First United Q3 2026 earnings rise to $7.2M
Gross loans and deposits rose from year-end levels, while the quarterly credit-loss provision was higher than a year earlier.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
First United Corporation (FUNC) reported third-quarter 2026 GAAP net income of $7.2 million, or $1.11 per diluted share, compared with $6.9 million and $1.07 a year earlier; second-quarter net income was $5.7 million. For the first nine months, GAAP net income was $19.5 million versus $18.7 million, while non-GAAP net income was $21.1 million. Quarterly net interest income increased $2.2 million year over year, and the non-GAAP, fully tax-equivalent net interest margin was 4.05%, versus 3.69% in Q3 2025.
At September 30, 2026, gross loans were $1.6 billion, up $83.7 million from December 31, 2025, and deposits were $1.8 billion, up $52.6 million. Total assets were $2.1 billion. The allowance for credit losses was $21.8 million, equal to 1.36% of gross loans. The quarterly provision for credit losses was $1.9 million versus $0.5 million a year earlier; First United attributed the increase primarily to loan and unfunded-commitment growth and continued economic and political uncertainty. Non-accrual loans totaled $3.2 million, and net charge-offs were $0.1 million in Q3.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQuarterly net interest income increased by $2.2 million year over year.
Negative
- Moderate pointQuarterly provision for credit losses rose to $1.9 million from $0.5 million.
Filing Explained
A third-quarter loan term extension explains the rise in modified loans to $6.9 million at September 30.
The First United 8-K furnishes third-quarter results and an investor presentation. It reports that short-term borrowings outstanding at
Modified loans rose from
8-K Event Classification
Key Figures
Key Terms
allowance for credit losses financial
net interest margin financial
non-accrual loans financial
unfunded commitments financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did FUNC earn in the third quarter of 2026?
What was FUNC’s net interest margin in Q3 2026?
Why did FUNC’s provision for credit losses increase?
How large was FUNC’s commercial loan pipeline at September 30, 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event
reported):
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (Commission file number) | (IRS Employer | ||
| incorporation or organization) | Identification No.) |
(Address of principal executive offices) (Zip Code)
(
(Registrant’s telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
INFORMATION TO BE INCLUDED IN THE REPORT
Item 2.02. Results of Operation and Financial Condition.
On October 19, 2026, First United Corporation (the “Corporation”) issued a press release describing its financial results for the three- and nine-month periods ended September 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1.
The information contained in this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
On October 19, 2026, the Corporation published an investor presentation that discusses certain aspects of its financial results for the three- and nine-month periods ended September 30, 2026. A copy of the presentation is furnished herewith as Exhibit 99.2.
The information contained in this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The exhibits filed or furnished with this report are listed in the following Exhibit Index:
| Exhibit No. | Description | |
| 99.1 | Press release dated October 19, 2026 (furnished herewith) | |
| 99.2 | Investor presentation dated October 19, 2026 (furnished herewith) | |
| 104 | Cover page interactive data file (embedded within the iXBRL document) |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FIRST UNITED CORPORATION | |||
| Dated: October 19, 2026 | By: | /s/ | Tonya K. Sturm |
| Tonya K. Sturm | |||
| Executive Vice President & CFO | |||
3
Exhibit 99.1
FIRST UNITED CORPORATION ANNOUNCES
THIRD QUARTER 2026 FINANCIAL RESULTS
OAKLAND, MARYLAND— October 19, 2026: First United Corporation (the “Corporation”, “we”, “us”, and “our”) (NASDAQ: FUNC), a bank holding company and the parent company of First United Bank & Trust (the “Bank”), today announced financial results for the three- and nine-month periods ended September 30, 2026. Consolidated net income was $7.2 million on a Generally Accepted Accounting Principles (“GAAP”) basis for the third quarter of 2026, or $1.11 per diluted share, compared to $6.9 million, or $1.07 per diluted share, for the third quarter of 2025 and $5.7 million, or $0.88 per diluted share, for the second quarter of 2026. Net income for the first nine months of 2026 was $19.5 million, or $3.01 per diluted share, compared to $18.7 million, or $2.88 per diluted share, for the same period of 2025. Non-GAAP net income was $7.2 million and $21.1 million for the three- and nine-months ended September 30, 2026, respectively. Annualized Return on Average Assets and Return on Average Equity for the nine-month period ended September 30, 2026 were 1.26% and 12.37%, respectively.
