OAKLAND, Md., June 18, 2025 /PRNewswire/ -- First United Corporation (NASDAQ: FUNC) announces that its Board of Directors declared a cash dividend of $.22 per share that will be payable on August 1, 2025, to holders of record of the Corporation's common stock as of the close of business on July 18, 2025. About First United CorporationFirst United Corporation is the parent company of First United Bank & Trust, a Maryland trust company with commercial banking powers.  The Bank's wholly-owned subsidiaries incl ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended March 31, 2025 ◻ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from _______________ to ________________ Commission file number 0-14237 First United Corporation (Exact name of registrant as specified in its charter) | Maryland | 52-1380770 | | --- | -- ...

Those who know me know that I love very little more than finding new and interesting companies to analyze. A lot of times, I find mediocre businesses with little to no potential. But every so often, I find a company thatCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses ...

Group 1 - First United Corporation (FUNC) reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, and up from $0.62 per share a year ago, representing an earnings surprise of 11.25% [1] - The company posted revenues of $20.89 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.39%, compared to year-ago revenues of $18.61 million [2] - First United has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has underperformed, losing about 16.9% since the beginning of the year, compared to the S&P 500's decline of 10.2% [3] - The current consensus EPS estimate for the coming quarter is $0.81 on revenues of $21.1 million, and for the current fiscal year, it is $3.45 on revenues of $85.8 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Consolidated net income for Q1 2025 was $5.8 million, or $0.89 per diluted share, compared to $3.7 million, or $0.56 per diluted share in Q1 2024, reflecting a 56.8% year-over-year increase[2][5][6] - Net income for the quarter ended March 31, 2025, was $5.806 million, an increase of 57.0% from $3.698 million for the same period in 2024[32] - Basic net income per share for Q1 2025 was $0.90, down from $0.95 in Q4 2024[35] - Net income for Q1 2025 was $5,806,000, a decrease of 6.1% compared to $6,186,000 in Q4 2024[35] - Adjusted net income (non-GAAP) for Q1 2025 was $5,806 thousand, compared to $4,123 thousand in Q1 2024, reflecting a 40.8% increase[42] Asset and Deposit Growth - Total assets increased by $6.7 million to $2.0 billion as of March 31, 2025, with cash and interest-bearing deposits in other banks rising by $6.1 million[17] - Total assets at the end of Q1 2025 were $1,979,753,000, a slight increase from $1,973,022,000 in Q4 2024[36] - Total deposits increased to $1.623 billion at March 31, 2025, from $1.575 billion at December 31, 2024, representing a growth of 3.0%[33] - Total deposits increased to $1,623,574,000 in Q1 2025, up from $1,574,829,000 in Q4 2024[36] - Total deposits rose to $1,623,574 thousand, up 3.08% from $1,574,829 thousand in the previous quarter[37] Loan Production and Quality - Loan production included $36.1 million in commercial loan originations and $11.4 million in residential mortgage originations during Q1 2025[7][21][22] - The pipeline of commercial loans as of March 31, 2025, was $56.0 million, indicating potential future growth[21] - Non-accrual loans totaled $4.0 million at March 31, 2025, down from $4.9 million at December 31, 2024, indicating a decrease of 18.4%[27] - Nonperforming loans and 90-day past due loans totaled $4,259,000 in Q1 2025, down from $5,849,000 in Q4 2024[36] - The allowance for credit losses (ACL) was $18.5 million at March 31, 2025, compared to $18.0 million at March 31, 2024, and $18.2 million at December 31, 2024, with a ratio of ACL to loans outstanding at 1.25%[25] Interest Income and Margins - Net interest margin on a non-GAAP, fully tax equivalent basis was 3.56% for Q1 2025, driven by increased loan yields and stable funding costs[7] - The net interest income for the quarter ended March 31, 2025, was $16.016 million, up from $13.812 million in the same quarter of 2024, reflecting a growth of 15.9%[32] - Net interest income for Q1 2025 was $16,016 thousand, an increase of 8.7% compared to $13,812 thousand in Q1 2024[38] - The net interest spread improved to 2.89%, up from 2.29% in the same quarter last year, indicating enhanced profitability from interest-earning assets[44] Operating Expenses and Efficiency - Operating expenses increased by $0.5 million compared to the linked quarter, primarily due to a $0.9 million increase in salaries and employee benefits[15] - The efficiency ratio (non-GAAP) improved to 59.95% for the quarter ended March 31, 2025, compared to 65.71% for the same period in 2024[32] - The efficiency ratio (non-GAAP) improved to 59.95% in Q1 2025 from 61.31% in Q4 2024[35] Shareholder Value - The book value of common stock increased to $28.35 per share at March 31, 2025, up from $27.71 per share at December 31, 2024[24] - The closing market value of the stock was $30.02 at March 31, 2025, compared to $22.91 at March 31, 2024, reflecting an increase of 31.5%[32] - The closing market value decreased to $30.02 in Q1 2025 from $33.71 in Q4 2024[35] - Shareholders' equity increased to $183,463 thousand from $163,944 thousand, representing an increase of 11.8%[44] Tax and Regulatory Metrics - The effective income tax rate for Q1 2025 was 24.6%, compared to 23.9% in Q1 2024[16] - Tier 1 capital ratio was 14.87% at the end of Q1 2025, up from 14.70% in Q4 2024[36] Other Financial Metrics - The return on average assets for the year-to-date period ended March 31, 2025, was 1.19%, up from 0.76% for the same period in 2024[32] - Return on average assets for Q1 2025 was 1.19%, an increase from 1.06% in Q4 2024[35] - Return on average assets improved to 1.19% in Q1 2025, up from 0.76% in Q1 2024[43] - Return on average equity increased to 12.83% in Q1 2025, compared to 9.07% in Q1 2024[43]

