FIRST UNITED CORP/MD/ (FUNC) Earnings History

FIRST UNITED CORP/MD/ - Q4 FY2025 EarningsMissed

Filed at: Feb 4, 2026, 5:06 PM EST|Read from source

EXECUTIVE SUMMARY

First United Corporation reported a record year for core earnings in 2025, driven by strong net interest margin, robust loan and deposit production, and disciplined expense management. However, the fourth quarter saw a slight decrease in GAAP net income compared to the prior year and linked quarter, impacted by a significant write-down on an OREO property.

POSITIVE HIGHLIGHTS

  • •

    Record core earnings for the year ended December 31, 2025, excluding a non-recurring markdown on a foreclosure property.

    positive
  • •

    Net interest margin (non-GAAP, FTE basis) increased to 3.75% for Q4 2025 from 3.48% in Q4 2024, reflecting increased loan yields and stable funding costs.

    positive
  • •

    Total deposits increased by $160.3 million compared to December 31, 2024.

    positive
  • •

    Efficiency ratio improved to 58.19% in Q4 2025 from 61.31% in Q4 2024.

    positive

CONCERNS & RISKS

  • •

    GAAP net income for Q4 2025 decreased to $5.8 million ($0.89 per diluted share) from $6.2 million ($0.95 per diluted share) in Q4 2024, and from $6.9 million ($1.07 per diluted share) in Q3 2025.

    negative
  • •

    Operating expenses increased by $2.8 million in Q4 2025 compared to Q4 2024, primarily due to a $1.6 million fair value write-down on an OREO property.

    attention
  • •

    Commercial loan payoffs were unusually high in Q4 2025, with amortization and payoffs of approximately $79.1 million.

    attention
  • •

    Provision for credit losses increased to $0.7 million in Q4 2025 from $0.5 million in Q4 2024 and Q3 2025.

    attention

FINANCIAL METRICS

Revenue
Quarterly
N/A
N/A
Annual (YTD)
$68.11B
N/A
Prior year: $59.98B
Net Income
Quarterly
$5.78B
-6.6%
Prior year: $6.19B
Annual (YTD)
$24.52B
N/A
Prior year: $20.57B
EPS (Diluted)
Quarterly
$0.89
-6.3%
Prior year: $0.95
Annual (YTD)
$3.77
N/A
Prior year: $3.15
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
$0.89
-6.3%
Prior year: $0.95
Annual (YTD)
$3.78
N/A
Prior year: $3.15

MARGIN ANALYSIS

Net Margin
Current Quarter
8.4%
Prior Year
10.3%
YoY Change
-186 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Write-down on OREO property
Attributable to a legacy participation loan.
+$1.6M
Q4 2025
Contracted sale of a retail branch office
+$0.2M
Total Impact
+$1.8M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

2025 was a truly remarkable year for First United as we celebrated our 125th anniversary—an extraordinary milestone in our history.

— FIRST UNITED CORP/MD/, Q4 FY2025 2025 Earnings Call

In addition to commemorating our legacy, we delivered a record year of core earnings, excluding a non-recurring markdown on a foreclosure property.

— FIRST UNITED CORP/MD/, Q4 FY2025 2025 Earnings Call

Our performance was driven by a strong net interest margin, robust loan, deposit and trust production, and our continued disciplined approach to expense management.

— FIRST UNITED CORP/MD/, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Commercial Loan Originations
108.0M
dollars
Commercial Production Ytd
247.0M
+30.3% YoY
Prior year: 189.5M
dollars
Residential Mortgage Originations
25.3M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.