According to Jason Rush, Chairman of the Board, President and CEO, “We delivered another solid quarter, benefiting from an improved net interest margin, continued growth in wealth management income, and steady loan growth. Our loan pipelines remain robust heading into the fourth quarter, providing positive momentum as we close out the year. Credit quality remains strong. However, given continued inflationary pressures and uncertainty surrounding interest rates, we believe it is prudent to maintain a disciplined approach to reserves. We also remain focused on expense management and are continuing to identify opportunities to improve efficiency across the organization.”
Third Quarter Financial Highlights:
| · | Net interest margin, on a non-GAAP, fully tax equivalent (“FTE”) basis, was 4.05% for the third quarter of 2026, reflecting increased loan yields and reduced funding costs. |
| · | Strong loan production during the quarter, with $115.0 million in commercial loan originations and $34.7 million in residential mortgage originations. |
| · | Provision expense was $1.9 million in the third quarter, primarily due to solid growth in loans and unfunded commitments, and the continued economic and political uncertainty. |
| · | Operating expenses decreased by $2.0 million when compared to the linked quarter driven by a one-time, $1.7 million, net of tax, expense related to consulting fees incurred for contract negotiations with our core processor recorded in the second quarter of 2026. |
| · | A cash dividend of $0.28 per share was declared in the third quarter. |
Income Statement Overview
On a GAAP basis, net income for the third quarter of 2026 was $7.2 million, compared to $5.7 million for the second quarter of 2026, inclusive of a $1.7 million, net of tax, third-party consulting expense incurred for core contract negotiations, and $6.9 million for the third quarter of 2025.
| Q3 2026 | Q2 2026 | Q3 2025 | ||||||||||
| Net Income, GAAP (millions) | $ | 7.2 | $ | 5.7 | $ | 6.9 | ||||||
| Net Income, non-GAAP (millions) | $ | 7.2 | $ | 7.3 | $ | 6.9 | ||||||
| Diluted net income per share, GAAP | $ | 1.11 | $ | 0.88 | $ | 1.07 | ||||||
| Diluted net income per share, non-GAAP | $ | 1.11 | $ | 1.14 | $ | 1.07 | ||||||
Third Quarter 2026 Compared to Third Quarter 2025
Consolidated net income increased by $0.2 million for the third quarter of 2026 when compared to the third quarter of 2025. The increase was driven by an increase of $2.2 million in net interest income, and an increase of $0.3 million in non-interest income, inclusive of gains, offset by a $1.4 million increase in provision for credit losses as a result of solid growth in loans and unfunded commitments and a $0.8 million increase in other operating expenses. Comparing the third quarter of 2026 to the same period of 2025, interest and fees on loans increased by $1.8 million driven by solid loan growth and the continued repricing of adjustable-rate loans. Interest expense decreased by $1.0 million when comparing year-over-year quarterly expenses. The decrease was attributable to the repayment of $50.0 million in brokered certificates of deposit in January and July 2026 at their maturities and $65.0 million in Federal Home Loan Bank (“FHLB”) borrowings in March 2026. Other operating income increased slightly by $0.3 million driven by an increase in trust and brokerage income of $0.3 million as a result of increased production and favorable market values on assets under management. Other operating expenses increased by $0.8 million, driven by a $0.5 million increase in salaries and benefits attributable to new hires to complete the build out of talent in our West and East regions, normal merit increases in April 2026 and increased life and health insurance costs due to increased claims. Equipment, occupancy and data processing expenses increased by $0.3 million as a result of the implementation of new loan origination software in late 2025. Other expenses, such as marketing and contract labor, increased slightly and were offset by decreases in professional services and other real estate owned (“OREO”) expenses and contributions.
