| 15,228 | | |
| 15,238 | | |
| 13,812 | |
| Credit
loss expense/(credit) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Loans | |
| 2,345 | | |
| 480 | | |
| 480 | | |
| 728 | | |
| 657 | | |
| 2,929 | | |
| 522 | | |
| 195 | | |
| 1,251 | | |
| 961 | |
| Debt
securities held to maturity | |
| 43 | | |
| — | | |
| 43 | | |
| — | | |
| — | | |
| 14 | | |
| — | | |
| 14 | | |
| — | | |
| — | |
| Off
balance sheet credit exposures | |
| 355 | | |
| 237 | | |
| (13 | ) | |
| 132 | | |
| (1 | ) | |
| (10 | ) | |
| 7 | | |
| 55 | | |
| (57 | ) | |
| (15 | ) |
| Provision
for credit losses | |
| 2,743 | | |
| 717 | | |
| 510 | | |
| 860 | | |
| 656 | | |
| 2,933 | | |
| 529 | | |
| 264 | | |
| 1,194 | | |
| 946 | |
| Net
interest income after provision for credit losses | |
| 65,370 | | |
| 17,270 | | |
| 16,893 | | |
| 15,847 | | |
| 15,360 | | |
| 57,045 | | |
| 15,171 | | |
| 14,964 | | |
| 14,044 | | |
| 12,866 | |
| Other
operating income | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net gains on
investments, available for sale | |
| 97 | | |
| — | | |
| 97 | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| Gains on sale
of residential mortgage loans | |
| 533 | | |
| 132 | | |
| 163 | | |
| 146 | | |
| 92 | | |
| 414 | | |
| 132 | | |
| 141 | | |
| 59 | | |
| 82 | |
| (Losses)/gains
on disposal of fixed assets | |
| (228 | ) | |
| (229 | ) | |
| 1 | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| Net
gains/(losses) | |
| 402 | | |
| (97 | ) | |
| 261 | | |
| 146 | | |
| 92 | | |
| 414 | | |
| 132 | | |
| 141 | | |
| 59 | | |
| 82 | |
| Other
Income | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Service
charges on deposit accounts | |
| 2,255 | | |
| 568 | | |
| 563 | | |
| 577 | | |
| 547 | | |
| 2,220 | | |
| 553 | | |
| 555 | | |
| 556 | | |
| 556 | |
| Other
service charges | |
| 845 | | |
| 207 | | |
| 218 | | |
| 214 | | |
| 206 | | |
| 887 | | |
| 211 | | |
| 236 | | |
| 225 | | |
| 215 | |
| Trust
department | |
| 9,824 | | |
| 2,667 | | |
| 2,448 | | |
| 2,386 | | |
| 2,323 | | |
| 9,094 | | |
| 2,323 | | |
| 2,328 | | |
| 2,255 | | |
| 2,188 | |
| Debit
card income | |
| 4,057 | | |
| 1,173 | | |
| 980 | | |
| 983 | | |
| 921 | | |
| 4,065 | | |
| 1,134 | | |
| 1,000 | | |
| 999 | | |
| 932 | |
| Bank
owned life insurance | |
| 1,408 | | |
| 364 | | |
| 355 | | |
| 348 | | |
| 341 | | |
| 1,345 | | |
| 345 | | |
| 340 | | |
| 334 | | |
| 326 | |
| Brokerage
commissions | |
| 1,445 | | |
| 308 | | |
| 346 | | |
| 370 | | |
| 421 | | |
| 1,449 | | |
| 295 | | |
| 297 | | |
| 362 | | |
| 495 | |
| Other | |
| 332 | | |
| 43 | | |
| 164 | | |
| 62 | | |
| 63 | | |
| 351 | | |
| 63 | | |
| 156 | | |
| 51 | | |
| 81 | |
| Total
other income | |
| 20,166 | | |
| 5,330 | | |
| 5,074 | | |
| 4,940 | | |
| 4,822 | | |
| 19,411 | | |
| 4,924 | | |
| 4,912 | | |
| 4,782 | | |
| 4,793 | |
| Total
other operating income | |
| 20,568 | | |
| 5,233 | | |
| 5,335 | | |
| 5,086 | | |
| 4,914 | | |
| 19,825 | | |
| 5,056 | | |
| 5,053 | | |
| 4,841 | | |
| 4,875 | |
| Other
operating expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Salaries
and employee benefits | |
| 29,347 | | |
| 7,108 | | |
| 7,589 | | |
| 7,319 | | |
| 7,331 | | |
| 28,029 | | |
| 6,456 | | |
| 7,160 | | |
| 7,256 | | |
| 7,157 | |
| FDIC
premiums | |
| 1,051 | | |
| 273 | | |
| 266 | | |
| 267 | | |
| 245 | | |
| 1,070 | | |
| 260 | | |
| 256 | | |
| 285 | | |
| 269 | |
| Equipment | |
| 2,217 | | |
| 559 | | |
| 515 | | |
| 565 | | |
| 578 | | |
| 2,675 | | |
| 490 | | |
| 627 | | |
| 635 | | |
| 923 | |
| Occupancy | |
| 2,860 | | |
| 817 | | |
| 679 | | |
| 675 | | |
| 689 | | |
| 2,878 | | |
| 563 | | |
| 709 | | |
| 652 | | |
| 954 | |
| Data
processing | |
| 6,243 | | |
| 1,623 | | |
| 1,517 | | |
| 1,600 | | |
| 1,503 | | |
| 5,761 | | |
| 1,688 | | |
| 1,333 | | |
| 1,422 | | |
| 1,318 | |
| Marketing | |
| 904 | | |
| 288 | | |
| 182 | | |
| 196 | | |
| 238 | | |
| 674 | | |
| 205 | | |
| 151 | | |
| 184 | | |
| 134 | |
| Professional
services | |
| 2,449 | | |
| 745 | | |
| 639 | | |
| 589 | | |
| 476 | | |
| 1,948 | | |
| 536 | | |
| 477 | | |
| 449 | | |
| 486 | |
| Contract
labor | |
| 634 | | |
| 178 | | |
| 127 | | |
| 166 | | |
| 163 | | |
| 597 | | |
| 181 | | |
| 149 | | |
| 84 | | |
| 183 | |
| Telephone | |
| 380 | | |
| 97 | | |
| 89 | | |
| 96 | | |
| 98 | | |
| 408 | | |
| 99 | | |
| 97 | | |
| 103 | | |
| 109 | |
| Other
real estate owned | |
| 2,235 | | |
| 1,866 | | |
| 69 | | |
| 208 | | |
| 92 | | |
| 271 | | |
| 47 | | |
| 124 | | |
| 14 | | |
| 86 | |
| Investor
relations | |
| 306 | | |
| 55 | | |
| 57 | | |
| 132 | | |
| 62 | | |
| 293 | | |
| 65 | | |
| 84 | | |
| 91 | | |
| 53 | |
| Contributions | |
| 344 | | |
| 120 | | |
| 90 | | |
| 78 | | |
| 56 | | |
| 234 | | |
| 53 | | |
| 65 | | |
| 66 | | |
| 50 | |
| Other | |
| 4,435 | | |
| 1,140 | | |
| 1,167 | | |
| 1,083 | | |
| 1,045 | | |
| 4,802 | | |
| 1,438 | | |
| 1,082 | | |
| 1,123 | | |
| 1,159 | |
| Total
other operating expenses | |
| 53,405 | | |
| 14,869 | | |
| 12,986 | | |
| 12,974 | | |
| 12,576 | | |
| 49,640 | | |
| 12,081 | | |
| 12,314 | | |
| 12,364 | | |
| 12,881 | |
| Income
before income tax expense | |
| 32,533 | | |
| 7,634 | | |
| 9,242 | | |
| 7,959 | | |
| 7,698 | | |
| 27,230 | | |
| 8,146 | | |
| 7,703 | | |
| 6,521 | | |
| 4,860 | |
| Provision
for income tax expense | |
| 8,018 | | |
| 1,857 | | |
| 2,294 | | |
| 1,975 | | |
| 1,892 | | |
| 6,661 | | |
| 1,960 | | |
| 1,932 | | |
| 1,607 | | |
| 1,162 | |
| Net
Income | |
$ | 24,515 | | |
$ | 5,777 | | |
$ | 6,948 | | |
$ | 5,984 | | |
$ | 5,806 | | |
$ | 20,569 | | |
$ | 6,186 | | |
$ | 5,771 | | |
$ | 4,914 | | |
$ | 3,698 | |
| Basic net income
per common share | |
$ | 3.78 | | |
$ | 0.89 | | |
$ | 1.07 | | |
$ | 0.92 | | |
$ | 0.90 | | |
$ | 3.15 | | |
$ | 0.95 | | |
$ | 0.89 | | |
$ | 0.75 | | |
$ | 0.56 | |
| Diluted net
income per common share | |
$ | 3.77 | | |
$ | 0.89 | | |
$ | 1.07 | | |
$ | 0.92 | | |
$ | 0.89 | | |
$ | 3.15 | | |
$ | 0.95 | | |
$ | 0.89 | | |
$ | 0.75 | | |
$ | 0.56 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of basic
shares outstanding | |
| 6,490 | | |
| 6,499 | | |
| 6,496 | | |
| 6,489 | | |
| 6,474 | | |
| 6,527 | | |
| 6,470 | | |
| 6,468 | | |
| 6,527 | | |
| 6,642 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of diluted
shares outstanding | |
| 6,504 | | |
| 6,510 | | |
| 6,508 | | |
| 6,506 | | |
| 6,490 | | |
| 6,540 | | |
| 6,484 | | |
| 6,482 | | |
| 6,537 | | |
| 6,655 | |
| Dividends declared per common
share | |
$ | 0.96 | | |
$ | 0.26 | | |
$ | 0.26 | | |
$ | 0.22 | | |
$ | 0.22 | | |
$ | 0.84 | | |
$ | 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
net gains on sale of investment securities, losses on disposal of fixed assets and write-downs of other real estate owned (“OREO”)
in 2025 and accelerated depreciation expenses related to the branch closures in 2024.
