First United (US:FUNC)2025-10-21 10:04Financial Performance - Net income for Q3 2025 was $6.9 million, or $1.07 per diluted share, up from $5.8 million, or $0.89 per diluted share in Q3 2024, representing a 19% year-over-year increase[2] - For the first nine months of 2025, net income was $18.7 million, up from $14.4 million in the same period of 2024, marking a 30% increase[8] - Net income for September 2025 was $6,948,000, compared to $5,984,000 in June 2025, reflecting a growth of 16.19%[39] - Net income for Q3 2025 was $6,948,000, an increase of 20.3% from $5,771,000 in Q3 2024[48] - Adjusted net income (non-GAAP) for the nine months ended September 30, 2025, was $18,738,000, up 26.5% from $14,808,000 in the same period of 2024[48] Interest Income and Expenses - Net interest income increased by $2.2 million in Q3 2025 compared to Q3 2024, driven by a $2.0 million increase in interest and fees on loans due to higher rates and loan repricing[5] - The net interest margin on a non-GAAP, fully tax equivalent basis was 3.69% for Q3 2025, reflecting increased loan yields and stable funding costs[6] - Net interest income for the three months ended September 30, 2025, was $17,403,000, an increase of 14.4% from $15,228,000 in the same period of 2024[35] - Total interest income for Q3 2025 reached $25,762,000, an increase of 3.6% from $24,871,000 in Q2 2025[43] - The total interest expense for Q3 2025 was $8,359,000, an increase from $8,164,000 in Q2 2025, reflecting a growth of 2.4%[43] Assets and Liabilities - Total assets reached $2.0 billion as of September 30, 2025, an increase of $51.0 million since December 31, 2024[19] - Total liabilities increased by $31.1 million to $1.8 billion as of September 30, 2025, with total deposits rising by $104.1 million[20] - Total assets at the end of September 30, 2025, reached $2,023,974,000, up from $1,973,022,000 at the end of December 2024, representing a growth of 2.6%[36] - Total deposits increased to $1,678,902,000 as of September 30, 2025, compared to $1,574,829,000 at the end of December 2024, marking a rise of 6.6%[37] Loans and Credit Quality - Outstanding loans increased by $16.0 million to $1.5 billion as of September 30, 2025[21] - The allowance for credit losses was $19.1 million at September 30, 2025, compared to $18.0 million a year earlier, with a provision for credit losses of $0.5 million for Q3 2025[28] - The ratio of net charge-offs to average loans was 0.08% for the nine months ended September 30, 2025, down from 0.18% for the same period in 2024[29] - Non-accrual loans decreased to $3.8 million at September 30, 2025, from $4.9 million at December 31, 2024[30] - Non-performing loans and loans 90 days past due represented 0.31% of total loans as of September 30, 2025, compared to 0.39% in the previous year[37] Shareholder Information - A cash dividend of $0.26 per common share was declared in Q3 2025[6] - The book value of common stock increased to $30.65 per share at September 30, 2025, compared to $27.71 per share at December 31, 2024, driven by undistributed net income of $14.2 million[27] - Shareholders' equity increased to $199,099,000 at the end of September 30, 2025, up from $179,295,000 at the end of December 2024, indicating a growth of 11.1%[37] Operational Efficiency - Operating expenses for Q3 2025 increased by $0.7 million year-over-year, primarily due to a $0.4 million rise in salaries and employee benefits[15] - The efficiency ratio (non-GAAP) improved to 58.73% for the nine months ended September 30, 2025, down from 62.46% in the same period of 2024[35] - The return on average assets for September 2025 was 1.24%, consistent with the previous quarter[39] - Return on Average Assets (ROAA) for the nine months ended September 30, 2025, improved to 1.24%, up from 0.99% in 2024[50] - Return on Average Equity (ROAE) for the nine months ended September 30, 2025, increased to 13.23%, compared to 11.52% in 2024[50] Future Outlook - The company plans to expand its market presence through strategic partnerships and new product offerings in the upcoming quarters[41]