Core Viewpoint - First United Corporation reported strong financial results for the fourth quarter and the full year of 2024, with significant increases in net income and net interest income compared to previous periods, driven by robust loan growth and effective management of expenses [1][2][3]. 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, and $5.8 million, or $0.89 per diluted share, in Q3 2024 [1][3][4]. - For the year ended December 31, 2024, net income was $20.6 million, or $3.15 per diluted share, up from $15.1 million, or $2.25 per diluted share, in 2023 [1][4][6]. Income Statement Overview - Net interest income increased by $1.5 million year-over-year in Q4 2024, driven by a $2.0 million increase in interest and fees on loans [4][7]. - Operating income, including net gains/losses, increased by $5.4 million for the year, primarily due to a loss recognized in 2023 related to investment portfolio restructuring [6][11]. Loan and Deposit Growth - Outstanding loans reached $1.5 billion at December 31, 2024, reflecting a growth of $74.1 million since December 31, 2023 [21][22]. - Total deposits increased by $23.9 million compared to December 31, 2023, with significant growth in interest-bearing demand deposits and money market accounts [25][26]. Non-Interest Income - Other operating income for Q4 2024 increased by $4.4 million compared to the same period in 2023, with gains on sales of residential mortgages and wealth management income contributing to this growth [11][13]. Operating Expenses - Operating expenses decreased by $0.2 million in Q4 2024 compared to Q4 2023, primarily due to a reduction in occupancy and equipment expenses related to branch closures [14][16]. - For the year ended December 31, 2024, operating expenses decreased by $0.6 million compared to 2023, driven by lower occupancy and equipment costs [16]. Balance Sheet Overview - Total assets increased by $67.2 million to $2.0 billion as of December 31, 2024, with cash and interest-bearing deposits in other banks rising by $28.6 million [18]. - Total liabilities increased by $49.7 million, with total deposits rising and short-term borrowings increasing by $20.0 million [19][27]. Asset Quality - The allowance for credit losses was $18.2 million at December 31, 2024, compared to $17.5 million at the end of 2023, with a provision for credit losses of $0.5 million for Q4 2024 [29][30]. - Non-accrual loans totaled $4.9 million at December 31, 2024, an increase from $4.0 million at the end of 2023 [30][32]. Capital Ratios - The book value of the Corporation's common stock was $27.71 per basic share at December 31, 2024, up from $24.38 per share at the end of 2023 [28][38]. - Capital ratios showed improvement, with Tier 1 to risk-weighted assets at 14.70% compared to 14.42% in 2023 [38].
FIRST UNITED CORPORATION ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS