First United (FUNC) investor relations material

Executive summary

• GAAP net income for Q1 2026 was $6.7 million ($1.03 per diluted share), up from $5.8 million ($0.89) in Q1 2025 and Q4 2025.

• Non-GAAP net income was $6.6 million ($1.02 per diluted share), compared to $5.8 million ($0.89) in Q1 2025 and $7.2 million ($1.10) in Q4 2025.

• Return on average assets was 1.29% and return on average equity was 13.06% for Q1 2026.

• Strong earnings driven by margin expansion, solid credit performance, and operational efficiency.

Financial highlights

• Net interest income (non-GAAP, FTE) rose by $2.1 million year-over-year, driven by higher loan yields and lower funding costs.

• Net interest margin (non-GAAP, FTE) was 3.83% in Q1 2026, up from 3.56% in Q1 2025 and 3.75% in Q4 2025.

• Provision for credit losses was $0.9 million, up from $0.7 million in Q1 2025, reflecting increased off-balance sheet commitments.

• Operating expenses decreased by $1.2 million sequentially due to a prior quarter OREO write-down.

• Deposits increased by $15.5 million, including repayment of a $25 million brokered CD.

• Cash dividend of $0.26 per share declared.

Outlook and guidance

• Management expects continued positive momentum, focusing on operational efficiency and prudent risk management.

• Economic and political uncertainty remains a factor in credit provisioning.