[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) First United Corporation achieved strong Q2 and H1 2025 financial results, marked by significant net income growth and improved net interest margin [Second Quarter 2025 Performance Overview](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Performance%20Overview) Q2 2025 net income increased to **$6.0 million** ($0.92 diluted EPS), driven by an increasing net interest margin and controlled funding costs Consolidated Net Income and Diluted EPS | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------------- | :------ | :------ | :------ | | Net Income, GAAP (millions) | $6.0 | $5.8 | $4.9 | | Diluted net income per share | $0.92 | $0.89 | $0.75 | - The **$1.1 million** increase in quarterly net income (YoY) was primarily due to a **$1.5 million** increase in net interest income, a **$0.3 million** decrease in provision for credit loss, and a **$0.2 million** increase in non-interest income, partially offset by higher non-interest and income tax expenses[6](index=6&type=chunk) - The CEO highlighted the strong second quarter, driven by increasing net interest margin, successful control of funding costs, and favorable loan portfolio interest income, with increased loan production and team expansion[3](index=3&type=chunk) [Key Financial Highlights (Q2 2025 vs Q1 2025 & Q2 2024)](index=1&type=section&id=1.2%20Key%20Financial%20Highlights%20(Q2%202025%20vs%20Q1%202025%20%26%20Q2%202024)) Q2 2025 net interest margin was **3.65%** (FTE), reflecting increased loan yields and stable funding costs, with strong loan production - Net interest margin (non-GAAP, FTE basis) was **3.65%** for Q2 2025, driven by increased loan yields and stable funding costs[7](index=7&type=chunk) Q2 2025 Loan Originations | Loan Originations (Q2 2025) | Amount (millions) | | :---------------------------- | :---------------- | | Commercial Loans | $65.1 | | Residential Mortgages | $19.2 | Q2 2025 Provision Expense and Cash Dividend | Metric (Q2 2025) | Amount (millions) | | :--------------- | :---------------- | | Provision expense | $0.9 | | Cash dividend | $0.22 per share | - Compared to the linked quarter (Q1 2025), net income increased slightly due to higher net interest income and other operating income, partially offset by increased provision for credit losses and operating expenses[8](index=8&type=chunk) [Six-Month Period 2025 Performance Overview](index=1&type=section&id=1.3%20Six-Month%20Period%202025%20Performance%20Overview) H1 2025 net income significantly increased to **$11.8 million** ($1.81 diluted EPS), driven by higher net interest income and lower provision for credit losses Six-Month Period Net Income and Performance Ratios | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------- | :--------------------------- | :--------------------------- | | Net Income (millions) | $11.8 | $8.6 | | Diluted net income per share | $1.81 | $1.31 | | Return on Average Assets | 1.20% | 0.89% | | Return on Average Equity | 12.78% | 10.48% | - The increase in net income for the first six months of 2025 was driven by a **$3.7 million** increase in net interest income and a **$0.6 million** decrease in provision for credit losses (due to a **$1.1 million** charge-off in 2024)[9](index=9&type=chunk) - Other operating income increased by **$0.3 million**, mainly from gains on residential mortgage sales and wealth management income, partially offset by a **$0.3 million** increase in operating expenses[9](index=9&type=chunk) [Detailed Income Statement Analysis](index=2&type=section&id=Detailed%20Income%20Statement%20Analysis) This section provides an in-depth analysis of First United Corporation's income statement components, including net interest income, non-interest income, non-interest expense, and income tax expense [Net Interest Income and Net Interest Margin](index=2&type=section&id=2.1%20Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income grew significantly across all periods, driven by increased loan interest income from repricing and portfolio growth, with mixed interest expense management Net Interest Income and Loan Portfolio Growth (FTE Basis) | Metric (FTE Basis) | Q2 2025 vs Q2 2024 | Q2 2025 vs Q1 2025 | 6M 2025 vs 6M 2024 | | :----------------- | :----------------- | :----------------- | :----------------- | | Net Interest Income | +$1.5 million | +$0.7 million | +$3.7 million | | Loan Interest Income | +$2.1 million | +$0.5 million | +$4.6 million | | Average Loan Balances | +$74.1 million | +$6.3 million | +$74.7 million | | Overall Loan Yield | +26 bps | +6 bps | +36 bps | - Interest expense increased by **$0.3 million** YoY for Q2 2025, with deposit interest up **$0.4 million** (due to higher balances, despite lower rates) and long-term borrowings up **$0.4 million**, partially offset by a **$0.5 million** decrease in short-term borrowings due to BTFP repayment[10](index=10&type=chunk) Net Interest Margin (FTE Basis) for Six-Month Periods | Net Interest Margin (FTE Basis) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------ | :--------------------------- | :--------------------------- | | Net Interest Margin | 3.61% | 3.31% | [Non-Interest Income](index=3&type=section&id=2.2%20Non-Interest%20Income) Non-interest income consistently grew across all periods, primarily driven by increased wealth management income and residential mortgage sales gains Other Operating Income Trends | Metric (Other Operating Income, including net gains) | Q2 2025 vs Q2 2024 | Q2 2025 vs Q1 2025 | 6M 2025 vs 6M 2024 | | :------------------------------------------------- | :----------------- | :----------------- | :----------------- | | Total Increase | +$0.2 million | +$0.2 million | +$0.3 million | | Wealth Management Income | +$0.1 million | Stable | +$0.2 million | | Gains on Sales of Residential Mortgages | +$0.1 million | +$0.1 million | +$0.1 million | | Debit Card Income | Stable | +$0.1 million | Stable | - Wealth management income growth was attributed to higher market valuations, expanded client relationships, and increased annuity sales[13](index=13&type=chunk)[15](index=15&type=chunk) - Gains on sales of residential mortgages increased due to higher production volumes year-over-year and quarter-over-quarter[13](index=13&type=chunk)[14](index=14&type=chunk) [Non-Interest Expense](index=3&type=section&id=2.3%20Non-Interest%20Expense) Operating expenses increased across all periods, driven by higher OREO expenses, data processing, professional services, and salaries, partially offset by lower occupancy costs Operating Expense Trends | Metric (Operating Expenses) | Q2 2025 vs Q2 2024 | Q2 2025 vs Q1 2025 | 6M 2025 vs 6M 2024 | | :-------------------------- | :----------------- | :----------------- | :----------------- | | Total Increase | +$0.6 million | +$0.4 million | +$0.3 million | | Net OREO Expenses | +$0.2 million | +$0.1 million | +$0.2 million | | Data Processing Fees | +$0.2 million | +$0.1 million | +$0.9 million | | Professional Services | +$0.1 million | +$0.1 million | +$0.1 million | | Salaries & Employee Benefits | +$0.1 million | N/A | +$0.2 million | - Net OREO expenses increased due to a gain on sale in Q2 2024 not recurring and increased costs associated with one OREO property in Q2 2025[16](index=16&type=chunk)[17](index=17&type=chunk) - Salaries and employee benefits increased due to normal merit increases and higher stock compensation/401K expenses, partially offset by reduced life and health insurance costs[16](index=16&type=chunk)[18](index=18&type=chunk) - Occupancy and equipment expenses decreased by **$0.7 million** for the six-month period due to accelerated depreciation from branch closures in Q1 2024[18](index=18&type=chunk) [Income Tax Expense](index=3&type=section&id=2.4%20Income%20Tax%20Expense) The effective income tax rate for the first six months of 2025 remained stable with a slight increase compared to the prior year Effective Income Tax Rate | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Effective Income Tax Rate | 24.7% | 24.3% | [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) This section analyzes First United Corporation's balance sheet, detailing changes in total assets, liabilities, deposits, loan portfolio, and shareholders' equity [Total Assets](index=3&type=section&id=3.1%20Total%20Assets) Total assets grew to **$2.0 billion** at June 30, 2025, reflecting increases in the investment portfolio and gross loans, with stronger loan growth anticipated Total Assets and Portfolio Changes | Metric | June 30, 2025 (billions) | December 31, 2024 (billions) | Change (millions) | | :------------- | :----------------------- | :--------------------------- | :---------------- | | Total Assets | $2.0 | $1.973 | +$34.4 | | Investment Portfolio | N/A | N/A | +$9.6 | | Gross Loans | N/A | N/A | +$21.7 | - The investment portfolio increased as bonds were purchased to gain yield in anticipation of potential declines in long-term rates[20](index=20&type=chunk) - Management expects stronger loan growth in the second half of the year due to robust loan pipelines[20](index=20&type=chunk) [Total Liabilities and Deposits](index=4&type=section&id=3.2%20Total%20Liabilities%20and%20Deposits) Total liabilities increased due to higher total deposits, including brokered deposits, with shifts in deposit composition towards savings, money market, and retail time deposits Total Liabilities and Deposit Composition | Metric | June 30, 2025 (billions) | December 31, 2024 (billions) | Change (millions) | | :-------------------- | :----------------------- | :--------------------------- | :---------------- | | Total Liabilities | $1.8 | $1.777 | +$22.6 | | Total Deposits | N/A | N/A | +$39.4 | | Brokered Deposits | N/A | N/A | +$50.0 | | Savings & Money Market | N/A | N/A | +$25.5 | | Retail Time Deposits | N/A | N/A | +$3.9 | | Interest-Bearing Demand | N/A | N/A | -$39.1 | - The **$50.0 million** in new brokered deposits (average rate **4.24%**) obtained in January 2025 were used to repay **$50.0 million** in overnight borrowings outstanding at December 31, 2024[21](index=21&type=chunk)[26](index=26&type=chunk) - Decreases in