OAKLAND,
Md., July 22, 2024 /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 six-month periods ended June 30, 2024. Consolidated net income was
$4.9 million, or $0.75 per diluted share, for the second quarter
of 2024, compared to $4.4 million, or
$0.66 per diluted share, for the
second quarter of 2023 and $3.7
million, or $0.56 per diluted
share, for the first quarter of 2024. Year to date income was
$8.6 million, or $1.31 per diluted share, compared to $8.8 million, or $1.31 per diluted share, for the six months ended
June 30, 2023.
According to Carissa Rodeheaver,
Chairman, President and CEO, "Net interest income improved as we
experienced higher repricing of loans and saw stabilization of
deposit expense as we remained disciplined in our pricing.
Non-interest expenses declined, and loan and wealth production were
solid, all resulting in solid core earnings for the quarter offset
slightly by increased provision expense. We also took
advantage of the lower stock price and improved shareholder
position by repurchasing common stock. We believe the
environment will continue to be challenging due to the higher
interest rates, but we are well positioned to continue to post
solid earnings the remainder of the year."
Financial Highlights:
- Deposits decreased due to consumer and commercial spending and
runoff of retail certificates of deposit due to competitive
pricing
- Repaid $15.0 million of higher
cost brokered certificates of deposit
- Shifted $15.0 million of
municipal customer balances from overnight investment sweep
products to fully insured Intrafi Cash Service ("ICS") products to
release pledging of investment securities and increase available
liquidity
- Loan production ramped up with $36.9
million in commercial and $19.1
million in residential mortgage originations
- Purchased and retired 201,800 shares of First United
Corporation common stock
- Paid $0.20 per share quarterly
dividend to common shareholders
- Net interest margin, on a non-GAAP, fully tax equivalent
("FTE") basis, was 3.49% for the second quarter of 2024
- Provision expense increased due to a $1.1 million charge-off on a non-accrual
commercial and industrial credit
- Non-interest income, including net gains, remained stable
- Non-interest expense normalized and remains a focus for
management
Income Statement Overview
On a GAAP basis, net income for the second quarter of 2024 was
$4.9 million. This compares to
GAAP net income of $3.7 million for
the first quarter of 2024, inclusive of $0.4
million, net of tax, in accelerated depreciation expense
related to branch closures. GAAP net income was $4.4 million for the second quarter of 2023.
|
Q2
2024
|
Q1
2024
|
Q2
2023
|
Net Income, non-GAAP
(millions)
|
$ 4.9
|
$ 4.1
|
$4.4
|
Net Income, GAAP
(millions)
|
$ 4.9
|
$ 3.7
|
$ 4.4
|
Basic and diluted net
income per share, non-GAAP
|
$ 0.75
|
$ 0.62
|
$ 0.66
|
Basic and diluted net
income per share, GAAP
|
$ 0.75
|
$ 0.56
|
$ 0.66
|
The $0.5 million increase in
quarterly net income year-over-year was primarily driven by a
$1.1 million increase in net interest
income, which was offset by an increase of $0.8 million in provision expense. The
increase in net interest income was primarily related to the
$3.4 million increase in interest on
loans due to new loans being booked at higher rates and the
repricing of adjustable-rate loans. This increase was
partially offset by the $2.0 million
increase in interest paid on deposits due to continued competitive
pricing pressures. An increase of $0.5
million in interest paid on short-term borrowings related to
the Bank Term Funding Program ("BTFP") was offset by the reduction
in long-term borrowings related to the repayment of the
$40.0 million Federal Home Loan Bank
("FHLB") advance in the first quarter of 2024. The
year-over-year increase in provision for credit losses was
primarily driven by increased charge-offs in the commercial and
industrial portfolio related to one non-accrual credit where
collateral was sold through a liquidation auction at depressed
prices. The charge-off was partially offset by
continued improvement of qualitative factors. Other activity
comparing the second quarter of 2024 to the same period in 2023 was
a $0.3 million increase in wealth
management income due to improving market conditions and growth of
new relationships and a decrease in operating expenses of
$0.1 million. The
provision for income tax was up $0.2
million when comparing the two quarters due to increased net
income before tax.
Compared to the linked quarter, net income increased by
$1.2 million due primarily to a
$1.4 million increase in net interest
income during the second quarter of 2024. The increase in net
interest income was primarily related to a $1.0 million increase in interest on loans as new
loans continue to be booked at higher interest rates and
adjustable-rate loans reprice to higher rates. Additionally,
in the first quarter of 2024, two large commercial relationships
with combined loan balances of $12.1
million were moved to non-accrual status, which resulted in
a reversal of $0.4 million in accrued
interest income and fees during the quarter. Equipment
and occupancy expenses decreased by $0.6
million due to accelerated depreciation expenses recognized
in the first quarter of 2024 related to branch
closures. The increased income was partially offset by
a $0.2 million increase in provision
for credit losses. Provision for income taxes was
up $0.4 million when comparing the
two quarters due to increased net income in the second quarter over
the first quarter 2024.
Year to date net income for the first six months of 2024 was
$8.6 million compared to $8.8 million for the same period in
2023. Provision for credit losses increased by
$1.2 million related primarily to an
increase of $1.1 million in net
charge-offs in 2024 due primarily to charge-offs of $1.1 million related to commercial and industrial
loans of one relationship in 2024. The increase in
provision for credit losses was partially offset by the year over
year increase of $0.4 million in net
interest income driven by strong growth in our loan portfolio, new
loans booked at higher rates, and adjustable-rate loans repricing
to higher rates. Wealth management income increased
$0.8 million in the first six months
of 2024 when compared to the same time period of 2023.
Net Interest Income and Net Interest Margin
Net interest income, on a non-GAAP, fully-tax equivalent ("FTE")
basis, increased by $0.9 million for
the second quarter of 2024 when compared to the second quarter of
2023. This increase was driven by a $3.0 million increase in interest income.
Interest income on loans increased by $3.4 million due to the increase in average
balances of $97.6 million and a 64
basis point increase in the overall yield on the loan portfolio as
new loans were booked at higher rates as well as adjustable-rate
loans repricing in correlation to the rising rate
environment. Investment income decreased by
$0.5 million due to a decrease of
$86.8 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. The overall yield on the
investment portfolio increased by 12 basis points primarily driven
by the increased rate on the trust preferred portfolio and the
maturity and sale of lower rate investments. Interest
expense increased by $2.1 million
year over year due to an increase of 70 basis points on interest
paid on deposit accounts. The average deposit balances
increased by $24.5 million when
compared to the second quarter of 2023 due primarily to the
increase of $96.4 million in money
market account, which was partially offset by a decrease of
$43.2 million and $20.9 million in average savings and time
deposits, respectively.
Comparing the second quarter of 2024 to the first quarter of
2024, net interest income, on a non-GAAP, FTE basis, increased by
$1.4 million driven by an increase of
$1.2 million in interest income and a
decrease of $0.2 million in interest
expense. Interest income on loans increased by $1.0 million related to the overall increase of
26 basis points in yield and $7.5
million increase in average balances during the second
quarter as well as the reversal of $0.4
million in accrued interest and loan fees related to the
non-accrual loans in the first quarter of 2024. Interest
expense on deposits increased slightly by $0.1 million primarily driven by an increase in
average balances of $77.8 million in
money market accounts. Interest expense on long-term
borrowings decreased by $0.4 million
due to the maturity and repayment of $40.0
million in FHLB borrowings during the first quarter of
2024.
