FIRST UNITED CORPORATION ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

, /PRNewswire/ -- First United Corporation (the "Corporation, "we", "us", and "our") (NASDAQ: FUNC), a bank holding company and the parent company of First United Bank & Trust (the "Bank"), today announced financial results for the three- and 12-month periods ended December 31, 2024. Consolidated net income was $6.2 million for the fourth quarter of 2024, or $0.95 per diluted share, compared to $1.8 million, or $0.26 per diluted share, for the fourth quarter of 2023 and $5.8 million, or $0.89 per diluted share, for the third quarter of 2024. For the year ended December 31, 2024, net income was $20.6 million, or $3.15 per diluted share, compared to $15.1 million, or $2.25 per diluted share, for the year ended December 31, 2023. According to Carissa Rodeheaver, Chairman, President and CEO, "We are proud to announce another strong quarter to conclude the 2024 year. Loan growth was robust during the quarter as we were able to close a few loans that had been in the pipeline for several months. Our wealth department was a large contributor to our success during the year as they continue to establish new and grow existing customer relationships. Throughout 2024 we maintained our pricing and expense discipline ending the year with a strong margin, despite the intense competition in our markets, and a solid efficiency ratio. Our teams collaborated and demonstrated the First United values as they worked to customize financial solutions for our customers and to support the communities that we serve. We are excited to enter 2025 with a focus on investing additional resources to grow our loan and deposit market share and increase our wealth presence." Financial Highlights: Net interest margin, on a non-GAAP, fully tax equivalent ("FTE") basis, was 3.48% for the fourth quarter of 2024 Loan production was strong, with $72.2 million in commercial loan originations and $23.3 million in residential mortgage originations in the fourth quarter Provision expense increased in the fourth quarter due to loan growth, partially offset by stable asset quality and qualitative factors Deposits increased by $34.4 million due to seasonal fluctuations in municipal deposit balances, partially offset by runoff of retail certificates of deposit due to competitive pricing Operating income, including net gains, was stable compared to the linked quarter Operating expenses decreased by $0.2 million when compared to the linked quarter A cash dividend of $0.22 per common share was declared in the fourth quarter Income Statement Overview On a GAAP basis, net income for the fourth quarter of 2024 was $6.2 million. This compares to $5.8 million for the third quarter of 2024 and $1.8 million for the fourth quarter of 2023. Q4 2024 Q3 2024 Q4 2023 Net Income, non-GAAP (millions) $ 6.2 $ 5.8 $ 5.5 Net Income, GAAP (millions) $ 6.2 $ 5.8 $ 1.8 Diluted net income per share, non-GAAP $0.95 $0.89 $0.82 Diluted net income per share, GAAP $0.95 $0.89 $0.26 The $4.4 million increase in quarterly net income year over year was primarily driven by a restructuring of the investment portfolio leading to the recognition of a $3.3 million loss, net of tax, and $0.5 million, net of tax, in accelerated depreciation and lease termination expenses related to branch closures in the fourth quarter of 2023. Net interest income increased by $1.5 million year-over-year driven by a $2.0 million increase in interest and fees on loans resulting from new loans booked at higher rates, the repricing of adjustable-rate loans, and growth in our loan portfolio during 2024. Interest expense was stable when comparing year-over-year quarterly expense. Comparing the fourth quarter of 2024 to the same period of 2023, other operating income was stable and other operating expenses decreased by $0.2 million as a result of a $1.0 million reduction in occupancy and equipment expense related to the accelerated depreciation and lease expenses for the branch closures in the fourth quarter of 2023 and decreased marketing and professional services expenses. These decreases were partially offset by a $0.4 million increase in net other real estate owned ("OREO") expenses related to gains on sales recognized in 2023 and a $0.3 million increase in data processing expenses due to timing of invoices. Compared to the linked quarter, net income increased by $0.4 million due primarily to a $0.5 million increase in net interest income driven by a $0.3 million increase in interest and fees on loans as interest expense remained stable. Additionally, salaries and employee benefits decreased by $0.7 million due to reduced incentive pay and health insurance claims. Occupancy and equipment expenses decreased by $0.3 million. These decreases were partially offset by a $0.3 million increase in provision for credit losses related primarily to growth in our loan portfolio, a $0.4 million increase in data processing expenses as a result of increased costs for the core processing system, and timing of invoices for software agreements. We also experienced a $0.4 million increase in other expenses driven primarily by loan workout costs that we deemed to be uncollectible through collateral liquidation. For the year ended December 31, 2024, net income increased by $5.5 million when compared to the year ended December 31, 2023. Net interest income increased by $3.1 million driven by a $12.2 million increase in interest and fees on loans, partially offset by a $0.9 million decrease in interest income on investments and a $7.7 million increase in interest expense resulting from continued pricing pressure on deposits and our use of the Bank Term Funding Program ("BTFP"). Operating income, including net gains/(losses), increased by $5.4 million due primarily to the $4.2 million loss recognized in 2023 related to the investment portfolio restructuring mentioned above and a $1.1 million increase in wealth management income. Operating expenses decreased by $0.6 million as occupancy and equipment expenses decreased by $1.0 million and other miscellaneous expenses decreased by $0.4 million due primarily to reduced check fraud expenses. These decreases were partially offset by a $0.5 million increase in salaries and employee benefits, a $0.4 million increase in data processing expenses, and a $0.4 million increase in net OREO expenses due to gains on sales of OREO properties recognized in 2023. Net Interest Income