#USA #Oakland #Q3 2025 #FUNC #First United Corporation

First United Corporation Reports Strong Q3 Financial Results

On October 20, 2025, First United Corporation (NASDAQ: FUNC), a banking entity headquartered in Maryland, released its financial results for the third quarter ending September 30, 2025. This report shows a robust growth trajectory in earnings, driven by enhancing net interest margins and prudent cost management strategies.

Financial Performance Highlights

In the third quarter, First United Corporation achieved a net income of $6.9 million, translating to $1.07 per diluted share. This marks an increase from the $5.8 million or $0.89 per diluted share reported in the same quarter of the previous year. Additionally, it reflects a rise from $6.0 million or $0.92 per diluted share in the second quarter of 2025. For the first nine months of the year, the net income reached $18.7 million or $2.88 per diluted share, compared to $14.4 million or $2.19 per diluted share for the corresponding period in 2024.

Chairman, President, and CEO Carissa Rodeheaver expressed her satisfaction with the results, stating, “We are thrilled to report yet another impressive quarter, fueled by a rise in our net interest margin and continued control of our operating expenses.” She emphasized the importance of their team's efforts in enhancing customer relationships across commercial, mortgage, and wealth management sectors, which contributed significantly to production growth.

Key Financial Metrics

Net Interest Margin and Loan Production

The net interest margin on a non-GAAP, fully tax-equivalent (FTE) basis was 3.69% for the third quarter. This improvement is attributed to heightened loan yields, even as funding costs remained stable. Loan production was notable, with $29.8 million in new commercial loans and $20.8 million in residential mortgage originations, although offset slightly by elevated payoffs during the quarter.

Provision for Credit Losses

Provision expense was recorded at $0.5 million, reflecting a strategic approach aimed at managing credit risk amid reduced loan growth. This provision included a charge-off related to a non-accrual commercial account but was countered by enhanced qualitative factors within the loan portfolio's overall health.

Operating Expenses and Dividends

Operating expenses were consistent with previous quarters, highlighting effective cost containment measures. For shareholders, a cash dividend of $0.26 per share has been declared, demonstrating the corporation's commitment to returning value amidst solid quarterly earnings.

Year-To-Date Comparisons

For the first nine months of 2025, the corporation's net interest income surged by $5.8 million, spurred by increased loan production rates, while reflecting an overall strategy to reprice loans competitively in the market. This resulted in a net interest margin increase to 3.64%, compared to 3.34% in the prior year.

In non-interest income, an increase of $0.6 million was noted, largely driven by enhanced wealth management services and gains from investment sales, mirroring the growing market and the corporation's adaptive strategies to maximize income streams.

Asset Quality and Overall Insights

The asset quality indicators remained robust, with credit loss allowances stabilizing at 1.28% of total gross loans. The allowance for credit losses reached $19.1 million, marking a measured approach amid current market dynamics. Furthermore, non-accrual loans totaled $3.8 million, signifying effective management of potential risk factors.

First United Corporation's accomplishments in the third quarter of 2025 depict a strong financial posture, characterized by strategic growth in income and asset quality. As global markets evolve, the corporation maintains a proactive stance focused on sustainable growth and value generation for its shareholders.