Third Quarter 2026 Compared to Second Quarter 2026
Compared to the linked quarter, net income increased by $1.5 million driven by an increase in net interest income of $1.0 million as a result of increased yields on loans and reduced funding costs and an increase of $0.2 million in other operating income, inclusive of net gains. The increase in net gains was due to gains on sales of mortgages to the secondary market and the receipt of funds related to a branch sale in late 2025. Other miscellaneous income increased as a result of a one-time cash receipt of incentives related to check fees and the increased other expenses in the second quarter as a result of the one-time third-party expense incurred for core contract negotiations. An increase of $1.2 million in the provision for credit losses was recognized due to the growth in loans and unfunded commitments experienced in the third quarter as well as the continued economic and political uncertainty.
Year to date 2026 compared to Year to date 2025
Net income for the nine months ended September 30, 2026 was $19.5 million on a GAAP basis, inclusive of a $1.7 million, net of tax, consulting fee incurred on core contract negotiations completed in the second quarter, and $21.1 million on a non-GAAP basis compared to GAAP and non-GAAP basis income of $18.7 million for the nine months ended September 30, 2025. The year-over-year increase of $0.8 million was attributable to a $6.1 million increase in net interest income driven by the continued increase on the yield on earning assets and overall decrease in funding costs, an increase in other non-interest income of $1.0 million, inclusive of net gains, as a result of increased trust and brokerage income of $0.8 million, and increased bank owned life insurance (“BOLI”) income of $0.3 million related to a one-time death benefit received in the first quarter of 2026, partially offset by an increase in other operating expenses of $4.7 million driven by the aforementioned consulting fee, increased salaries and benefits of $2.2 million and an increase in equipment, occupancy and data processing expenses of $0.6 million, primarily due to the implementation of a new loan origination software in late 2025. The increase in salaries and benefits was the result of new hires to complete the build out of talent in our West and East regions, annual merit increases in April 2026, increased incentives related to the accruals for projected annual payouts, and increased life and health insurance costs due to higher claims, partially offset by the reduction of costs associated with loan originations.
Net Interest Income and Net Interest Margin
Third Quarter 2026 Compared to Third Quarter 2025
Net interest income, on a non-GAAP, FTE basis, increased by $2.2 million for the third quarter of 2026 when compared to the third quarter of 2025. This increase was driven by an increase of $1.2 million in interest income. Interest income on loans increased by $1.8 million due to the increase of 16 basis points in overall yield on the loan portfolio as a result of growth in average balances of $78.8 million and the continued upward repricing of adjustable-rate loans. Investment income remained stable year over year. Interest income on federal funds sold decreased by $0.5 million due to a decrease of $18.5 million in average cash balances held at the Federal Reserve Bank as a result of funding the loan growth in the third quarter of 2026. Interest expense decreased by $1.0 million in the third quarter of 2026 when compared to the third quarter of 2025. Interest on deposits decreased by $0.2 million despite a $65.1 million increase in average deposit balances, primarily in interest bearing demand and money market deposits, primarily in our value money market product as customers desire to maintain liquid funding. Interest expense on long-term borrowings decreased $0.8 million due to an $86.7 million decrease in average balances for the third quarter of 2026 when compared to the same period of 2025, primarily related to the repayment of $25.0 million and $65.0 million of FHLB advances at their maturities in September 2025 and March 2026, respectively.
Third Quarter 2026 Compared to Second Quarter 2026
Comparing the third quarter of 2026 to the second quarter of 2026, net interest income, on a non-GAAP, FTE basis, increased by $1.0 million. Interest income increased by $0.8 million driven by an increase in average loan balances of $31.3 million in the third quarter of 2026 and a 9 basis point increase in yield. Interest expense decreased by $0.2 million when comparing the third quarter of 2026 to the second quarter of 2026. While we saw an increase in average deposit balances of $2.6 million, we continue to be focused on funding costs and recognized a decrease of 9 basis points. Management’s strategic focus on margin management during the third quarter of 2026 resulted in a 7 basis point increase in the net interest margin to 4.05% compared to 3.98% for the second quarter of 2026.