and Net Interest Margin Net interest income, on a non-GAAP, FTE basis, increased by $1.5 million for the fourth quarter of 2024 when compared to the fourth quarter of 2023. This increase was driven by a $1.5 million increase in interest income. Interest income on loans increased by $2.0 million due to the increase in average balances of $53.9 million and a 36-basis point increase in the overall yield on the loan portfolio as new loans booked at higher rates as well as adjustable-rate loans repricing in correlation to the elevated rate environment. Investment income decreased by $0.2 million due to a decrease of $58.1 million in average balances related to the balance sheet restructuring of our investment portfolio in the fourth quarter of 2023 and the maturity of $37.5 million in U.S. Treasury bonds in the first four months of 2024. We also experienced principal paydowns and maturities in our municipal and mortgage-backed securities ("MBS") portfolios. The overall yield on the investment portfolio increased by 23 basis points primarily driven by the increased rate on the trust preferred portfolio and the maturity and sale of lower rate investments. Interest expense was stable year over year while increases in interest on demand deposits and money markets were offset by a decrease in interest on brokered certificates of deposit. The average deposit balances increased by $2.6 million when compared to the fourth quarter of 2023. The average balance of interest-bearing demand deposits increased by $22.0 million and retail money market accounts increased by $80.8 million. Average savings deposit balances decreased by $24.4 million and retail time deposits decreased by $19.8 million. Average brokered time deposits decreased by $56.0 million compared to 2023 due to the maturity and repayment of brokered certificates of deposit during 2024. Comparing the fourth quarter of 2024 to the third quarter of 2024, net interest income, on a non-GAAP, FTE basis, increased by $0.5 million. Interest income increased by $0.5 million during the quarter, primarily due to a $0.3 million increase in interest and fees on loans related to an $18.8 million increase in average balances during the fourth quarter. Interest income on cash balances increased by $0.2 million related to increased balances of $23.2 million, which was partially offset by a 96-basis point decrease in rate in conjunction with rate cuts made by the Federal Reserve to the overnight Federal Funds rate. Interest expense remained stable when comparing the two quarters. During the fourth quarter of 2024, average deposit balances increased by $31.3 million and the cost of deposits decreased by 6 basis points. Comparing the year ended December 31, 2024 to the year ended December 31, 2023, net interest income, on a non-GAAP, FTE basis, increased by $2.7 million. Interest income increased by $10.4 million. Average loan balances increased by $87.2 million and the overall yield increased by 53 basis points in correlation with the elevated rate environment as new loans were booked at higher rates as well as the repricing of adjustable-rate loans. Interest expense on deposits increased by $6.6 million while the average deposit balances increased by $19.4 million, driven by increases of $6.7 million in demand deposits and $80.1 million in money market balances, partially offset by decreases in savings balances of $39.1 million and brokered time deposits of $33.5 million. Interest expense on short-term borrowings increased by $1.3 million due to the Bank's utilization of the BTFP program in 2024. The increased interest expense resulted in an overall increase of 56 basis points on the cost of interest-bearing liabilities. The net interest margin was 3.38% and 3.26% for the years ended December 31, 2024 and 2023, respectively. Non-Interest Income Other operating income, including net gains/(losses), for the fourth quarter of 2024 increased by $4.4 million when compared to the same period of 2023. The Corporation recognized $4.2 million in losses related to the investment portfolio restructuring in the fourth quarter of 2023 to reinvest lower-yielding securities to fund higher-yielding loan production. Gains on sales of residential mortgages increased by $0.1 million and wealth management increased by $0.2 million when compared to the same period in 2023. On a linked quarter basis, other operating income, including net gains, was stable. Debit card income increased by $0.1 million due to an annual commission received in the fourth quarter. Miscellaneous income decreased by $0.1 million due to a $0.1 million cash incentive received in the third quarter in connection with check fees. For the year ended December 31, 2024, other operating income increased by $5.4 million when compared to the same period of 2023. Net gains/(losses) increased by $4.3 million primarily due to the loss recognized in 2023 on the investment portfolio restructuring. Wealth management income increased by $1.1 million due to improving market conditions, increased annuity sales and growth in new and existing customer relationships. Service charge and debit card income was stable when comparing 2024 to 2023. Non-Interest Expense Operating expenses decreased by $0.2 million in the fourth quarter of 2024 when compared to the fourth quarter of 2023. Occupancy and equipment expenses decreased by $1.0 million related to depreciation and lease termination expenses recognized in conjunction with announced branch closures in the final quarter of 2023. Marketing and professional services decreased by $0.1 million. These decreases were partially offset by a $0.3 million increase in data processing expenses related to new technology agreements, a $0.4 million increase in net OREO related expenses due to gains from sales of OREO recognized during 2023, and by a $0.1 million increase in salaries and benefits. Operating expenses decreased by $0.2 million when compared to the linked quarter. Salaries and employee benefits decreased by $0.7 million driven by decreases in incentive pay and life and health insurance expenses due to decreased claims. Equipment and occupancy expenses decreased by $0.3 million when comparing the linked quarters. These decreases were partially offset by a $0.4 million increase in data processing expenses related to increased costs for the core processing system and timing of invoices for software agreements. We also experienced a $0.4 million increase in