First United (FUNC) Q3 2026 earnings summary

Executive summary

• Q3 GAAP net income was $7.2 million, or $1.11 diluted EPS, versus $6.9 million and $1.07 a year earlier.

• Nine-month GAAP net income was $19.5 million versus $18.7 million; adjusted net income was $21.1 million.

• Q3 adjusted PPNR was $11.4 million, up from $9.7 million in Q3 2025 and $10.4 million in Q2 2026.

• Results reflected stronger net interest income, trust and brokerage growth, and loan production; management cited robust pipelines and strong credit quality.

Financial highlights

• Q3 net interest income rose $2.2 million YoY to $19.6 million; FTE net interest income increased $1.0 million QoQ, driven by higher earning-asset yields and lower funding costs.

• Q3 FTE net interest margin was 4.05%, up 36 bps YoY and 7 bps QoQ; nine-month margin was 3.94% versus 3.64%.

• Nine-month adjusted PPNR was $31.4 million versus $26.8 million; adjusted diluted EPS was $3.26 versus $2.80.

• Adjusted efficiency ratio was 54.67% in Q3 and 56.51% for nine months, versus 58.73% for the first nine months of 2025.

• Q3 operating expenses fell $2.0 million QoQ, including the absence of a one-time core-contract consulting charge; provision expense rose to $1.9 million from $0.5 million a year earlier.

Outlook and guidance

• Long-term targets include EPS growth of 8%–12%, ROAA of 1.25%–1.45%, ROATCE of 13%–15%, and adjusted efficiency ratio of 55%–60%.

• Additional long-term targets include revenue growth of 8%–10%, NIM of 3.5%–3.8%, loan growth of 7%–9%, and loans-to-deposits of 90%–95%.

• Strategic priorities include growing net interest and non-interest income, increasing share in growth markets, optimizing balance-sheet mix, and using technology, data, and AI to improve efficiency.

• Commercial loan pipeline was $138.0 million at Sept. 30, including $37.0 million in unfunded commercial construction commitments; management described pipelines as robust heading into Q4.

• Management expects continued expense control and efficiency, with disciplined reserves amid inflationary pressures and interest-rate uncertainty.