Year to date 2026 compared to Year to date 2025
Comparing the nine months ended September 30, 2026 to the nine months ended September 30, 2025, net interest income, on a non-GAAP, FTE basis, increased by $6.2 million. Interest income increased by $4.2 million, primarily driven by an increase of $4.1 million on interest and fees on loans, as average loan balances increased by $53.0 million and the yield increased by 15 basis points. Interest expense on interest-bearing liabilities decreased by $2.0 million despite an increase in average deposit balances of $79.6 million driven by increases of $28.7 million in demand deposit accounts and $84.1 million in retail money market balances, partially offset by decreases in savings balances of $9.4 million and brokered time deposits of $24.7 million. Interest expense on short-term borrowings remained stable and interest expense on long-term borrowings decreased by $2.0 million as a result of a decrease in average balances of $70.3 million, due to the repayment of $65.0 million of FHLB advances at their maturities in March 2026. The net interest margin for the nine months ended September 30, 2026 was 3.94% compared to 3.64% for the nine months ended September 30, 2025.
Non-Interest Income
Third Quarter 2026 Compared to Third Quarter 2025
Other operating income, inclusive of net gains, increased by $0.3 million driven by an increase in trust and brokerage income of $0.3 million as a result of increased production of new accounts as well as favorable market values in assets under management. Net gains decreased by $0.1 million as new residential mortgage production is more favorable to book to our in-house portfolio as compared to selling to secondary market outlets. Debit card income, service charge income and BOLI income were stable when comparing the quarters.
Third Quarter 2026 Compared to Second Quarter 2026
On a linked quarter basis, other operating income, inclusive of net gains, increased by $0.2 million. Net gains increased by $0.1 million as a result of the receipt of proceeds on the previously recorded branch office sale as well as an increase in gains on sale of mortgages. Check fees increased by $0.1 million when comparing the third quarter of 2026 to the linked quarter as a result of a one-time cash incentive received during the third quarter.
Year to date 2026 compared to Year to date 2025
Comparing the nine months ended September 30, 2026 to the same period of 2025, other operating income, inclusive of net gains, increased by $1.0 million. The increase was primarily driven by an increase in trust and brokerage income of $0.8 million as a result of increased production of new business as well as favorable market values in assets under management, a $0.1 million increase in debit card income, and an increase in BOLI income of $0.3 million as previously mentioned, partially offset by a reduction in net gains as new production of residential mortgage loans were booked in house rather than selling them to the secondary market.
Non-Interest Expense
Third Quarter 2026 Compared to Third Quarter 2025
Other operating expenses increased by $0.8 million driven by a $0.5 million increase in salaries and benefits as a result of new hires to complete the build out of our West and East regions, normal merit increases in April 2026 and increased life and health insurance costs due to increased claims in the third quarter of 2026, partially offset by the reduction of costs associated with loan originations. Equipment, occupancy and data processing expenses increased $0.3 million as a result of the implementation of a new loan origination software in late 2025. These increases were partially offset by reductions in professional services and OREO expenses and contributions.
Third Quarter 2026 Compared to Second Quarter 2026
Other operating expenses decreased by $2.0 million driven by the one-time, $1.7 million, net of tax, consulting fee incurred with core contract negotiations in the second quarter. All other expenses were stable when comparing the third quarter of 2026 to the second quarter of 2026 as we continue a strategic focus on expense control.
Year to date 2026 compared to Year to date 2025
Comparing the nine months ended September 30, 2026 to the same period of 2025, other operating expenses increased by $4.7 million primarily driven by the one-time, third-party consulting expense incurred for core contract negotiations discussed above, a $2.2 million increase in salaries and benefits as a result of new hires to complete the build out of talent in our West and East regions, normal merit increases in April 2026, increased incentives related to the accrual for projected annual payouts, increased life and health insurance costs due to higher claims, partially offset by the reductions of costs associated with loan originations, and an increase in equipment, occupancy and data processing expenses of $0.6 million, primarily due to a new loan origination software implementation in late 2025.