other expenses driven primarily by loan workout costs that we deemed to be uncollectible through collateral liquidation. For the year ended December 31, 2024, operating expenses decreased by $0.6 million when compared to the year ended December 31, 2023. The decrease was primarily attributable to a $1.0 million decrease in occupancy and equipment expenses related primarily to the branch closures announced in 2023, a $0.2 million decrease in marketing, and a $0.2 million decrease in professional services expenses. Other miscellaneous expenses decreased by $0.4 million driven by a $0.5 million decrease in check fraud expenses. These decreases were partially offset by $0.5 million in increased salaries and employee benefits related to increased incentives, 401(k) expenses, wellness expenses, and reduced offsets related to loan origination, which were partially offset by reductions in life and health insurance costs. Net OREO costs increased $0.4 million due to gains on the sale of OREO recognized in 2023, and $0.4 million in increased data processing expenses. The effective income tax rates as a percentage of income for the years ended December 31, 2024 and December 31, 2023 were 24.5% and 22.7%, respectively. Balance Sheet Overview Total assets at December 31, 2024 were $2.0 billion, representing a $67.2 million increase since December 31, 2023. During 2024, cash and interest-bearing deposits in other banks increased by $28.6 million. The investment portfolio decreased by $41.5 million due to the maturities of $37.5 million of U.S. Treasury bonds during the year and normal principal amortization and maturities of our MBS and municipal portfolios. Cash proceeds from investments were shifted to gross loans, which increased by $74.1 million. OREO decreased by $1.4 million due to sales of properties. Pension assets increased by $6.6 million resulting from increased market values and deferred tax assets decreased by $2.0 million as we experienced increased fair market values on available for sale ("AFS") securities and pension assets when compared to December 31, 2023. Total liabilities at December 31, 2024 were $1.8 billion, representing a $49.7 million increase since December 31, 2023. Total deposits increased by $23.9 million when compared to December 31, 2023 related to increases in interest-bearing demand deposits of $35.9 million and money markets of $61.5 million, partially offset by the decrease of savings deposits by $20.3 million, retail time deposits of $22.4 million, and the repayment of $30.0 million in brokered certificates of deposits. Short-term borrowings increased by $20.0 million since December 31, 2023, which were comprised of $50.0 million in overnight borrowings from the Federal Reserve offset by a shift of approximately $22.0 million from overnight investment sweep balances to FDIC insured accounts as a result of management's strategy to release pledging of investment securities for municipalities in order to allow those securities to be available for liquidity. The overnight borrowings were replaced with brokered certificates of deposit in January 2025. Long-term borrowings increased by $10.0 million in 2024. Maturities of Federal Home Loan Bank ("FHLB") advances of $40.0 million in March and $40.0 million in September were fully repaid. During the third quarter and after the Federal Reserve's announcement that rates would be reduced by 50 basis points, management made the strategic decision to lock in borrowing costs by placing $90.0 million in FHLB advances with maturities of 12- and 18-months at a weighted average rate of 3.89%. Of this amount, $41.1 million was utilized to prepay the principal and accrued interest of the BTFP borrowings at a rate of 4.87% that was scheduled to mature in January of 2025 and approximately $30.0 million was utilized to repay overnight borrowings related to the repayment of the $40.0 million FHLB advance that matured in September at a rate of 4.53%. The remainder was used to fund loan growth in the fourth quarter of 2024. Total AFS and held-to-maturity ("HTM") securities totaled $270.0 million at December 31, 2024, representing a $41.5 million decrease when compared to December 31, 2023. In 2024, $37.5 million in U.S. Treasury bonds matured and the proceeds were used to repay the $40.0 million FHLB advance that matured in March. Additionally, there were $4.0 million of maturities in our municipal portfolio and $11.0 million of other principal amortizations in our MBS portfolio. $11.2 million of new investment purchases were made during 2024 to meet our community reinvestment act obligations and to add increased yield to the portfolio. Management intends to hold the portfolio relatively stable in 2025 by reinvesting proceeds from amortization and maturities into new higher yielding securities. The investment portfolio is primarily utilized for liquidity purposes, management of interest sensitivity and collateralization needs. Outstanding loans of $1.5 billion at December 31, 2024 reflected growth of $32.9 million since September 30, 2024 and $74.1 million since December 31, 2023. Loan Type (in millions) Change sinceSeptember 30, 2024 Change since December 31, 2023 Commercial $35.5 $63.8 Residential Mortgages ($0.4) $18.9 Consumer ($2.2) ($8.6) Gross Loans $32.9 $74.1 Since December 31, 2023, commercial real estate loans increased by $32.6 million, acquisition and development loans increased by $18.3 million, commercial and industrial loans increased by $12.9 million, residential mortgage loans increased $18.9 million, and consumer loans decreased by $8.6 million. New commercial loan production for the three months ended December 31, 2024 was approximately $72.2 million. The pipeline of commercial loans at December 31, 2024 was $11.5 million. At December 31, 2024, unfunded, committed commercial construction loans totaled approximately $5.6 million. Commercial amortization and payoffs were approximately $114.1 million through December 31, 2024, due primarily to pay-offs of short-term commercial loans as well as normal amortizations of the commercial loan portfolio. New consumer mortgage loan production for the fourth quarter of 2024 was approximately $23.3 million, with most of this production comprised of mortgages to be held on balance sheet. The pipeline of in-house, portfolio loans as of December 31, 2024 was $5.3 million. The residential mortgage production level decreased in the fourth quarter of 2024 due to the