Core Viewpoint - The market anticipates First United Corporation (FUNC) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - First United is expected to post quarterly earnings of $0.80 per share, reflecting a year-over-year increase of +29% [3]. - Revenues are projected to reach $20.6 million, which is a 10.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 7.95% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for First United matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - A positive Earnings ESP combined with a strong Zacks Rank significantly increases the chances of a positive surprise, with a success rate of nearly 70% [8]. Historical Performance - First United has consistently beaten consensus EPS estimates, achieving this in the last four quarters [13]. - In the most recent quarter, the company exceeded expectations by delivering earnings of $0.95 per share against an expected $0.86, resulting in a surprise of +10.47% [12]. Industry Context - In the Zacks Banks - Northeast industry, HBT Financial is expected to report earnings of $0.57 per share, unchanged from the previous year, with revenues anticipated at $56.7 million, up 8.4% [17]. - HBT Financial's consensus EPS estimate has remained stable, but a lower Most Accurate Estimate has led to an Earnings ESP of -3.51%, combined with a Zacks Rank of 4, indicating challenges in beating the consensus [18].

Financial Performance - Net income for the year ended December 31, 2024, was $20.6 million, up from $15.1 million in 2023, representing a 36.8% increase [189]. - Adjusted net income on a non-GAAP basis for 2024 was $21.0 million, compared to $18.8 million in 2023, reflecting a 11.7% increase [190]. - Basic net income per common share increased to $3.15 in 2024 from $2.25 in 2023, representing a 40% growth [232]. - Comprehensive income for 2024 was $26,148,000, up from $18,259,000 in 2023, reflecting an increase of 43.4% [334]. - Net interest income for 2024 was $60.207 million, up from $57.497 million in 2023, reflecting a net interest margin of 3.38% compared to 3.26% in the previous year [219]. - Net interest income after provision for credit losses was $57,045,000 in 2024, up from $55,250,000 in 2023, reflecting a growth of 3.2% [332]. Loan and Credit Quality - Outstanding loans grew by $74.1 million to $1.5 billion as of December 31, 2024, with notable increases in commercial real estate loans by $32.7 million and residential mortgage loans by $18.9 million [194]. - The provision for credit losses increased to $2.9 million in 2024 from $1.7 million in 2023, with net charge-offs rising to $2.2 million from $0.9 million [191]. - The allowance for credit losses (ACL) ratio to loans outstanding was 1.23% at December 31, 2024, slightly down from 1.24% at December 31, 2023 [191]. - Non-accrual loans increased to $4.931 million in 2024 from $3.956 million in 2023, representing a rise in the non-accrual loans to total loans ratio to 0.33% [255]. - The total non-performing assets rose to $11.713 million in 2024 from $9.047 million in 2023, with non-performing loans to total loans ratio at 0.39% [255]. - The average balance of non-accrual loans increased to $8.471 million in 2024 from $3.171 million in 2023 [214]. Deposits and Funding - Total deposits increased by $23.9 million in 2024, with interest-bearing demand deposits rising by $35.9 million [196]. - Total deposits increased to $1,574,829,000 in 2024, compared to $1,550,977,000 in 2023, marking a growth of approximately 1.54% [330]. - Interest-bearing demand deposits rose by $35.9 million, including a shift of approximately $22.0 million to FDIC insured accounts [290]. - Money market accounts increased by $61.5 million, driven by the expansion of relationships and a shift from certificates of deposit [290]. - Total short-term borrowings increased by $20.0 million to $65,409 thousand in 2024, driven by a $50.0 million increase in overnight borrowings [294]. Asset Management - Total assets reached $2.0 billion at December 31, 2024, an increase of $67.2 million compared to the previous year [234]. - The investment portfolio decreased by $41.5 million primarily due to the maturities of $37.5 million of U.S. Treasury bonds [234]. - The fair value of available-for-sale securities decreased to $94.5 million from $97.2 