The effective income tax rates, as a percentage of income, for the nine-month periods ended September 30, 2026 and 2025 were 24.1% and 24.7%, respectively.
Balance Sheet Overview
Total assets at September 30, 2026 were $2.1 billion, representing a $10.6 million increase since December 31, 2025. During the first nine months of 2026, gross loans increased by $83.7 million and the pension assets increased $2.3 million due to increased market values. These increases were partially offset by a $56.7 million decrease in cash and interest-bearing deposits in other banks, a decrease in the investment portfolio of $8.3 million related to principal and interest cashflows, and a decrease in the investments in bank stock related to the reduction in FHLB stock that resulted from the full repayment of borrowings in March 2026.
Total liabilities at September 30, 2026 were $1.9 billion, representing a $0.2 million increase since December 31, 2025. Total deposits increased by $52.6 million when compared to December 31, 2025. Non-interest-bearing demand deposits slightly increased by $2.1 million, savings and money market accounts increased by $45.0 million due primarily to the expansion of current and new relationships throughout the first nine months of 2026 and interest-bearing demand deposits increased $61.0 million, primarily related to municipality accounts. A total of $50.0 million in brokered certificates of deposit were fully repaid in January 2026 and July 2026 at their maturities. Retail time deposits decreased by $5.5 million since December 31, 2025. Short-term borrowings increased by $15.2 million at September 30, 2026 when compared to December 31, 2025 as a result of overnight borrowings in anticipation of loan funding. These borrowings were subsequently fully repaid in October 2026.
Outstanding loans of $1.6 billion at September 30, 2026 reflected an $83.7 million increase since December 31, 2025.
Loan Type (in millions) | Change since June 30, 2026 | Change since December 31, 2025 | ||||||
| Commercial | $ | 7.2 | $ | 39.1 | ||||
| Residential Mortgages | $ | 17.0 | $ | 27.2 | ||||
| Consumer | $ | 9.1 | $ | 17.4 | ||||
| Gross Loans | $ | 33.3 | $ | 83.7 | ||||
Since December 31, 2025, commercial real estate loans increased by $45.7 million as a result of new business relationships as well as additional growth in existing relationships; acquisition and development loans increased by $34.1 million; commercial and industrial loans decreased by $40.7 million as a result of payoffs related to approximately $15.0 million due to competitive pricing, approximately $7.3 million related to sales of businesses, approximately $18.0 million due to a loan refinancing with another institution, and the payoff of a floorplan line of credit. Residential mortgage loans increased by $27.2 million as a result of robust mortgage production booked in house as opposed to selling to the secondary market outlets, offset slightly by normal amortization. Consumer loans increased by $17.4 million related to the purchases of approximately $18.0 million in consumer loan pools in the second and third quarters of 2026, offset by normal paydowns.
New commercial loan production for the third quarter of 2026 was approximately $115.0 million. The pipeline of commercial loans as of September 30, 2026 was $138.0 million and unfunded committed commercial construction loans totaled approximately $37.0 million. Commercial amortization and payoffs were approximately $137.0 million through September 30, 2026, due primarily to pay-offs of short-term commercial loans as well as normal amortizations of the commercial loan portfolio.
New consumer mortgage loan production for the third quarter of 2026 was approximately $34.7 million, with most of that production comprised of in-house mortgages. The pipeline of in-house, portfolio loans as of September 30, 2026 was $29.8 million. Unfunded commitments related to residential construction loans totaled $26.0 million at September 30, 2026.
Total deposits of $1.8 billion at September 30, 2026, representing an increase of $52.6 million when compared to December 31, 2025.