interest-bearing demand deposits were primarily due to seasonal fluctuations in municipal accounts, and non-interest-bearing deposits decreased due to increased spending related to inflation[21](index=21&type=chunk)[26](index=26&type=chunk) [Loan Portfolio](index=4&type=section&id=3.3%20Loan%20Portfolio) Gross loan portfolio expanded by **$21.7 million** since December 31, 2024, driven by commercial real estate and acquisition loans, despite decreases in other loan types, with strong Q2 production Loan Portfolio Changes by Type | Loan Type (in millions) | Change since March 31, 2025 | Change since December 31, 2024 | | :---------------------- | :-------------------------- | :----------------------------- | | Commercial | +$21.9 | +$21.9 | | 1 to 4 Family Mortgages | +$1.9 | +$3.2 | | Consumer | -$1.2 | -$3.4 | | Gross Loans | +$22.6 | +$21.7 | - Commercial real estate loans increased by **$24.4 million** and acquisition and development loans by **$3.6 million** since December 31, 2024[23](index=23&type=chunk) Q2 2025 Loan Production and Pipeline | Loan Production (Q2 2025) | Amount (millions) | | :------------------------ | :---------------- | | New Commercial Loans | $65.1 | | Commercial Loan Pipeline | $32.3 | | Unfunded Commercial Construction | $47.0 | | New Consumer Mortgage Loans | $19.2 | | In-house Portfolio Loan Pipeline | $11.4 | | Unfunded Residential Construction | $10.0 | [Shareholders' Equity](index=5&type=section&id=3.4%20Shareholders'%20Equity) Shareholders' equity increased, raising book value per common share, primarily due to undistributed net income for the first half of 2025 Shareholders' Equity and Book Value Per Share | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Book value per share | $29.43 | $27.71 | | Diluted book value per share | $29.38 | $27.65 | | Basic outstanding shares | 6,494,611 | 6,471,096 | | Diluted outstanding shares | 6,506,493 | 6,485,119 | - The increase in book value was attributed to **$8.9 million** in undistributed net income for the first six months of 2025[27](index=27&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) This section evaluates First United Corporation's asset quality, focusing on the Allowance for Credit Losses, provision expense, non-performing assets, and charge-offs [Allowance for Credit Losses and Provision Expense](index=5&type=section&id=4.1%20Allowance%20for%20Credit%20Losses%20and%20Provision%20Expense) ACL increased due to loan growth and unfunded commitments; provision for credit losses decreased YoY but increased QoQ due to unfunded commitments Allowance for Credit Losses | Metric | June 30, 2025 (millions) | June 30, 2024 (millions) | December 31, 2024 (millions) | | :-------------------- | :----------------------- | :----------------------- | :--------------------------- | | Allowance for Credit Losses | $19.0 | $17.9 | $18.2 | Provision for Credit Losses | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Q1 2025 (millions) | | :-------------------- | :----------------- | :----------------- | :----------------- | | Provision for Credit Losses | $0.9 | $1.2 | $0.7 | - The decreased provision expense YoY was primarily due to **$1.1 million** in charge-offs related to one non-accrual commercial loan relationship in 2024. The increased provision QoQ was due to a **$22.6 million** increase in unfunded loan commitments[28](index=28&type=chunk) ACL to Loans Outstanding Ratio | Ratio | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | ACL to loans outstanding | 1.27% | 1.25% | 1.26% | [Non-Performing Assets and Charge-Offs](index=5&type=section&id=4.2%20Non-Performing%20Assets%20and%20Charge-Offs) Asset quality remained strong with decreased non-accrual loans and a low net charge-off ratio, showing significant improvements in commercial and consumer loan charge-off rates Non-Accrual Loans and Loans in Foreclosure | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :-------------------- | :----------------------- | :--------------------------- | | Non-accrual loans | $3.8 | $4.9 | | Loans in foreclosure | $0.1 | $1.6 | Net Charge-Offs/Recoveries to Average Loans by Type | Ratio of Net (Charge Offs)/Recoveries to Average Loans (6 Months Ended) | 6/30/2025 | 6/30/2024 | | :------------------------------------------------------ | :-------- | :-------- | | Commercial Real Estate | 0.00% | 0.01% | | Acquisition & Development | 0.13% | 0.01% | | Commercial & Industrial | (0.25%) | (0.89%) | | Residential Mortgage | 0.01% | (0.01%) | | Consumer | (0.96%) | (2.02%) | | Total Net (Charge Offs)/Recoveries | (0.07%) | (0.25%) | - The decrease in non-accrual balances was related to principal reductions. Accruing loans past due 30 days or more decreased to **0.27%** of the loan portfolio at June 30, 2025, from **0.32%** at December 31, 2024[30](index=30&type=chunk)[31](index=31&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) This section provides background on First United Corporation's structure and business, along with important disclosures regarding forward-looking statements [About First United