| | |
Three months ended December 31, | | |
Twelve months ended December 31, | |
| (in thousands, except for per share amount) | |
2025 | | |
2024 | | |
2025 | | |
2024 | |
| Net income - as reported | |
$ | 5,777 | | |
$ | 6,186 | | |
$ | 24,515 | | |
$ | 20,569 | |
| Adjustments: | |
| | | |
| | | |
| | | |
| | |
| Loss on write-down of OREO property | |
| 1,635 | | |
| — | | |
| 1,635 | | |
| — | |
| Loss on disposal of fixed assets | |
| 228 | | |
| — | | |
| 228 | | |
| — | |
| Net gains on sale of investment securities | |
| — | | |
| — | | |
| (97 | ) | |
| — | |
| Accelerated depreciation expenses | |
| — | | |
| — | | |
| — | | |
| 562 | |
| Income tax effect of adjustments | |
| (459 | ) | |
| — | | |
| (435 | ) | |
| (137 | ) |
| Adjusted net income (non-GAAP) | |
$ | 7,181 | | |
$ | 6,186 | | |
$ | 25,846 | | |
$ | 20,994 | |
| | |
| | | |
| | | |
| | | |
| | |
| Diluted earnings per share - as reported | |
$ | 0.89 | | |
$ | 0.95 | | |
$ | 3.77 | | |
$ | 3.15 | |
| Adjustments: | |
| | | |
| | | |
| | | |
| | |
| Loss on write-down of OREO property | |
| 0.25 | | |
| — | | |
| 0.25 | | |
| — | |
| Loss on disposal of fixed assets | |
| 0.03 | | |
| — | | |
| 0.03 | | |
| — | |
| Net gains on sale of investment securities | |
| — | | |
| — | | |
| (0.01 | ) | |
| — | |
| Accelerated depreciation expenses | |
| — | | |
| — | | |
| — | | |
| 0.08 | |
| Income tax effect of adjustments | |
| (0.07 | ) | |
| — | | |
| (0.07 | ) | |
| (0.02 | ) |
| Adjusted diluted earnings per share (non-GAAP) | |
$ | 1.10 | | |
$ | 0.95 | | |
$ | 3.97 | | |
$ | 3.21 | |
| | |
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) | |
2025 | | |
2024 | | |
2025 | | |
2024 | |
| Per Share Data | |
| | |
| | |
| | |
| |
| Basic net income per share - as reported | |
$ | 0.89 | | |
$ | 0.95 | | |
$ | 3.78 | | |
$ | 3.15 | |
| Basic net income per share - non-GAAP | |
$ | 1.10 | | |
$ | 0.95 | | |
$ | 3.98 | | |
$ | 3.21 | |
| Diluted net income per share - as reported | |
$ | 0.89 | | |
$ | 0.95 | | |
$ | 3.77 | | |
$ | 3.15 | |
| Diluted net income per share - non-GAAP | |
$ | 1.10 | | |
$ | 0.95 | | |
$ | 3.97 | | |
$ | 3.21 | |
| Basic book value per share | |
$ | 31.33 | | |
$ | 27.71 | | |
| | | |
| | |
| Diluted book value per share | |
$ | 31.27 | | |
$ | 27.65 | | |
| | | |
| | |
Significant Ratios:
| | |
As of or for the twelve months
ended | |
| | |
December 31, | |
| | |
2025 | | |
2024 | |
| Return on Average Assets - as reported | |
| 1.21 | % | |
| 1.06 | % |
| Adjustments: | |
| | | |
| | |
| Loss on write-down of OREO property | |
| 0.08 | % | |
| — | |
| Loss on disposal of fixed assets | |
| 0.02 | % | |
| — | |
| Net gains on sale of investment securities | |
| (0.01 | )% | |
| — | |
| Accelerated depreciation expenses | |
| — | | |
| 0.03 | % |
| Income tax effect of adjustments | |
| (0.02 | )% | |
| (0.01 | )% |
| Adjusted Return on Average Assets (non-GAAP) | |
| 1.28 | % | |
| 1.08 | % |
| | |
| | | |
| | |
| Return on Average Equity - as reported | |
| 12.70 | % | |
| 12.16 | % |
| Adjustments: | |
| | | |
| | |
| Loss on write-down of OREO property | |
| 0.85 | % | |
| — | |
| Loss on disposal of fixed assets | |
| 0.12 | % | |
| — | |
| Net gains on sale of investment securities | |
| (0.05 | )% | |
| — | |
| Accelerated depreciation expenses | |
| — | | |
| 0.34 | % |
| Income tax effect of adjustments | |
| (0.23 | )% | |
| (0.08 | )% |
| Adjusted Return on Average Equity (non-GAAP) | |
| 13.39 | % | |
| 12.42 | % |
| | |
Three Months Ended | |
| | |
December 31, | |
| | |
2025 | | |
2024 | |
| (dollars in thousands) | |
Average
Balance | | |
Interest | | |
Average
Yield/Rate | | |
Average
Balance | | |
Interest |
| |
Average
Yield/Rate | |
| Assets | |
| | |
| | |
| | |
| | |
|
| |
| |
| Loans | |
$ | 1,509,632 | | |
| 23,230 | | |
| 6.10 | % | |
$ | 1,452,332 | | |
$ | 21,313 |
| |
| 5.84 | % |
| Investment Securities: | |
| | | |
| | | |
| | | |
| | | |
| |
| |
| | |
| Taxable | |
| 284,976 | | |
| 1,845 | | |
| 2.57 | % | |
| 275,785 | | |
| 1,672 |
| |
| 2.41 | % |
| Non taxable | |
| 7,506 | | |
| 106 | | |
| 5.60 | % | |
| 6,758 | | |
| 86 |
| |
| 5.06 | % |
| Total | |
| 292,482 | | |
| 1,951 | | |
| 2.65 | % | |
| 282,543 | | |
| 1,758 |
| |
| 2.48 | % |
| Federal funds sold | |
| 87,819 | | |
| 913 | | |
| 4.12 | % | |
| 56,552 | | |
| 628 |
| |
| 4.42 | % |
| Interest-bearing deposits with other banks | |
| 13,163 | | |
| 24 | | |
| 0.72 | % | |
| 3,138 | | |
| 16 |
| |
| 2.03 | % |
| Other interest earning assets | |
| 4,629 | | |
| 93 | | |
| 7.97 | % | |
| 5,767 | | |
| 63 |
| |
| 4.35 | % |
| Total earning assets | |
| 1,907,725 | | |
| 26,211 | | |
| 5.45 | % | |
| 1,800,332 | | |
| 23,778 |
| |
| 5.25 | % |
| Allowance for credit losses | |
| (19,388 | ) | |
| | | |
| | | |
| (18,199 | ) | |
| |
| |
| | |
| Non-earning assets | |
| 182,613 | | |
| | | |
| | | |
| 162,438 | | |
| |
| |
| | |
| Total Assets | |
$ | 2,070,950 | | |
| | | |
| | | |
$ | 1,944,571 | | |
| |
| |
| | |
| Liabilities and Shareholders’ Equity | |
| | | |
| | | |
| | | |
| | | |
| |
| |
| | |
| Deposits | |
| | | |
| | | |
| | | |
| | | |
| |
| |
| | |
| Interest-bearing demand deposits | |
$ | 387,148 | | |
$ | 1,673 | | |
| 1.71 | % | |
$ | 388,451 | | |
$ | 1,747 |
| |
| 1.79 | % |
| Interest-bearing money markets- retail | |
| 509,895 | | |
| 3,736 | | |
| 2.91 | % | |
| 446,230 | | |
| 3,721 |
| |
| 3.32 | % |
| Interest-bearing money markets- brokered | |
| 58 | | |
| 1 | | |
| 6.84 | % | |
| 110 | | |
| 1 |
| |
| 3.62 | % |
| Savings deposits | |
| 158,859 | | |
| 41 | | |
| 0.10 | % | |
| 172,342 | | |
| 45 |
| |
| 0.10 | % |
