Financial Performance - Consolidated net income for Q4 2024 was $6.2 million, or $0.95 per diluted share, compared to $1.8 million, or $0.26 per diluted share, in Q4 2023, representing a 244% year-over-year increase [2][5]. - For the year ended December 31, 2024, net income increased by $5.5 million compared to 2023, with net interest income rising by $3.1 million [9]. - Net income for the three months ended December 31, 2024, was $6,186,000, a significant increase from $1,758,000 in the same period of 2023, representing a growth of 252% [39]. - Basic net income per share rose to $0.95 for the three months ended December 31, 2024, compared to $0.26 for the same period in 2023, marking an increase of 265% [39]. - Adjusted net income (non-GAAP) for the twelve months ended December 31, 2024, was $20,994,000, up from $18,800,000 in 2023, reflecting an increase of 11.7% [50]. Income and Expenses - Net interest income increased by $1.5 million year-over-year, driven by a $2.0 million increase in interest and fees on loans due to new loans booked at higher rates and growth in the loan portfolio [6][10]. - Operating expenses decreased by $0.6 million for the year ended December 31, 2024, primarily due to a $1.0 million decrease in occupancy and equipment expenses related to branch closures [18]. - Interest expense on deposits for Q1 2024 was $6,585, compared to $6,498 in Q4 2023, showing an increase of 1.3% [46]. Assets and Liabilities - Total assets increased by $67.2 million to $2.0 billion as of December 31, 2024, with gross loans increasing by $74.1 million [20]. - Total liabilities increased by $49.7 million to $1.8 billion as of December 31, 2024 [21]. - Total assets as of December 31, 2024, were $1,944,571,000, a decrease from $1,983,568,000 in 2023 [51]. Loans and Deposits - Loan production included $72.2 million in commercial loan originations and $23.3 million in residential mortgage originations during Q4 2024 [7]. - Total deposits rose by $23.9 million, driven by a $35.9 million increase in interest-bearing demand deposits and a $61.5 million increase in money market accounts [27]. - Outstanding loans grew by $32.9 million since September 30, 2024, totaling $1.5 billion, with a $74.1 million increase since December 31, 2023 [23]. Shareholder Information - A cash dividend of $0.22 per common share was declared in Q4 2024 [7]. - The book value of common stock increased to $27.71 per share from $24.38 per share year-over-year, supported by undistributed net income of $15.1 million [30]. - Closing market value of the stock was $33.71 as of December 31, 2024, compared to $23.51 at the end of 2023, indicating a significant appreciation of 43.3% [39]. Credit Quality - The allowance for credit losses was $18.2 million, with a provision for credit losses of $0.5 million for Q4 2024 [31]. - Non-accrual loans increased to $4.9 million, up from $4.0 million at the end of 2023, primarily due to two commercial and industrial loan relationships [34]. - The ratio of net charge-offs to average loans was 0.16% for the year ended December 31, 2024, compared to 0.07% for the previous year [32]. Efficiency and Returns - The efficiency ratio improved to 61.31% for the year, down from 65.12% in the previous year, demonstrating enhanced operational efficiency [40]. - Return on average assets increased to 1.06% for the year ended December 31, 2024, compared to 0.78% in 2023, showing improved asset utilization [39]. - Return on Average Equity (ROAE) for the twelve months ended December 31, 2024, was 12.16%, compared to 9.68% in 2023, showing enhanced efficiency in generating profits [50]. Future Outlook - Management plans to maintain a stable investment portfolio in 2025 by reinvesting proceeds from amortization and maturities into higher-yielding securities [22]. - The company plans to continue focusing on market expansion and new product development to drive future growth [50].
First United (FUNC) - 2024 Q4 - Annual Results