Corporation](index=6&type=section&id=5.1%20About%20First%20United%20Corporation) First United Corporation is a Maryland-chartered financial holding company, serving as the parent of First United Bank & Trust and its subsidiaries, including finance and real estate entities - First United Corporation is a Maryland corporation (chartered 1985) and a financial holding company registered with the Federal Reserve System[32](index=32&type=chunk) - Its primary business is being the parent company of First United Bank & Trust, First United Statutory Trust I & II, two consumer finance company subsidiaries (Oak First Loan Center, Inc. and OakFirst Loan Center, LLC), and two real estate holding subsidiaries (First OREO Trust and FUBT OREO I, LLC)[32](index=32&type=chunk) - The Bank also holds interests in partnerships for acquiring, developing, and operating low-income housing units in Garrett County and Allegany County, Maryland[32](index=32&type=chunk) [Forward-Looking Statements](index=6&type=section&id=5.2%20Forward-Looking%20Statements) Forward-looking statements are based on management's beliefs and objectives, subject to risks and uncertainties that could cause actual results to differ materially; investors should review SEC filings - Forward-looking statements are identified by terms such as 'anticipate,' 'estimate,' 'should,' 'expect,' 'believe,' and 'intend,' and represent management's beliefs and projections about the future[33](index=33&type=chunk) - These statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially[33](index=33&type=chunk) - Investors should refer to the 'Risk Factors' section in the Corporation's periodic reports filed with the SEC for a discussion of these risks[33](index=33&type=chunk) [Financial Statements and Supplementary Data](index=7&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) This section provides comprehensive unaudited financial statements and supplementary data, including income statements, balance sheets, quarterly trends, and non-GAAP reconciliations [Unaudited Financial Highlights (Income Statement & Per Share Data)](index=7&type=section&id=6.1%20Unaudited%20Financial%20Highlights%20(Income%20Statement%20%26%20Per%20Share%20Data)) This section summarizes unaudited consolidated results of operations for the three and six months ended June 30, 2025 and 2024, including key income statement figures and per share data Consolidated Income Statement Highlights (in thousands) | (Dollars in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $24,871 | $23,113 | $48,933 | $45,011 | | Interest expense | $8,164 | $7,875 | $16,210 | $15,961 | | Net interest income | $16,707 | $15,238 | $32,723 | $29,050 | | Provision for credit losses | $860 | $1,194 | $1,516 | $2,140 | | Other operating income | $4,940 | $4,782 | $9,762 | $9,575 | | Net gains | $146 | $59 | $238 | $141 | | Other operating expense | $12,974 | $12,364 | $25,550 | $25,245 | | Income before taxes | $7,959 | $6,521 | $15,657 | $11,381 | | Income tax expense | $1,975 | $1,607 | $3,867 | $2,769 | | Net income | $5,984 | $4,914 | $11,790 | $8,612 | | Diluted net income per share | $0.92 | $0.75 | $1.81 | $1.31 | | Dividends declared per share | $0.22 | $0.20 | $0.44 | $0.40 | Key Performance Ratios (Year-to-Date) | Performance Ratios (Year to Date Period End, annualized) | June 30, 2025 | June 30, 2024 | | :------------------------------------------------------- | :------------ | :------------ | | Return on average assets | 1.20% | 0.89% | | Return on average shareholders' equity | 12.78% | 10.48% | | Net interest margin (Non-GAAP, FTE) | 3.61% | 3.31% | | Efficiency ratio - non-GAAP | 59.66% | 63.48% | [Unaudited Financial Highlights (Balance Sheet & Capital Ratios)](index=7&type=section&id=6.2%20Unaudited%20Financial%20Highlights%20(Balance%20Sheet%20%26%20Capital%20Ratios)) This section provides unaudited financial condition at period end, including key balance sheet items, capital ratios, and asset quality metrics for June 30, 2025, compared to December 31, 2024 Consolidated Balance Sheet Highlights (in thousands) | Financial Condition at period end (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------------- | :------------ | :---------------- | | Assets | $2,007,471 | $1,973,022 | | Earning assets | $1,789,747 | $1,758,665 | | Gross loans | $1,502,481 | $1,480,793 | | Investment securities | $279,541 | $269,991 | | Total deposits | $1,614,207 | $1,574,829 | | Shareholders' equity | $191,147 | $179,295 | Capital Ratios | Capital Ratios | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Tier 1 to risk weighted assets | 15.22% | 14.70% | | Common Equity Tier 1 to risk weighted assets | 13.32% | 12.79% | | Tier 1 Leverage | 12.08% | 11.88% | | Total risk based capital | 16.47% | 15.92% | Asset Quality Metrics | Asset Quality (Period End) | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Net charge-offs for the quarter | $(151) | $(362) | | Nonaccrual loans | $3,813 | $4,931 | | Total nonperforming loans and 90 day past due | $4,348 | $5,849 | | Allowance for credit losses to gross loans | 1.27% | 1.23% | | Non-performing