#United States #First United #FUNC #Oakland, MD #Q4 2025

Overview of Financial Performance

On February 4, 2026, First United Corporation (NASDAQ: FUNC), a prominent bank holding company based in Oakland, Maryland, disclosed its financial results for the fourth quarter and the overall fiscal year of 2025. The company's performance highlights a continued upward trajectory in terms of net income, showcasing a robust growth compared to the previous year.

Earnings Progress

For the fiscal year ending December 31, 2025, First United Corporation reported a GAAP net income of $24.5 million, representing an increase from $20.6 million in 2024. This translates to earnings per diluted share of $3.77, compared to $3.15 a year prior. In the fourth quarter alone, the corporation recorded a net income of $5.8 million ($0.89 per share), a slight dip from $6.2 million in the same quarter last year but still indicative of the company's stability. Notably, excluding certain one-time losses, the non-GAAP net income for the year peaked at $25.8 million, reflecting record core earnings.

Key Financial Highlights

• - Net Interest Margins: The net interest margin on a non-GAAP, fully tax equivalent basis stood at 3.75% for the fourth quarter. This reflects favorable loan yields and stable funding costs, which signify effective interest rate management.
• - Loan Origination: The corporation reported strong commercial loan origination figures of $108 million alongside residential mortgage originations of $25.3 million while facing high payoffs within the commercial loan segment.
• - Operating Expenses: Operating expenses rose by $1.9 million from the linked quarter primarily due to a $1.6 million impairment charge on a legacy loan, indicating a strategic focus on maintaining asset quality. Cash dividends declared in the fourth quarter were noted at $0.26 per share.

Strategic Direction

Carissa L. Rodeheaver, Executive Chairman of the Board, emphasized the significant milestone of celebrating the company’s 125th anniversary. She highlighted the importance of maintaining robust client relationships while committing to future innovations and community impact. The appointment of Jason B. Rush as the new President and CEO is designed to ensure the continuity of First United's dedication to exceptional service and comprehensive financial solutions.

Year-to-Year Analysis

When comparing the current quarter with the same period from last year, the financial results illustrate both strengths and areas for improvement. Although there was a small reduction in quarterly net income, increases in net interest income and other operating revenues reflect ongoing enhancements in overall bank operations. The company benefited from a disciplined approach to pricing and expense management, leading to an impressive financial standing despite challenges faced within the market.

Looking Ahead

With a favorable outlook for 2026, First United Corporation aims to leverage its solid financial foundation to explore future growth opportunities while fulfilling its commitment to shareholders, clients, and the broader community. The focus on strengthening core earnings, effective management of loans and deposits, alongside strategic leadership changes, positions the corporation well for continued success in the banking landscape.

Conclusion

As First United Corporation enters a new fiscal cycle, the results from 2025 serve as a testament to its resilience and operational excellence in the financial services sector. Stakeholders can expect the corporation to adapt and evolve in a dynamic market while preserving the core values that have defined its long-standing history in the industry.