| Time deposits - retail | |
| 151,860 | | |
| 1,057 | | |
| 2.76 | % | |
| 143,424 | | |
| 1,071 |
| |
| 2.97 | % |
| Time deposits - brokered | |
| 50,000 | | |
| 536 | | |
| 4.25 | % | |
| — | | |
| — |
| |
| — | % |
| Total deposits | |
| 1,257,820 | | |
| 7,044 | | |
| 2.22 | % | |
| 1,150,557 | | |
| 6,585 |
| |
| 2.28 | % |
| Short-term borrowings | |
| 19,036 | | |
| 17 | | |
| 0.35 | % | |
| 12,797 | | |
| 40 |
| |
| 1.24 | % |
| Long-term borrowings | |
| 95,929 | | |
| 1,105 | | |
| 4.57 | % | |
| 120,928 | | |
| 1,400 |
| |
| 4.61 | % |
| Total interest-bearing liabilities | |
| 1,372,785 | | |
| 8,166 | | |
| 2.36 | % | |
| 1,284,282 | | |
| 8,025 |
| |
| 2.49 | % |
| Non-interest-bearing deposits | |
| 461,214 | | |
| | | |
| | | |
| 449,878 | | |
| |
| |
| | |
| Other liabilities | |
| 33,213 | | |
| | | |
| | | |
| 33,904 | | |
| |
| |
| | |
| Shareholders’ Equity | |
| 203,738 | | |
| | | |
| | | |
| 176,507 | | |
| |
| |
| | |
| Total Liabilities and Shareholders’ Equity | |
$ | 2,070,950 | | |
| | | |
| | | |
$ | 1,944,571 | | |
| |
| |
| | |
| Net interest income and spread | |
| | | |
$ | 18,045 | | |
| 3.09 | % | |
| | | |
$ | 15,753 |
| |
| 2.76 | % |
| Net interest margin | |
| | | |
| | | |
| 3.75 | % | |
| | | |
| |
| |
| 3.48 | % |
| | |
Twelve Months Ended | |
| | |
December 31, | |
| | |
2025 | | |
2024 | |
| (dollars in thousands) | |
Average
Balance | | |
Interest | | |
Average
Yield/
Rate | | |
Average
Balance | | |
Interest | | |
Average
Yield/
Rate | |
| Assets | |
| | |
| | |
| | |
| | |
| | |
| |
| Loans | |
$ | 1,496,125 | | |
$ | 90,374 | | |
| 6.04 | % | |
$ | 1,427,351 | | |
$ | 81,819 | | |
| 5.73 | % |
| Investment Securities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Taxable | |
| 284,659 | | |
| 7,210 | | |
| 2.53 | % | |
| 285,661 | | |
| 6,760 | | |
| 2.37 | % |
| Non taxable | |
| 7,246 | | |
| 390 | | |
| 5.38 | % | |
| 7,538 | | |
| 375 | | |
| 4.97 | % |
| Total | |
| 291,905 | | |
| 7,600 | | |
| 2.60 | % | |
| 293,199 | | |
| 7,135 | | |
| 2.43 | % |
| Federal funds sold | |
| 62,744 | | |
| 2,623 | | |
| 4.18 | % | |
| 55,117 | | |
| 2,874 | | |
| 5.21 | % |
| Interest-bearing deposits with other banks | |
| 6,152 | | |
| 89 | | |
| 1.45 | % | |
| 2,009 | | |
| 91 | | |
| 4.53 | % |
| Other interest earning assets | |
| 5,467 | | |
| 380 | | |
| 6.95 | % | |
| 4,565 | | |
| 303 | | |
| 6.64 | % |
| Total earning assets | |
| 1,862,393 | | |
| 101,066 | | |
| 5.43 | % | |
| 1,782,241 | | |
| 92,222 | | |
| 5.17 | % |
| Allowance for loan losses | |
| (18,963 | ) | |
| | | |
| | | |
| (18,064 | ) | |
| | | |
| | |
| Non-earning assets | |
| 178,572 | | |
| | | |
| | | |
| 182,548 | | |
| | | |
| | |
| Total Assets | |
$ | 2,022,002 | | |
| | | |
| | | |
$ | 1,946,725 | | |
| | | |
| | |
| Liabilities and Shareholders’ Equity | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Deposits | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest-bearing demand deposits | |
$ | 370,516 | | |
$ | 6,355 | | |
| 1.72 | % | |
$ | 368,725 | | |
| 6,288 | | |
| 1.71 | % |
| Interest-bearing money markets- retail | |
| 484,238 | | |
| 14,694 | | |
| 3.03 | % | |
| 413,353 | | |
| 14,287 | | |
| 3.46 | % |
| Interest-bearing money markets- brokered | |
| 281 | | |
| 7 | | |
| 2.49 | % | |
| 55 | | |
| 3 | | |
| 5.45 | % |
| Savings deposits | |
| 165,625 | | |
| 172 | | |
| 0.10 | % | |
| 180,393 | | |
| 183 | | |
| 0.10 | % |
| Time deposits - retail | |
| 148,214 | | |
| 4,299 | | |
| 2.90 | % | |
| 147,193 | | |
| 4,226 | | |
| 2.87 | % |
| Time deposits - brokered | |
| 46,558 | | |
| 1,997 | | |
| 4.29 | % | |
| 15,697 | | |
| 841 | | |
| 5.36 | % |
| Total deposits | |
| 1,215,432 | | |
| 27,524 | | |
| 2.26 | % | |
| 1,125,416 | | |
| 25,828 | | |
| 2.29 | % |
| Short-term borrowings | |
| 20,810 | | |
| 75 | | |
| 0.36 | % | |
| 58,444 | | |
| 1,477 | | |
| 2.53 | % |
| Long-term borrowings | |
| 113,806 | | |
| 5,136 | | |
| 4.51 | % | |
| 92,213 | | |
| 4,710 | | |
| 5.11 | % |
| Total interest-bearing liabilities | |
| 1,350,048 | | |
| 32,735 | | |
| 2.42 | % | |
| 1,276,073 | | |
| 32,015 | | |
| 2.51 | % |
| Non-interest-bearing deposits | |
| 447,553 | | |
| | | |
| | | |
| 468,137 | | |
| | | |
| | |
| Other liabilities | |
| 31,400 | | |
| | | |
| | | |
| 33,326 | | |
| | | |
| | |
| Shareholders’ Equity | |
| 193,001 | | |
| | | |
| | | |
| 169,189 | | |
| | | |
| | |
| Total Liabilities and Shareholders’ Equity | |
$ | 2,022,002 | | |
| | | |
| | | |
$ | 1,946,725 | | |
| | | |
| | |
| Net interest income and spread | |
| | | |
$ | 68,331 | | |
| 3.01 | % | |
| | | |
$ | 60,207 | | |
| 2.66 | % |
| Net interest margin | |
| | | |
| | | |
| 3.67 | % | |
| | | |
| | | |
| 3.38 | % |
Exhibit 99.2
INVESTOR PRESENTATION Fourth Quarter 2025 MyBank.com
2 Forward looking statements This presentation 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 . Whether actual results will conform to expectations and predictions is subject to known and unknown risks and uncertainties . Actual results could be materially different from management’s expectations . This presentation should be read in conjunction with our Annual Report on Form 10 - K , for the year ended December 31 , 2024 , including the sections of the report entitled “Risk Factors”, as well as the reports and other documents that we subsequently file with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www . sec . gov or at our website at www . mybank . com . Except as required by law, we do not intend to publish updates or revisions of any forward - looking statements we make to reflect new information, future events or otherwise .