assets to total assets | 0.51% | 0.59% | [Quarterly Financial Trends (Income Statement & Per Share Data)](index=9&type=section&id=6.3%20Quarterly%20Financial%20Trends%20(Income%20Statement%20%26%20Per%20Share%20Data)) This table presents historical quarterly income statement items and per share data from Q1 2024 to Q2 2025, illustrating trends in revenue, expenses, net income, and profitability Quarterly Income Statement and Per Share Trends (in thousands) | (Dollars in thousands, except per share data) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :-------------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Interest income | $24,871 | $24,062 | $23,725 | $23,257 | $23,113 | $21,898 | | Net interest income | $16,707 | $16,016 | $15,700 | $15,228 | $15,238 | $13,812 | | Net income | $5,984 | $5,806 | $6,186 | $5,771 | $4,914 | $3,698 | | Diluted net income per share | $0.92 | $0.89 | $0.95 | $0.89 | $0.75 | $0.56 | | Dividends declared per share | $0.22 | $0.22 | $0.22 | $0.22 | $0.22 | $0.20 | | Return on average assets | 1.20% | 1.19% | 1.06% | 0.99% | 0.89% | 0.76% | | Net interest margin (Non-GAAP, FTE) | 3.61% | 3.56% | 3.38% | 3.34% | 3.31% | 3.12% | | Efficiency ratio - non-GAAP | 59.66% | 59.95% | 61.31% | 62.46% | 63.48% | 65.71% | [Quarterly Financial Trends (Balance Sheet & Asset Quality)](index=10&type=section&id=6.4%20Quarterly%20Financial%20Trends%20(Balance%20Sheet%20%26%20Asset%20Quality)) This table presents historical quarterly balance sheet items, capital ratios, and asset quality metrics from Q1 2024 to Q2 2025, highlighting trends in financial condition and risk management Quarterly Balance Sheet and Asset Quality Trends (in thousands) | Financial Condition at period end (Dollars in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :------------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Assets | $2,007,471 | $1,979,753 | $1,973,022 | $1,916,126 | $1,868,599 | $1,912,953 | | Gross loans | $1,502,481 | $1,479,869 | $1,480,793 | $1,447,883 | $1,422,975 | $1,412,327 | | Total deposits | $1,614,207 | $1,623,574 | $1,574,829 | $1,540,395 | $1,537,071 | $1,563,453 | | Shareholders' equity | $191,147 | $183,694 | $179,295 | $173,979 | $164,177 | $165,481 | | Tier 1 to risk weighted assets | 15.22% | 14.87% | 14.70% | 14.61% | 14.51% | 14.58% | | Nonaccrual loans | $3,813 | $4,026 | $4,931 | $8,073 | $9,438 | $16,007 | | Total nonperforming loans and 90 day past due | $4,348 | $4,259 | $5,849 | $8,611 | $9,964 | $16,127 | | Allowance for credit losses to gross loans | 1.27% | 1.25% | 1.23% | 1.24% | 1.26% | 1.27% | | Non-performing assets to total assets | 0.51% | 0.51% | 0.59% | 0.60% | 0.69% | 1.07% | [Consolidated Statement of Condition](index=11&type=section&id=6.5%20Consolidated%20Statement%20of%20Condition) This table presents the unaudited consolidated statement of condition for First United Corporation as of June 30, 2025, March 31, 2025, and December 31, 2024, detailing assets, liabilities, and shareholders' equity Consolidated Statement of Condition (in thousands) | (Dollars in thousands - Unaudited) | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :------------- | :---------------- | | Total Assets | $2,007,471 | $1,979,753 | $1,973,022 | | Net loans | $1,482,904 | $1,460,945 | $1,462,181 | | Total deposits | $1,614,207 | $1,623,574 | $1,574,829 | | Total Liabilities | $1,816,324 | $1,796,059 | $1,793,727 | | Total Shareholders' Equity | $191,147 | $183,694 | $179,295 | [Non-GAAP Financial Measures Reconciliation](index=14&type=section&id=6.6%20Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles GAAP to non-GAAP financial measures, adjusting for accelerated depreciation from branch closures to provide a clearer view of underlying operational performance - Management believes non-GAAP financial measures provide investors with a greater understanding of the Company's operating results, but should not be viewed as a substitute for GAAP results[45](index=45&type=chunk) Reconciliation of Net Income and EPS (Non-GAAP) | (in thousands, except for per share amount) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income - as reported | $5,984 | $4,914 | $11,790 | $8,612 | | Accelerated depreciation expenses | — | — | — | $562 | | Income tax effect of adjustments | — | — | — | $(137) | | Adjusted net income (non-GAAP) | $5,984 | $4,914 | $11,790 | $9,037 | | Diluted earnings per share - as reported | $0.92 | $0.75 | $1.81 | $1.31 | | Adjusted diluted earnings per share (non-GAAP) | $0.92 | $0.75 | $1.81 | $1.37 | Reconciliation of Performance Ratios (Non-GAAP) | Significant Ratios (As of or for the six months ended June 30) | 2025 | 2024 | | :------------------------------------------------------------- | :------ | :------ | | Return on Average Assets - as reported | 1.20% | 0.89% | | Adjusted Return on Average Assets (non-GAAP) | 1.20% | 0.98% | | Return on Average Equity - as reported | 12.78% | 10.48% | | Adjusted Return on Average Equity (non-GAAP) | 12.78% | 11.52% | [Average Balances, Interest Income/Expense, and Rates (Q2 2025 vs Q2 