First United (FUNC) investor relations material

Executive summary

• Q2 2026 net income was $5.7M ($0.87/share), down from Q2 2025 due to a $1.7M after-tax consulting expense for core processing contract negotiations, but non-GAAP net income was $7.3M, up from both prior year and prior quarter levels.

• Year-to-date net income was $12.3M (GAAP) and $13.9M (non-GAAP), reflecting continued growth and operational efficiency.

• Growth in net interest and trust/brokerage income contributed to improved results, despite higher operating expenses.

• Maintained diversified revenue streams, robust asset quality, and strong capital ratios well above regulatory requirements.

• Loan growth was steady, with robust commercial and residential mortgage pipelines heading into Q3.

Financial highlights

• Net interest margin (non-GAAP, FTE) rose to 3.98% in Q2 2026 from 3.61% in Q2 2025; net interest income for H1 2026 was $36.7M, up $3.9M year-over-year.

• Diluted EPS for Q2 2026 was $0.87 (GAAP) and $1.13–$1.14 (non-GAAP); H1 2026 diluted EPS was $1.90 (GAAP) and $2.15 (non-GAAP).

• Efficiency ratio improved to 56.55% in Q2 2026 and 57.49% year-to-date, driven by increased net interest income and stable expenses.

• Total assets at June 30, 2026 were $2.1B; net loans were $1.6B; deposits were $1.7B; shareholders’ equity was $212.4M.

• Book value per share increased to $32.91 at June 30, 2026.

Outlook and guidance

• Management expects continued focus on profitable growth, resource optimization, and technology-driven efficiency.

• Loan pipelines remain robust, supporting expectations for continued loan growth into Q3.

• No material changes in risk factors or market risk procedures since year-end 2025.

• Long-term targets include ROAA of 1.25%-1.45%, ROATCE of 13%-15%, and efficiency ratio of 55%-60%.

• Management expects ongoing investment in digital and AI solutions.