First United (FUNC) Q4 2025 earnings summary

Executive summary

• Achieved record core earnings in 2025, with non-GAAP net income of $25.8M ($3.97/share), up from $21.0M ($3.21/share) in 2024, and Q4 2025 non-GAAP net income of $7.2M ($1.10/share); annual GAAP net income was $24.5M ($3.77/share).

• Q4 2025 net income rose to $7.2M, up from $6.2M in Q4 2024 and $6.9M in Q3 2025; annual net income reached $25.8M, up from $21.0M in 2024.

• Diluted EPS was $1.10 for Q4 2025 and $3.97 for the year; ROAA at 1.38% for Q4 and 1.28% for the year.

• Celebrated 125th anniversary and appointed a new President and CEO.

• Efficiency ratio improved to 56.29% in Q4 and 58.19% for the year, reflecting higher net interest and non-interest income.

Financial highlights

• Net interest margin (NIM) was 3.75% in Q4 and 3.67% for the year, up from 3.38% in 2024; net interest income (non-GAAP, FTE) rose by $2.3M in Q4 and $8.1M for the year.

• Total assets at year-end were $2.09B, up $114.4M from 2024; gross loans increased $40.9M to $1.52B.

• Total deposits grew by $160.3M to $1.74B; brokered time deposits increased by $50M.

• Book value per share rose to $31.33 from $27.71; tangible book value per share to $29.57.

• Allowance for credit losses (ACL) to loans remained stable at 1.28%.

Outlook and guidance

• Strategic targets for long-term ROAA are 1.25%-1.45%, ROATCE 13%-15%, and efficiency ratio 55%-60%.

• Management expects continued focus on margin management and plans to repay outstanding debt and brokered deposits at maturities in 2026.

• Focus on disciplined loan and deposit pricing, deposit acquisition, and technology-driven efficiency.

• Higher cash levels at year-end position the company for further balance sheet optimization.