Table of Contents I. II. III. Corporate Overview Financial Performance Appendices Pg. 4 Pg. 10 Pg. 32
Our Mission To enrich the lives of our associates, customers, communities and shareholders through uncommon commitment to service and customized financial solutions. Corporate Overview Founded: 1900 Headquarters: Oakland, MD Locations: 23 branches Business Lines: ▪ Commercial & Retail Banking ▪ Trust Services ▪ Wealth Management Ticker: FUNC (Nasdaq) Website: www.MyBank.com Overview West Virginia Maryland • Pittsburgh, PA • Washington, DC • Columbus, OH • Baltimore, MD • Richmond, VA Morgantown, WV භ • Harrisburg, PA Winchester, VA භ Star denotes Oakland, Maryland Headquarters 4
East Region Central Region West Region $601,281 $438,877 $339,509 Loans (000s) $535,259 $787,806 $142,056 Deposits (000s) 5% 47% 2% Deposit Market Share (1) (at June 30, 2025) 11 9 3 Branches Note: Out of market loans representing $142 million and $50 million in brokered CDs are not reflected in this table (1) Source: FDIC Market Share Data, most current. Deposit market share for each region includes the following counties: West : Monongalia, WV Central: Garrett, MD; Allegany, MD; Mineral, WV East: Washington, MD; Frederick, MD; Berkeley, WV Core Markets 5
6 Core Strengths ▪ Diversified revenue stream driven by trust and brokerage fee income supplements margin Diversified Revenue Stream ▪ Stable legacy markets produce steady low - cost funding ▪ Technology and business relationships drive growth Core Deposit Franchise ▪ Diverse and experienced Board with skills to oversee risks, strategic initiatives and governance best practices ▪ Ongoing Board and management succession strategy Engaged & Diverse Leadership ▪ Supporting local causes with financial education, consultation and robust products and services ▪ Knowledgeable associates committed to helping clients & the communities we serve Culture of Engagement ▪ Well - established operational infrastructure will support future growth ▪ Expense management focus, hybrid work environment and technology drive cost savings Expense Structure ▪ Strong underwriting guidelines and risk management framework ▪ Focus on risk mitigation, loan concentration management and information security Robust Enterprise Risk Management ▪ Innovative, dynamic approach to attract and retain clients through customized solutions ▪ Investment in FinTech funds provides early exposure to new technology Forward - Thinking Approach ▪ Regulatory capital ratios significantly above regulatory requirements ▪ Significant access to liquidity sources Financial Strength
Total Shareholder Return* 7 *As of December 31, 2025 5 - Year 3 - Year 1 - Year % 186.9 % 112.1 % 24.8 First United % 60.4 % 30.7 % 13.5 S&P US Small Cap Banks % 66.8 % 23.5 % 22.5 2025 Proxy Peers
Risk Management, Monitoring & Mitigation Underlies all Strategic Priorities ▪ Low net charge - offs and strong asset quality resulting from conservative and proactive credit culture ▪ ACL level of 1.28%; future provisioning based on loan growth, economic environment and asset quality changes ▪ Diversified commercial loan portfolio and geographic footprint ▪ Disciplined loan growth strategy, concentration management, stress testing and exception tracking and monitoring ▪ Well - defined loan approval levels ▪ Centralized risk rating and monitoring of risk rating migration and delinquency trends ▪ Robust annual third - party loan review ▪ Maintaining an asset sensitive balance sheet and positioning to a neutral position ▪ Limiting longer - term investment exposure and actively managing loan and deposit terms and pricing ▪ Focused on capturing core, low - cost deposits ▪ Monitoring dynamic and static rate ramp scenarios ▪ Board regularly briefed on cyber - security matters ▪ Robust information security training programs for associates and Board ▪ Regular third - party review and testing of information security, compliance processes and cybersecurity controls ▪ No security breaches to - date ▪ Adaptive fraud detection and management ▪ Strong capital levels well above regulatory “well - capitalized” definition ▪ Conservative dividend payout policy to improve TCE and maintain capital during uncertain economic and political environment ▪ Capital stress tests indicate Bank is well positioned to absorb potential losses ▪ Stock repurchase program approved by board and executed with shareholder in mind ▪ Loan to deposit ratio of 88% ▪ Liquidity contingency plan in place and funds position monitored daily; time sequence liquidity monitoring ▪ Liquidity stress testing performed quarterly with strong liquidity under various scenarios ▪ Available borrowing capacity of $485 million through tested correspondent lines of credit, FHLB and Federal Reserve ▪ Strong, stable low - cost core deposit franchise of 88% of total deposit portfolio Cyber - Security & Fraud Monitoring Asset Quality Capital Liquidity Management Interest Rate Sensitivity
9 Strategic Pillars & Key Objectives Culture & Human Capital ▪ Attract and hire passionate, diverse talent to engage with clients and prospects across broader geographics. ▪ Drive associate retention and foster career development through mentoring initiatives, leadership programs, and educational opportunities. ▪ Expand associate engagement , cross - functional collaboration , and communication . ▪ Enhance succession plan by fostering forward - thinking strategies that promote innovation and long - term growth. Product & Service Revenue Diversification ▪ Increase non - interest income as a percentage of revenue to reduce dependence on net interest margin. ▪ Expand business development training and outreach efforts to drive strategic sales growth and deepen community - oriented business owner relationships . ▪ Revamp customer segmentation to focus on expanding product and service utilization by the existing customer base. ▪ Improve brand awareness in growth markets. Resource Optimization ▪ Optimize balance sheet mix to maximize profitability. ▪ Expand net interest margin through a disciplined approach to loan and deposit portfolio repricing. ▪ Effectively manage Capital through repurchase opportunities and effective investor communication. ▪ Improve efficiency by utilizing technology, leveraging data, artificial intelligence, and digital alternatives. ▪ Reduce monetary loss and administrative costs associated with cyber security and fraud. ▪ Allocate resources to enhance market share and execute tactics to optimize geographic presence. ▪ Cultivate relationships for potential future bank and wealth expansion. Effective use of technology, marketing and communications, and environmental focus underlies all strategic priorities.
10 $7.2 Million Net Income (1) $1.10 Diluted EPS (1) 1.38% * ROAA (1) 14.82 * ROATCE (1) 3.75% NIM Fourth Quarter Financial Highlights ▪ Total assets increased $63.5 million compared to September 30, 2025 ▪ Consolidated net income (1) of $7.2 million in 4Q25 compared to $6.2 million in 4Q24 and $6.9 million in linked quarter; pre - provision net revenue of $10.2 million compared to $8.7 million and $9.7, respectively ▪ Net interest income, on a non - GAAP, FTE basis* increased by $0.6 million in 4Q25 compared to 3Q25 driven by increased interest income and stable interest expense ▪ Asset quality remains stable with the ratio of the allowance for credit losses (“ACL”) to loans outstanding at 1.28% in 4Q25 and the linked quarter ▪ Efficiency ratio of 56.29% (1) for the fourth quarter of 2025 compared to 56.97% for the linked quarter; primarily attributable to stable non - interest expense, increased net interest income and stable non - interest income (1) See Appendix for a reconciliation of these non - GAAP financial measures * 4Q2025 Annualized
11 $25.8 Million Net Income (1) $3.97 Diluted EPS (1) 1.28% * ROAA (1) 14.25 * ROATCE (1) 3.67% NIM Year to Date Financial Highlights ▪ Total assets increased $114.4 million compared to December 31, 2024 ▪ Consolidated net income (1) of $25.8 million for 2025 compared to $21.0 million for 2024; pre - provision net revenue of $37.0 million compared to $30.7 million, respectively ▪ Net interest income, on a non - GAAP, FTE basis* increased by $8.1 million for the twelve months of 2025 compared to the twelve months of 2024 driven by increased interest income and stable interest expense ▪ Asset quality remains stable with the ratio of the allowance for credit losses (“ACL”) to loans outstanding at 1.28% at December 31, 2025 and September 30, 2025 ▪ Efficiency ratio of 58.19% (1) for the twelve months of 2025 compared to 61.31% for the twelve months of 2024; improvement in ratio is primarily attributable to increased net interest income, increased non - interest income, slightly offset by increased non - interest expense (1) See Appendix for a reconciliation of these non - GAAP financial measures * 4Q2025 Annualized
