Annual Report
Banking for a
Banking for a
Better
Better Tomorrow.
Tomorrow.
2024
24
My Bank
My Bank
My bank is
passionate about people.
dedicated to service.
always helpful.
building customized solutions.
trusted.
here for local business.
involved in this community.
personal.
My bank is
First United.
SUMMARY OF SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)
2024
2023
% Change
Results of Operations:
Tax-equivalent interest income
92,222
$
81,783
$
12.76%
Interest expense
32,015
24,286
31.82%
Tax-equivalent net interest income
60,207
57,497
4.71%
Tax-equivalent adjustment
229
627
-63.48%
Total credit loss expense
2,933
1,620
81.05%
Net interest income after provision for credit losses
57,045
55,250
3.25%
Noninterest income
19,825
14,469
37.02%
Operating noninterest income
19,411
18,331
5.89%
Non-operating noninterest income:
Net gains/(losses)-other
414
$
(3,862)
$
-110.72%
Noninterest expenses
49,640
50,243
-1.20%
Operating noninterest expenses
49,640
50,243
-1.20%
Income before income taxes
27,230
$
19,476
$
39.81%
Income tax expense
6,661
4,416
50.84%
Net income available to common shareholders
20,569
$
15,060
$
36.58%
Common dividends paid
5,373
5,217
2.99%
Net income per FTE (Pre-tax)
88,121
$
60,863
$
44.79%
Per Share Data:
Basic net income per common share
3.15
$
2.25
$
40.00%
Diluted net income per common share
3.15
$
2.25
$
40.00%
Common dividends paid
0.84
$
0.78
$
7.69%
Book value (at year end)
27.71
$
24.38
$
13.66%
Tangible book value (at year end)
25.89
$
22.56
$
14.76%
Financial Condition (at year end):
Assets
1,973,022
$
1,905,860
$
3.52%
Deposits
1,574,829
1,550,977
1.54%
Net loans
1,462,181
1,388,847
5.28%
Investment securities
269,991
311,466
-13.32%
Shareholders' equity
179,295
161,873
10.76%
Performance Ratios (for the year):
Return on average equity
12.16
%
9.65
%
Return on average assets
1.06
%
0.77
%
Yield on average interest-earning assets
5.17
%
4.63
%
Rate on average interest-bearing liabilities
2.51
%
1.95
%
Net interest spread
2.66
%
2.68
%
Net interest margin
3.38
%
3.26
%
Efficiency ratio
61.31
%
65.12
%
Capital and Credit Quality Ratios:
Average equity to average assets
8.69
%
7.91
%
Total risk-based capital ratio
15.92
%
15.64
%
Tier 1 to risk weighted assets
14.70
%
14.42
%
Tier 1 to average assets (leverage)
11.88
%
11.30
%
Common equity tier 1 to risk weighted assets
12.79
%
12.44
%
Allowance for credit losses to total loans (as %)
1.23
%
1.24
%
Nonperforming and 90 days past due loans to total assets (as %)
0.30
%
0.47
%
Net charge-offs to average loans (as %)
(0.16)
%
(0.07)
%
Shareholder Letter
Dear Associates, Customers, Communities and
Shareholders,
First United Corporation demonstrated dedication
to its mission in 2024, delivering customized
financial solutions with unwavering discipline and
focus on our core business model. This approach
enabled us to steadily promote employee growth,
guide customers to achieve financial goals,
support community initiatives, and generate strong
shareholder return.
First United’s mission centers on a deep-rooted
commitment to sustainability, ensuring that financial
strategies are not just profitable in the short
term, but also viable over time. Our strategic vision, paired with genuine care for our
stakeholders’ financial well-being, creates a powerful synergy that drives success. We are
focused on continuous innovation and risk management, a customer-first philosophy, and
operational efficiency, requiring that we remain nimble and regularly update our services
to meet evolving customer needs and technological advancements. Robust systems and
processes continue to protect our customers’ assets and maintain the safety and stability
of our Bank. Our customer-first approach prioritizes personalized service and responsive
support, while streamlined processes benefit our customers.