Deposit Type (in millions) | Change since June 30, 2026 | Change since December 31, 2025 | ||||||
| Non-Interest-Bearing | $ | 13.8 | $ | 2.1 | ||||
| Interest-Bearing Demand | $ | 47.7 | $ | 61.0 | ||||
| Savings and Money Market | $ | 17.4 | $ | 45.0 | ||||
| Time Deposits- Brokered | $ | (25.0 | ) | $ | (50.0 | ) | ||
| Time Deposits- Retail | $ | (1.7 | ) | $ | (5.5 | ) | ||
| Total Deposits | $ | 52.2 | $ | 52.6 | ||||
Non-interest-bearing demand deposits increased by $2.1 million, savings and money market accounts increased by $45.0 million due primarily to the expansion of current and new relationships throughout the first nine months of 2026 primarily in our value money market product as customers continue to desire liquid funds and interest-bearing demand deposits increased $61.0 million, primarily related to municipality accounts. Brokered certificates of deposit were fully repaid at their maturities in January and July 2026. Retail time deposits decreased by $5.5 million since December 31, 2025.
The book value of the Corporation’s common stock was $33.15 per share at September 30, 2026 compared to $31.33 per share at December 31, 2025. At September 30, 2026, there were 6,456,055 basic outstanding shares and 6,464,823 diluted outstanding shares of common stock. The increase in the book value at September 30, 2026 was due to the undistributed net income of $14.4 million for the first nine months of 2026.
Asset Quality
The allowance for credit losses (“ACL”) was $21.8 million at September 30, 2026 compared to $19.1 million at September 30, 2025 and $19.5 million at December 31, 2025. The provision for credit losses was $1.9 million for the quarter ended September 30, 2026 compared to $0.8 million for the quarter ended June 30, 2026 and $0.5 million for the quarter ended September 30, 2025. Provision for credit losses was $3.6 million and $2.0 million for the first nine months of 2026 and 2025, respectively. The increase in the provision for credit losses in the third quarter of 2026 was primarily attributable to solid loan growth as well as growth in the unfunded commitments of approximately $39.0 million during the quarter, and the continued economic and political uncertainty. Asset quality remained strong during the first nine months of 2026. Net charge-offs of $0.1 million were recorded for the quarter ended September 30, 2026 compared to net charge-offs of $0.4 million for the quarter ended September 30, 2025 and $0.1 million for the quarter ended June 30, 2026. The ratio of the ACL to loans outstanding was 1.36% at September 30, 2026 compared to 1.28% at December 31, 2025 and 1.28% at September 30, 2025.
The ratio of net charge offs to average loans was 0.04% and 0.08% for the nine-month periods ended September 30, 2026 and 2025, respectively. The commercial and industrial portfolio had net charge offs of 0.06% and 0.41% for the nine-month periods ended September 30, 2026 and 2025, respectively. The acquisition and development portfolio had net recoveries of 0.02% and 0.42% for the nine-month periods ended September 30, 2026 and 2025, respectively. The decrease in net recoveries was due primarily to recoveries recognized in 2025 related to one relationship previously charged off in 2016. Net charge offs in consumer loans decreased in the first nine months of 2026 when compared to the first nine months of 2025 from 1.06% to 0.91%. The decrease was primarily driven by charge-offs in unsecured consumer loans in 2025. Details of the ratios, by loan type, are shown below. Our special assets team continues to actively collect on charged-off loans, resulting in overall low net charge-off ratios.
| Ratio of Net (Charge Offs)/Recoveries to Average Loans | ||||||||
| 09/30/2026 | 09/30/2025 | |||||||
| Loan Type | (Charge Off) / Recovery | (Charge Off) / Recovery | ||||||
| Commercial Real Estate | 0.00 | % | 0.00 | % | ||||
| Acquisition & Development | 0.02 | % | 0.42 | % | ||||
| Commercial & Industrial | (0.06 | )% | (0.41 | )% | ||||
| Residential Mortgage | 0.01 | % | 0.01 | % | ||||
| Consumer | (0.91 | )% | (1.06 | )% | ||||
| Total Net Charge Offs | (0.04 | )% | (0.08 | )% | ||||
Non-accrual loans totaled $3.2 million at September 30, 2026 compared to $4.2 million at December 31, 2025. The decrease in non-accrual balances at September 30, 2026 was related to a large paydown on one commercial and industrial loan.
