First United Corporation Reports $24.5 Million Net Income for Fiscal Year 2025

First United Corporation reported a net income of $24.5 million for the fiscal year ending December 31, 2025, an increase from $20.6 million in the previous year. This growth in profitability was supported by a rise in net interest income, which reached $68.1 million, up from $60.0 million in 2024. The increase in interest income was primarily driven by a $90.3 million growth in average loan balances and a higher yield on loans, which rose to 6.04% from 5.73%. The provision for credit losses decreased to $2.3 million from $2.9 million, reflecting improved credit quality and lower net charge-offs, which fell to $1.0 million from $2.2 million.

The corporation's total assets grew to $2.1 billion, a $114.4 million increase from the previous year, with total deposits rising by $160.3 million to $1.7 billion. This growth was attributed to an increase in savings and money market accounts, as well as a significant rise in non-interest-bearing deposits, which were bolstered by seasonal fluctuations in commercial customer balances. The bank's loan portfolio also expanded, with gross loans totaling $1.5 billion, reflecting a $40.9 million increase, driven mainly by commercial real estate loans.

Strategically, First United Corporation has focused on enhancing its wealth management services, which contributed to a $0.7 million increase in other operating income, primarily from trust department income. The bank's wealth management segment reported assets under supervision of approximately $1.8 billion, up from $1.7 billion in 2024. The corporation continues to emphasize customer relationship expansion, particularly in its Maryland and West Virginia markets, where it operates 23 banking offices and 30 ATMs.

Operationally, First United Corporation maintained a strong capital position, with a total risk-based capital ratio of 15.19%, well above the regulatory minimum of 8%. The bank is categorized as "well capitalized" under regulatory standards, which supports its ability to pursue growth opportunities. The employee headcount increased to 343, reflecting the bank's commitment to enhancing its service capabilities and operational efficiency.

Looking ahead, First United Corporation anticipates continued growth in both its loan and deposit portfolios, supported by a favorable economic environment and strategic initiatives aimed at expanding its market presence. Management remains focused on maintaining strong asset quality and effective risk management practices to navigate potential economic challenges.