First United (FUNC) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $6.9 million ($1.07 per share), up from $5.8 million ($0.89 per share) in Q3 2024; nine-month net income was $18.7 million ($2.88 per share), up from $14.4 million ($2.19) year-over-year.

• Results were driven by increased net interest margin, higher loan yields, and expense control, with growth in both net interest and non-interest income.

• Total assets reached $2.0 billion, net loans $1.5 billion, and deposits $1.7 billion as of September 30, 2025.

• Annualized return on average assets was 1.24% and return on average equity was 13.23% for the nine months ended September 30, 2025.

• Pre-provision net revenue reached $9.8 million in Q3 and $26.9 million for the first nine months, both higher than prior periods.

Financial highlights

• Net interest income for Q3 2025 was $17.4 million, up from $15.2 million in Q3 2024; net interest margin (NIM) improved to 3.69% in Q3 2025, with year-to-date NIM at 3.64%.

• Efficiency ratio improved to 56.97% in Q3 and 58.73% year-to-date, driven by higher net interest and non-interest income.

• Provision for credit losses was $0.5 million in Q3 2025 and $2.0 million for the nine months, down from $2.4 million year-over-year.

• Return on average assets (ROAA) was 1.35% in Q3 and 1.24% year-to-date; return on average tangible common equity (ROATCE) was 14.93% in Q3 and 14.09% year-to-date.

• Asset quality remained strong with allowance for credit losses (ACL) to loans at 1.28% and nonaccrual loans at 0.26% of total loans.

Outlook and guidance

• Strategic targets include long-term ROAA of 1.25%-1.45%, ROATCE of 13%-15%, NIM of 3.5%-3.8%, and efficiency ratio of 55%-60%.

• Management expects continued strong credit quality and stable net interest margin, with ongoing focus on expanding commercial and consumer lending.

• Focus remains on disciplined loan and deposit pricing, deposit acquisition, and cost control.

• No material changes in risk factors or outlook since the last annual report.

• The commercial loan pipeline remains strong, with $50.4 million in the pipeline as of September 30, 2025.