Non-accrual loans that have been subject to partial charge-offs totaled $41,000 at September 30, 2026 and $0.2 million at December 31, 2025. Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $1.3 million at September 30, 2026 and $0.5 million at December 31, 2025. The increase was primarily related to one residential mortgage loan of approximately $1.1 million. As a percentage of the loan portfolio, accruing loans past due 30 days or more increased to 0.45% at September 30, 2026 compared to 0.32% at December 31, 2025 and 0.26% as of September 30, 2025. This increase was attributable to one large non-owner occupied commercial real estate loan.
Loans that have been modified in accordance with ASU 2022-02 increased from $1.2 million at December 31, 2025 to $6.9 million at September 30, 2026. The increase was due to one large commercial and industrial loan of $5.9 million that had a term extension accommodation completed in the third quarter of 2026.
ABOUT FIRST UNITED CORPORATION
First United Corporation is a Maryland corporation chartered in 1985 and a financial holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended, that elected financial holding company status in 2021. The Corporation’s primary business is serving as the parent company of the Bank, First United Statutory Trust I (“Trust I”) and First United Statutory Trust II (“Trust II” and together with Trust I, “the Trusts”), both Connecticut statutory business trusts. The Trusts were formed for the purpose of selling trust-preferred securities that qualified as Tier 1 capital. The Bank has two consumer finance company subsidiaries- OakFirst Loan Center, Inc., a West Virginia corporation, and OakFirst Loan Center, LLC, a Maryland limited liability company – and one subsidiary that it uses to hold real estate acquired through foreclosure or by deed in lieu of foreclosure – First OREO Trust, a Maryland statutory trust. In addition, the Bank owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland, and a 99.9% non-voting membership interest in MCC FUBT Fund, LLC, an Ohio limited liability company formed for the purpose of acquiring, developing and operating low-income housing units in Allegany County, Maryland and Mineral County, West Virginia. The Corporation’s website is www.mybank.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not represent historical facts, but are statements about management's beliefs, plans and objectives about the future, as well as its assumptions and judgments concerning such beliefs, plans and objectives. These statements are evidenced by terms such as "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions. Although these statements reflect management's good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. The beliefs, plans and objectives on which forward-looking statements are based involve risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports that First United Corporation files with the Securities and Exchange Commission entitled "Risk Factors". In addition, investors should understand that the Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the consolidated financial statements included in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 and the impact that any such events have on our critical accounting assumptions and estimates made as of September 30, 2026, which could require us to make adjustments to the amounts reflected in this press release.
FIRST UNITED CORPORATION
Oakland, MD
Stock Symbol : FUNC
Financial Highlights - Unaudited
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| (Dollars in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Results of Operations: | ||||||||||||||||
| Interest income | $ | 26,979 | $ | 25,762 | $ | 78,859 | $ | 74,695 | ||||||||