12 Long - Term Growth Pre - Provision Net Revenue ($ in millions) (1) $30.8 $32.5 $25.9 $30.7 $37.0 2021 2022 2023 2024 2025 (1) See Appendix for a reconciliation of these non - GAAP financial measures $3.54 $3.76 $2.80 $3.21 $3.99 2021 2022 2023 2024 2025 Diluted Earnings per Share (1) Total Deposits ($ in millions) $1,469 $1,571 $1,551 $1,575 $1,735 2021 2022 2023 2024 2025 Total Gross Loans, including PPP ($ in millions) $1,154 $1,279 $1,407 $1,481 $1,521 2021 2022 2023 2024 2025 $114 PPP $8 PPP
13 Solid Profitability (1) See Appendix for a reconciliation of these non - GAAP financial measures Long - term Strategic Target 13% - 15% Long - term Strategic Target 1.25% - 1.60% Core ROAA (non - GAAP (1) ) Core ROATCE (non - GAAP (1) ) 1.35% 1.39% 0.97% 1.08% 1.28% 2021 2022 2023 2024 2025 19.78% 19.94% 12.92% 13.35% 14.25% 2021 2022 2023 2024 2025
14 Total 1 - 4 Family 35% CRE - NOO 22% C&I 19% CRE - OO 12% C&D 6% Consumer 3% Multi - family 3% Loan Diversification Loan Portfolio Mix (12/31/2025) RE/Rental/Leasing NOO 23% RE/Rental/ Leasing OO, C&I 19% All Other 18% Accommodations 12% Services 7% RE/Rental/Leasing Multifamily 4% Trade 4% Construction - Developers 2% Health Care / Social Assistance 5% RE/Rental/Leasing - Developers 3% Construction - All Other 3% Commercial Loan Mix (12/31/2025)
15 Commercial Industry Mix by Origination Year Commercial Industry Mix by Origination Prior to 2000 2000 - 2005 2006 - 2010 2011 - 2015 2016 - 2020 2021 - Current Total RE / Rental / Leasing - NOO 174,660 108,935 5,870,529 68,385,458 168,584,146 243,123,728$ RE / Rental / Leasing - OO, C&I 7,705 515,965 6,345,465 39,349,798 143,041,849 189,260,782 RE / Rental / Leasing - Multifamily 1,522,994 8,273,510 9,989,725 25,024,491 44,810,720 RE / Rental / Leasing - Developers 69,349 1,128,905 30,891,308 32,089,562 Construction - All Other 31,467 6,800 30,637 1,652,493 6,441,863 25,075,287 33,238,547 Construction - Developers 1,985,900 56,940 369,274 18,071,900 20,484,014 Accommodations 3,213,840 9,479,914 39,499,329 29,616,010 81,809,093 Services 1,797,559 300,708 8,113,207 10,327,339 34,838,348 55,377,161 Health Care / Social Assistance 667,228 1,491,001 6,951,548 42,801,109 51,910,886 Trade 83,585 63,330 1,024,351 7,706,744 34,887,641 43,765,651 All Other 32,262 253,262 279,368 753,466 34,936,020 150,749,744 187,004,122 Totals 63,729$ 2,323,571$ 8,758,254$ 43,060,876$ 225,086,003$ 703,581,833$ 982,874,266$
16 Commercial Real Estate Focus on risk mitigation and managing of concentrations ▪ CRE / Total Capital: 235% ▪ ADC / Total Capital: 37% * There are no office buildings located in metropolitan markets or over four stories. ** There are no major/big box retail tenants. OFFICE* Geography Note Book Balance Number of loans Avg Loan Balance Note Book Balance Number of loans Avg Loan Balance Note Book Balance Number of loans Avg Loan Balance Central 12,308,470$ 33 372,984$ 6,019,952$ 6 1,003,325$ 18,328,422$ 39 469,960$ East 7,018,763$ 12 584,897$ 27,645,912$ 13 2,126,609$ 34,664,675$ 25 1,386,587$ OOM 972,227$ 1 972,227$ 1,053,109$ 2 526,555$ 2,025,336$ 3 675,112$ West 6,010,690$ 19 316,352$ 36,132,018$ 14 2,580,858$ 42,142,709$ 33 1,277,052$ Grand Total 26,310,150$ 65 404,772$ 70,850,992$ 35 2,024,314$ 97,161,142$ 100 971,611$ % of Gross Loans 1.73% 4.66% 6.39% % of CRE 4.61% 12.41% 17.02% RETAIL** Geography Note Book Balance Number of loans Avg Loan Balance Note Book Balance Number of loans Avg Loan Balance Note Book Balance Number of loans Avg Loan Balance Central 8,837,494$ 19 465,131$ 375,607$ 4 93,902$ 9,213,101$ 23 400,570$ East 7,557,582$ 9 839,731$ 35,663,435$ 8 4,457,929$ 43,221,017$ 17 2,542,413$ OOM 2,618,369$ 2 1,309,185$ 11,039,228$ 3 3,679,743$ 13,657,597$ 5 2,731,519$ West 3,110,474$ 4 777,619$ 15,781,695$ 13 1,213,977$ 18,892,169$ 17 1,111,304$ Grand Total 22,123,919$ 34 650,704$ 62,859,965$ 28 2,244,999$ 84,983,885$ 62 1,370,708$ % of Gross Loans 1.45% 4.13% 5.59% % of CRE 3.88% 11.01% 14.89% CRE - Owner Occupied CRE - Non-Owner Occupied Total CRE - Owner Occupied CRE - Non-Owner Occupied Total
17 Variable Rate Loans and Repricing * Includes personal lines of credit and home equity lines Loan Type Reprices Monthly % to Total Type Repricing Repricing 2025 % to Total Type Repricing Repricing 2026 % to Total Type Repricing Repricing 2027 + % to Total Type Repricing Grand Total Commercial Loans 39,981,337$ 17.8% 37,410,686$ 51.7% 33,205,262$ 63.8% 72,649,286$ 22.7% 183,246,571$ Commercial Lines of Credit 83,273,310 37.0% - 0.0% - 0.0% 374,223 0.1% 83,647,533 Commercial Floor Plans 37,951,360 16.9% - 0.0% - 0.0% - 0.0% 37,951,360 Mortgage - 0.0% 34,906,178 48.3% 18,850,181 36.2% 246,800,857 77.2% 300,557,216 Home Equity Lines (no Locks) 9,088,617 4.0% - 0.0% - 0.0% - 0.0% 9,088,617 Other Consumer Lines* 54,704,424 24.3% - 0.0% - 0.0% - 0.0% 54,704,424 Totals 224,999,049$ 100.0% 72,316,863$ 100.0% 52,055,443$ 100.0% 319,824,366$ 100.0% 669,195,721$
18 Credit Quality ALL / ACL Trends (Net Charge - Offs)/Average Loans Nonaccrual Loans / Total Loans NPAs / Total Assets 0.21% 0.27% 0.28% 0.33% 0.28% 2021 2022 2023 2024 2025 0.60% 0.46% 0.48% 0.59% 0.41% 2021 2022 2023 2024 2025 1.38% 1.14% 1.24% 1.23% 1.28% 2021 2022 2023 2024 2025 - 0.02% --- - 0.06% - 0.07% - 0.16% - 0.07% 2021 2022 2023 2024 2025
19 Investment Portfolio Duration Book Yield Portfolio % Par (000s) Sector 5.94 2.30% 26% 73,388 Treasury/Agency 5.10 2.60 2.74% 5.00% 18% 2% 51,362 5,651 Fixed MBS Floating MBS 6.17 2.36% 28% 77,937 CMO 6.09 6.66% 5% 13,242 Municipal 1.03 5.22% 0% 1,000 Corporate 4.17 2.20% 21% 59,692 Other 5.41 2.65% 100.0 $282,272 TOTAL Ratings: 100% of municipal holdings are rated A or better* $282.3 Million Thereafter 2030 2029 2028 2027 2026 Year $166,086 $18,953 $16,685 $18,975 $34,730 $26,729 Annual Cashflow ($000’s) Base Case Portfolio Total Cashflow Treasury/ Agency CMO Fixed MBS Other Municipal Corporate The Other category above of $59.0 million includes agency backed multi - family, commercial mortgage - backed securities. Trust Preferred securities are not included in total above. Floating MBS
20 Shocked Investment Portfolio Unrealized Gains / Losses Capital Impact Up300 Up200 Up100 BaseCase Dn100 Dn200 Dn300 Intent - 26,662 - 22,456 - 18,138 - 13,900 - 9,812 - 5,883 - 2,089 AFS - 47,906 - 39,973 - 31,586 - 22,574 - 13,919 - 4,837 4,237 HTM - 74,569 - 62,429 - 49,724 - 36,473 - 23,730 - 10,719 2,148 Total Corp Excess Above Well - Capitalized (After Proforma Sale) Regulatory Well - Capitalized Thresholds Federal Reserve Minimum RBC Thresholds Bank Difference Bank Pro - Forma AFS + HTM Sale Bank As Reported Corp Difference Corp Pro - Forma AFS + HTM Sale Corp As Reported (32,345) 190,330 222,675 (32,345) 217,887 250,231 Tier 1 Capital (33,219) 209,428 242,647 (33,219) 237,378 270,597 Total Risk Based Capital (RBC) 5.56% 6.50% 4.50% (1.47%) 12.47% 13.94% (1.46%) 12.06% 13.52% CET 1 Ratio 5.98% 8.00% 6.00% (1.47%) 12.47% 13.94% (1.38%) 13.98% 15.36% Tier 1 Ratio 5.24% 10.00% 8.00% (1.47%) 13.72% 15.19% (1.38%) 15.24% 16.61% Total RBC Ratio 5.63% 5.00% 4.00% (1.60%) 9.41% 11.01% (1.58%) 10.63% 12.21% Leverage Ratio Locally held TIF bonds of $1.5 million and Trust Preferred securities of $18.7 million have been excluded from the sale impac t
21 Deposits 34% 32% 28% 27% 26% 16% 23% 23% 25% 23% 39% 36% 37% 39% 39% 11% 8% 10% 9% 9% 0% 0% 2% 0% 3% 2021 2022 2023 2024 2025 NIB Demand IB Demand MMA & Savings CDs - Retail CDs - Brokered $1.57 $1.42 $1.74 $1.57 *Fully repaid $25.0 million brokered CD in January 2026 at its maturity. * $1.58 Deposit Composition ($ in billions as of 12/31/2025) 79% 81% 9 1% 94% 88% Loan to Deposit Ratio 2021 2022 2023 2024 2025 Deposit levels relatively flat due to fierce competition for deposits and recent inflationary spending by consumers, businesses and municipalities. % Balance Deposit Type 77% $1,341,185,338 Insured Deposits 17% $292,051,697 Uninsured – Uncollateralized Deposits 6% $101,925,345 Uninsured - Collateralized Deposits % Balance (MMs) Deposit Type 47% $807,443,557 Retail Deposits 53% $927,706,172 Business Deposits
22 Funding 45% 46% 3% 6% Brokered Deposits Commercial Deposits Retail Deposits Borrowings Funding Mix Brokered/FHLB Maturities $25.0 $40.0 $25.0 July 2026 March 2026 March 2026 January 2026 Dollars (in millions) FHLB Advance Federal Home Loan Bank Brokered CD 4.22% 4.23% Brokered CD 3.83% Brokered CD Federal Home Loan Bank 3.83% Fully repaid a $25.0 million FHLB advance at maturity in September 2025 and the $25.0 million Brokered CD at maturity in January 2026.