seasonality of this line of business, particularly construction lending. Unfunded commitments related to residential construction loans totaled $13.1 million at December 31, 2024. Total deposits at December 31, 2024 increased by $23.9 million when compared to December 31, 2023. Deposit Type (in millions) Change since September 30, 2024 Change since December 31, 2023 Non-Interest-Bearing $7.3 ($0.9) Interest-Bearing Demand $4.4 $35.9 Savings and Money Market $21.4 $41.2 Time Deposits $1.3 ($52.3) Total Deposits $34.4 $23.9 Interest-bearing demand deposits increased by $35.9 million in 2024, which included the shift of approximately $22.0 million from overnight investment sweep balances to FDIC insured accounts due to management's strategy to release pledging of investment securities for municipalities to provide additional liquidity. Money market accounts increased by $61.5 million due primarily to the expansion of current and new relationships throughout the year and a shift from certificates of deposit. Traditional savings accounts decreased by $20.3 million and time deposits decreased by $52.3 million. The decrease in time deposits was due to a decrease of $22.4 million in retail CDs related to maturities of a nine-month special CD promotion in 2023 and the maturity and repayment of $30.0 million in brokered CDs during the year. The Bank has worked closely with customers as these retail CDs mature to transition them to other deposit and wealth management products offered by the Bank. Short-term borrowings increased by $20.0 million when compared to December 31, 2023 due to an increase of $50.0 million in overnight borrowings from the Federal Reserve offset by a shift of approximately $22.0 million in overnight investment sweep balances into FDIC insured accounts due to management's strategy to release pledging of investment securities for municipalities to provide additional liquidity. The overnight borrowings were replaced with brokered certificates of deposit in January 2025. Long-term borrowings increased by $10.0 million when compared to December 31, 2023. Maturities of FHLB advances of $40.0 million in March and $40.0 million in September were fully repaid. During the third quarter and after the Federal Reserve's announcement that rates would be reduced by 50 basis points, management made the strategic decision to lock in borrowing costs by placing $90.0 million in FHLB advances with maturities of 12- and 18-months and a weighted average rate of 3.89%. Of this amount, $41.1 million was utilized to prepay the principal and accrued interest of the BTFP borrowing at a rate of 4.87% that was scheduled to mature in January of 2025 and approximately $30.0 million was utilized to repay overnight borrowings related to the repayment of the September $40.0 million maturity at a rate of 4.53%. The remainder was used to fund loan growth in the fourth quarter of 2024. The book value of the Corporation's common stock was $27.71 per basic share at December 31, 2024 compared to $24.38 per share at December 31, 2023. At December 31, 2024, there were 6,471,096 of basic outstanding shares and 6,485,119 of diluted outstanding shares of common stock. In 2024, the Company purchased and retired 201,800 shares of First United Corporation common stock as part of its previously announced stock repurchase plan at an average price of $19.99 per share. The increase in the book value at December 31, 2024 was due to the undistributed net income of $15.1 million and a $5.6 million decrease in accumulated other comprehensive loss in 2024. Asset Quality The allowance for credit losses ("ACL") was $18.2 million at December 31, 2024 compared to $17.5 million at December 31, 2023. The provision for credit losses was $0.5 million for the quarter ended December 31, 2024 compared to $0.4 million for the quarter ended December 31, 2023 and $0.3 million for the third quarter of 2024. The increased provision expense recorded year to date in 2024 was primarily related to $1.3 million in net charge-offs related to one non-accrual commercial loan relationship and growth in our loan portfolio, partially offset by improving qualitative risk factors. Net charge-offs of $0.4 million and $0.2 million were recorded for the quarter ended December 31, 2024 and December 31, 2023, respectively. The ratio of the ACL to loans outstanding was 1.23% at December 31, 2024, which compares to 1.24% at both September 30, 2024 and December 31, 2023. The ratio of year-to-date net charge offs to average loans was 0.16% for year ended December 31, 2024, and 0.07% for the year ended December 31, 2023. The commercial and industrial portfolio had net charge offs of 0.50% for the year ended December 31, 2024 compared to net charge offs of 0.09% for the year ended December 31, 2023. This increase was due primarily to charge offs of equipment loan balances on one non-accrual commercial relationship during 2024. The consumer portfolio had net charge offs of 1.76% for the year ended December 31, 2024 compared to net charge offs of 1.04% for the year ended December 31, 2023. The increase in net charge offs in consumer loans in 2024 was primarily driven by approximately $0.4 million in charge offs of overdrawn demand deposit balances during the first quarter of 2024 and $0.1 million in charge offs of student loan accounts in the second quarter. Details of the ratios, by loan type, are shown below. Our special assets team continues to actively collect on charged-off loans, resulting in overall low net charge-off ratios. Ratio of Net (Charge Offs)/Recoveries to Average Loans Loan Type 12/31/2024 (Charge Off) / Recovery 12/31/2023 (Charge Off) / Recovery Commercial Real Estate 0.02 % (0.02 %) Acquisition & Development 0.06 % 0.01 % Commercial & Industrial (0.50 %) (0.09 %) Residential Mortgage 0.01 % 0.00 % Consumer (1.76 %) (1.04 %) Total Net (Charge Offs)/Recoveries (0.16 %) (0.07 %) Non-accrual loans totaled $4.9 million at December 31, 2024 compared to $4.0 million at December 31, 2023. The increase in non-accrual balances at December 31, 2024 was related to two commercial and industrial loan relationships totaling $12.1 million that were moved to non-accrual during the first quarter of 2024. Subsequent to being moved to non-accrual, one of the borrowers liquidated collateral and reduced the balances by $5.5 million. Additionally, a total of $2.8 million in collateral was moved to repossessed assets in the fourth quarter of 2024. $1.3 million in net charge-offs and $3.0 million in principal reduction related to the liquidation of collateral at depressed prices were recognized on the other commercial credit during 2024. The Bank continues to liquidate collateral on both loan relationships. Non-accrual loans that have been subject to partial charge-offs totaled $0.7 million at December 31, 2024 and $0.1 million at December 31, 2023. Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $1.6 million at December 31, 2024 and $1.8 million at December 31, 2023. As a percentage of the loan portfolio, accruing loans past due 30 days or more was 0.32% at December 31, 2024 compared to 0.24% at December 31, 2023. ABOUT FIRST UNITED CORPORATION First United Corporation is a Maryland corporation chartered in 1985 and a financial holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended, that elected financial holding company status in 2021. The Corporation's primary business is serving as the parent company of the Bank, First United Statutory Trust I ("Trust I") and First United Statutory Trust II (together with Trust I, "the Trusts"), both Connecticut statutory business trusts. The Trusts were formed for the purpose of selling trust preferred securities that qualified as Tier 1 capital. The Bank has two consumer finance company subsidiaries- Oak First Loan Center, Inc., a West Virginia corporation, and OakFirst Loan Center, LLC, a Maryland limited liability company – and two subsidiaries that it uses to hold real estate acquired through foreclosure or by deed in lieu of foreclosure – First OREO Trust, a Maryland statutory trust, and FUBT OREO I, LLC, a Maryland limited liability company. In addition, the Bank owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland, and a 99.9% non-voting membership interest in MCC FUBT Fund, LLC, an Ohio limited liability company formed for the purpose of acquiring, developing and operating low-income housing units in Allegany County, Maryland. The Corporation's website is www.mybank.com. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not represent historical facts, but are statements about management's beliefs, plans and objectives about the future, as well as its assumptions and judgments concerning such beliefs, plans and objectives. These statements are evidenced by terms such as "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions. Although these statements reflect management's good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. The beliefs, plans and objectives on which forward-looking statements are based involve risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports that First United Corporation files with the Securities and Exchange Commission entitled "Risk Factors". In addition, investors should understand that the Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2024 and the impact that any such events have on our critical accounting assumptions and estimates made as of December 31, 2024, which could require us to make adjustments to the amounts reflected in this press release. FIRST UNITED CORPORATION Oakland, MD Stock Symbol : FUNC Financial Highlights - Unaudited (Dollars in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Results of Operations: Interest income $ 23,725 $ 22,191 $ 91,993 $ 81,156 Interest expense 8,025 7,997 32,015 24,286 Net interest income 15,700 14,194 59,978 56,870 Provision for credit losses 529 419 2,933 1,620 Other operating income 4,924 4,793 19,411 18,331 Net gains/(losses) 132 (4,184) 414 (3,862) Other operating expense 12,081 12,309 49,640 50,243 Income before taxes $ 8,146 $ 2,075 $ 27,230 $ 19,476 Income tax expense 1,960 317 6,661 4,416 Net income $ 6,186 $ 1,758 $ 20,569 $ 15,060 Per share data: Basic net income per share $ 0.95 $ 0.26 $ 3.15 $ 2.25 Diluted net income per share $ 0.95 $ 0.26 $ 3.15 $ 2.24 Adjusted Basic net income (1) $ 0.95 $ 0.82 $ 3.21 $ 2.81 Adjusted Diluted net income (1) $ 0.95 $ 0.82 $ 3.21 $ 2.80 Dividends declared per share $ 0.22 $ 0.20 $ 0.84 $ 0.80 Book value $ 27.71 $ 24.38 Diluted book value $ 27.65 $ 24.33 Tangible book value per share $ 25.89 $ 22.56 Diluted Tangible book value per share $ 25.83 $ 22.51 Closing market value $ 33.71 $ 23.51 Market Range: High $ 36.17 $ 23.51 Low $ 29.63 $ 16.12 Shares outstanding at period end: Basic 6,471,096 6,639,888 Shares outstanding at period end: Diluted 6,485,119 6,653,200 Performance ratios: (Year to Date Period End, annualized) Return on average assets 1.06 % 0.78 % Adjusted return on average assets (1) 1.08 % 0.97 % Return on average shareholders' equity 12.16 % 9.68 % Adjusted return on average shareholders' equity (1) 12.42 % 12.08 % Net interest margin (Non-GAAP), includes tax exempt income of $229 and $626 3.38 % 3.26 % Net interest margin GAAP 3.36 % 3.22 % Efficiency ratio - non-GAAP (2) 61.31 % 65.12 % (1) See reconciliation of this non-GAAP financial measure provided elsewhere herein. (2) Efficiency ratio is a non-GAAP measure calculated by dividing total operating expenses by the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities and/or fixed assets. December 31, December 31, 2024 2023 Financial Condition at period end: Assets $ 1,973,022 $ 1,905,860 Earning assets $ 1,758,665 $ 1,725,236 Gross loans $ 1,480,793 $ 1,406,667 Commercial Real Estate $ 526,364 $ 493,703 Acquisition and Development $ 95,314 $ 77,060 Commercial and Industrial $ 287,534 $ 274,604 Residential Mortgage $ 518,815 $ 499,871 Consumer $ 52,766 $ 61,429 Investment securities $ 269,991 $ 311,466 Total deposits $ 1,574,829 $ 1,550,977 Noninterest bearing $ 426,737 $ 427,670 Interest bearing $ 1,148,092 $ 1,123,307 Shareholders' equity $ 179,295 $ 161,873 . Capital ratios: Tier 1 to risk weighted assets 14.70 % 14.42 % Common Equity Tier 1 to risk weighted assets 12.79 % 12.44 % Tier 1 Leverage 11.88 % 11.30 % Total risk based capital 15.92 % 15.64 % Asset quality: Net charge-offs for the quarter $ (362) $ (195) Nonperforming assets: (Period End) Nonaccrual loans $ 4,931 $ 3,956 Loans 90 days past due and accruing 918 543 Total nonperforming loans and 90 day past due $ 5,849 $ 4,499 Other real estate owned $ 3,062 $ 4,493 Other repossessed assets $ 2,802 $ 55 Modified loans $ 1,006 $ - Allowance for credit losses to gross loans 1.23 % 1.24 % Allowance for credit losses to non-accrual loans 368.49 % 441.86 % Allowance for credit losses to non-performing assets 155.13 % 193.21 % Non-performing and 90 day past due loans to total