Our passionate associate base remains the backbone of our Company. With a steadfast
commitment to helpfulness, our associates work tirelessly to deliver a personalized
experience for each customer and focus on growing relationships that stand the test of
time. With well-rounded expertise and continuous pursuit of individual development, our
We are focused on continuous innovation and risk management, a
customer-first philosophy, and operational efficiency, requiring that
we remain nimble and regularly update our services to meet evolving
customer needs and technological advancements.
associates’ commitment to growth enables First United to stay ahead of market trends
and guide customers through complex financial landscapes with confidence and clarity.
Driven by a combination of solid net income growth, increasing stock price and
consistent dividend payments, our 2024 performance reflected our commitment to
creating long-term value, while maintaining a balanced approach to growth and risk
management. For the year ended December 31, 2024, net income was $20.6 million,
or $3.15 per diluted share, compared to $15.1 million, or $2.25 per diluted share for
the prior year. This was driven by an increased net interest margin that was achieved
through disciplined pricing strategies, as interest income was optimized and interest
expense was managed, by carefully balancing competitive rates for our customers with
profitable spreads for our shareholders.
Strong wealth management production and revenue growth also contributed to our
solid financial performance. We capitalized on a strong stock market during the year
and experienced impressive growth in the clients served, a testament to our ability
to nurture relationships. This was accomplished by providing personalized financial
advice, financial management and a broad menu of investment products, all the
while leveraging technology. Continued focus on relationship-building has not only
increased the assets under management in our wealth area but also grew our
diversified revenue streams.
A keen focus on managing operating expenses was reflected in our
improved efficiency ratio. Strategies to consolidate our branch
network, streamline processes through digital transformation, and
Shareholder Letter
invest in associate training and productivity continued to optimize our operations without
compromising the quality of our services. Maintaining prudent risk management was
demonstrated in our commitment to diligent underwriting standards and diversification across
sector and loan types which resulted in maintaining high asset quality.
We ended the year at $2.0 billion in total assets comprised mostly of loans made to
community businesses and local individuals. We rely on our local deposit base to fund these
loans and are proud that we contributed to the economic growth in our market areas. Our
capital remained strong, providing a solid foundation for continued growth and expansion.
Our well-capitalized position was a key strength that supported our strategic initiatives and
ability to weather economic uncertainties with confidence.
First United’s commitment continued to extend beyond traditional banking services.
Significant strides to promote financial education were accomplished through our
trademarked financial educational program, Finture. Personalized steps and guidance towards
a stronger financial future empowered individuals and businesses with the knowledge and
skills needed to make informed financial decisions, thus, contributing to the overall economic
health of our communities and enhancing the lives of those we serve.
We contributed to the economic growth and financial
well-being of our local communities, leading to another year
of impressive returns to you, our shareholders.
Our passionate and knowledgeable associates worked hard to provide customized financial
solutions and to profitably grow our customer base. We contributed to the economic growth
and financial well-being of our local communities, leading to another year of impressive
returns to you, our shareholders. As of February 28, 2025, our total shareholder return,
including price changes and reinvested cash dividends, was 70.1% for one-year, 69.9% for
three-years and 98.4% over five-years, all periods outperforming our local peer group and the
S&P US Small Cap Banks Index.
By focusing on disciplined pricing, relationship-building, operational efficiency, prudent
growth, and strong capital management, we believe that we have positioned your company
well for future sustainability. We are also proud of our past and recognize and appreciate the
dedication of past management teams and committed shareholders and customers.
We’re not just in the banking business,
we’re in the people business.
Our Legacy, Your Future.
Carissa L. Rodeheaver
Chairman of the Board, President
and Chief Executive Officer
Brian R. Boal
Lead Director, Principal,
Boal & Associates, PC
This strong foundation has brought us to where we are today, proud to celebrate
First United’s 125th Anniversary throughout 2025! We stand firm in upholding
our community banking values, as our success is intrinsically linked to the
prosperity of our associates, customers, communities and shareholders. We
remain steadfast in our commitment to serving as your trusted partner and
dependable ally and thank you for your belief and commitment to community
banking. We are and always will be your bank, our bank, MYBANK!
