First United (FUNC) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $5.8M, up from $4.5M in Q3 2023 and $4.9M in Q2 2024, driven by higher net interest income, improved asset quality, and lower operating expenses.

• Year-to-date net income reached $14.4M, up from $13.3M for the same period in 2023, with EPS of $2.20 basic and $2.19 diluted.

• Book value per share was $26.90 at September 30, 2024, up from $24.38 at year-end 2023.

• Shareholders' equity increased to $174.0M.

• Earnings growth was supported by stable non-interest income and expense management.

Financial highlights

• Net interest income for Q3 2024 was $15.2M, up $1.2M year-over-year; net interest margin rose to 3.46% from 3.12%.

• Year-to-date net interest income was $44.3M, up from $42.7M year-over-year.

• Provision for credit losses was $0.3M in Q3 2024, down from $1.2M in Q2 2024, reflecting improved asset quality.

• Non-interest expenses for Q3 2024 were $12.3M, down $0.5M year-over-year, mainly due to lower check fraud, occupancy, and data processing costs.

• Return on average assets was 0.99% and return on average equity was 11.52% for the nine months ended September 30, 2024.

Outlook and guidance

• Management expects continued competitive deposit pricing pressures and elevated interest rates to impact net interest income.

• No material changes in risk factors or outlook since the last annual report; liquidity and capital positions remain strong.

• Focus remains on asset quality, expense management, and long-term profitability amid economic volatility.