loans 0.39 % 0.32 % Non-performing loans and 90 day past due loans to total assets 0.30 % 0.24 % Non-accrual loans to total loans 0.33 % 0.28 % Non-performing assets to total assets 0.59 % 0.47 % FIRST UNITED CORPORATION Oakland, MD Stock Symbol : FUNC Financial Highlights - Unaudited December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share data) 2024 2024 2024 2024 2023 2023 2023 2023 Results of Operations: Interest income $ 23,725 $ 23,257 $ 23,113 $ 21,898 $ 22,191 $ 21,164 $ 19,972 $ 17,829 Interest expense 8,025 8,029 7,875 8,086 7,997 7,180 5,798 3,311 Net interest income 15,700 15,228 15,238 13,812 14,194 13,984 14,174 14,518 Provision for credit losses 529 264 1,194 946 419 263 395 543 Other operating income 4,924 4,912 4,782 4,793 4,793 4,716 4,483 4,339 Net gains/(losses) 132 141 59 82 (4,184) 182 86 54 Other operating expense 12,081 12,314 12,364 12,881 12,309 12,785 12,511 12,638 Income before taxes $ 8,146 $ 7,703 $ 6,521 $ 4,860 $ 2,075 $ 5,834 $ 5,837 $ 5,730 Income tax expense 1,960 1,932 1,607 1,162 317 1,321 1,423 1,355 Net income $ 6,186 $ 5,771 $ 4,914 $ 3,698 $ 1,758 $ 4,513 $ 4,414 $ 4,375 Per share data: Basic net income per share $ 0.95 $ 0.89 $ 0.75 $ 0.56 $ 0.26 $ 0.67 $ 0.66 $ 0.66 Diluted net income per share $ 0.95 $ 0.89 $ 0.75 $ 0.56 $ 0.26 $ 0.67 $ 0.66 $ 0.65 Adjusted basic net income (1) $ 0.95 $ 0.89 $ 0.75 $ 0.62 $ 0.82 $ 0.67 $ 0.66 $ 0.66 Adjusted diluted net income (1) $ 0.95 $ 0.89 $ 0.75 $ 0.62 $ 0.82 $ 0.67 $ 0.66 $ 0.65 Dividends declared per share $ 0.22 $ 0.22 $ 0.22 $ 0.20 $ 0.20 $ 0.20 $ 0.62 $ 0.20 Book value $ 27.71 $ 26.90 $ 25.39 $ 24.89 $ 24.38 $ 23.08 $ 23.12 $ 22.85 Diluted book value $ 27.65 $ 26.84 $ 25.34 $ 24.86 $ 24.33 $ 23.03 $ 23.07 $ 22.81 Tangible book value per share $ 25.89 $ 25.06 $ 23.55 $ 23.08 $ 22.56 $ 21.27 $ 21.29 $ 21.01 Diluted Tangible book value per share $ 25.83 $ 25.01 $ 23.49 $ 23.05 $ 22.51 $ 21.22 $ 21.25 $ 20.96 Closing market value $ 33.71 $ 29.84 $ 20.42 $ 22.91 $ 23.51 $ 16.23 $ 14.26 $ 16.89 Market Range: High $ 36.17 $ 30.77 $ 22.88 $ 23.85 $ 23.51 $ 17.34 $ 17.01 $ 20.41 Low $ 29.63 $ 20.40 $ 19.40 $ 21.21 $ 16.12 $ 13.70 $ 12.56 $ 16.75 Shares outstanding at period end: Basic 6,471,096 6,468,625 6,465,601 6,648,645 6,639,888 6,715,170 6,711,422 6,688,710 Shares outstanding at period end: Diluted 6,485,119 6,482,648 6,479,624 6,657,239 6,653,200 6,728,482 6,724,734 6,703,252 Performance ratios: (Year to Date Period End, annualized) Return on average assets 1.06 % 0.99 % 0.89 % 0.76 % 0.78 % 0.93 % 0.95 % 0.94 % Adjusted return on average assets (1) 1.08 % 1.01 % 0.98 % 0.85 % 0.94 % 0.93 % 0.95 % 0.94 % Return on average shareholders' equity 12.16 % 11.52 % 10.48 % 9.07 % 9.68 % 11.44 % 11.43 % 11.87 % Adjusted return on average shareholders' equity (1) 12.42 % 11.78 % 11.52 % 10.11 % 11.87 % 11.44 % 11.43 % 11.87 % Net interest margin (Non-GAAP), includes tax exempt income of $53 and $76 3.38 % 3.34 % 3.31 % 3.12 % 3.26 % 3.30 % 3.39 % 3.53 % Net interest margin GAAP 3.36 % 3.32 % 3.29 % 3.10 % 3.22 % 3.25 % 3.34 % 3.48 % Efficiency ratio - non-GAAP (1) 61.31 % 62.46 % 63.48 % 65.71 % 65.12 % 66.41 % 66.00 % 67.02 % (1) Efficiency ratio is a non-GAAP measure calculated by dividing total operating expenses by the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities and/or fixed assets. December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2024 2024 2024 2024 2023 2023 2023 2023 Financial Condition at period end: Assets $ 1,973,022 $ 1,916,126 $ 1,868,599 $ 1,912,953 $ 1,905,860 $ 1,928,201 $ 1,928,393 $ 1,937,442 Earning assets $ 1,758,665 $ 1,722,346 $ 1,695,425 $ 1,695,962 $ 1,725,236 $ 1,717,244 $ 1,707,522 $ 1,652,688 Gross loans $ 1,480,793 $ 1,447,883 $ 1,422,975 $ 1,412,327 $ 1,406,667 $ 1,380,019 $ 1,350,038 $ 1,289,080 Commercial Real Estate $ 526,364 $ 502,828 $ 506,273 $ 492,819 $ 493,703 $ 491,284 $ 483,485 $ 453,356 Acquisition and Development $ 95,314 $ 92,909 $ 88,215 $ 83,424 $ 77,060 $ 79,796 $ 79,003 $ 76,980 Commercial and Industrial $ 287,534 $ 277,994 $ 260,168 $ 274,722 $ 274,604 $ 254,650 $ 249,683 $ 241,959 Residential Mortgage $ 518,815 $ 519,168 $ 511,354 $ 501,990 $ 499,871 $ 491,686 $ 475,540 $ 456,198 Consumer $ 52,766 $ 54,984 $ 56,965 $ 59,372 $ 61,429 $ 62,603 $ 62,327 $ 60,587 Investment securities $ 269,991 $ 267,214 $ 267,151 $ 278,716 $ 311,466 $ 330,053 $ 350,844 $ 357,061 Total deposits $ 1,574,829 $ 1,540,395 $ 1,537,071 $ 1,563,453 $ 1,550,977 $ 1,575,069 $ 1,579,959 $ 1,591,285 Noninterest bearing $ 426,737 $ 419,437 $ 423,970 $ 422,759 $ 427,670 $ 429,691 $ 466,628 $ 468,554 Interest bearing $ 1,148,092 $ 1,120,958 $ 1,113,101 $ 1,140,694 $ 1,123,307 $ 1,145,378 $ 1,113,331 $ 1,122,731 Shareholders' equity $ 179,295 $ 173,979 $ 164,177 $ 165,481 $ 161,873 $ 154,990 $ 155,156 $ 152,868 Capital ratios: Tier 1 to risk weighted assets 14.70 % 14.61 % 14.51 % 14.58 % 14.42 % 14.60 % 14.40 % 14.90 % Common Equity Tier 1 to risk weighted assets 12.79 % 12.66 % 12.54 % 12.60 % 12.44 % 12.60 % 12.40 % 12.82 % Tier 1 Leverage 11.88 % 11.88 % 11.69 % 11.48 % 11.30 % 11.25 % 11.25 % 11.47 % Total risk based capital 15.92 % 15.83 % 15.75 % 15.83 % 15.64 % 15.81 % 15.60 % 16.15 % Asset quality: Net (charge-offs)/recoveries for the quarter $ (362) $ (109) $ (1,309) $ (459) $ (195) $ (83) $ (398) $ (245) Nonperforming assets: (Period End) Nonaccrual loans $ 4,931 $ 8,073 $ 9,438 $ 16,007 $ 3,956 $ 3,479 $ 2,972 $ 3,258 Loans 90 days past due and accruing 918 538 526 120 543 145 160 87 Total nonperforming loans and 90 day past due $ 5,849 $ 8,611 $ 9,964 $ 16,127 $ 4,499 $ 3,624 $ 3,132 $ 3,345 Other real estate owned $ 3,062 $ 2,860 $ 2,978 $ 4,402 $ 4,493 $ 4,878 $ 4,482 $ 4,598 Other repossessed assets $ 2,802 $ 42 $ 32 $ 68 $ 55 $ 41 $ - $ 8 Modified loans $ 1,006 $ 1,016 $ 893 $ - $ - $ - $ - $ - Allowance for credit losses to gross loans 1.23 % 1.24 % 1.26 % 1.27 % 1.24 % 1.24 % 1.25 % 1.31 % Allowance for credit losses to non-accrual loans 368.49 % 223.09 % 189.90 % 112.34 % 441.86 % 492.84 % 568.81 % 517.83 % Allowance for credit losses to non-performing assets 155.13 % 157.00 % 138.49 % 87.59 % 193.21 % 473.12 % 539.79 % 212.40 % Non-performing and 90 day past due loans to total loans 0.39 % 0.59 % 0.70 % 1.14 % 0.32 % 0.26 % 0.23 % 0.26 % Non-performing loans and 90 day past due loans to total assets 0.30 % 0.45 % 0.53 % 0.84 % 0.24 % 0.19 % 0.16 % 0.17 % Non-accrual loans to total loans 0.33 % 0.56 % 0.66 % 1.13 % 0.28 % 