First United (US:FUNC)2025-11-05 21:07Financial Performance - Consolidated net income for Q3 2025 was $6.9 million, or $1.07 per share, up from $5.8 million, or $0.89 per share, in Q3 2024[170] - Basic net income per share for the nine months ended September 30, 2025, was $2.89, up from $2.20 in the same period of 2024, representing a growth of 31.4%[197] - Return on Average Assets for the nine months ended September 30, 2025, was 1.24%, an increase from 0.99% in the same period of 2024[197] Income and Expenses - Net interest income increased by $5.8 million for the first nine months of 2025, driven by a $6.4 million rise in interest income due to higher loan rates[172] - Operating expenses increased by $0.7 million in Q3 2025, with salaries and employee benefits accounting for a $0.4 million rise due to merit increases and staffing[175] - Other operating expenses for the first nine months of 2025 increased by $1.0 million, mainly due to a $0.7 million rise in salaries and employee benefits[176] Assets and Liabilities - Total assets as of September 30, 2025, were $2.0 billion, with net loans at $1.5 billion and deposits at $1.7 billion[168] - Total liabilities at September 30, 2025, were $1.8 billion, reflecting an increase of $31.1 million since December 31, 2024[199] - Total deposits increased by $104.1 million compared to December 31, 2024, driven by new brokered time deposits and increases in savings and money market accounts[199] Interest Income and Margin - Interest income for Q3 2025 was $25.8 million, compared to $23.3 million in Q3 2024, reflecting a year-over-year increase[179] - Net interest margin for the nine months ended September 30, 2025, was 3.64%, up from 3.34% in the same period of 2024[179] - The net interest margin for the third quarter of 2025 was 3.69%, compared to 3.46% in the same quarter of 2024[183] Credit Quality - Provision for credit losses decreased by $0.4 million in the first nine months of 2025, attributed to strong credit quality and lower charge-offs[172] - Net credit loss expense for the first nine months of 2025 was $2.0 million, a decrease from $2.4 million in the same period of 2024, attributed to strong credit quality[191] - Non-accrual loans decreased to $3.8 million at September 30, 2025, down from $4.9 million at December 31, 2024, due to principal paydowns and a charge-off of $0.5 million[203] Capital Ratios - As of September 30, 2025, the Bank's Total Capital ratio was 15.42%, exceeding the required 8.00% for capital adequacy[251] - The Tier 1 Capital ratio was reported at 14.17% as of September 30, 2025, above the required 6.00%[251] - The Bank was considered "well capitalized" under the regulatory framework for prompt corrective action as of both September 30, 2025, and December 31, 2024[251] Loan Production - New commercial loan production for Q3 2025 was approximately $29.8 million, with year-to-date production at $139.0 million, up from $117.0 million for the same period in 2024[201] - New consumer mortgage loan production for Q3 2025 was approximately $20.8 million, primarily consisting of in-house mortgages[202] Investment Portfolio - The total amortized cost basis of the available-for-sale investment portfolio was $123.2 million, with a fair value of $105.1 million as of September 30, 2025[216] - The total fair value of investment securities available for sale increased by $10.6 million since December 31, 2024, due to reinvestment into higher yield securities[216] - The company reported a net unrealized loss of $18.1 million on available-for-sale securities, reflecting the difference between fair value and amortized cost[216]