- First United (FUNC, Financial) reported a 56.8% year-over-year increase in net income to $5.8 million in Q1 2025.
- Total deposits grew by $48.7 million, with a net interest margin of 3.56%.
- The bank declared a cash dividend of $0.22 per common share.
First United Corporation (FUNC) announced robust financial results for the first quarter of 2025, with consolidated net income reaching $5.8 million, or $0.89 per diluted share. This marks a significant 56.8% increase from the $3.7 million recorded in the first quarter of 2024, although it reflects a 6.5% decrease from $6.2 million in the fourth quarter of 2024.
The bank achieved a net interest margin of 3.56% in Q1 2025, supported by higher loan yields amid stable funding costs. Despite modest loan production, the company reported $36.1 million in commercial loan originations and $11.4 million in residential mortgage originations.
Deposits increased by $48.7 million during the quarter, primarily from $50 million in new brokered deposits used to repay overnight borrowings. However, non-interest-bearing deposits decreased by $4.3 million, and interest-bearing demand deposits declined by $17.9 million, partly due to seasonal fluctuations and inflation-related spending.
First United maintained strong asset quality, with an allowance for credit losses standing at $18.5 million, equivalent to 1.25% of outstanding loans. The net charge-offs were reported at $0.4 million, compared to $0.5 million a year ago.
The company declared a cash dividend of $0.22 per common share. Looking ahead, management expressed cautious optimism for 2025, focusing on strategic hires and technological enhancements to improve the electronic banking experience.
