First United (FUNC) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $6.0 million ($0.92 per share), up from $4.9 million ($0.75) in Q2 2024; six-month net income was $11.8 million ($1.82 per share), up from $8.6 million ($1.31) year-over-year.

• Growth was driven by higher net interest margin, increased loan production, and controlled funding costs.

• Book value per share rose to $29.43 at June 30, 2025, from $27.71 at December 31, 2024.

• Commercial loan originations were $65.1 million and residential mortgage originations $19.2 million in Q2 2025.

• Total assets reached $2.0 billion at June 30, 2025, with net loans at $1.5 billion and deposits at $1.6 billion.

Financial highlights

• Net interest income for Q2 2025 was $16.7 million, up $1.5 million year-over-year; net interest margin for the six months ended June 30, 2025 was 3.61%, up from 3.31% in the prior year.

• Provision for credit losses was $0.9 million in Q2 2025, down from $1.2 million in Q2 2024; six-month provision was $1.5 million, down from $2.1 million in 2024.

• Non-interest income for Q2 2025 increased by $0.2 million year-over-year, driven by higher wealth management and mortgage gains.

• Non-interest/operating expenses rose by $0.6 million in Q2 2025, mainly due to higher OREO, data processing, and professional services costs.

• Cash dividend of $0.22 per share declared in Q2 2025.

Outlook and guidance

• Management expects stronger loan growth in the second half of 2025, supported by robust loan pipelines and unfunded commitments.

• No material changes in risk factors or market risks are anticipated for the remainder of the year.

• Focus remains on expanding talent, improving technology, and enhancing customer experience.