Comparing the six months ended June 30,
2024 to the six months ended June 30,
2023, net interest income, on a non-GAAP, FTE basis, was
stable. Interest income increased by $6.9 million. Average loan balances
increased by $112.9 million and the
overall yield increased by 61 basis points in correlation with the
rising rate environment and new loans booked at higher rates as
well as the repricing of adjustable-rate loans. Interest
expense on deposits increased by $5.6
million while the average deposit balances increased by
$42.5 million, driven by increases of
$77.9 million in money market
balances and $27.4 million in retail
time deposits, partially offset by decreases in savings balances of
$50.1 million. Interest expense
on short-term borrowings increased by $0.9
million due to the Bank's utilization of the BTFP program in
January 2024. The increased interest expense resulted in an
overall increase of 99 basis points on interest bearing
liabilities. The net interest margin for the six months ended
June 30, 2024 was 3.31% compared to
3.39% for the six months ended June 30,
2023.
Non-Interest Income
Other operating income, including net gains, for the second
quarter of 2024 increased by $0.3
million when compared to the same period of 2023. The
growth was driven by an increase of $0.3
million in wealth management income due to improving market
conditions, increased annuity sales and growth in new and existing
customer relationships. Gains on sales of mortgages declined
slightly when comparing the second quarter of 2024 to the same time
period of 2023 primarily due to reduced activity in the elevated
interest rate environment. Other operating income on service
charges and debit card income remained stable.
On a linked quarter basis, other operating income, including net
gains, remained stable. Debt card income increased by
$0.1 million, which was offset by a
$0.1 million decrease in wealth
management income.
Other operating income for the six months ended June 30, 2024 increased by $0.8 million when compared to the same period of
2023. This increase was primarily due to the $0.8 million increase in wealth management income
due to improving market conditions, increased annuity sales and
growth in new and existing customer relationships. Service
charge and debit card income were both stable when comparing the
six months of 2024 to the six months of 2023.
Non-Interest Expense
Operating expenses decreased by $0.1
million in the second quarter of 2024 when compared to the
second quarter of 2023. The decrease was related to a
$0.2 million decrease in equipment
and occupancy expenses resulting from branch closures in late 2023
and a $0.2 million decrease in check
fraud related expenses. These decreases
were partially offset by a $0.4
million increase in salaries related to increased health
insurance claims, higher salaries and benefits associated with
normal merit increases effective April 1,
2024, and reduced loan origination costs due to lower loan
production. Other increases in data processing and marketing
expenses were offset by decreases in professional services,
contract labor, telephone and other miscellaneous expenses.
Non-interest expense decreased by $0.5
million when compared to the linked quarter. This
decrease was primarily due to the $0.6
million decrease in equipment and occupancy expenses related
to accelerated depreciation expense recognized in the first quarter
of 2024 related to branch closures, partially offset by a
$0.1 million increase in salaries and
employee benefits associated with normal merit increases effective
April 1, 2024.
For the six months ended June 30,
2024, non-interest expenses increased by $0.1 million when compared to the six months
ended June 30, 2023. Increases
in salaries and employee benefits of $0.2
million due to normal merit increases effective April 1, 2024, and increases in FDIC premiums,
data processing, equipment and occupancy were offset by decreases
in professional services, contract labor, investor relations and
other miscellaneous expenses such as pension related expenses,
check fraud and membership dues and
licenses.
The effective income tax rates as a percentage of income for the
six months ended June 30, 2024 and
June 30, 2023 were 24.3% and 24.0%,
respectively.
Balance Sheet Overview
Total assets at June 30, 2024 were
$1.9 billion, representing a
$37.3 million decrease since
December 31, 2023. During the
first six months of 2024, cash and interest-bearing deposits in
other banks decreased by $4.7
million. The investment portfolio decreased by
$44.3 million due to the maturities
of $37.5 million of U.S. Treasury
bonds during the year and normal principal amortization of our
mortgage-backed securities ("MBS") portfolio. Gross loans increased
by $16.3 million and other real
estate owned ("OREO") decreased by $1.5
million due to sales of OREO properties. Other assets,
including deferred taxes, premises and equipment, and accrued
interest receivable, decreased by $2.7
million.
Total liabilities at June 30, 2024
were $1.7 billion, representing a
$39.6 million decrease since
December 31, 2023. Total
deposits decreased by $13.9 million
when compared to December 31,
2023. The decrease in deposits was attributable to decreases
in savings deposits of $11.2 million,
retail time deposits of $22.1 million
and the repayment of $15.0 million in
brokered certificates of deposits, partially offset by increases in
demand deposits of $22.2 million and
money markets of $16.0 million.
Short-term borrowings increased by $17.1
million since December 31,
2023 due to the Bank's utilization of the BTFP to obtain
$40.0 million in borrowings during
January 2024 at a rate of 4.87% with
a one-year maturity. The increase from the BTFP funding
was partially offset by the shift of approximately $22.0 million in overnight investment sweep
balances to the ICS product as a result of management's strategy to
release pledging of investment securities for municipalities to
increase available liquidity. Long-term borrowings decreased
by $40.0 million in the first six
month of 2024 when compared to December 31,
2023 due to the repayment of $40.0
million in FHLB borrowings at its maturity in the first
quarter of 2024.
Total available for sale and held to maturity securities totaled
$267.2 million at June 30, 2024, representing a $44.3 million decrease when compared to
December 31, 2023. In the
first six months of 2024, $37.5
million in U.S. Treasury bonds matured and the proceeds were
used to repay the $40.0 million
maturing FHLB advance. Additionally, there were $5.0 million of other principal amortizations in
our MBS portfolio year to date.
Outstanding loans of $1.4 billion
at June 30, 2024 reflected growth of
$16.3 million for the first six
months of 2024.
Loan
Type
(in
millions)
|
Change since
March 31, 2024
|
Change since
December 31, 2023
|
Commercial
|
$3.7
|
$9.3
|
1 to 4 Family
Mortgages
|
$9.3
|
$11.5
|
Consumer
|
($2.4)
|
($4.5)
|
Gross
Loans
|
$10.6
|
$16.3
|
Since December 31, 2023,
commercial real estate loans increased by $12.6 million, and acquisition and development
loans increased by $11.2 million.
Commercial and industrial loans decreased by $14.4 million, driven by the repayment of
$5.5 million of a non-accrual loan
late in second quarter and the $1.1
million charge-off of a non-accrual equipment loan.
Residential mortgage loans increased by $11.5 million and consumer loans decreased by
$4.5 million.
New commercial loan production for the three months ended
June 30, 2024 was
approximately $36.9 million. The $64.9 million in the pipeline of commercial loans
was robust as of June 30, 2024.
At June 30, 2024, unfunded, committed
commercial construction loans totaled approximately $12.6 million. Commercial amortization and
payoffs were approximately $51.6
million through June 30, 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 second quarter of
2024 was approximately $19.1 million,
with most of this production comprised of portfolio
mortgages. The pipeline of in-house, portfolio loans as of
June 30, 2024 was $19.4 million. The residential mortgage
production level increased in the second quarter of 2024 due to the
seasonality of this line of business, particularly construction
lending. Unfunded commitments related to residential
construction loans totaled $13.5
million at June 30,
2024.