0.25 % 0.22 % 0.25 % Non-performing assets to total assets 0.59 % 0.60 % 0.69 % 1.07 % 0.47 % 0.44 % 0.39 % 0.41 % Consolidated Statement of Condition (Dollars in thousands - Unaudited) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Assets Cash and due from banks $ 77,020 $ 61,140 $ 43,635 $ 85,578 $ 48,343 Interest bearing deposits in banks 1,307 1,252 1,457 1,354 1,410 Cash and cash equivalents 78,327 62,392 45,092 86,932 49,753 Investment securities – available for sale (at fair value) 94,494 93,160 92,954 95,580 97,169 Investment securities – held to maturity (at cost) 175,497 174,054 174,197 183,136 214,297 Restricted investment in bank stock, at cost 5,768 5,765 3,395 3,390 5,250 Loans held for sale 806 232 447 175 443 Loans 1,480,793 1,447,883 1,422,975 1,412,327 1,406,667 Unearned fees (442) (333) (306) (314) (340) Allowance for credit losses (18,170) (18,010) (17,923) (17,982) (17,480) Net loans 1,462,181 1,429,540 1,404,746 1,394,031 1,388,847 Premises and equipment, net 30,081 30,704 29,688 30,268 31,459 Goodwill and other intangible assets 11,773 11,856 11,938 12,021 12,103 Bank owned life insurance 48,952 48,608 48,267 47,933 47,607 Deferred tax assets 9,989 9,357 11,214 10,736 11,948 Other real estate owned, net 3,062 2,860 2,978 4,402 4,493 Operating lease asset 1,204 1,163 1,230 1,299 1,367 Pension asset 17,824 16,268 12,850 13,022 11,208 Accrued interest receivable and other assets 33,064 30,167 29,603 30,028 29,916 Total Assets $ 1,973,022 $ 1,916,126 $ 1,868,599 $ 1,912,953 $ 1,905,860 Liabilities and Shareholders' Equity Liabilities: Non-interest bearing deposits $ 426,737 $ 419,437 $ 423,970 $ 422,759 $ 427,670 Interest bearing deposits 1,148,092 1,120,958 1,113,101 1,140,694 1,123,307 Total deposits 1,574,829 1,540,395 1,537,071 1,563,453 1,550,977 Short-term borrowings 65,409 50,206 62,564 79,494 45,418 Long-term borrowings 120,929 120,929 70,929 70,929 110,929 Operating lease liability 1,384 1,343 1,412 1,484 1,556 Allowance for credit loss on off balance sheet exposures 863 856 801 858 873 Accrued interest payable and other liabilities 28,889 26,994 30,352 29,925 32,904 Dividends payable 1,424 1,424 1,293 1,329 1,330 Total Liabilities 1,793,727 1,742,147 1,704,422 $ 1,747,472 1,743,987 Shareholders' Equity: Common Stock – par value $0.01 per share; Authorized 25,000,000 shares; issued and outstanding 6,471,096 shares at December 31, 2024 and 6,639,888 at December 31, 2023 65 65 65 66 66 Surplus 20,476 20,288 20,280 23,865 23,734 Retained earnings 189,002 184,239 179,892 176,272 173,900 Accumulated other comprehensive loss (30,248) (30,613) (36,060) (34,722) (35,827) Total Shareholders' Equity 179,295 173,979 164,177 165,481 161,873 Total Liabilities and Shareholders' Equity $ 1,973,022 $ 1,916,126 $ 1,868,599 $ 1,912,953 $ 1,905,860 Historical Income Statement 2024 2023 Year to Date Q4 Q3 Q2 Q1 Year to Date Q4 Q3 Q2 Q1 In thousands (Unaudited) Interest income Interest and fees on loans $ 81,756 $ 21,299 $ 21,018 $ 20,221 $ 19,218 $ 69,569 $ 19,290 $ 18,055 $ 16,780 $ 15,444 Interest on investment securities — Taxable 6,760 1,672 1,647 1,697 1,744 7,173 1,834 1,792 1,779 1,768 Exempt from federal income tax 209 47 56 53 53 714 53 123 268 270 Total investment income 6,969 1,719 1,703 1,750 1,797 7,887 1,887 1,915 2,047 2,038 Other 3,268 707 536 1,142 883 3,700 1,014 1,194 1,145 347 Total interest income 91,993 23,725 23,257 23,113 21,898 81,156 22,191 21,164 19,972 17,829 Interest expense Interest on deposits 25,828 6,585 6,579 6,398 6,266 19,198 6,498 5,672 4,350 2,678 Interest on short-term borrowings 1,477 40 467 509 461 147 54 33 29 31 Interest on long-term borrowings 4,710 1,400 983 968 1,359 4,941 1,445 1,475 1,419 602 Total interest expense 32,015 8,025 8,029 7,875 8,086 24,286 7,997 7,180 5,798 3,311 Net interest income 59,978 15,700 15,228 15,238 13,812 56,870 14,194 13,984 14,174 14,518 Credit loss expense/(credit) Loans 2,929 522 195 1,251 961 1,700 530 322 434 414 Debt securities held to maturity 14 — 14 — — 45 — 45 — — Off balance sheet credit exposures (10) 7 55 (57) (15) (125) (111) (104) (39) 129 Provision for credit losses 2,933 529 264 1,194 946 1,620 419 263 395 543 Net interest income after provision for credit losses 57,045 15,171 14,964 14,044 12,866 55,250 13,775 13,721 13,779 13,975 Other operating income Net losses on investments, available for sale — — — — — (4,214) (4,214) — — — Gains on sale of residential mortgage loans 414 132 141 59 82 381 59 182 86 54 Losses on disposal of fixed assets — — — — — (29) (29) — — — Net gains/(losses) 414 132 141 59 82 (3,862) (4,184) 182 86 54 Other Income Service charges on deposit accounts 2,220 553 555 556 556 2,198 567 569 546 516 Other service charges 887 211 236 225 215 929 223 230 244 232 Trust department 9,094 2,323 2,328 2,255 2,188 8,282 2,148 2,139 2,025 1,970 Debit card income 4,065 1,134 1,000 999 932 4,101 1,120 995 1,031 955 Bank owned life insurance 1,345 345 340 334 326 1,261 325 320 311 305 Brokerage commissions 1,449 295 297 362 495 1,160 360 245 258 297 Other 351 63 156 51 81 400 50 218 68 64 Total other income 19,411 4,924 4,912 4,782 4,793 18,331 4,793 4,716 4,483 4,339 Total other operating income 19,825 5,056 5,053 4,841 4,875 14,469 609 4,898 4,569 4,393 Other operating expenses Salaries and employee benefits 28,029 6,456 7,160 7,256 7,157 27,520 6,390 6,964 6,870 7,296 FDIC premiums 1,070 260 256 285 269 992 268 254 277 193 Equipment 2,675 490 627 635 923 3,157 912 718 747 780 Occupancy 2,878 563 709 652 954 3,441 1,169 745 742 785 Data processing 5,761 1,688 1,333 1,422 1,318 5,384 1,384 1,388 1,306 1,306 Marketing 674 205 151 184 134 833 311 242 160 120 Professional services 1,948 536 477 449 486 2,133 631 488 520 494 Contract labor 597 181 149 84 183 616 170 155 157 134 Telephone 408 99 97 103 109 466 125 115 116 110 Other real estate owned 271 47 124 14 86 (89) (370) 139 18 124 Investor relations 293 65 84 91 53 345 65 74 123 83 Contributions 234 53 65 66 50 229 12 74 79 64 Other 4,802 1,438 1,082 1,123 1,159 5,216 1,242 1,429 1,396 1,149 Total other operating expenses 49,640 12,081 12,314 12,364 12,881 50,243 12,309 12,785 12,511 12,638 Income before income tax expense 27,230 8,146 7,703 6,521 4,860 19,476 2,075 5,834 5,837 5,730 Provision for income tax expense 6,661 1,960 1,932 1,607 1,162 4,416 317 1,321 1,423 1,355 Net Income $ 20,569 $ 6,186 $ 5,771 $ 4,914 $ 3,698 $ 15,060 $ 1,758 $ 4,513 $ 4,414 $ 4,375 Basic net income per common share $ 