First United (FUNC) investor relations material

Executive summary

• Q2 2026 net income was $5.7M ($0.87/share), but non-GAAP net income excluding a $1.7M after-tax consulting expense was $7.3M, up from prior periods.

• Year-to-date net income reached $13.9M, reflecting continued growth and operational efficiency.

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

Financial highlights

• Net interest margin (NIM) at 3.98% for Q2 2026, up from 3.61% in Q2 2025; net interest income increased year-over-year.

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

• Total assets at June 30, 2026 were $2.1B, with a $43.1M increase in Q2 2026 compared to Q1 2026.

• Provision for credit losses was $0.8M in Q2 2026, down from $0.9M in Q2 2025 and Q1 2026.

• Cash dividend of $0.26 per share declared in Q2 2026.

Outlook and guidance

• Strategic focus on profitable growth, resource optimization, and technology-driven efficiency.

• Management expects continued disciplined loan and deposit pricing, with ongoing investment in digital and AI solutions.

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

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