Total deposits at June 30, 2024
decreased by $13.9 million when
compared to December 31,
2023.
Deposit
Type
(in
millions)
|
Change since
March 31, 2024
|
Change since
December 31, 2023
|
Non-Interest-Bearing
|
$1.2
|
($3.7)
|
Interest-Bearing
Demand
|
($4.7)
|
$22.2
|
Savings and Money
Market
|
($0.1)
|
$4.7
|
Time
Deposits
|
($22.8)
|
($37.1)
|
Total
Deposits
|
($26.4)
|
($13.9)
|
Interest-bearing demand deposits increased by $22.2 million, primarily related to the shift of
approximately $22.0 million in
overnight investment sweep balances into the ICS product due to
management's strategy to release pledging of investment securities
for municipalities to increase available liquidity. Money
market accounts increased by $16.0
million due primarily to the expansion of current
relationships and new relationships during the first six
months. Traditional savings accounts decreased by
$11.3 million and time deposits
decreased by $37.1 million. The
decrease in time deposits was due to a decrease of $22.1 million in retail Certificates of Deposit
("CDs") related to maturities of a nine-month special CD promotion
in 2023 and the maturity and repayment of a $15.0 million brokered CD. The Bank has
worked closely with customers as these CDs mature to transition
them to other deposit and wealth management products offered by the
Bank.
Short-term borrowings increased by $17.1
million as the Bank borrowed $40.0
million from the BTFP in January
2024, partially offset by a decrease of approximately
$22.0 million in other short-term
borrowings due primarily to management's strategic decision to
shift municipal customers into the ICS deposit product.
Long-term borrowings decreased by $40.0
million as a $40.0 million
FHLB advance matured in March 2024
and was fully repaid utilizing proceeds from lower yielding
investment maturities.
The book value of the Corporation's common stock was
$25.39 per share at June 30, 2024 compared to $24.38 per share at December 31, 2023. At June 30, 2024, there were 6,465,601 of basic
outstanding shares and 6,479,624 of diluted outstanding shares of
common stock. During the first six months of 2024, the
Company purchased and retired 201,800 shares of First United
Corporation 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 June 30, 2024 was due to the
undistributed net income of $6.0
million for the first six months of 2024.
Asset Quality
The allowance for credit losses ("ACL") was $17.9 million at June 30,
2024 compared to $16.9 million
recorded at June 30, 2023 and
$17.5 million at December 31, 2023. The provision for credit
losses was $1.2 million for the
quarter ended June 30, 2024 compared
to $0.4 million for the quarter ended
June 30, 2023 and $0.9 million for the first quarter of 2024.
The increased provision expense recorded in 2024 was primarily
related to $1.1 million in
charge-offs related to one non-accrual commercial and industrial
loan relationship and was partially offset by improving qualitative
risk factors of our loan portfolio. Net charge-offs of
$1.3 million were recorded for the
quarter ended June 30, 2024 compared
to net charge-offs of $0.4 million
for the quarter ended June 30, 2023.
The ratio of the ACL to loans outstanding was 1.26% at June 30, 2024 compared to 1.27% at March 31, 2024 and 1.25% at June 30, 2023.
The ratio of year-to-date net charge offs to average loans was
0.25% for the six-month period ended June
30, 2024 and 0.10% for the six-month period ended
June 30, 2023. The commercial
and industrial portfolio had net charge offs of 0.89% for the
six-month period ended June 30, 2024
compared to a net charge offs of 0.13% for the six-month period
ended June 30, 2023. This shift
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 2.02% for the six-month period
ended June 30, 2024 compared to net
charge offs of 1.40% for the six month period ended June 30, 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 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
|
6/30/2024
(Charge Off) /
Recovery
|
6/30/2023
(Charge Off) /
Recovery
|
Commercial Real
Estate
|
0.01 %
|
(0.04 %)
|
Acquisition &
Development
|
0.01 %
|
0.02 %
|
Commercial &
Industrial
|
(0.89 %)
|
(0.13 %)
|
Residential
Mortgage
|
(0.01 %)
|
0.01 %
|
Consumer
|
(2.02 %)
|
(1.40 %)
|
Total Net (Charge
Offs)/Recoveries
|
(0.25 %)
|
(0.10 %)
|
Non-accrual loans totaled $9.4
million at June 30, 2024
compared to $4.0 million at
December 31, 2023. The increase
in non-accrual balances at June 30,
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. The reduction in non-accrual balances during the second
quarter of 2024 is related to a borrower's decision to sell a piece
of collateral and reduce outstanding balances by approximately
$5.5 million and the charge-off of
$1.1 million on another commercial
and industrial credit.
Non-accrual loans that have been subject to partial charge-offs
totaling $1.0 million at June 30, 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 $1.5 million at June 30,
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 0.26% at June 30, 2024
compared to 0.24% at December 31,
2023 and 0.18% as of June 30,
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 ("Trust II" and 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 "MCC
Fund"). 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 Quarterly Report on Form 10-Q for the quarter ended
June 30, 2024 and the impact that any
such events have on our critical accounting assumptions and
estimates made as of June 30, 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
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Results of
Operations:
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
23,113
|
|
$
19,972
|
|
$
45,011
|
|
$
37,801
|
Interest expense
|
|
7,875
|
|
5,798
|
|
15,961
|
|
9,109
|
Net
interest income
|
|
15,238
|
|
14,174
|
|
29,050
|
|
28,692
|
Provision for credit losses
|
|
1,194
|
|
395
|
|
2,140
|
|
938
|
Other operating income
|
|
4,782
|
|
4,483
|
|
9,575
|
|
8,822
|
Net
gains
|
|
|
59
|
|
86
|
|
141
|
|
140
|
Other operating expense
|
|
12,364
|
|
12,511
|
|
25,245
|
|
25,149
|
Income before taxes
|
|
$
6,521
|
|
$
5,837
|
|
$
11,381
|
|
$
11,567
|
Income tax expense
|
|
1,607
|
|
1,423
|
|
2,769
|
|
2,778
|
Net
income
|
|
|
$
4,914
|
|
$
4,414
|
|
$
8,612
|
|
$
8,789
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
|
$
0.75
|
|
$
0.66
|
|
$
1.31
|
|
$
1.32
|
Diluted net income per share
|
|
$
0.75
|
|
$
0.66
|
|
$
1.31
|
|
$
1.31
|
Adjusted Basic net income (1)
|
|
$
0.75
|
|
$
0.66
|
|
$
1.37
|
|
$
1.32
|
Adjusted Diluted net income (1)
|
|
$
0.75
|
|
$
0.66
|
|
$
1.37
|
|
$
1.31
|
Dividends declared per share
|
|
$
0.20
|
|
$
0.20
|
|
$
0.40
|
|
$