23 Net Interest Margin (1) See Appendix for a reconciliation of these non - GAAP financial measures 3.63% 3.85% 4.63% 5.17% 5.43% 0.51% 0.44% 1.92% 2.51% 2.42% 3.28% 3.56% 3.26% 3.38% 3.67% 0.24% 0.21% 1.16% 1.68% 1.66% 0.1% 1.1% 2.1% 3.1% 4.1% 5.1% 2021 2022 2023 2024 2025 Yield on Earning Assets Cost of Interest-bearing Liabilities Net Interest Margin Cost of Deposits
24 Diversified Fee Income (1) See Appendix for a reconciliation of these non - GAAP financial measures Composition 56% Trust and Brokerage 15% Service Charges 3% Net Gain on Loan Sales 20% Debit Card Income 7% Bank - owned Life Insurance 2% Other Noninterest Income Non - Interest Income Mix 2025 Trust & Brokerage Assets Under Management (MMs) ▪ First United’s non - interest income (1) comprised 23% of operating revenue as of December 31, 2025 ▪ Fee - based business provides stable growth, and a diversified revenue stream not directly tied to interest rates, as well as opportunities to build client relationships ▪ First United’s diverse array of products provides opportunities to fully engage with customers and produce stable increases to earnings $1,482 $1,359 $1,532 $1,677 $1,840 2021 2022 2023 2024 2025
25 Committed to Efficiency & Innovation (1) See Appendix for a reconciliation of these non - GAAP financial measures Efficient operational platforms and fraud protection ▪ CardSuite Pro Premium Debit Card Fraud ▪ Better Customer Segmentation with complete picture of customer data ▪ ProfitStars forecasting model ▪ Automated Loan Booking ▪ Vericast Consumer Loan Lead Generator ▪ Project Management Enhancements ▪ AI Innovation Initiative ▪ U1 - Connect Customer Relationship Management Software Efficiency Ratio (1) Strategic Target 53% - 58% FinTech Investments ▪ Identity and Access Management ▪ FinTech Funds Solutions for a seamless and secure client experience: ▪ Zelle for Your Business ▪ Improved Customer Journey through Data Analytics ▪ New commercial loan software ▪ Consumer Online and Mobile Banking Digital Platform Upgrade ▪ Business Online and Mobile Banking Digital Platform Upgrade ▪ Check Fraud Prevention Solution Decrease in 2025 due primarily to increased net interest income, increased non - interest income and controlled expenses. 57.5% 56.4% 65.1% 61.3% 58.2% 2021 2022 2023 2024 2025
26 Liquidity Position Net Availability ($ in thousands) Amount Used ($ in thousands) Amount Available ($ in thousands) Liquidity Sources (12/31/2025) Internal Sources $116,512 $116,512 Excess Cash $25,356 $25,356 Unpledged Securities (BV) External Sources $83,897 $83,897 Federal Reserve (Discount Window) $140,000 $261,552 $73,921 $140,000 $335,473 Correspondent Unsecured Lines of Credit FHLB $627,318 $73,921 $701,239 Total Funding Sources
27 Interest Rate Risk (1) Standard Model Assumptions Interest Rate Risk Sensitivity ▪ The Bank’s interest rate risk position is stress tested under three interest rate ramp scenarios to determine the impact on net interest income, net income and capital under dynamic and static balance sheet conditions. ▪ The Bank’s net interest income position is in a slightly asset sensitive position. ▪ The Bank’s largest risk from an interest rate risk perspective is falling rate scenarios but positioning towards neutral. ▪ Assumptions regarding offering rates, loan and investment prepayment speeds, beta and decay rates are reviewed and adjusted on a quarterly basis. Management Outlook & Strategy ▪ Disciplined loan pricing ▪ Manage deposit pricing on relationship and exception basis ▪ Deposit acquisition through short - term CD promotions and adjustable - rate money market products for businesses, municipalities and consumers ▪ Actively reducing deposit rates concurrent with market adjustments ▪ Alternative funding maturities o $25 million FHLB advance maturing March 2026 o $40 million FHLB advance maturing March 2026 o $25 million Brokered CDs maturing July 2026 +400 +300 +200 +100 Flat - 100 - 200 - 300 - 400 8.2% 7.8% 6.3% 3.6% (4.4%) (8.8%) (13.3%) (19.0%) Net Interest Income (12/31/25) 9.0% 8.3% 6.7% 3.7% (4.5%) (8.3%) (12.6%) (17.8%) Net Interest Income (09/30/25) (17.8%) (11.7%) (6.6%) (2.5%) 0.7% (1.4%) (6.3%) (12.6%) EVE (09/30/25) 12 Month Sensitivity Shock
28 Capital Management CET1 Ratio Leverage Ratio Tier 1 Ratio Total Risk - Based Capital Ratio Regulatory Well - Capitalized 10% 5% 8% 6.5% 14.64% 15.06% 14.42% 14.70% 15.36% 2021 2022 2023 2024 2025 15.89% 16.12% 15.64% 15.92% 16.61% 2021 2022 2023 2024 2025 10.80% 11.46% 11.30% 11.88% 12.21% 2021 2022 2023 2024 2025 12.50% 12.96% 12.44% 12.79% 13.52% 2021 2022 2023 2024 2025 Strong capital levels allowing for continued growth.
29 Capital Management Tangible Book Value / Share TCE Ratio $19.61 $20.90 $22.56 $25.89 $29.57 2021 2022 2023 2024 2025 7.56% 7.59% 7.91% 8.54% 9.26% 2021 2022 2023 2024 2025
30 Strategic Targets Long Term Strategic Target Range (*) Non - GAAP 12/31/2025 Actual 12/31/2025 Non - GAAP 12/31/2024 Actual 12/31/2024 Metric 8% - 12% 27% 20% 15% 41% EPS Growth (YoY) Strong Shareholder Return 20% - 25% 24% 24% 27.0% 27.0% Dividend Payout Ratio 1.25% - 1.45% 1.28% 1.21% 1.08% 1.06% ROAA 13% - 15% 14.25% 13.52% 13.35% 13.08% ROATCE 8% - 10% 9.26% 9.26% 8.54% 8.54% TCE Ratio 6% - 8% 11% 11% 12% 12% Revenue Growth (YoY) High Quality, Diversified Revenue Stream 21% - 23% 23.2% 23.2% 24.8% 24.8% Non - Int Inc / Revenue 3.5% - 3.8% 3.67% 3.67% 3.38% 3.38% N IM 7% - 10% 2.8% 2.8% 5.3% 5.3% % Loan Growth Balance Sheet Growth 75% - 80% 73% 73% 75% 75% Loans / Assets 90% - 95% 88% 88% 94% 94% Loans / Deposits 55% - 60% 58.19% 58.19% 61.31% 61.31% Efficiency Ratio (adjusted for non - core items) Highly Efficient Operations 0.50% - 1.00% 0.28% 0.28% 0.33% 0.33% NPLs / Loans Robust Risk Enterprise Management 0.10% - 0.50% - .07% - .07% - 0.16% - 0.16% Net Charge Offs / Avg. Total Loans (*) Targets reviewed on an annual basis – Revised July 2025 (1) See Appendix for a reconciliation of these non - GAAP financial measures
Strong Investor Relations & Shareholder Engagement Members of the Board and senior management routinely engage with shareholders and other stakeholders, and management regularly updates the Board in the context of ongoing investor discussions. These engagements help the Board and management gather feedback on a variety of topics, including strategic and financial performance, executive compensation, Board composition, and leadership structure. Clear long - term strategic plan with performance targets x Dedicated Investor Relations contact x Investor conferences and prospective investor engagement x Investor presentations and periodic outreach to institutional and retail shareholders x How to contact your Board: Shareholders and interested parties wishing to contact our Board may send a letter to First United Corporation Board of Direc tor s, c/o Tonya K. Sturm, Secretary, First United Corporation, 19 South Second Street, Oakland, Maryland, 21550 - 0009 or by e - mail at [email protected]. The Secretary will deliver all shareholder communications directly to the Board for consideration. 31
32 32 I. II. III. Management Team Board of Directors Non - GAAP Reconciliation Pg. 33 Pg. 34 Pg. 38 Appendices
33 33 Management Team Tonya K. Sturm EVP & Chief Financial Officer, Corp. Secretary & Treasurer 35+ years of banking, audit, credit, retail, risk and compliance and financial and operational experience R.L. Fisher EVP & Chief Banking Officer 25+years with in - depth industry, retail, commercial and mortgage banking experience Keith R. Sanders EVP & Chief Wealth Officer 30+ years specializing in wealth management, estate planning, trust administration and financial planning Our leadership team reflects the diversity of thought from the communities we serve, executes on our strategy and drives shareholder returns. Julie W. Peterson EVP & Chief Credit Officer 30+ years with in - depth industry, commercial banking, and credit experience Jason B. Rush President and CEO 30+ years with in - depth industry, retail, risk and compliance, asset/liability management and operations experience Anthony “AJ” Tasker SVP & Chief Operating Officer 10+ years of banking, information technology, and operational experience
34 34 34 John F. Barr Independent Director Chairman of the Board, Ellsworth Electric, Inc. Sanu Chadha Independent Director Managing Partner, M&S Consulting Christy DiPietro Independent Director, Audit Chair Chartered Financial Analyst, Hidden Cove Advisory Patricia Milon Independent Director Principal, Milford Advisory Group, LLC I. Robert Rudy Independent Director Retired H. Andrew Walls, III Independent Director President, MPB Print & Sign Superstore Member, MEGBA, LLC Beth E. Moran Independent Director, The Law Offices of Beth E. Moran Brian Boal Lead Independent Director, Nomination & Governance Chair Boal & Associates, PC Carissa L. Rodeheaver Executive Chairman of the Board Board of Directors Kevin Hessler Independent Director , Principal, LSWG, Inc. First United's Board of Directors represents individuals with varied backgrounds and viewpoints, contributing to its well - rounded leadership and governance structure. Jason B. Rush President and CEO First United Corporation and First United Bank & Trust
Board of Directors Thoughtful Evaluation and Evolution Our Board is comprised of a diverse group of directors who bring a variety of perspectives, experience, and characteristics to First United. Board Composition 90% of our directors are independent Our Nominating and Governance Committee is responsible for determining directorship criteria, identifying and evaluating candidates for the Board, and regularly assessing the Board’s governance practices. x 100% Independent Board Committees x Majority Voting Standard for Director Elections x Annual Committee and Self - Evaluations x Balanced Tenure, with four directors added in the past four years x Retirement policy, at the age of 75 x Routine shareholder & stakeholder engagement 0 - 5 5 - 10 10+ TENURE 45 - 53 54 - 62 62+ AGE 35
36 Board of Directors The First United board of directors brings a diverse range of skills, experiences, and backgrounds to the work of overseeing ris k and strategy. With experience in fields such as banking, government, accounting, investing, project management, technology, and a range of local entrepreneuri al businesses, they apply these diverse backgrounds to their work on behalf of our shareholders. Director Skills Matrix Walls Rush Rudy Rodeheaver Moran Milon Hessler 1 DiPietro 1 Chadha Boal 1 Barr x x x x x x x x Executive Leadership x x x Public Company Board Experience x x x Information Technology x x x x x x x Financial Services/ Banking x x x x x Asset Management x x x Brokerage/ Investment Banking x x x x x x x x x x x Strategic Planning x x x x Accounting/Finance x x x x x Regulatory x x x x x x x x x Risk Management x x Legal Expertise x x x x x x x Governance Board Tenure and Age 19 New 32 12 2 5 1 4 4 11 11 Tenure 64 55 72 59 61 62 68 63 48 52 71 Age 1 Qualifies as a Financial Expert for proxy purposes. Brokered CD
37 Continuous Progress We continue to advance our Governance profile over time, recognizing the importance of our key stakeholders – including our customers and our communities – to our business. Over the past few years, we have implemented several important enhancements to align our Governance profile with our long - term investors’ expectations for best - in - class corporate governance. x Enhanced structure to more strongly align pay and performance Compensation Governance x Revised stock ownership guidelines for Directors and Executives x Declassified the Board of Directors Adopted Proxy Access x Shareholder access to change By - laws x Management majority vote proposal received strong shareholder support (albeit short of super - majority threshold needed) x Ongoing Board refreshment x Adopted right to call a special meeting. x Adopted mandatory director retirement policy x Adopted plurality voting standard for contested director elections x Enhanced shareholder engagement program x Modernized NGC Charter x Formalized LID role & responsibilities
38 This presentation includes certain non - GAAP financial measures, including pre - provision net revenue, net income, earnings per share (basic and diluted), return on average assets, return on average tangible common equity, tangible common equity, tangible assets, the ratio of tangible common equity to tangible assets, tangible book value per share, net interest margin, and efficiency ratio . These non - GAAP financial measures and any other non - GAAP financial measures that are discussed in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP . There are a number of limitations related to the use of these non - GAAP financial measures versus their nearest GAAP equivalents . For example, other companies may calculate non - GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the Company’s non - GAAP financial measures as tools for comparison . The following is a reconciliation of the non - GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures . Non - GAAP Reconciliation ($000s, except where otherwise noted) YTD 2021 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 12/31/2025 Pre-Provision Net Revenue ("PPNR") Pre-tax income, as reported 26,309$ 33,181$ 19,476$ 27,229$ 4,860$ 6,521$ 7,703$ 8,145$ 7,698$ 7,958$ 9,242$ 7,634$ 32,532$ Add back: Provision expense (817) (643) 1,619 2,933 946 1,192 266 529 656 860 510 717 2,743 Add back: FHLB penalty, gross 2,368 - - - - - - - - - - - - Add back: Contribution 1,000 - - - - - - - - - - - - Add back: Insurance reimbursement (1,375) - - - - - - - - - - - - Add back: Settlement expense, gross 3,300 - - - - - - - - - - - - Add back: Securities loss/(gain) - - 4,214 - - - - - - - (97) - (97) Add back: Branch closure expenses - - 623 562 562 - - - - - - - - Add back: OREO Writedown - - - - - - - - - - - 1,635 1,635 Add back: Sale of Star City - - - - - - - - - - - 228 228 Pre-Provision Net Revenue, as adjusted 30,785$ 32,538$ 25,932$ 30,724$ 6,368$ 7,713$ 7,969$ 8,674$ 8,354$ 8,818$ 9,655$ 10,214$ 37,041$ Net Income Net income, as reported 19,770$ 25,048$ 15,060$ 20,568$ 3,698$ 4,914$ 5,770$ 6,186$ 5,806$ 5,984$ 6,948$ 5,777$ 24,515$ Less: Preferred stock dividends - - - - - - - - - - - -$ Net income, available to common shareholders,as reported (a) 19,770$ 25,048$ 15,060$ 20,568$ 3,698$ 4,914$ 5,770$ 6,186$ 5,806$ 5,984$ 6,948$ 5,777$ 24,515$ Add back: FHLB penalty, net of tax 1,790 - - - - - - - - - - - - Add back: Contribution, net of tax 770 - - - - - - - - - - - - Add back: Insurance reimbursement, net of tax (1,059) - - - - - - - - - - - - Add back: Settlement expense, net of tax 2,565 - - - - - - - - - - - - Add back: Securities loss/(gain) 3,259 - - - - - - - (73) - (73) Add back: Branch closure expenses 482 425 425 - - - - - - - - Add back: OREO Writedown - - - - - - 1,232 1,232 Add back: Sale of Star City - - - - - - 172 172 Net income, as adjusted (b) 23,836$ 25,048$ 18,801$ 20,993$ 4,123$ 4,914$ 5,770$ 6,186$ 5,806$ 5,984$ 6,875$ 7,181$ 25,846$
39 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2021 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 12/31/2025 Weighted Average Common shares - basic (actual) (d) 6,710,463 6,649,740 6,685,676 6,527,077 6,643,898 6,526,553 6,467,597 6,470,259 6,474,368 6,489,245 6,496,122 6,498,587 6,489,581 Weighted Average Common shares - diluted (actual) (e) 6,716,587 6,661,055 6,701,243 6,539,521 6,655,637 6,536,546 6,481,620 6,484,282 6,489,990 6,505,753 6,508,004 6,510,469 6,503,554 Earnings Per Share - Basic Earnings Per Share - Basic, as reported (a)/(d) 2.95$ 3.77$ 2.25$ 3.15$ 0.56$ 0.75$ 0.89$ 0.95$ 0.90$ 0.92$ 1.06$ 0.89$ 3.78$ Add back: FHLB penalty, net of tax 0.27 - - - - - - - - - - - - Add back: Contribution, net of tax 0.12 - - - - - - - - - - - - Add back: Insurance reimbursement, net of tax (0.16) - - - - - - - - - - - - Add back: Settlement expense, net of tax 0.37 - - - - - - - - - - - - Add back: Securities loss/(gain) 0.49 - - - - - - - (0.01) - (0.01) Add back: Branch closure expenses 0.07 0.06 0.06 - - - - Add back: OREO Writedown - - 0.19 0.19 Add back: Sale of Star City - - - - - - 0.03 0.03 Earnings Per Share - Basic, as adjusted (b)/(d) 3.54$ 3.77$ 2.81$ 3.21$ 0.62$ 0.75$ 0.89$ 0.95$ 0.90$ 0.92$ 1.05$ 1.11$ 3.99$ Earnings Per Share - Diluted Earnings Per Share - Diluted, as reported (a)/(e) 2.95$ 3.76$ 2.24$ 3.15$ 0.56$ 0.75$ 0.89$ 0.95$ 0.89$ 0.92$ 1.07$ 0.89$ 3.77$ Add back: FHLB penalty, net of tax 0.27 - - - - - - - - - - - - Add back: Contribution, net of tax 0.12 - - - - - - - - - - - - Add back: Insurance reimbursement, net of tax (0.16) - - - - - - - - - - - - Add back: Settlement expense, net of tax 0.37 - - - - - - - - - - - - Add back: Securities loss/(gain) 0.49 - - - - - - - (0.01) - (0.01) Add back: Branch closure expenses 0.07 0.06 0.06 - - - - - - - - Add back: OREO Writedown - - - - - - 0.18 0.18 Add back: Sale of Star City - - - - - - 0.03 0.03 Earnings Per Share - Diluted, as adjusted (b)/(e) 3.54$ 3.76$ 2.80$ 3.21$ 0.62$ 0.75$ 0.89$ 0.95$ 0.89$ 0.92$ 1.06$ 1.10$ 3.97$
