FIRST UNITED CORPORATION ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS

Core Insights - First United Corporation reported a consolidated net income of $5.8 million for Q1 2025, an increase from $3.7 million in Q1 2024, but a slight decrease from $6.2 million in Q4 2024 [1][4][31] - The company experienced margin expansion, solid fee income, and controlled expenses, despite moderate loan production due to economic uncertainties [2][12] Financial Performance - Net income for Q1 2025 was $5.8 million, or $0.89 per diluted share, compared to $3.7 million, or $0.56 per diluted share, in Q1 2024 [1][5] - The annualized Return on Average Assets and Return on Average Equity were 1.19% and 12.83%, respectively [1][31] - Net interest income increased by $2.2 million year-over-year, driven by higher interest income on loans [7][31] Income Statement Overview - Interest income for Q1 2025 was $24.1 million, up from $21.9 million in Q1 2024, while interest expense was stable at $8.0 million [31] - Provision for credit losses decreased to $0.7 million in Q1 2025 from $0.9 million in Q1 2024 [31] - Other operating income remained stable at $4.8 million compared to $4.8 million in Q1 2024 [31] Balance Sheet Overview - Total assets increased to $2.0 billion as of March 31, 2025, up by $6.7 million from December 31, 2024 [16] - Total liabilities rose to $1.8 billion, with total deposits increasing by $48.7 million, primarily due to $50.0 million in new brokered deposits [17][21] - Outstanding loans were $1.5 billion, reflecting a slight decrease of $0.9 million since December 31, 2024 [18] Asset Quality - The allowance for credit losses was $18.5 million, with a provision for credit losses of $0.7 million for Q1 2025 [24] - Non-accrual loans totaled $4.0 million, down from $4.9 million at the end of Q4 2024 [28] - The ratio of net charge-offs to average loans was 0.10% for Q1 2025, compared to 0.13% for Q1 2024 [25] Market Performance - The book value of common stock increased to $28.35 per share at March 31, 2025, compared to $27.71 per share at December 31, 2024 [23][31] - A cash dividend of $0.22 per common share was declared in Q1 2025, up from $0.20 in Q1 2024 [12][31]