First United Q2 net income rises on higher loan yields

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

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 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: ID:nPnpD8Y7a