#United States #Oakland #financial results #First United #FUNC

Overview

First United Corporation, the parent company of First United Bank & Trust, has reported its financial results for the second quarter and the first half of 2025. The results highlight a solid growth trajectory for the bank, characterized by higher net income and consistent loan production.

Financial Highlights

For the second quarter of 2025, First United Corporation recorded a net income of $6.0 million, translating to $0.92 per diluted share. This represents a substantial increase compared to the $4.9 million, or $0.75 per diluted share, reported in the second quarter of 2024. Moreover, the net income figure also shows an improvement from $5.8 million, or $0.89 per diluted share, from the first quarter of 2025. Over the first six months of 2025, the corporation's net income totaled $11.8 million, equating to $1.81 per diluted share, up from $8.6 million or $1.31 per diluted share for the same period in 2024.

The annualized Return on Average Assets (ROAA) for the first half of the year was 1.20%, and the Return on Average Equity (ROAE) stood at 12.78%. These metrics suggest a strong performance relative to industry benchmarks.

Factors Driving Growth

Carissa Rodeheaver, Chairman, President, and CEO, emphasized that the strong performance in the second quarter was driven by an increase in the net interest margin, which was reported at 3.65% on a non-GAAP, fully tax-equivalent basis. The bank successfully managed funding costs despite a challenging interest rate environment, leading to favorable interest income across the loan portfolio.

The bank experienced a robust growth in loan production with commercial loan originations reaching $65.1 million and residential mortgage originations totaling $19.2 million. With a strong loan pipeline, the organization remains optimistic about future growth.

Cost Control and Operational Efficiency

In controlling operating expenses, the bank reported an increase of $0.4 million, influenced mainly by data processing and professional service fees. However, operational efficiency remains a hallmark of First United's management strategy, as efforts continue to streamline processes and enhance the customer experience.

Dividend Announcement

In line with its strong financial performance, First United Corporation declared a cash dividend of $0.22 per share during the quarter. This signals confidence in continued profitability and commitment to returning value to shareholders.

Conclusion

First United Corporation has shown impressive growth in its financial performance in the second quarter of 2025. With a strong focus on increasing loan production, managing operational costs, and improving customer service, the company is positioned favorably in the banking sector. The management's forward-looking strategy emphasizes ongoing recruitment to bolster its team and leveraging technology to enhance efficiencies, ensuring a positive outlook for potential growth in both existing and new markets.