2024)](index=15&type=section&id=6.7%20Average%20Balances%2C%20Interest%20Income%2FExpense%2C%20and%20Rates%20(Q2%202025%20vs%20Q2%202024)) This table details average balances, interest income/expense, and rates for earning assets and interest-bearing liabilities for Q2 2025 vs Q2 2024, illustrating net interest income and margin drivers Average Balances, Interest Income/Expense, and Rates (Q2 Comparison, in thousands) | (dollars in thousands) | Q2 2025 Average Balance | Q2 2025 Interest | Q2 2025 Average Yield/Rate | Q2 2024 Average Balance | Q2 2024 Interest | Q2 2024 Average Yield/Rate | | :--------------------- | :---------------------- | :--------------- | :------------------------- | :---------------------- | :--------------- | :------------------------- | | Loans | $1,489,485 | $22,304 | 6.01% | $1,415,353 | $20,237 | 5.75% | | Total earning assets | $1,841,112 | $24,925 | 5.43% | $1,763,917 | $23,171 | 5.28% | | Total deposits | $1,197,770 | $6,788 | 2.27% | $1,124,497 | $6,398 | 2.29% | | Total interest-bearing liabilities | $1,338,510 | $8,164 | 2.45% | $1,267,326 | $7,875 | 2.50% | | Net interest income and spread | | $16,761 | 2.98% | | $15,296 | 2.78% | | Net interest margin | | | 3.65% | | | 3.49% | [Average Balances, Interest Income/Expense, and Rates (YTD Q2 2025 vs YTD Q2 2024)](index=16&type=section&id=6.8%20Average%20Balances%2C%20Interest%20Income%2FExpense%2C%20and%20Rates%20(YTD%20Q2%202025%20vs%20YTD%20Q2%202024)) This table provides average balances, interest income/expense, and rates for earning assets and interest-bearing liabilities for YTD Q2 2025 vs YTD Q2 2024, highlighting year-to-date performance Average Balances, Interest Income/Expense, and Rates (YTD Comparison, in thousands) | (dollars in thousands) | 6M 2025 Average Balance | 6M 2025 Interest | 6M 2025 Average Yield/Rate | 6M 2024 Average Balance | 6M 2024 Interest | 6M 2024 Average Yield/Rate | | :--------------------- | :---------------------- | :--------------- | :------------------------- | :---------------------- | :--------------- | :------------------------- | | Loans | $1,486,334 | $44,072 | 5.98% | $1,411,619 | $39,471 | 5.62% | | Total earning assets | $1,833,105 | $49,036 | 5.39% | $1,771,797 | $45,126 | 5.12% | | Total deposits | $1,194,439 | $13,471 | 2.27% | $1,119,104 | $12,663 | 2.28% | | Total interest-bearing liabilities | $1,336,791 | $16,210 | 2.45% | $1,278,703 | $15,960 | 2.51% | | Net interest income and spread | | $32,826 | 2.94% | | $29,166 | 2.61% | | Net interest margin | | | 3.61% | | | 3.31% |

Financial Performance - Consolidated net income for Q2 2025 was $6.0 million, or $0.92 per diluted share, compared to $4.9 million, or $0.75 per diluted share, in Q2 2024, and $5.8 million, or $0.89 per diluted share, in Q1 2025 [1][3][4] - Net income for the first six months of 2025 was $11.8 million, or $1.81 per diluted share, compared to $8.6 million, or $1.31 per diluted share, for the same period in 2024 [1][6] - Annualized Return on Average Assets and Return on Average Equity for the six-month period ended June 30, 2025, were 1.20% and 12.78%, respectively [1][34] Revenue Drivers - The increase in quarterly net income compared to Q2 2024 was primarily driven by a $1.5 million increase in net interest income and a $0.3 million decrease in provision for credit loss [4][6] - Interest and fees on loans increased by $2.1 million due to the repricing of adjustable-rate loans and growth in the loan portfolio [4][7] - Net interest income on a non-GAAP, FTE basis increased by $1.5 million for Q2 2025 compared to Q2 2024, driven by an increase of $1.8 million in interest income [7][8] Operating Expenses - Operating expenses increased by $0.6 million in Q2 2025 compared to Q2 2024, primarily due to increases in net OREO expenses, data processing fees, and professional services expenses [15][17] - For the first six months of 2025, non-interest expense increased by $0.3 million compared to the same period in 2024, with salaries and employee benefits being a significant contributor [17] Balance Sheet Overview - Total assets at June 30, 2025, were $2.0 billion, reflecting a $34.4 million increase since December 31, 2024 [19] - Total liabilities at June 30, 2025, were $1.8 billion, representing a $22.6 million increase since December 31, 2024 [20] - Outstanding loans increased by $21.7 million since December 31, 2024, totaling $1.5 billion [21][22] Asset Quality - The allowance for credit losses was $19.0 million at June 30, 2025, compared to $17.9 million at June 30, 2024 [27] - Net charge-offs for Q2 2025 were $0.2 million, a decrease from $1.3 million in Q2 2024 [28][29] - Non-accrual loans totaled $3.8 million at June 30, 2025, down from $4.9 million at December 31, 2024 [30][31] Market Position and Strategy - The company is optimistic about growth potential in the Morgantown market and plans to continue adding talent and focusing on technology to improve efficiencies [2] - Strong loan production was noted, with $65.1 million in commercial loan originations and $19.2 million in residential mortgage originations for Q2 2025 [13][24]

