First United (US:FUNC) Prnewswireยท2025-07-21 12:10Financial Performance - Consolidated net income for Q2 2025 was $6.0 million, or $0.92 per diluted share, compared to $4.9 million, or $0.75 per diluted share, in Q2 2024, and $5.8 million, or $0.89 per diluted share, in Q1 2025 [1][3][4] - Net income for the first six months of 2025 was $11.8 million, or $1.81 per diluted share, compared to $8.6 million, or $1.31 per diluted share, for the same period in 2024 [1][6] - Annualized Return on Average Assets and Return on Average Equity for the six-month period ended June 30, 2025, were 1.20% and 12.78%, respectively [1][34] Revenue Drivers - The increase in quarterly net income compared to Q2 2024 was primarily driven by a $1.5 million increase in net interest income and a $0.3 million decrease in provision for credit loss [4][6] - Interest and fees on loans increased by $2.1 million due to the repricing of adjustable-rate loans and growth in the loan portfolio [4][7] - Net interest income on a non-GAAP, FTE basis increased by $1.5 million for Q2 2025 compared to Q2 2024, driven by an increase of $1.8 million in interest income [7][8] Operating Expenses - Operating expenses increased by $0.6 million in Q2 2025 compared to Q2 2024, primarily due to increases in net OREO expenses, data processing fees, and professional services expenses [15][17] - For the first six months of 2025, non-interest expense increased by $0.3 million compared to the same period in 2024, with salaries and employee benefits being a significant contributor [17] Balance Sheet Overview - Total assets at June 30, 2025, were $2.0 billion, reflecting a $34.4 million increase since December 31, 2024 [19] - Total liabilities at June 30, 2025, were $1.8 billion, representing a $22.6 million increase since December 31, 2024 [20] - Outstanding loans increased by $21.7 million since December 31, 2024, totaling $1.5 billion [21][22] Asset Quality - The allowance for credit losses was $19.0 million at June 30, 2025, compared to $17.9 million at June 30, 2024 [27] - Net charge-offs for Q2 2025 were $0.2 million, a decrease from $1.3 million in Q2 2024 [28][29] - Non-accrual loans totaled $3.8 million at June 30, 2025, down from $4.9 million at December 31, 2024 [30][31] Market Position and Strategy - The company is optimistic about growth potential in the Morgantown market and plans to continue adding talent and focusing on technology to improve efficiencies [2] - Strong loan production was noted, with $65.1 million in commercial loan originations and $19.2 million in residential mortgage originations for Q2 2025 [13][24]