40 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2021 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 12/31/2025 Return on Average Assets (quarter and YTD annualized) Average Assets ( c) 1,765,148$ 1,801,711$ 1,924,119$ 1,946,724$ 1,958,684$ 1,933,390$ 1,912,887$ 1,944,571$ 1,976,702$ 1,997,750$ 2,042,751$ 2,070,950$ 2,022,002$ Return on Average Assets, as reported (a)/(c) 1.12% 1.39% 0.78% 1.06% 0.76% 1.02% 1.20% 1.27% 1.19% 1.20% 1.35% 1.11% 1.21% Add back: FHLB penalty, net of tax 0.10% 0.00% 0.00% 0.00% - - - - - - - - - Add back: Contribution, net of tax 0.04% 0.00% 0.00% 0.00% - - - - - - - - - Add back: Insurance reimbursement, net of tax -0.06% 0.00% 0.00% 0.00% - - - - - - - - - Add back: Settlement expense, net of tax 0.15% 0.00% 0.00% 0.00% - - - - - - - - - Add back: Securities loss/(gain) 0.17% 0.00% - - - - - - -0.01% - 0.00% Add back: Branch closure expenses 0.02% 0.02% 0.09% - - - - - - - Add back: OREO Writedown - - - - - - 0.24% 0.06% Add back: Sale of Star City - - - - - - 0.03% 0.01% Return on Average Assets, as adjusted (b)/(c) 1.35% 1.39% 0.97% 1.09% 0.85% 1.02% 1.20% 1.27% 1.19% 1.20% 1.34% 1.38% 1.28% Return on Average Common Stockholders' Equity Return on Average Tangible Common Stockholders' Equity Average common stockholders' equity (f) 132,550$ 137,685$ 155,631$ 169,189$ 163,944$ 165,040$ 170,778$ 176,507$ 183,463$ 188,572$ 196,229$ 203,738$ 193,001$ Average common stockholders' equity, as adjusted 132,550 137,685 155,631 169,189 163,944 165,040 170,778 176,507 183,463 188,572 196,229 203,738 193,001 Less: Average goodwill and intangibles 11,004 12,043 12,279 11,949 12,071 11,991 11,907 11,827 11,745 11,662 11,580 11,497 11,620 Average tangible common equity (g) 121,546$ 125,642$ 143,352$ 157,240$ 151,873$ 153,049$ 158,871$ 164,680$ 171,718$ 176,910$ 184,649$ 192,241$ 181,381$ Return on average common stockholders' equity, as reported (a)/(f) 14.92% 18.19% 9.68% 12.16% 9.07% 11.98% 13.44% 13.94% 12.83% 12.73% 14.05% 11.25% 12.70% Add back: FHLB penalty, net of tax 1.47% 0.00% 0.00% 0.00% - - - - - - - - 0.00% Add back: Contribution 0.63% 0.00% 0.00% 0.00% - - - - - - - - 0.00% Add back: Insurance reimbursement -1.15% 0.00% 0.00% 0.00% - - - - - - - - 0.00% Add back: Settlement expense, net of tax 2.11% 0.00% 0.00% 0.00% - - - - - - - - 0.00% Add back: Securities loss/(gain) 0.00% 0.00% 2.10% 0.00% - - - - - - -0.15% - -0.04% Add back: Branch closure expenses 0.31% 0.25% 1.04% - - - - - 0.00% Add back: OREO Writedown - - - - 2.40% 0.64% Add back: Sale of Star City - - - - - - 0.33% 0.09% Return on average common stockholders' equity, as adjusted (b)/(f) 17.98% 18.19% 12.09% 12.41% 10.11% 11.98% 13.44% 13.94% 12.83% 12.73% 13.90% 13.98% 13.39% Return on average tangible common equity, as reported (a)/(g) 16.27% 19.94% 10.51% 13.08% 9.79% 12.91% 14.45% 14.94% 13.71% 13.57% 14.93% 11.92% 13.52% Add back: FHLB penalty, net of tax 1.47% - - - - - - - - - - - - Add back: Contribution 0.63% - - - - - - - - - - - - Add back: Insurance reimbursement -0.87% - - - - - - - - - - - - Add back: Settlement expense, net of tax 2.11% - - - - - - - - - - - - Add back: Securities loss/(gain) - - 2.10% - - - - - - - -0.16% - -0.04% Add back: Branch closure expenses - - 0.31% 0.27% - - - - - - - - 0.00% Add back: OREO Writedown - - - - - - - - - - - 2.54% 0.68% Add back: Sale of Star City - - - - - - - - - - - 0.35% 0.09% Return on average tangible common equity, as adj (b)/(g) 19.61% 19.94% 12.92% 13.35% 9.79% 12.91% 14.45% 14.94% 13.71% 13.57% 14.77% 14.82% 14.25%
41 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2021 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 12/31/2025 Tangible Book Value per Common Share Total common equity, as reported (h) 141,900$ 151,793$ 161,873$ 179,295$ 165,481$ 164,177$ 173,979$ 179,295$ 183,694$ 191,147$ 199,099$ 203,634$ 203,634$ Less: Goodwill and intangibles 12,052 12,433 12,103 11,773 12,021 11,938 11,856 11,773 11,691 11,609 11,526 11,444 11,444 Total tangible common equity (i) 129,848$ 139,360$ 149,770$ 167,522$ 153,460$ 152,239$ 162,123$ 167,522$ 172,003$ 179,538$ 187,573$ 192,190$ 192,190$ Common shares outstanding - basic (actual) (j) 6,620,955 6,666,428 6,639,888 6,471,096 6,648,645 6,465,601 6,468,625 6,471,096 6,478,634 6,494,611 6,496,908 6,499,476 6,499,476 Tangible book value per basic common share (i)/(j) 19.61$ 20.90$ 22.56$ 25.89$ 23.08$ 23.55$ 25.06$ 25.89$ 26.55$ 27.64$ 28.87$ 29.57$ 29.57$ Tangible common equity to tangible assets ("TCE Ratio") Total assets, as reported (k) 1,729,838 1,848,169 1,905,860 1,973,022 1,912,953 1,868,599 1,916,126 1,973,022 1,979,753 2,007,471 2,023,974 2,087,453 2,087,453 Less: Goodwill 12,052 12,433 12,103 11,773 12,021 11,938 11,856 11,773 11,691 11,609 11,526 11,444 11,444 Total tangible assets (l) 1,717,786$ 1,835,736$ 1,893,757$ 1,961,249$ 1,900,932$ 1,856,661$ 1,904,270$ 1,961,249$ 1,968,062$ 1,995,862$ 2,012,448$ 2,076,009$ 2,076,009$ Tangible common equity to tangible assets (k)/(l) 7.56% 7.59% 7.91% 8.54% 8.07% 8.20% 8.51% 8.54% 8.74% 9.00% 9.32% 9.26% 9.26% Net interest margin (tax equivalent) Net interest income 52,542$ 57,631$ 56,869$ 59,981$ 13,812$ 15,239$ 15,229$ 15,701$ 16,017$ 16,707$ 17,403$ 17,986$ 68,113$ Tax equivalent adjustment 939 940 629 227 57 57 59 54 49 54 57 58 218$ Tax equivalent net interest income (m) 53,481$ 58,571$ 57,498$ 60,208$ 13,869$ 15,296$ 15,288$ 15,755$ 16,066$ 16,761$ 17,460$ 18,044$ 68,331$ Average earning assets (n) 1,629,299$ 1,647,151$ 1,766,240$ 1,782,241$ 1,787,955$ 1,763,917$ 1,757,184$ 1,800,332$ 1,829,989$ 1,841,112$ 1,876,730$ 1,907,725$ 1,862,391$ Net interest margin (tax equivalent) (m)/(n) 3.28% 3.56% 3.26% 3.38% 3.12% 3.49% 3.46% 3.48% 3.56% 3.65% 3.69% 3.75% 3.67% Efficiency Ratio Noninterest expense, as reported 47,764$ 43,145$ 50,244$ 49,642$ 12,881$ 12,364$ 12,313$ 12,084$ 12,577$ 12,976$ 12,986$ 14,865$ 53,404$ Less: FHLB penalty, gross (2,368) - - - - - - - - - - - - Less: Contribution (1,000) - - - - - - - - - - - - Less: Settlement expense (3,300) - - - - - - - - - - - - Less: Branch closure expenses - - 623 562 562 - - - - - - - - Less: OREO Writedown - - - - - - - - - - 37 (1,635) (1,598) Noninterest expense, adjusted (o) 41,096$ 43,145$ 49,621$ 49,080$ 12,881$ 12,364$ 12,313$ 12,084$ 12,577$ 12,976$ 13,023$ 13,230$ 51,806$ Net interest income 52,542$ 57,631$ 56,868$ 59,981$ 13,812$ 15,239$ 15,229$ 15,701$ 16,017$ 16,707$ 17,404$ 17,985$ 68,113$ Noninterest income 20,714 17,906 14,471 19,827 4,875 4,841 5,053 5,058 4,914 5,087 5,335 5,231 20,567 Less: Insurance reimbursement (1,375) - - - - - - - - - - - - Less: Securities loss/(gain) - (4,214) - - - - - - - (97) - (97) Less: Loss on Branch sale 229 229 Tax equivalent adjustment 939 940 629 227 57 57 59 54 49 54 57 58 218 Total tax equivalent revenue (p) 72,820$ 76,477$ 76,182$ 80,035$ 18,744$ 20,137$ 20,341$ 20,813$ 20,980$ 21,848$ 22,699$ 23,503$ 89,030$ Efficiency ratio, as adjusted (o)/(p) 56.44% 56.41% 65.12% 61.31% 68.71% 61.39% 60.52% 58.05% 59.95% 59.39% 57.37% 56.29% 58.19%