OAKLAND, Md., Feb. 4, 2026 /PRNewswire/ -- First United Corporation (the "Corporation", "we", "us", ...

FUNC

FIRST UNITED CORPORATION ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS

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  <section data-block="information">
    <h3>Information</h3>
    <p>OAKLAND, Md., Feb. 4, 2026 /PRNewswire/ -- First United Corporation (the &quot;Corporation&quot;, &quot;we&quot;, &quot;us&quot;, ...</p>
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    <h3>AI Summary</h3>
    <p>First United Corporation (FUNC) reported strong annual net income growth of 19% to $24.5 million for 2025, emphasizing record core earnings despite a drop in Q4 profits. The strong net interest margin at 3.75% underscores robust loan production and disciplined expense management, suggesting positive momentum. The recent CEO appointment could further drive strategic growth initiatives.</p>
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    <h3>Key Points</h3>
    <ul><li>FUNC reported net income of $24.5 million in 2025, up 19% YoY.</li><li>Q4 2025 earnings were $5.8 million, down from $6.2 million in Q4 2024.</li><li>Non-GAAP net income hit a record $25.8 million for 2025.</li><li>The bank&#039;s net interest margin for Q4 was 3.75%, showing improved loan yields.</li><li>A new CEO, Jason B. Rush, has been appointed for future growth.</li></ul>
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    <h3>Companies Mentioned</h3>
    <ul><li><strong>First United Corporation (FUNC)</strong>: Reported strong earnings growth and appointed new leadership.</li></ul>
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    <h3>Corporate Developments</h3>
    <p>This report falls under the category of Corporate Developments, as it discusses significant changes in leadership and the financial performance metrics of FUNC, impacting both operational strategy and investor sentiment. Such developments are crucial for assessing the company&#039;s future trajectory and stock performance.</p>
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    <h3>Market-Moving</h3>
    <ul><li>FUNC&#039;s net income growth suggests resilience amid economic challenges.</li><li>The new CEO&#039;s strategic vision may enhance operational efficiency and growth.</li><li>Increasing net interest margin can positively affect future profitability.</li><li>The robust loan production despite payoffs hints at stable revenue streams.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>GAAP net income for 2025: $24.5 million, or $3.77 per share.</li><li>Fourth quarter GAAP income: $5.8 million, down from $6.2 million in Q4 2024.</li><li>Record non-GAAP income of $25.8 million for 2025, or $3.97 per share.</li><li>Net interest margin increased to 3.75% in Q4 2025.</li><li>Dividend declared of $0.26 per share in Q4 2025.</li></ul>
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    <h3>Trading Thesis</h3>
    <p>Consider FUNC a strong buy on continued growth potential driven by improved financials and leadership changes over the next 12 months.</p>
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    <h2>First United Corporation Reports Fourth Quarter 2025 Financial Results</h2>
    <p>First United Corporation (NASDAQ: <strong>FUNC</strong>), a prominent bank holding company and parent of First United Bank & Trust, has released its financial results for the three- and twelve-month periods ended December 31, 2025. The results reflect a robust year in which GAAP net income soared to <strong>$24.5 million</strong>, or <strong>$3.77</strong> per diluted share, a significant increase compared to <strong>$20.6 million</strong>, or <strong>$3.15</strong> per diluted share for 2024. In the fourth quarter alone, GAAP net income stood at <strong>$5.8 million</strong>, or <strong>$0.89</strong> per diluted share, marking a slight decline from the <strong>$6.2 million</strong>, or <strong>$0.95</strong> per diluted share reported for Q4 2024.</p>

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        <h3>Key Financial Performance Metrics</h3>
        <p>First United’s non-GAAP financial metrics, which exclude certain non-recurring items, highlight a remarkable year with non-GAAP net income reaching <strong>$25.8 million</strong> or <strong>$3.97</strong> per diluted share, showcasing record core earnings. This is notably higher than <strong>$21.0 million</strong>, or <strong>$3.21</strong> per diluted share reported in 2024.</p>
        <ul>
            <li>GAAP net income for the year: <strong>$24.5 million</strong></li>
            <li>GAAP diluted earnings per share: <strong>$3.77</strong></li>
            <li>Non-GAAP net income for the fourth quarter: <strong>$7.2 million</strong></li>
            <li>Non-GAAP diluted earnings per share: <strong>$1.10</strong></li>
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        <h3>Fourth Quarter Financial Highlights</h3>
        <p>The fourth quarter of 2025 saw notable achievements, including:</p>
        <ul>
            <li>Net interest margin on a non-GAAP, fully tax equivalent (FTE) basis at <strong>3.75%</strong>, driven by increased loan yields.</li>
            <li>Commercial loan originations reached <strong>$108.0 million</strong>, alongside<strong>$25.3 million</strong> in residential mortgage originations.</li>
            <li>Provision expense recorded at <strong>$0.7 million</strong> due to increased loan growth.</li>
        </ul>
        <p>A cash dividend of <strong>$0.26</strong> per share was declared during this quarter, reflecting the company's commitment to returning value to shareholders.</p>
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        <h3>Executive Insights and Future Directions</h3>
        <p>Carissa L. Rodeheaver, Executive Chairman of the Board, stated, "<em>2025 was a truly remarkable year for First United as we celebrated our 125th anniversary—an extraordinary milestone in our history.</em>" She emphasized the company's enduring commitment to its clients and community, stating that they have achieved record core earnings attributable to their strong net interest margin and disciplined expense management. Additionally, Jason B. Rush has been appointed as the new President and CEO, with expectations of continued growth and exceptional service.</p>
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        <h3>Income Statement Overview</h3>
        <p>The fourth quarter income statement showed:</p>
        <ul>
            <li>GAAP net income: <strong>$5.8 million</strong> (including a <strong>$1.2 million</strong> write-down on OREO property).</li>
            <li>Comparison to Q4 2024 reflected a <strong>$0.4 million</strong> decrease in quarterly net income, primarily from increased expenses.</li>
            <li>Strong loan growth was offset by increases in provision expense and operational costs.</li>
        </ul>
        <p>Overall, the decrease in GAAP net income was caused by rising provision expenses and operational costs, despite positive movements in interest income.</p>
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        <h3>Comparative Analysis: Q4 2025 vs. Previous Quarters</h3>
        <p>When comparing the fourth quarter of 2025 to the linked quarter, there was a decrease of <strong>$1.2 million</strong> in net income. However, net interest income increased due to higher fees on loans and decreased interest expenses on long-term borrowings. These metrics indicate that while operational costs rose, First United continues to maintain strong revenue generation capabilities.</p>
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First United Corporation (FUNC) reported strong annual net income growth of 19% to $24.5 million for 2025, emphasizing record core earnings despite a drop in Q4 profits. The strong net interest margin at 3.75% underscores robust loan production and disciplined expense management, suggesting positive momentum. The recent CEO appointment could further drive strategic growth initiatives.

FIRST UNITED CORPORATION ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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