0.40
|
Book value
|
|
|
$
25.39
|
|
$
23.12
|
|
|
|
|
Diluted book value
|
|
$
25.34
|
|
$
23.07
|
|
|
|
|
Tangible book value per share
|
|
$
23.55
|
|
$
21.29
|
|
|
|
|
Diluted Tangible book value per share
|
|
$
23.49
|
|
$
21.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing market value
|
|
$
20.42
|
|
$
14.26
|
|
|
|
|
Market Range:
|
|
|
|
|
|
|
|
|
High
|
|
|
$
22.88
|
|
$
17.01
|
|
|
|
|
Low
|
|
|
$
19.40
|
|
$
12.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
period end: Basic
|
|
6,465,601
|
|
6,711,422
|
|
|
|
|
Shares outstanding at
period end: Diluted
|
|
6,479,624
|
|
6,724,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios:
(Year to Date Period End, annualized)
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
|
0.89 %
|
|
0.95 %
|
|
|
|
|
Adjusted return on
average assets (1)
|
|
|
|
0.98 %
|
|
0.95 %
|
|
|
|
|
Return on average
shareholders' equity
|
|
|
|
10.48 %
|
|
11.43 %
|
|
|
|
|
Adjusted return on
average shareholders' equity (1)
|
|
|
|
11.52 %
|
|
11.43 %
|
|
|
|
|
Net interest margin
(Non-GAAP), includes tax exempt income of $116 and $452
|
|
|
|
3.31 %
|
|
3.39 %
|
|
|
|
|
Net interest margin
GAAP
|
|
|
|
3.29 %
|
|
3.34 %
|
|
|
|
|
Efficiency ratio -
non-GAAP (1)
|
|
63.48 %
|
|
66.00 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
June
30,
|
|
December
31
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
Financial Condition
at period end:
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$
1,868,599
|
|
$
1,905,860
|
|
|
|
|
Earning
assets
|
|
|
$
1,695,425
|
|
$
1,725,236
|
|
|
|
|
Gross loans
|
|
|
$
1,422,975
|
|
$
1,406,667
|
|
|
|
|
Commercial Real Estate
|
|
$
506,273
|
|
$
493,703
|
|
|
|
|
Acquisition and Development
|
|
$
88,215
|
|
$
77,060
|
|
|
|
|
Commercial and Industrial
|
|
$
260,168
|
|
$
274,604
|
|
|
|
|
Residential Mortgage
|
|
$
511,354
|
|
$
499,871
|
|
|
|
|
Consumer
|
|
|
$
56,965
|
|
$
61,429
|
|
|
|
|
Investment
securities
|
|
$
267,151
|
|
$
311,466
|
|
|
|
|
Total
deposits
|
|
|
$
1,537,071
|
|
$
1,550,977
|
|
|
|
|
Noninterest bearing
|
|
$
423,970
|
|
$
427,670
|
|
|
|
|
Interest bearing
|
|
$
1,113,101
|
|
$
1,123,307
|
|
|
|
|
Shareholders'
equity
|
|
$
164,177
|
|
$
161,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 to risk weighted assets
|
|
14.51 %
|
|
14.42 %
|
|
|
|
|
Common Equity Tier 1 to risk weighted assets
|
|
12.54 %
|
|
12.44 %
|
|
|
|
|
Tier 1 Leverage
|
|
11.69 %
|
|
11.30 %
|
|
|
|
|
Total risk based capital
|
|
15.75 %
|
|
15.64 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs for the
quarter
|
|
$
(1,309)
|
|
$
(195)
|
|
|
|
|
Nonperforming assets:
(Period End)
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
|
$
9,438
|
|
$
3,956
|
|
|
|
|
Loans 90 days past due and accruing
|
|
526
|
|
543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans and 90 day past due
|
|
$
9,964
|
|
$
4,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
$
2,978
|
|
$
4,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses to gross loans
|
|
1.26 %
|
|
1.24 %
|
|
|
|
|
Allowance for credit
losses to non-accrual loans
|
|
189.90 %
|
|
441.86 %
|
|
|
|
|
Allowance for credit
losses to non-performing assets
|
|
138.49 %
|
|
194.40 %
|
|
|
|
|
Non-performing and 90
day past due loans to total loans
|
|
0.70 %
|
|
0.32 %
|
|
|
|
|
Non-performing loans
and 90 day past due loans to total assets
|
|
0.53 %
|
|
0.24 %
|
|
|
|
|
Non-accrual loans to
total loans
|
|
0.66 %
|
|
0.28 %
|
|
|
|
|
Non-performing assets
to total assets
|
|
|
|
0.69 %
|
|
0.47 %
|
|
|
|
|
FIRST UNITED
CORPORATION
|
Oakland, MD
|
Stock Symbol :
FUNC
|
Financial Highlights
- Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
March 31,
|
December 31,
|
September
30,
|
June 30,
|
March 31,
|
|
(Dollars in thousands,
except per share data)
|
2024
|
2024
|
2023
|
2023
|
2023
|
2023
|
|
Results of
Operations:
|
|
|
|
|
|
|
|
Interest income
|
$
23,113
|
$
21,898
|
$
22,191
|
$
21,164
|
$
19,972
|
$
17,829
|
|
Interest expense
|
7,875
|
8,086
|
7,997
|
7,180
|
5,798
|
3,311
|
|
Net
interest income
|
15,238
|
13,812
|
14,194
|
13,984
|
14,174
|
14,518
|
|
Provision for credit losses
|
1,194
|
946
|
419
|
263
|
395
|
543
|
|
Other operating income
|
4,782
|
4,793
|
4,793
|
4,716
|
4,483
|
4,339
|
|
Net
gains/(losses)
|
59
|
82
|
(4,184)
|
182
|
86
|
54
|
|
Other operating expense
|
12,364
|
12,881
|
12,309
|
12,785
|
12,511
|
12,638
|
|
Income before taxes
|
$
6,521
|
$
4,860
|
$
2,075
|
$
5,834
|
$
5,837
|
$
5,730
|
|
Income tax expense
|
1,607
|
1,162
|
317
|
1,321
|
1,423
|
1,355
|
|
Net
income
|
|
$
4,914
|
$
3,698
|
$
1,758
|
$
4,513
|
$
4,414
|
$
4,375
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
Basic net income per share
|
$
0.75
|
$
0.56
|
$
0.26
|
$
0.67
|
$
0.66
|
$
0.66
|
|
Diluted net income per share
|
$
0.75
|
$
0.56
|
$
0.26
|
$
0.67
|
$
0.66
|
$
0.65
|
|
Adjusted basic net income (1)
|
$
0.75
|
$
0.62
|
$
0.82
|
$
0.67
|
$
0.66
|
$
0.66
|
|
Adjusted diluted net income (1)
|
$
0.75
|
$
0.62
|
$
0.82
|
$
0.67
|
$
0.66
|
$
0.65
|
|
Dividends declared per share
|
$
0.20
|
$
0.20
|
$
0.20
|
$
0.20
|
$
0.20
|
$
0.20
|
|
Book value
|
|
$
25.39
|
$
24.89
|
$
24.38
|
$
23.08
|
$
23.12
|
$
22.85
|
|
Diluted book value
|
$
25.34
|
$
24.86
|
$
24.33
|
$
23.03
|
$
23.07
|
$
22.81
|
|
Tangible book value per share
|
$
23.55
|
$
23.08
|
$
22.56
|
$
21.27
|
$
21.29
|
$
21.01
|
|
Diluted Tangible book value per share
|
$
23.49
|
$
23.05
|
$
22.51
|
$
21.22
|
$
21.25
|
$
20.96
|
|
|
|
|
|
|
|
|
|
|
|
Closing market value
|
$
20.42
|
$
22.91
|
$
23.51
|
$
16.23
|
$
14.26
|
$
16.89
|
|
Market Range:
|
|
|
|
|
|
|
|
High
|
|
$
22.88
|
$
23.85
|
$
23.51
|
$
17.34
|
$
17.01
|
$
20.41
|
|
Low
|
|
$
19.40
|
$
21.21
|
$
16.12
|
$
13.70
|
$
12.56
|
$
16.75
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
period end: Basic
|
6,465,601
|
6,648,645
|
6,639,888
|
6,715,170
|
6,711,422
|
6,688,710
|
|
Shares outstanding at
period end: Diluted
|
6,479,624
|
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
|
|
|
0.89 %
|
0.76 %
|
0.78 %
|
0.93 %
|
0.95 %
|
0.94 %
|
|
Adjusted return on
average assets (1)
|
|
|
0.98 %
|
0.85 %
|
0.94 %
|
0.93 %
|
0.95 %
|
0.94 %
|
|
Return on average
shareholders' equity
|
|
|
10.48 %
|
9.07 %
|
9.68 %
|
11.44 %
|
11.43 %
|
11.87 %
|
|
Adjusted return on
average shareholders' equity (1)
|
|
|
11.52 %
|
10.11 %
|
11.87 %
|
11.44 %
|
11.43 %
|
11.87 %
|
|
Net interest margin
(Non-GAAP), includes tax exempt income of $116 and $452
|
|
|
3.31 %
|
3.12 %
|
3.26 %
|
3.30 %
|
3.39 %
|
3.53 %
|
|
Net interest margin
GAAP
|
|
|
3.29 %
|
3.10 %
|
3.22 %
|
3.25 %
|
3.34 %
|
3.48 %
|
|
Efficiency ratio -
non-GAAP (1)
|
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.
