First United (FUNC) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $6.7 million ($1.03 per diluted share), up from $5.8 million ($0.89 per diluted share) in Q1 2025, driven by higher net interest income, margin expansion, and operational efficiency.

• Non-GAAP net income was $6.6 million ($1.02 per diluted share).

• Return on Average Assets was 1.29% and Return on Average Equity was 13.06% for Q1 2026.

• Total assets at March 31, 2026 were $2.0 billion, net loans $1.5 billion, and deposits $1.8 billion.

• Strong earnings were supported by solid credit performance and operational efficiency.

Financial highlights

• Net interest income rose by $2.1 million year-over-year, with interest and fees on loans up $0.7 million due to higher rates and new loans.

• 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.

• Interest expense decreased by $0.4 million, mainly from repayment of $25 million in brokered CDs and $65 million in FHLB borrowings.

• 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.

Outlook and guidance

• Commercial loan production and pipelines remain robust, with $98 million in new commercial loans and $43 million in unfunded commercial construction commitments as of March 31, 2026.

• Consumer mortgage loan production was $16 million, with a $17.5 million pipeline.

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

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