FIRST UNITED CORPORATION ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS

Core Insights - First United Corporation reported a GAAP net income of $24.5 million for the year ended December 31, 2025, an increase from $20.6 million in 2024, translating to $3.77 per diluted share compared to $3.15 per diluted share in the previous year [1] - The company achieved record core earnings of $25.8 million, or $3.97 per diluted share, for the year, driven by a strong net interest margin and disciplined expense management [2][5] - The fourth quarter of 2025 saw a GAAP net income of $5.8 million, down from $6.2 million in Q4 2024, primarily due to increased non-interest expenses [4][6] Financial Performance - Year-to-date net income for 2025 increased by $3.9 million compared to 2024, with net interest income rising by $8.1 million due to higher loan yields and new loan production [10][13] - The net interest margin on a non-GAAP basis was 3.75% for Q4 2025, reflecting increased loan yields and stable funding costs [8][11] - Total assets reached $2.1 billion, a $114.4 million increase from the previous year, with gross loans increasing by $40.9 million [22][24] Income Statement Overview - For Q4 2025, net interest income was $17.987 million, up from $15.700 million in Q4 2024, while other operating income increased to $5.330 million from $4.924 million [37] - Operating expenses for Q4 2025 rose by $2.8 million compared to Q4 2024, largely due to increased OREO expenses and salaries [18][20] Balance Sheet Overview - Total liabilities increased to $1.9 billion, with total deposits rising by $160.3 million compared to December 31, 2024 [23][39] - The book value of common stock increased to $31.33 per share at December 31, 2025, up from $27.71 per share in 2024 [29] Asset Quality - The allowance for credit losses was $19.5 million at December 31, 2025, compared to $18.2 million in 2024, with a stable ratio of ACL to loans outstanding at 1.28% [30][31] - Non-accrual loans decreased to $4.2 million at December 31, 2025, down from $4.9 million in 2024, indicating improved asset quality [34]