|
June
30,
|
March 31,
|
December 31,
|
September
30,
|
June 30,
|
March 31,
|
|
|
|
|
2024
|
2024
|
2023
|
2023
|
2023
|
2023
|
|
Financial Condition
at period end:
|
|
|
|
|
|
|
|
Assets
|
|
$
1,868,599
|
$
1,912,953
|
$
1,905,860
|
$
1,928,201
|
$
1,928,393
|
$
1,937,442
|
|
Earning
assets
|
|
$
1,695,425
|
$
1,695,962
|
$
1,725,236
|
$
1,717,244
|
$
1,707,522
|
$
1,652,688
|
|
Gross loans
|
|
$
1,422,975
|
$
1,412,327
|
$
1,406,667
|
$
1,380,019
|
$
1,350,038
|
$
1,289,080
|
|
Commercial Real Estate
|
$
506,273
|
$
492,819
|
$
493,703
|
$
491,284
|
$
483,485
|
$
453,356
|
|
Acquisition and Development
|
$
88,215
|
$
83,424
|
$
77,060
|
$
79,796
|
$
79,003
|
$
76,980
|
|
Commercial and Industrial
|
$
260,168
|
$
274,722
|
$
274,604
|
$
254,650
|
$
249,683
|
$
241,959
|
|
Residential Mortgage
|
$
511,354
|
$
501,990
|
$
499,871
|
$
491,686
|
$
475,540
|
$
456,198
|
|
Consumer
|
|
$
56,965
|
$
59,372
|
$
61,429
|
$
62,603
|
$
62,327
|
$
60,587
|
|
Investment
securities
|
$
267,151
|
$
278,716
|
$
311,466
|
$
330,053
|
$
350,844
|
$
357,061
|
|
Total
deposits
|
|
$
1,537,071
|
$
1,563,453
|
$
1,550,977
|
$
1,575,069
|
$
1,579,959
|
$
1,591,285
|
|
Noninterest bearing
|
$
423,970
|
$
422,759
|
$
427,670
|
$
429,691
|
$
466,628
|
$
468,554
|
|
Interest bearing
|
$
1,113,101
|
$
1,140,694
|
$
1,123,307
|
$
1,145,378
|
$
1,113,331
|
$
1,122,731
|
|
Shareholders'
equity
|
$
164,177
|
$
165,481
|
$
161,873
|
$
154,990
|
$
155,156
|
$
152,868
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 to risk weighted assets
|
14.51 %
|
14.58 %
|
14.42 %
|
14.60 %
|
14.40 %
|
14.90 %
|
|
Common Equity Tier 1 to risk weighted assets
|
12.54 %
|
12.60 %
|
12.44 %
|
12.60 %
|
12.40 %
|
12.82 %
|
|
Tier 1 Leverage
|
11.69 %
|
11.48 %
|
11.30 %
|
11.25 %
|
11.25 %
|
11.47 %
|
|
Total risk based capital
|
15.75 %
|
15.83 %
|
15.64 %
|
15.81 %
|
15.60 %
|
16.15 %
|
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(charge-offs)/recoveries for the quarter
|
$
(1,309)
|
$
(459)
|
$
(195)
|
$
(83)
|
$
(398)
|
$
(245)
|
|
Nonperforming assets:
(Period End)
|
|
|
|
|
|
|
|
Nonaccrual loans
|
$
9,438
|
$
16,007
|
$
3,956
|
$
3,479
|
$
2,972
|
$
3,258
|
|
Loans 90 days past due and accruing
|
526
|
120
|
543
|
145
|
160
|
87
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans and 90 day past due
|
$
9,964
|
$
16,127
|
$
4,499
|
$
3,624
|
$
3,132
|
$
3,345
|
|
|
|
|
|
|
|
|
|
|
|
Modified/restructured loans
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
|
Other real estate owned
|
$
2,978
|
$
4,402
|
$
4,493
|
$
4,878
|
$
4,482
|
$
4,598
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses to gross loans
|
1.26 %
|
1.27 %
|
1.24 %
|
1.24 %
|
1.25 %
|
1.31 %
|
|
Allowance for credit
losses to non-accrual loans
|
189.90 %
|
112.34 %
|
441.86 %
|
492.84 %
|
568.81 %
|
517.83 %
|
|
Allowance for credit
losses to non-performing assets
|
138.49 %
|
87.59 %
|
194.40 %
|
473.12 %
|
539.79 %
|
212.40 %
|
|
Non-performing and 90
day past due loans to total loans
|
0.70 %
|
1.14 %
|
0.32 %
|
0.26 %
|
0.23 %
|
0.26 %
|
|
Non-performing loans
and 90 day past due loans to total assets
|
0.53 %
|
0.84 %
|
0.24 %
|
0.19 %
|
0.16 %
|
0.17 %
|
|
Non-accrual loans to
total loans
|
0.66 %
|
1.13 %
|
0.28 %
|
0.25 %
|
0.22 %
|
0.25 %
|
|
Non-performing assets
to total assets
|
|
|
0.69 %
|
1.07 %
|
0.47 %
|
0.44 %
|
0.39 %
|
0.41 %
|
|
Consolidated Statement
of Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands - Unaudited)
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
43,635
|
$
|
85,578
|
$
|
48,343
|
Interest bearing
deposits in banks
|
|
1,457
|
|
1,354
|
|
1,410
|
Cash and cash
equivalents
|
|
45,092
|
|
86,932
|
|
49,753
|
Investment securities –
available for sale (at fair value)
|
|
92,954
|
|
95,580
|
|
97,169
|
Investment securities –
held to maturity (at cost)
|
|
174,197
|
|
183,136
|
|
214,297
|
Restricted investment
in bank stock, at cost
|
|
3,395
|
|
3,390
|
|
5,250
|
Loans held for
sale
|
|
447
|
|
175
|
|
443
|
Loans
|
|
1,422,975
|
|
1,412,327
|
|
1,406,667
|
Unearned
fees
|
|
(306)
|
|
(314)
|
|
(340)
|
Allowance for credit
losses
|
|
(17,923)
|
|
(17,982)
|
|
(17,480)
|
Net loans
|
|
1,404,746
|
|
1,394,031
|
|
1,388,847
|
Premises and equipment,
net
|
|
29,688
|
|
30,268
|
|
31,459
|
Goodwill and other
intangible assets
|
|
11,938
|
|
12,021
|
|
12,103
|
Bank owned life
insurance
|
|
48,267
|
|
47,933
|
|
47,607
|
Deferred tax
assets
|
|
11,214
|
|
10,736
|
|
11,948
|
Other real estate
owned, net
|
|
2,978
|
|
4,402
|
|
4,493
|
Operating lease
asset
|
|
1,230
|
|
1,299
|
|
1,367
|
Accrued interest
receivable and other assets
