FUNC · First United Corporation

First United Corporation’s 2025 and Q1 2026 financial results reflect disciplined execution amid macroeconomic uncertainty. Net income rose 19% year-over-year to $24.5 million in 2025, driven by a 29-basis-point expansion in net interest margin to 3.67%, achieved through intentional loan and deposit pricing in a rising-rate environment. Non-GAAP net income of $25.8 million excludes $1.3 million in after-tax non-core items—including an OREO write-down, Star City branch sale, and investment securities gain—highlighting underlying operational strength. Q1 2026 sustained momentum: $6.6 million non-GAAP net income and a 3.83% net interest margin (up 16 bps from year-end) were supported by higher loan yields and reduced funding costs, particularly via repayment of $90 million in higher-cost borrowings. Efficiency improved meaningfully—non-GAAP efficiency ratio fell to 58.19%—due to revenue growth outpacing expense increases tied to strategic hiring, technology investments, and marketing. Asset quality remained stable, with low delinquency and an adequate allowance of 1.31% as of March 31, 2026. Management explicitly attributed performance to relationship-driven banking, organic deposit growth, and balanced risk management—not external market tailwinds alone—underscoring sustainable, stakeholder-aligned execution. No forward guidance was disclosed beyond commentary on continued pipeline strength and capital flexibility.