First United Q4 non-GAAP income rises

Overview

• Bank holding company's Q4 GAAP net income decreased compared to Q4 2024

• Non-GAAP net income for Q4 2025 increased, reflecting record core earnings

• Company faced high commercial loan payoffs despite strong loan production

Outlook

• Company did not provide specific guidance for future quarters or full year

Result Drivers

• NET INTEREST MARGIN - Strong net interest margin of 3.75% in Q4 2025, driven by increased loan yields and stable funding costs

• LOAN PRODUCTION - Strong loan production with $108.0 mln in commercial loan originations and $25.3 mln in residential mortgage originations, offset by high commercial loan payoffs

• OREO WRITE-DOWN - Operating expenses increased due to a $1.6 mln write-down on a legacy loan participation now in OREO

Key Details

Analyst Coverage

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

• The average consensus recommendation for the banks peer group is "hold."

• Wall Street's median 12-month price target for First United Corp is $42.00, about 5.7% above its February 3 closing price of $39.72

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn77c70Sa

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