Overview

* First United Q2 net income rises to $6.0 mln, driven by increased loan yields

* Net interest margin improves to 3.65%, partly helped by stable funding costs

* The bank holding company's Q2 pre-tax profit rises to $7.96 mln from $6.52 mln year ago

Outlook

* First United expects stronger growth in second half of 2025 due to strong loan pipelines

* Company optimistic about Morgantown market growth potential

* First United plans to focus on tech to improve efficiencies

Result Drivers

* NET INTEREST MARGIN - Driven by increased loan yields and stable funding costs, per CEO Carissa Rodeheaver

* LOAN PRODUCTION - Strong commercial and residential mortgage loan originations totaling $84.3 mln

* TEAM EXPANSION - Morgantown team expansion seen as growth potential, per CEO Carissa Rodeheaver

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.92

Q2 Net $6 mln

Income

Q2 Net $16.71

Interest mln

Income

Q2 Beat $7.96 $7.19

Pretax mln mln (1

Profit Analyst)

Q2 Basic $0.92

EPS

Q2 Net 3.6%

Interest

Margin

Q2 $860,000

Provisio

n for

Credit

Loan

Losses

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for First United Corp ( FUNC ) is $42.00, about 17.1% above its July 18 closing price of $34.83

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)