|
|
42,453
|
|
43,050
|
|
41,124
|
Total
Assets
|
$
|
1,868,599
|
$
|
1,912,953
|
$
|
1,905,860
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
$
|
423,970
|
$
|
422,759
|
$
|
427,670
|
Interest bearing
deposits
|
|
1,113,101
|
|
1,140,694
|
|
1,123,307
|
Total
deposits
|
|
1,537,071
|
|
1,563,453
|
|
1,550,977
|
Short-term
borrowings
|
|
62,564
|
|
79,494
|
|
45,418
|
Long-term
borrowings
|
|
70,929
|
|
70,929
|
|
110,929
|
Operating lease
liability
|
|
1,412
|
|
1,484
|
|
1,556
|
Allowance for credit
loss on off balance sheet exposures
|
|
801
|
|
858
|
|
873
|
Accrued interest
payable and other liabilities
|
|
30,352
|
|
29,925
|
|
32,904
|
Dividends
payable
|
|
1,293
|
|
1,329
|
|
1,330
|
Total
Liabilities
|
|
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 6,465,601 shares at June 30, 2024 and
6,639,888
at December 31, 2023
|
|
65
|
|
66
|
|
66
|
Surplus
|
|
20,280
|
|
23,865
|
|
23,734
|
Retained
earnings
|
|
179,892
|
|
176,272
|
|
173,900
|
Accumulated other
comprehensive loss
|
|
(36,060)
|
|
(34,722)
|
|
(35,827)
|
Total Shareholders'
Equity
|
|
164,177
|
|
165,481
|
|
161,873
|
Total Liabilities
and Shareholders' Equity
|
$
|
1,868,599
|
$
|
1,912,953
|
$
|
1,905,860
|
Historical Income
Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
Q2
|
Q1
|
In
thousands
|
|
|
(Unaudited)
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
20,221
|
$
|
19,218
|
$
|
19,290
|
$
|
18,055
|
$
|
16,780
|
$
|
15,444
|
Interest on investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,697
|
|
1,744
|
|
1,834
|
|
1,792
|
|
1,779
|
|
1,768
|
Exempt from federal
income tax
|
|
53
|
|
53
|
|
53
|
|
123
|
|
268
|
|
270
|
Total investment
income
|
|
1,750
|
|
1,797
|
|
1,887
|
|
1,915
|
|
2,047
|
|
2,038
|
Other
|
|
1,142
|
|
883
|
|
1,014
|
|
1,194
|
|
1,145
|
|
347
|
Total interest
income
|
|
23,113
|
|
21,898
|
|
22,191
|
|
21,164
|
|
19,972
|
|
17,829
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
6,398
|
|
6,266
|
|
6,498
|
|
5,672
|
|
4,350
|
|
2,678
|
Interest on short-term
borrowings
|
|
509
|
|
461
|
|
54
|
|
33
|
|
29
|
|
31
|
Interest on long-term
borrowings
|
|
968
|
|
1,359
|
|
1,445
|
|
1,475
|
|
1,419
|
|
602
|
Total interest
expense
|
|
7,875
|
|
8,086
|
|
7,997
|
|
7,180
|
|
5,798
|
|
3,311
|
Net interest
income
|
|
15,238
|
|
13,812
|
|
14,194
|
|
13,984
|
|
14,174
|
|
14,518
|
Credit loss
expense/(credit)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
1,251
|
|
961
|
|
530
|
|
322
|
|
434
|
|
414
|
Debt securities held to
maturity
|
|
—
|
|
—
|
|
—
|
|
45
|
|
—
|
|
—
|
Off balance sheet
credit exposures
|
|
(57)
|
|
(15)
|
|
(111)
|
|
(104)
|
|
(39)
|
|
129
|
Provision for credit
losses
|
|
1,194
|
|
946
|
|
419
|
|
263
|
|
395
|
|
543
|
Net interest income
after provision for credit losses
|
|
14,044
|
|
12,866
|
|
13,775
|
|
13,721
|
|
13,779
|
|
13,975
|
Other operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses on
investments, available for sale
|
|
—
|
|
—
|
|
(4,214)
|
|
—
|
|
—
|
|
—
|
Gains on sale of
residential mortgage loans
|
|
59
|
|
82
|
|
59
|
|
182
|
|
86
|
|
54
|
Losses on disposal of
fixed assets
|
|
—
|
|
—
|
|
(29)
|
|
—
|
|
—
|
|
—
|
Net
gains/(losses)
|
|
59
|
|
82
|
|
(4,184)
|
|
182
|
|
86
|
|
54
|
Other Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
556
|
|
556
|
|
567
|
|
569
|
|
546
|
|
516
|
Other service
charges
|
|
225
|
|
215
|
|
223
|
|
230
|
|
244
|
|
232
|
Trust
department
|
|
2,255
|
|
2,188
|
|
2,148
|
|
2,139
|
|
2,025
|
|
1,970
|
Debit card
income
|
|
999
|
|
932
|
|
1,120
|
|
995
|
|
1,031
|
|
955
|
Bank owned life
insurance
|
|
334
|
|
326
|
|
325
|
|
320
|
|
311
|
|
305
|
Brokerage
commissions
|
|
362
|
|
495
|
|
360
|
|
245
|
|
258
|
|
297
|
Other
|
|
51
|
|
81
|
|
50
|
|
218
|
|
68
|
|
64
|
Total other
income
|
|
4,782
|
|
4,793
|
|
4,793
|
|
4,716
|
|
4,483
|
|
4,339
|
Total other
operating income
|
|
4,841
|
|
4,875
|
|
609
|
|
4,898
|
|
4,569
|
|
4,393
|
Other operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
7,256
|
|
7,157
|
|
6,390
|
|
6,964
|
|
6,870
|
|
7,296
|
FDIC
premiums
|
|
285
|
|
269
|
|
268
|
|
254
|
|
277
|
|
193
|
Equipment
|
|
635
|
|
923
|
|
912
|
|
718
|
|
747
|
|
780
|
Occupancy
|
|
652
|
|
954
|
|
1,169
|
|
745
|
|
742
|
|
785
|
Data
processing
|
|
1,422
|
|
1,318
|
|
1,384
|
|
1,388
|
|
1,306
|
|
1,306
|
Marketing
|
|
184
|
|
134
|
|
311
|
|
242
|
|
160
|
|
120
|
Professional
services
|
|
449
|
|
486
|
|
631
|
|
488
|
|
520
|
|
494
|
Contract
labor
|
|
84
|
|
183
|
|
170
|
|
155
|
|
157
|
|
134
|
Telephone
|
|
103
|
|
109
|
|
125
|
|
115
|
|
116
|
|
110
|
Other real estate
owned
|
|
14
|
|
86