Group 1: First United Corporation (FUNC) - FUNC shares ended the last trading session 6.1% higher at $31.01, with a higher-than-average trading volume, contrasting with a 2.8% loss over the past four weeks [1] - The bank became part of the Russell 2500 Index, indicating market cap growth and compliance with index criteria, which boosted short-term liquidity and trading volume [2] - The upcoming quarterly earnings are expected to be $0.84 per share, reflecting a year-over-year increase of 12%, with revenues projected at $21.26 million, up 5.9% from the previous year [3] Group 2: Earnings Estimates and Market Position - The consensus EPS estimate for FUNC has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without earnings estimate revisions [4] - FUNC currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [4] - In comparison, Flagstar Financial (FLG) has a consensus EPS estimate of -$0.12, which is a change of +88.6% from the previous year, also holding a Zacks Rank of 3 (Hold) [5]

Group 1 - First United Corporation's Board of Directors declared a cash dividend of $0.22 per share, payable on August 1, 2025, to shareholders of record as of July 18, 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]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q1 2025 and 2024, detailing financial condition, operations, cash flows, and accounting policies [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets grew to **$1.98 billion**, with shareholders' equity increasing to **$183.7 million** from retained earnings Consolidated Statements of Financial Condition (in thousands) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,979,753** | **$1,973,022** | | Net loans | $1,460,945 | $1,462,181 | | Total investment securities (AFS & HTM) | $274,142 | $269,991 | | Cash and cash equivalents | $84,431 | $78,327 | | **Total Liabilities** | **$1,796,059** | **$1,793,727** | | Total deposits | $1,623,574 | $1,574,829 | | Total borrowings (Short & Long-term) | $141,271 | $186,338 | | **Total Shareholders' Equity** | **$183,694** | **$179,295** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 net income rose to **$5.8 million**, driven by **16% higher net interest income** and reduced credit loss expense Quarterly Performance Summary (in thousands, except per share data) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $16,016 | $13,812 | +16.0% | | Total Credit Loss Expense | $656 | $946 | -30.7% | | Total Other Operating Income | $4,914 | $4,875 | +0.8% | | Total Other Operating Expenses | $12,576 | $12,881 | -2.4% | | **Net Income** | **$5,806** | **$3,698** | **+57.0%** | | **Diluted EPS** | **$0.89** | **$0.56** | **+58.9%** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow nearly doubled to **$7.0 million**, with investing activities using **$3.2 million**, resulting in a **$6.1 million** cash increase Cash Flow Summary (in thousands) | Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,965 | $3,588 | | Net cash (used in)/provided by investing activities | ($3,190) | $28,292 | | Net cash provided by financing activities | $2,329 | $5,299 | | **Increase in cash and cash equivalents** | **$6,104** | **$37,179** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed disclosures on investment and loan portfolios, ACL, fair value, regulatory capital, and segment reporting - The loan portfolio is segmented into commercial real estate, acquisition and development, commercial and industrial, residential mortgage, and consumer loans for risk management and ACL calculation[41](index=41&type=chunk)[42](index=42&type=chunk) Loan Portfolio Composition (in thousands) | Loan Segment | March 31, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | Commercial Real Estate | $532,764 | $526,364 | | Acquisition and Development | $94,063 | $95,314 | | Commercial and Industrial | $282,370 | $287,534 | | Residential Mortgage | $520,072 | $518,815 | | Consumer | $50,600 | $52,766 | | **Total Loans** | **$1,479,869** | **$1,480,793** | Allowance for Credit Losses (ACL) Activity (in thousands) | ACL Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Beginning Balance | $18,170 | $17,480 | | Loan charge-offs | ($542) | ($618) | | Recoveries collected | $182 | $159 | | Credit loss expense | $657 | $961 | | **Ending Balance** | **$18,467** | **$17,982** | Bank Capital Ratios | Ratio | March 31, 2025 | Required to be Well Capitalized | | :--- | :--- | :--- | | Total Capital (to risk-weighted assets) | 14.83% | 10.00% | | Tier 1 Capital (to risk-weighted assets) | 13.58% | 8.00% | | Common Equity Tier 1 Capital | 13.58% | 6.50% | | Tier 1 Capital (to average assets) | 10.76% | 5.00% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, noting a **$2.1 million** net income increase, strong liquidity, and managed interest rate risk [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Q1 2025 net income rose to **$5.8 million**, driven by a **$2.2 million** increase in net interest income and lower credit loss provisions - The **$2.1 million** increase in quarterly net income was driven