FIRST UNITED CORPORATION ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

OAKLAND, Md., Feb. 5, 2025 /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 since
September 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)

Average
Balance

Interest

Average
Yield/Rate

Average
Balance

Interest

Average
Yield/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)

Average
Balance

Interest

Average
Yield/
Rate

Average
Balance

Interest

Average
Yield/
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

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