First United Corporation Reports $12.3 Million Net Income for First Half of 2026

First United Corporation reported its financial results for the second quarter and the first half of 2026, revealing a net income of $12.3 million for the six months ended June 30, 2026, compared to $11.8 million for the same period in 2025. The increase in net income was attributed to a $3.9 million rise in net interest income, driven by higher interest and fees on loans, which increased by $2.3 million due to new loans booked at elevated rates and the repricing of adjustable-rate loans. Total interest income for the first half of 2026 reached $51.9 million, up from $48.9 million in the prior year, while interest expense decreased slightly to $15.2 million from $16.2 million, reflecting a reduction in long-term borrowings.

The company’s total assets as of June 30, 2026, were $2.1 billion, a slight decrease from $2.1 billion at the end of 2025. This decline was primarily due to a $46.4 million reduction in cash and interest-bearing deposits, partially offset by a $50.4 million increase in gross loans. The loan portfolio composition showed a notable increase in commercial real estate loans, which rose by $55 million, while commercial and industrial loans decreased by $35 million due to competitive payoffs and refinancing. The total loans outstanding reached $1.57 billion, up from $1.52 billion at the end of 2025.

In terms of operational metrics, the bank's total deposits remained stable at $1.74 billion, with a slight increase in interest-bearing deposits. Non-interest-bearing deposits decreased by $11.6 million, while interest-bearing demand deposits increased by $13.3 million. The bank's allowance for credit losses (ACL) stood at $20.6 million, representing 1.31% of gross loans, indicating a slight increase in the provision for credit losses compared to the previous year. The non-accrual loans totaled $4.5 million, accounting for 0.29% of total loans, reflecting a marginal increase from the previous year.

Looking ahead, First United Corporation expressed optimism about its growth trajectory, citing a robust pipeline of commercial loans and a strong demand for residential mortgages. The bank's management remains focused on maintaining a well-capitalized position, with capital ratios indicating that it is classified as "well capitalized" under regulatory standards. The company is also actively managing its interest rate risk and liquidity to navigate potential market fluctuations effectively.