First United Corp Reports Strong Q1 Earnings with 15.5% Net Income Growth and Expanded Net Interest Margin
Summary
First United Corp reported robust first-quarter earnings, with net income up 15.5% year-over-year and an expanded net interest margin, alongside healthy deposit growth and stable asset quality.
Key Events
-
Strong First Quarter Earnings
GAAP net income increased to $6.7 million for Q1 2026, up 15.5% from $5.8 million in Q1 2025, with diluted EPS rising to $1.03 from $0.89.
-
Net Interest Margin Expansion
The non-GAAP, fully tax equivalent net interest margin improved to 3.83% in Q1 2026, an 8 basis point increase compared to 3.75% in the prior quarter.
-
Deposit Growth and Funding Management
Total deposits increased by $15.5 million since December 31, 2025, driven by a $44.4 million rise in savings and money market accounts, despite the repayment of a $25.0 million brokered CD and $65.0 million in FHLB advances.
-
Stable Asset Quality
The allowance for credit losses to loans outstanding ratio improved to 1.31% at March 31, 2026, from 1.28% at December 31, 2025, and net charge-offs decreased year-over-year.
Analysis
First United Corporation announced strong first-quarter financial results, with GAAP net income increasing to $6.7 million, a 15.5% rise year-over-year, and diluted EPS reaching $1.03. This positive performance was driven by continued net interest margin expansion, which improved to 3.83% on a non-GAAP, fully tax equivalent basis. The company also demonstrated effective funding management, growing total deposits by $15.5 million while successfully repaying a $25.0 million brokered certificate of deposit and $65.0 million in Federal Home Loan Bank advances. Asset quality remained stable, with the allowance for credit losses to loans outstanding ratio improving to 1.31% and net charge-offs decreasing year-over-year. This official 8-K filing provides full details following a Reuters news report on April 20, 2026, which had already highlighted the strong Q1 results.
At the time of this filing, FUNC was trading at $37.48 on NASDAQ in the Finance sector, with a market capitalization of approximately $243.7M. The 52-week trading range was $27.54 to $41.95. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.