9
Board of Directors
Hoye Andrew Walls, III
Patricia A. Milon
Sanu B. Chadha
I. Robert Rudy
Beth E. Moran
Christy M. DiPietro
Kevin R. Hessler
John F. Barr
Over
11,300
hours of
Community
Support
Passion
Teamwork
Helpful
Engaging in our
Community outreach is a vital part of executing our mission and values. Our volunteers
dedicate their time and skills to help educate, discuss innovative solutions, or get their
hands dirty, while helping to build and grow the areas we serve.
Whether we are helping one person or a thousand, our commitment remains the same.
Promoting social responsibility, fostering empathy, broadening perspectives, and
strengthening community bonds are reasons we are proud to be called a community bank.
The financial wellness for those within our footprint, not just customers, is equally important
to our success. We don’t just sell products and services; we help families and businesses
today and into the future. That’s why we created the My Finture Financial Education Center,
offering articles, videos and tools to help you on your journey!
Associates participating in Dragonboat race for local charity.
Over
in Community Donations
$235,000
Giving back to our
Giving back to the place you call home helps to unite the
community and bridge some of the social and economic
gaps.
We expect that our funded projects will help regions and
organizations thrive for years to come. Even in times of
uncertainty, our team kept showing up. We couldn’t be
more grateful for the relationships we have cultivated.
Over
in Community Funding
$65,000
The First United Community Dreams Foundation is
focused on making dreams a reality.
Through grants, sponsorships, and investments, our
Foundation provides support to community partners in
local nonprofits, institutions, schools and other 501(c)3
organizations offering critical services and programs in
the various communities that we serve.
Our Legacy, Your Future.
Since 1900, First United Bank & Trust has supported communities with
financial services.
In 2025, we will officially celebrate our 125th anniversary! This significant
anniversary is an incredible opportunity to share our rich history as well as our
contemporary relevance.
We are grateful to have experienced significant growth since 1900. From our first
location as First National Bank of Oakland to our expansion east and west, we
have grown to our current 22-branch network and have consistently exhibited
our dedication to community banking.
Many highlights will be shared throughout the year, honoring this special
occasion. A balance of tradition and forward-thinking messaging and activities
will be conveyed to existing customers and future generations. We
also look to maintain our position as a trusted partner and
showcase the Bank’s history of trust and dedication.
It is “Our Legacy, Your Future.”
Please contact our transfer agent, Computershare, if you need assistance in any of the following areas:
• Change in registration
• Reporting lost certificates
• Non-receipt or loss of dividend checks
• Information on dividend reinvestment plan
Computershare:
Phone
1-781-575-2622 or Toll Free 1-866-298-7858
Computershare
Courier Delivery:
P.O. Box 43078
Computershare
Providence, RI 02940-3078
150 Royall St., Suite 101
Canton, MA 02021
Return envelopes for the proxy:
P.O. Box 43101, Providence, RI 02940-5067
Questions & Inquiries via our website:
http://www.computershare.com/investor
Hearing Impaired #: TDD: 1-800-952-9245
First United-Direct Line:
1-866-298-7858
TDD for Hearing Impaired: 1-800-952-9245
Foreign Shareowners:
1-781-575-2622
TDD for Hearing Impaired: 1-781-575-2692
Shareholders’ Meeting:
The Annual Shareholders’ Meeting will be held Wednesday, May 7, 2025, at 9:00 a.m.
Wisp Hotel - Crawford Room
290 Marsh Hill Road
McHenry, MD 21541
SEC Form 10-K
The Corporation files an annual report on Form 10-K with the Securities and Exchange Commission.
This statement can be found on our investor relations website at http://investors.MyBank.com
or you may request to receive a copy by calling us at 1-888-692-2654. A statement may also be
requested by mail, without charge, to any shareholder who requests it in writing to:
Tonya K. Sturm
Corporate Secretary
First United Corporation
c/o First United Bank & Trust
19 South Second Street
Oakland, MD 21550
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