#United States #Oakland, MD #First United Corp #bank results #financial highlights

First United Corporation's Q1 2025 Financial Report

On April 21, 2025, First United Corporation, the holding company for First United Bank & Trust, disclosed its financial performance for the first quarter of 2025. The report revealed a considerable growth in consolidated net income, amounting to $5.8 million, translating to approximately $0.89 per diluted share. This marks an increase from $3.7 million, or $0.56 per diluted share, in the same quarter of the previous year, and a slight decrease from $6.2 million, or $0.95 per diluted share, from the preceding quarter.

Key Highlights of Q1 2025:

• - Net Interest Margin: The organization reported a net interest margin of 3.56% on a non-GAAP, fully tax-equivalent basis. This reflects higher loan yields and stable funding costs, an encouraging sign for the bank amid economic challenges.
• - Loan Production: The bank experienced moderate loan production during this quarter, with commercial loan originations reaching $36.1 million, and residential mortgage originations totaling $11.4 million. However, many potential borrowers seemed hesitant to take action amid prevailing uncertainties in economic and political climates.
• - Provision for Credit Losses: The quarter saw a provision expense of $0.7 million, driven by stable asset quality and improved qualitative factors, even though current economic conditions introduce certain uncertainties.
• - Deposit Growth: The institution reported an increase in deposits by $48.7 million, including $50.0 million from new brokered deposits, which provided liquidity to repay earlier borrowings.
• - Dividends: A cash dividend of $0.22 per common share was declared, showcasing the corporation's confidence in its enduring performance.

Commentary from the Leadership

Carissa Rodeheaver, the Corporation's Chairman, President, and CEO, expressed satisfaction with the financial outcomes for Q1 2025, highlighting that the growth was a result of margin expansion, robust fee income, and tightly controlled expenses. She remarked on the challenges surrounding funding, exacerbated by inflation effects, which have led to reduced deposit balances even as competition remains intense.

Rodeheaver also touched on the importance of strategic investments in hiring and technological enhancements to improve the electronic banking experience. These changes are expected to bear fruits in the form of higher salaries and operational expenses over the duration of the year. Despite this, the bank anticipates that line items will stabilize in subsequent quarters.

Future Directions and Growth Plans

Looking forward, First United Corporation aims to navigate the current uncertainty with optimism. The leadership plans to adopt a proactive approach, focusing on enhancing customer experiences and addressing the underlying dynamics of loan production. There is also a noticeable emphasis on strengthening the bank's operational framework to adapt to shifting market conditions while seeking opportunities for growth even amid challenges.

The corporation's first-quarter performance is a testament to the unwavering commitment and resolve of its workforce, who continue to support customers during these volatile times. As First United Corporation braces itself for future challenges, its focus on strategic growth and resilience will be a driving force in navigating the financial landscape ahead.

In conclusion, the reported financial results portray a strong position for First United Corporation as it embarks on another year amidst uncertainties, emphasizing a roadmap rooted in innovation, customer-centric strategies, and operational excellence.