First United (US:FUNC)2026-02-04 22:06Financial Performance - GAAP net income for the year 2025 was $24.5 million, or $3.77 per diluted share, an increase from $20.6 million, or $3.15 per diluted share in 2024[2]. - Non-GAAP net income for the year 2025 was $25.8 million, or $3.97 per diluted share, compared to $21.0 million, or $3.21 per diluted share in 2024[2]. - Net income for the twelve months ended December 31, 2025, was $24,515,000, representing a 19.0% increase from $20,569,000 in 2024[36]. - Basic net income per share for Q4 2025 was $0.89, down from $0.95 in Q4 2024[36]. - Reported net income for Q4 2025 was $5,777,000, a decrease of 6.6% from $6,186,000 in Q4 2024, while the adjusted net income increased to $7,181,000 from $6,186,000[47]. Income and Expenses - Year-to-date net interest income for 2025 increased by $8.1 million, driven by an $8.6 million increase in interest and fees on loans[9]. - Interest income for Q4 2025 was $26,153,000, an increase of 10.1% from $23,725,000 in Q4 2024[36]. - Net interest income for the twelve months ended December 31, 2025, was $68,113,000, up 13.5% from $59,978,000 in 2024[36]. - Total interest income for 2025 reached $100,848,000, an increase from $91,993,000 in 2024, representing a growth of approximately 9.9%[43]. - Total interest expense for 2025 was $32,735,000, compared to $32,015,000 in 2024, reflecting an increase of approximately 2.2%[43]. Asset and Liability Management - Total assets at December 31, 2025 were $2.1 billion, reflecting a $114.4 million increase since December 31, 2024[21]. - Total liabilities at December 31, 2025 were $1.9 billion, representing a $90.1 million increase since December 31, 2024[22]. - Total deposits increased by $160.3 million when compared to December 31, 2024, with brokered time deposits rising by $50.0 million[22]. - Total assets increased to $2,087,453,000 in 2025, compared to $1,973,022,000 in 2024, reflecting a growth of 5.8%[37]. - Total deposits rose to $1,735,149,000 in 2025, a 10.2% increase from $1,574,829,000 in 2024[38]. Loan and Credit Quality - Commercial loan originations for Q4 2025 were $108.0 million, with residential mortgage originations at $25.3 million[4]. - Outstanding loans increased by $40.9 million to $1.5 billion at December 31, 2025 compared to December 31, 2024[23]. - The allowance for credit losses was $19.5 million at December 31, 2025, compared to $18.2 million at December 31, 2024[29]. - The ratio of net charge-offs to average loans was 0.07% for the year ended December 31, 2025, down from 0.16% in 2024[30]. - Non-performing assets to total assets decreased to 0.41% in 2025 from 0.59% in 2024, showing improved asset quality[38]. Operational Efficiency - The efficiency ratio improved to 58.19% in 2025 from 61.31% in 2024, indicating better operational efficiency[36]. - The provision for credit losses increased to $717,000 from $510,000 in the previous quarter, indicating a rise in expected credit losses[40]. - Return on average assets was reported at 1.21%, slightly down from 1.24% in the previous quarter[40]. - Return on average shareholders' equity decreased to 12.70% from 13.23% in the prior quarter[40]. - The efficiency ratio improved to 58.19%, down from 58.73% in the prior quarter, indicating better cost management[40]. Shareholder Returns - A cash dividend of $0.26 per share was declared in Q4 2025[4]. - The company declared dividends of $0.26 per share in Q4 2025, compared to $0.22 per share in Q4 2024, reflecting a 18.2% increase[36]. - Dividends declared per common share increased to $0.96 in 2025 from $0.84 in 2024, representing a growth of approximately 14.3%[43]. - Basic book value per share rose to $31.33 in Q4 2025 from $27.71 in Q4 2024, indicating a solid increase in shareholder equity[47].