|
|
(370)
|
|
139
|
|
18
|
|
124
|
Investor
relations
|
|
91
|
|
53
|
|
65
|
|
74
|
|
123
|
|
83
|
Contributions
|
|
66
|
|
50
|
|
12
|
|
74
|
|
79
|
|
64
|
Other
|
|
1,123
|
|
1,159
|
|
1,242
|
|
1,429
|
|
1,396
|
|
1,149
|
Total other
operating expenses
|
|
12,364
|
|
12,881
|
|
12,309
|
|
12,785
|
|
12,511
|
|
12,638
|
Income before income
tax expense
|
|
6,521
|
|
4,860
|
|
2,075
|
|
5,834
|
|
5,837
|
|
5,730
|
Provision for income
tax expense
|
|
1,607
|
|
1,162
|
|
317
|
|
1,321
|
|
1,423
|
|
1,355
|
Net
Income
|
$
|
4,914
|
$
|
3,698
|
$
|
1,758
|
$
|
4,513
|
$
|
4,414
|
$
|
4,375
|
Basic net income per
common share
|
$
|
0.75
|
$
|
0.56
|
$
|
0.26
|
$
|
0.67
|
$
|
0.66
|
$
|
0.66
|
Diluted net income per
common share
|
$
|
0.75
|
$
|
0.56
|
$
|
0.26
|
$
|
0.67
|
$
|
0.66
|
$
|
0.65
|
Weighted average number
of basic shares outstanding
|
|
6,527
|
|
6,642
|
|
6,649
|
|
6,714
|
|
6,704
|
|
6,675
|
Weighted average number
of diluted shares outstanding
|
|
6,537
|
|
6,655
|
|
6,663
|
|
6,728
|
|
6,718
|
|
6,697
|
Dividends declared per
common share
|
$
|
0.20
|
$
|
0.20
|
$
|
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 accelerated depreciation expenses
related to the branch closures.
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
(in thousands,
except for per share amount)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - as
reported
|
|
$
|
4,914
|
|
$
|
4,414
|
|
$
|
8,612
|
|
$
|
8,789
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated depreciation expenses
|
|
|
—
|
|
|
—
|
|
|
562
|
|
|
—
|
Income tax effect of
adjustments
|
|
|
—
|
|
|
—
|
|
|
(137)
|
|
|
—
|
Adjusted net income
(non-GAAP)
|
|
$
|
4,914
|
|
$
|
4,414
|
|
$
|
9,037
|
|
$
|
8,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share - as reported
|
|
$
|
0.75
|
|
$
|
0.66
|
|
$
|
1.31
|
|
$
|
1.31
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated depreciation expenses
|
|
|
—
|
|
|
—
|
|
|
0.08
|
|
|
—
|
Income tax effect of adjustments
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
Adjusted basic and
diluted earnings per share (non-GAAP)
|
|
$
|
0.75
|
|
$
|
0.66
|
|
$
|
1.37
|
|
$
|
1.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
three months ended
|
|
|
As of or for the six
months ended
|
|
|
June
30,
|
|
|
June
30,
|
(in thousands, except
per share data)
|
|
2024
|
|
2023
|
|
|
2024
|
|
|
2023
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share (1) - as reported
|
|
$
|
0.75
|
|
$
|
0.66
|
|
$
|
1.31
|
|
$
|
1.32
|
Basic net income per
share (1) - non-GAAP
|
|
|
0.75
|
|
|
0.66
|
|
|
1.37
|
|
|
1.32
|
Diluted net income per
share (1) - as reported
|
|
$
|
0.75
|
|
$
|
0.66
|
|
$
|
1.31
|
|
$
|
1.31
|
Diluted net income per
share (1) - non-GAAP
|
|
|
0.75
|
|
|
0.66
|
|
|
1.37
|
|
|
1.31
|
Basic book value per
share
|
|
$
|
25.39
|
|
$
|
23.12
|
|
|
|
|
|
|
Diluted book value per
share
|
|
$
|
25.34
|
|
$
|
23.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
Ratios:
|
|
|
As of or for the six
months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
Return on Average
Assets (1) - as reported
|
|
|
0.89 %
|
|
|
0.95 %
|
|
|
|
|
|
|
Accelerated depreciation expenses
|
|
|
0.12 %
|
|
|
—
|
|
|
|
|
|
|
Income tax effect of adjustments
|
|
|
-0.03 %
|
|
|
—
|
|
|
|
|
|
|
Adjusted Return on
Average Assets (1) (non-GAAP)
|
|
|
0.98 %
|
|
|
0.95 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Equity (1) - as reported
|
|
|
10.48 %
|
|
|
11.43 %
|
|
|
|
|
|
|
Accelerated depreciation expenses
|
|
|
1.38 %
|
|
|
—
|
|
|
|
|
|
|
Income tax effect of adjustments
|
|
|
(0.34 %)
|
|
|
—
|
|
|
|
|
|
|
Adjusted Return on
Average Equity (1) (non-GAAP)
|
|
|
11.52 %
|
|
|
11.43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See reconcilation
of this non-GAAP financial measure provided elsewhere
herein.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June
30
|
|
|
|
2024
|
|
2023
|
|
(dollars in
thousands)
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,415,353
|
|
$
|
20,237
|
|
5.75
|
%
|
$
|
1,317,728
|
|
$
|
16,794
|
|
5.11
|
%
|
Investment
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
268,522
|
|
|
1,697
|
|
2.54
|
%
|
|
337,032
|
|
|
1,779
|
|
2.12
|
%
|
Non taxable
|
|
|
7,800
|
|
|
95
|
|
4.90
|
%
|
|
26,093
|
|
|
479
|
|
7.36
|
%
|
Total
|
|
|
276,322
|
|
|
1,792
|
|
2.61
|
%
|
|
363,125
|
|
|
2,258
|
|
2.49
|
%
|
Federal funds
sold
|
|
|
66,658
|
|
|
1,037
|
|
6.26
|
%
|
|
84,629
|
|
|
1,102
|
|
5.22
|
%
|
Interest-bearing
deposits with other banks
|
|
|
2,194
|
|
|
18
|
|
3.30
|
%
|
|
1,735
|
|
|
19
|
|
4.39
|
%
|
Other interest earning
assets
|
|
|
3,390
|
|
|
