First United Corporation reported a consolidated net income of $5.8 million for the first quarter of 2025, a significant increase from $3.7 million in the same period of 2024. This translates to basic and diluted earnings per share of $0.90 and $0.89, respectively, compared to $0.56 for both measures in the prior year. The increase in net income was primarily driven by a $2.2 million rise in net interest income, a decrease in the provision for credit losses, and stable non-interest income, despite a $0.7 million increase in income tax expense.
Total assets for the corporation reached $2.0 billion as of March 31, 2025, reflecting a modest increase of $6.7 million from the end of 2024. The growth in assets was supported by a $5.2 million increase in the investment portfolio and a $6.1 million rise in cash and interest-bearing deposits. However, gross loans saw a slight decline of $0.9 million, attributed to amortization and payoffs exceeding new loan production during the quarter. Total liabilities also increased by $2.3 million, with total deposits rising by $48.7 million, primarily due to the acquisition of $50 million in brokered deposits.
In terms of operational metrics, First United's loan portfolio stood at $1.5 billion, with commercial real estate loans increasing by $6.4 million, while acquisition and development loans decreased slightly. The corporation's non-accrual loans decreased to $4.0 million from $4.9 million at the end of 2024, indicating improved credit quality. The allowance for credit losses was $18.5 million, representing 1.25% of gross loans, slightly down from 1.27% at the end of the previous year.
Looking ahead, First United Corporation remains focused on maintaining its capital strength, with a well-capitalized status under regulatory standards. The management anticipates continued growth in net interest income driven by higher loan rates and a stable economic environment. The corporation is also actively managing its interest rate risk, with strategies in place to optimize its asset-liability mix in response to changing market conditions. Overall, the outlook for the remainder of 2025 appears positive, supported by strategic initiatives and a solid financial foundation.
About FIRST UNITED CORP/MD/
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