FIRST UNITED CORPORATION ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS

Core Viewpoint - First United Corporation reported a strong financial performance for the third quarter of 2024, with net income increasing to $5.8 million, driven by stable net interest income and improved asset quality [1][3]. Financial Highlights - Consolidated net income for Q3 2024 was $5.8 million, or $0.89 per diluted share, compared to $4.5 million, or $0.67 per diluted share in Q3 2023 [1][3]. - Year-to-date net income reached $14.4 million, or $2.19 per diluted share, up from $13.3 million, or $1.98 per diluted share for the same period in 2023 [1][3]. - Net interest margin on a non-GAAP, fully tax equivalent basis was 3.46% for Q3 2024 [2]. Income Statement Overview - Net interest income increased by $1.2 million year-over-year, primarily due to a $3.0 million rise in interest on loans [3][4]. - Non-interest income saw a slight increase, attributed to gains on sales of residential mortgages and wealth management income [2][5]. - Non-interest expenses remained stable, with a decrease of $0.5 million compared to Q3 2023 [6]. Balance Sheet Overview - Total assets as of September 30, 2024, were $1.9 billion, reflecting a $10.3 million increase since December 31, 2023 [7]. - Total liabilities decreased by $1.8 million, with total deposits down by $10.6 million compared to December 31, 2023 [7][10]. - Outstanding loans increased to $1.4 billion, with significant growth in commercial and residential mortgage loans [7][8]. Asset Quality - The allowance for credit losses was $18.0 million, with a ratio of 1.24% to loans outstanding [11][16]. - Non-accrual loans totaled $8.1 million, an increase from $4.0 million at December 31, 2023 [11][16]. - The ratio of year-to-date net charge-offs to average loans was 0.18% for the nine-month period ended September 30, 2024 [11]. Shareholder Information - A cash dividend of $0.22 per common share was declared in Q3 2024, representing a 10% increase over the previous quarter [2][3]. - The book value of common stock increased to $26.90 per share at September 30, 2024, compared to $24.38 at December 31, 2023 [10].