million in 2023, a decline of $2.7 million [282]. - The total fair value of held-to-maturity securities decreased by $38.8 million to $175.6 million as of December 31, 2024 [282]. Operating Expenses - Other operating income increased by approximately $5.4 million compared to 2023, primarily due to improved wealth management income [192]. - Other operating expenses decreased by $0.6 million, mainly due to reduced occupancy and equipment expenses related to branch closures [193]. - Total other operating expenses decreased slightly to $49,640,000 in 2024 from $50,243,000 in 2023, a reduction of 1.2% [332]. Tax and Regulatory - The effective income tax rate increased to 24.5% in 2024 from 22.7% in 2023, attributed to changes in state income tax expense allocations [227]. - The Corporation's total risk-based capital ratio was 15.92% in 2024, up from 15.64% in 2023, exceeding the regulatory minimum of 8% [302]. Credit Loss Management - The allowance for credit losses (ACL) was $18.2 million at December 31, 2024, compared to $17.5 million at December 31, 2023, with a provision for credit losses of $2.9 million in 2024 [268]. - The allocation of the allowance for credit losses by major loan category showed that residential mortgage accounted for 39% of the total [279]. - Management uses a 10-point internal risk rating system to monitor the credit quality of the overall loan portfolio, with loans greater than 90 days past due classified as Substandard [354]. - The Corporation records an ACL on unfunded commitments through a charge to provision for credit loss expense, estimated by loan segment under the CECL model [379].

Group 1 - First United Corporation's Board of Directors declared a cash dividend of $0.22 per share, payable on May 1, 2025, to shareholders of record as of April 17, 2025 [1] Group 2 - First United Corporation is the parent company of First United Bank & Trust, which operates as a Maryland trust company with commercial banking powers [2] - The Bank has several wholly-owned subsidiaries, including OakFirst Loan Center, Inc. and OakFirst Loan Center, LLC, which are finance companies [2] - The Bank also owns interests in partnerships focused on low-income housing development in Maryland [2]

Core Viewpoint - First United Corporation (FUNC) shows solid improvement in earnings estimates, indicating potential investment opportunities as the stock has gained short-term price momentum [1][2] Estimate Revisions - Analysts exhibit growing optimism regarding First United's earnings prospects, reflected in upward revisions of earnings estimates, which correlate strongly with stock price movements [2][3] - Current-quarter earnings are estimated at $0.86 per share, representing a year-over-year increase of +38.71%, with a 14.67% rise in the Zacks Consensus Estimate over the last 30 days [4] - For the full year, the earnings estimate is $3.75 per share, reflecting a +16.82% change from the previous year, with a 13.64% increase in the consensus estimate [5] Zacks Rank - First United currently holds a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on favorable estimate revisions [6] - Stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500, suggesting a positive outlook for First United [6] Investment Outlook - The stock has increased by 28.1% over the past four weeks due to strong estimate revisions, indicating further upside potential [7]

Core Viewpoint - First United Corporation (FUNC) reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and showing an increase from $0.82 per share a year ago, indicating a positive earnings surprise of 10.47% [1][2] Financial Performance - The company achieved revenues of $20.62 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.65%, and up from $18.99 million year-over-year [2] - Over the last four quarters, First United has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance and Outlook - First United shares have declined approximately 2.5% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.75 on revenues of $20.32 million, and for the current fiscal year at $3.30 on revenues of $85.13 million [7] Industry Context - The Zacks Industry Rank for Banks - Northeast, to which First United belongs, is currently in the top 7% of over 250 Zacks industries, suggesting a favorable industry outlook [8]