3.15 $ 0.95 $ 0.89 $ 0.75 $ 0.56 $ 2.25 $ 0.26 $ 0.67 $ 0.66 $ 0.66 Diluted net income per common share $ 3.15 $ 0.95 $ 0.89 $ 0.75 $ 0.56 $ 2.24 $ 0.26 $ 0.67 $ 0.66 $ 0.65 Weighted average number of basic shares outstanding 6,527 6,470 6,468 6,527 6,642 6,649 6,649 6,714 6,704 6,675 Weighted average number of diluted shares outstanding 6,540 6,484 6,482 6,537 6,655 6,663 6,663 6,728 6,718 6,697 Dividends declared per common share $ 0.84 $ 0.22 $ 0.22 $ 0.20 $ 0.20 $ 0.80 $ 0.20 $ 0.20 $ 0.20 $ 0.20 Non-GAAP Financial Measures (unaudited) Reconciliation of as reported (GAAP) and non-GAAP financial measures The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company's management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company's operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company's performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP. The following non-GAAP financial measures exclude losses on the sale of Available for Sale Securities and accelerated depreciation expenses related to the branch closures. Three months ended December 31, Twelve months ended December 31, 2024 2023 2024 2023 (in thousands, except for per share amount) Net income - as reported $ 6,186 $ 1,758 $ 20,569 $ 15,060 Adjustments: - 4,214 - 4,214 Accelerated depreciation expenses — 623 562 623 Income tax effect of adjustments — (1,097) (137) (1,097) Adjusted net income (non-GAAP) $ 6,186 $ 5,498 $ 20,994 $ 18,800 Diluted earnings per share - as reported $ 0.95 $ 0.26 $ 3.15 $ 2.24 Adjustments: Loss on sale of securities — 0.63 — 0.63 Accelerated depreciation expenses — 0.09 0.08 0.09 Income tax effect of adjustments — (0.16) (0.02) (0.16) Adjusted diluted earnings per share (non-GAAP) $ 0.95 $ 0.82 $ 3.21 $ 2.80 As of or for the three months ended As of or for the twelve months ended December 31, December 31, (in thousands, except per share data) 2024 2023 2024 2023 Per Share Data Basic net income per share (1) - as reported $ 0.95 $ 0.26 $ 3.15 $ 2.25 Basic net income per share (1) - non-GAAP 0.95 0.82 3.21 2.81 Diluted net income per share (1) - as reported $ 0.95 $ 0.26 $ 3.15 $ 2.24 Diluted net income per share (1) - non-GAAP 0.95 0.82 3.21 2.80 Basic book value per share $ 27.71 $ 24.38 Diluted book value per share $ 27.65 $ 24.33 Significant Ratios: As of or for the twelve months ended December 31, Return on Average Assets (1) - as reported 1.06 % 0.78 % Loss on sale of securities - % 0.22 % Accelerated depreciation expenses 0.03 % 0.03 % Income tax effect of adjustments (0.01) % (0.06) % Adjusted Return on Average Assets (1) (non-GAAP) 1.08 % 0.97 % Return on Average Equity (1) - as reported 12.16 % 9.68 % Loss on sale of securities - % 2.71 % Accelerated depreciation expenses 0.34 % 0.40 % Income tax effect of adjustments (0.08) % (0.71) % Adjusted Return on Average Equity (1) (non-GAAP) 12.42 % 12.08 % (1) See reconcilation of this non-GAAP financial measure provided elsewhere herein. Three Months Ended December 31 2024 2023 (dollars in thousands) AverageBalance Interest AverageYield/Rate AverageBalance Interest AverageYield/Rate Assets Loans $ 1,452,332 $ 21,313 5.84 % $ 1,398,393 $ 19,308 5.48 % Investment Securities: Taxable 275,785 1,672 2.41 % 332,545 1,834 2.19 % Non taxable 6,758 86 5.06 % 8,107 96 4.70 % Total 282,543 1,758 2.48 % 340,652 1,930 2.25 % Federal funds sold 56,552 628 4.42 % 60,400 907 5.96 % Interest-bearing deposits with other banks 3,138 16 2.03 % 1,867 22 4.68 % Other interest earning assets 5,767 63 4.35 % 5,251 85 6.42 % Total earning assets 1,800,332 23,778 5.25 % 1,806,563 22,252 4.89 % Allowance for credit losses (18,199) (17,304) Non-earning assets 162,438 194,309 Total Assets $ 1,944,571 $ 1,983,568 Liabilities and Shareholders' Equity Interest-bearing demand deposits $ 388,451 $ 1,747 1.79 % $ 366,450 $ 1,440 1.56 % Interest-bearing money markets - retail 446,230 3,721 3.32 % 365,439 3,135 3.40 % Interest-bearing money markets - brokered 110 1 3.62 % — — — % Savings deposits 172,342 45 0.10 % 196,777 51 0.10 % Time deposits - retail 143,424 1,071 2.97 % 163,253 1,122 2.73 % Time deposits - brokered — — — % 56,006 751 5.32 % Short-term borrowings 12,797 40 1 1.24 % 43,693 55 0.50 % Long-term borrowings 120,928 1,400 4.61 % 110,929 1,445 5.17 % Total interest-bearing liabilities 1,284,282 8,025 2.49 % 1,302,547 7,999 2.44 % Non-interest-bearing deposits 449,878 487,012 Other liabilities 33,904 35,957 Shareholders' Equity 176,507 158,052 Total Liabilities and Shareholders' Equity $ 1,944,571 $ 1,983,568 Net interest income and spread $ 15,753 2.76 % $ 14,253 2.45 % Net interest margin 3.48 % 3.13 % Twelve Months Ended December 31, 2024 2023 (dollars in thousands) AverageBalance Interest AverageYield/Rate AverageBalance Interest AverageYield/Rate Assets Loans $ 1,427,351 $ 81,819 5.73 % $ 1,340,118 $ 69,631 5.20 % Investment Securities: Taxable 285,661 6,760 2.37 % 335,888 7,173 2.14 % Non taxable 7,538 375 4.97 % 18,471 1,279 6.92 % Total 293,199 7,135 2.43 % 354,359 8,452 2.39 % Federal funds sold 55,117 2,874 5.21 % 65,131 3,409 5.23 % Interest-bearing deposits with other banks 2,009 91 4.53 % 2,585 93 3.60 % Other interest earning assets 4,565 303 6.64 % 4,048 198 4.89 % Total earning assets 1,782,241 92,222 5.17 % 1,766,241 81,782 4.63 % Allowance for loan losses (18,064) (16,561) Non-earning assets 182,548 199,474 Total Assets $ 1,946,725 $ 1,949,154 Liabilities and Shareholders' Equity Interest-bearing demand deposits $ 368,725 6,288 1.71 % $ 362,070 $ 4,814 1.33 % Interest-bearing money markets - retail 413,353 14,287 3.46 % 333,274 8,672 2.60 % Interest-bearing money markets - brokered 55 3 5.45 % — — — % Savings deposits 180,393 183 0.10 % 219,516 240 0.11 % Time deposits - retail 147,193 4,226 2.87 % 141,921 2,872 2.02 % Time deposits - brokered 15,697 841 5.36 % 49,209 2,600 5.28 % Short-term borrowings 58,444 1,477 2.53 % 47,968 147 0.31 % Long-term borrowings 92,213 4,710 5.11 % 94,271 4,941 5.24 % Total interest-bearing liabilities 1,276,073 32,015 2.51 % 1,248,229 24,286 1.95 % Non-interest-bearing deposits 468,137 512,496 Other liabilities 33,326 32,320 Shareholders' Equity 169,189 156,109 Total Liabilities and Shareholders' Equity $ 1,946,725 $ 1,949,154 Net interest income and spread $ 60,207 2.66 % $ 57,496 2.68 % Net interest margin 3.38 % 3.26 % SOURCE First United Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

FIRST UNITED CORPORATION ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News