87
|
|
10.32
|
%
|
|
4,490
|
|
|
24
|
|
2.23
|
%
|
Total earning
assets
|
|
|
1,763,917
|
|
|
23,171
|
|
5.28
|
%
|
|
1,771,707
|
|
|
20,197
|
|
4.57
|
%
|
Allowance for credit
losses
|
|
|
(18,184)
|
|
|
|
|
|
|
|
(16,982)
|
|
|
|
|
|
|
Non-earning
assets
|
|
|
198,750
|
|
|
|
|
|
|
|
175,369
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
1,944,483
|
|
|
|
|
|
|
$
|
1,930,094
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
369,836
|
|
$
|
1,495
|
|
1.63
|
%
|
$
|
377,773
|
|
$
|
1,132
|
|
1.20
|
%
|
Interest-bearing money
markets - retail
|
|
|
400,747
|
|
|
3,515
|
|
3.53
|
%
|
|
304,322
|
|
|
1,809
|
|
2.38
|
%
|
Interest-bearing money
markets - brokered
|
|
|
111
|
|
|
1
|
|
3.62
|
%
|
|
—
|
|
|
—
|
|
—
|
%
|
Savings
deposits
|
|
|
182,988
|
|
|
46
|
|
0.10
|
%
|
|
226,172
|
|
|
56
|
|
0.10
|
%
|
Time deposits -
retail
|
|
|
146,420
|
|
|
1,016
|
|
2.79
|
%
|
|
130,634
|
|
|
552
|
|
1.69
|
%
|
Time deposits -
brokered
|
|
|
24,396
|
|
|
325
|
|
5.36
|
%
|
|
61,081
|
|
|
801
|
|
5.26
|
%
|
Short-term
borrowings
|
|
|
71,900
|
|
|
509
|
|
2.85
|
%
|
|
47,356
|
|
|
29
|
|
0.25
|
%
|
Long-term
borrowings
|
|
|
70,929
|
|
|
968
|
|
5.49
|
%
|
|
110,929
|
|
|
1,419
|
|
5.13
|
%
|
Total
interest-bearing liabilities
|
|
|
1,267,327
|
|
|
7,875
|
|
2.50
|
%
|
|
1,258,267
|
|
|
5,798
|
|
1.85
|
%
|
Non-interest-bearing
deposits
|
|
|
479,232
|
|
|
|
|
|
|
|
484,952
|
|
|
|
|
|
|
Other
liabilities
|
|
|
32,884
|
|
|
|
|
|
|
|
31,517
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
165,040
|
|
|
|
|
|
|
|
155,358
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
1,944,483
|
|
|
|
|
|
|
$
|
1,930,094
|
|
|
|
|
|
|
Net interest income and
spread
|
|
|
|
|
$
|
15,296
|
|
2.78
|
%
|
|
|
|
$
|
14,399
|
|
2.72
|
%
|
Net interest
margin
|
|
|
|
|
|
|
|
3.49
|
%
|
|
|
|
|
|
|
3.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
2024
|
|
2023
|
|
(dollars in
thousands)
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,411,620
|
|
$
|
39,471
|
|
5.62
|
%
|
$
|
1,298,743
|
|
$
|
32,251
|
|
5.01
|
%
|
Investment
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
281,524
|
|
|
3,441
|
|
2.46
|
%
|
|
338,817
|
|
|
3,547
|
|
2.11
|
%
|
Non taxable
|
|
|
7,803
|
|
|
189
|
|
4.87
|
%
|
|
26,099
|
|
|
963
|
|
7.44
|
%
|
Total
|
|
|
289,327
|
|
|
3,630
|
|
2.52
|
%
|
|
364,916
|
|
|
4,510
|
|
2.49
|
%
|
Federal funds
sold
|
|
|
65,251
|
|
|
1,795
|
|
5.53
|
%
|
|
62,361
|
|
|
1,409
|
|
4.56
|
%
|
Interest-bearing
deposits with other banks
|
|
|
1,352
|
|
|
49
|
|
7.29
|
%
|
|
3,342
|
|
|
45
|
|
2.72
|
%
|
Other interest earning
assets
|
|
|
4,248
|
#
|
|
181
|
|
8.57
|
%
|
|
3,069
|
|
|
38
|
|
2.56
|
%
|
Total earning
assets
|
|
|
1,771,798
|
|
|
45,126
|
|
5.12
|
%
|
|
1,732,431
|
|
|
38,253
|
|
4.45
|
%
|
Allowance for loan
losses
|
|
|
(17,940)
|
|
|
|
|
|
|
|
(15,905)
|
|
|
|
|
|
|
Non-earning
assets
|
|
|
201,872
|
|
|
|
|
|
|
|
172,461
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
1,955,730
|
|
|
|
|
|
|
$
|
1,888,987
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
361,358
|
|
$
|
2,936
|
|
1.63
|
%
|
$
|
365,491
|
|
$
|
2,021
|
|
1.11
|
%
|
Interest-bearing money
markets - retail
|
|
|
392,164
|
|
|
6,774
|
|
3.47
|
%
|
|
314,246
|
|
|
3,107
|
|
1.99
|
%
|
Interest-bearing money
markets - brokered
|
|
|
55
|
|
|
1
|
|
3.66
|
%
|
|
—
|
|
|
—
|
|
—
|
%
|
Savings
deposits
|
|
|
186,280
|
|
|
94
|
|
0.10
|
%
|
|
236,383
|
|
|
135
|
|
0.12
|
%
|
Time deposits -
retail
|
|
|
152,049
|
|
|
2,134
|
|
2.82
|
%
|
|
124,684
|
|
|
832
|
|
1.35
|
%
|
Time deposits -
brokered
|
|
|
27,198
|
|
|
724
|
|
5.35
|
%
|
|
35,771
|
|
|
933
|
|
5.26
|
%
|
Short-term
borrowings
|
|
|
72,626
|
|
|
970
|
|
2.69
|
%
|
|
52,332
|
|
|
60
|
|
0.23
|
%
|
Long-term
borrowings
|
|
|
86,973
|
|
|
2,327
|
|
5.38
|
%
|
|
77,338
|
|
|
2,021
|
|
5.27
|
%
|
Total
interest-bearing liabilities
|
|
|
1,278,703
|
|
|
15,960
|
|
2.51
|
%
|
|
1,206,245
|
|
|
9,109
|
|
1.52
|
%
|
Non-interest-bearing
deposits
|
|
|
478,655
|
|
|
|
|
|
|
|
497,226
|
|
|
|
|
|
|
Other
liabilities
|
|
|
33,624
|
|
|
|
|
|
|
|
30,497
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
164,748
|
|
|
|
|
|
|
|
155,019
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
1,955,730
|
|
|
|
|
|
|
$
|
1,888,987
|
|
|
|
|
|
|
Net interest income and
spread
|
|
|
|
|
$
|
29,166
|
|
2.61
|
%
|
|
|
|
$
|
29,144
|
|
2.93
|
%
|
Net interest
margin
|
|
|
|
|
|
|
|
3.31
|
%
|
|
|
|
|
|
|
3.39
|
%
|
View original
content:https://www.prnewswire.com/news-releases/first-united-corporation-announces-second-quarter-2024-financial-results-302203160.html
SOURCE First United Corporation