by a **$2.2 million** rise in net interest income and a **$0.3 million** decrease in credit loss provisions[151](index=151&type=chunk) Net Interest Income and Margin (Non-GAAP, FTE) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $16,065 | $13,869 | | Net Interest Margin % | 3.56% | 3.12% | - The provision for credit losses decreased to **$0.7 million** in Q1 2025, primarily due to prior year's provisions for **$12.1 million** in non-accrual commercial loans[162](index=162&type=chunk) [Financial Condition](index=65&type=section&id=Financial%20Condition) Total assets reached **$2.0 billion**, with deposits growing by **$48.7 million** and non-accrual loans decreasing to **$4.0 million** - Total assets increased by **$6.7 million** to **$2.0 billion**, driven by a **$48.7 million** rise in deposits used to repay short-term borrowings[169](index=169&type=chunk)[170](index=170&type=chunk) - Non-accrual loans decreased from **$4.9 million** to **$4.0 million** due to principal reductions[173](index=173&type=chunk) Risk Elements of Loan Portfolio (in thousands) | Metric | March 31, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total non-accrual loans | $4,026 | $4,931 | | Total Non-performing assets | $10,123 | $11,713 | | Non-performing assets to total assets | 0.51% | 0.59% | | Allowance for credit losses to non-accrual loans | 458.69% | 368.49% | [Liquidity Management, Market Risk, and Capital Resources](index=73&type=section&id=Liquidity%20Management%2C%20Market%20Risk%2C%20and%20Capital%20Resources) The company maintains strong liquidity with **$558.6 million** in available funding and robust capital, exceeding regulatory thresholds Sources of Liquidity (in thousands) | Source | Total Availability (in thousands) | Amount Used (in thousands) | Net Availability (in thousands) | | :--- | :--- | :--- | :--- | | Internal Sources | $93,458 | $0 | $93,458 | | External Sources | $561,375 | $96,214 | $465,161 | | **Total** | **$654,833** | **$96,214** | **$558,619** | - The company is asset sensitive, expecting net interest income to increase by **$3.5 million** over the next year with a **+100 basis point** rate shock[206](index=206&type=chunk)[215](index=215&type=chunk) - The Bank's capital ratios, including **14.83% Total Capital** and **13.58% Tier 1 Capital**, significantly exceed 'well capitalized' regulatory thresholds[221](index=221&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a 'smaller reporting company', the company is exempt from providing detailed quantitative and qualitative market risk disclosures - As a 'smaller reporting company' under SEC rules, First United Corporation is not required to include information for this item[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls are effective, with no material changes to internal control over financial reporting in Q1 2025 - Management, including PEO and PFO, concluded that disclosure controls and procedures are effective at a reasonable assurance level as of March 31, 2025[228](index=228&type=chunk) - No material changes to internal control over financial reporting occurred during Q1 2025[229](index=229&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=81&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - There are no legal proceedings to report[232](index=232&type=chunk) [Item 1A. Risk Factors](index=81&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the prior disclosure in the 2024 Form 10-K - Management believes no material changes in risk factors have occurred since the 2024 Form 10-K disclosure[233](index=233&type=chunk) [Item 5. Other Information](index=81&type=section&id=Item%205.%20Other%20Information) Officer Julie Peterson terminated a non-Rule 10b5-1 trading arrangement for monthly stock purchases during Q1 2025 - Company officer Julie Peterson terminated a 'non-Rule 10b5-1 trading arrangement' for monthly stock purchases during the quarter[237](index=237&type=chunk) [Item 6. Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including PEO/PFO certifications and Inline XBRL data files - Exhibits include Sarbanes-Oxley Act certifications (Exhibits 31.1, 31.2, 32) and Inline XBRL documents (Exhibit 101 series)[241](index=241&type=chunk)

Group 1 - The company Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the potential for value and growth [1] - Subscribers have access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2] - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [3]

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]

OAKLAND, Md., April 21, 2025 /PRNewswire/ -- First United Corporation (the "Corporation, "we", "us", and "our") (NASDAQ: FUNC), a bank holding company and the parent company of First United Bank & Trust (the "Bank"), today announced financial results for the three-month period ended March 31, 2025. Consolidated net income was $5.8 million for the first quarter of 2025, or $0.89 per diluted share, compared to $3.7 million, or $0.56 per diluted share, for the first quarter of 2024 and $6.2 million, or $0.95 p ...

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].