| Interest expense | 7,365 | 8,359 | 22,585 | 24,569 | ||||||||||||
| Net interest income | 19,614 | 17,403 | 56,274 | 50,126 | ||||||||||||
| Provision for credit losses | 1,930 | 510 | 3,590 | 2,026 | ||||||||||||
| Other operating income | 5,486 | 5,074 | 16,013 | 14,836 | ||||||||||||
| Net gains | 121 | 261 | 292 | 499 | ||||||||||||
| Other operating expense | 13,815 | 12,986 | 43,273 | 38,536 | ||||||||||||
| Income before taxes | $ | 9,476 | $ | 9,242 | $ | 25,716 | $ | 24,899 | ||||||||
| Income tax expense | 2,295 | 2,294 | 6,205 | 6,161 | ||||||||||||
| Net income | $ | 7,181 | $ | 6,948 | $ | 19,511 | $ | 18,738 | ||||||||
| Per share data: | ||||||||||||||||
| Basic net income per share | $ | 1.11 | $ | 1.07 | $ | 3.02 | $ | 2.89 | ||||||||
| Diluted net income per share | $ | 1.11 | $ | 1.07 | $ | 3.01 | $ | 2.88 | ||||||||
| Adjusted Basic net income (1) | $ | 1.11 | $ | 1.07 | $ | 3.27 | $ | 2.89 | ||||||||
| Adjusted Diluted net income (1) | $ | 1.11 | $ | 1.07 | $ | 3.26 | $ | 2.88 | ||||||||
| Dividends declared per share | $ | 0.28 | $ | 0.26 | $ | 0.80 | $ | 0.70 | ||||||||
| Book value | $ | 33.15 | $ | 30.65 | ||||||||||||
| Diluted book value | $ | 33.10 | $ | 30.59 | ||||||||||||
| Tangible book value per share | $ | 31.41 | $ | 28.87 | ||||||||||||
| Diluted Tangible book value per share | $ | 31.37 | $ | 28.82 | ||||||||||||
| Closing market value | $ | 42.77 | $ | 36.77 | ||||||||||||
| Market Range: | ||||||||||||||||
| High | $ | 46.18 | $ | 38.41 | ||||||||||||
| Low | $ | 42.16 | $ | 32.02 | ||||||||||||
| Shares outstanding at period end: Basic | 6,456,055 | 6,496,908 | ||||||||||||||
| Shares outstanding at period end: Diluted | 6,464,823 | 6,508,790 | ||||||||||||||
| Performance ratios: (Year to Date Period End, annualized) | ||||||||||||||||
| Return on average assets | 1.26 | % | 1.24 | % | ||||||||||||
| Adjusted return on average assets (1) | 1.36 | % | 1.24 | % | ||||||||||||
| Return on average shareholders' equity | 12.37 | % | 13.23 | % | ||||||||||||
| Adjusted return on average shareholders' equity (1) | 13.38 | % | 13.23 | % | ||||||||||||
| Net interest margin (Non-GAAP), includes tax exempt income of $221 and $160 | 3.94 | % | 3.64 | % | ||||||||||||
| Net interest margin GAAP | 3.93 | % | 3.63 | % | ||||||||||||
| Efficiency ratio - non-GAAP (2) | 56.51 | % | 58.73 | % | ||||||||||||
(1) See reconciliation of this non-GAAP financial measure provided elsewhere herein.
(2) Efficiency ratio is a non-GAAP measure calculated by dividing total operating expenses by the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities and/or fixed assets and costs incurred on core contract renewal.
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Financial Condition at period end: | ||||||||
| Assets | $ | 2,098,046 | $ | 2,087,453 | ||||
| Earning assets | $ | 1,879,432 | $ | 1,807,780 | ||||
| Gross loans | $ | 1,605,422 | $ | 1,521,704 | ||||
| Commercial Real Estate | $ | 616,483 | $ | 570,808 | ||||
| Acquisition and Development | $ | 124,429 | $ | 90,272 | ||||
| Commercial and Industrial | $ | 236,362 | $ | 277,034 | ||||
| Residential Mortgage | $ | 564,073 | $ | 536,912 | ||||
| Consumer | $ | 64,075 | $ | 46,678 | ||||
| Investment securities | $ | 271,242 | $ | 279,534 | ||||
| Total deposits | $ | 1,787,729 | $ | 1,735,149 | ||||
| Noninterest bearing | $ | 455,127 | $ | 453,036 | ||||
| Interest bearing | $ | 1,332,602 | $ | 1,282,113 | ||||
| Shareholders' equity | $ | 213,988 | $ | 203,634 | ||||
| Capital ratios: | ||||||||
| Tier 1 to risk weighted assets | 15.34 | % | 15.36 | % | ||||
| Common Equity Tier 1 to risk weighted assets | 13.59 | % | 13.52 | % | ||||
| Tier 1 Leverage | 12.83 | % | 12.21 | % | ||||
| Total risk based capital | 16.60 | % | 16.61 | % | ||||
| Asset quality: | ||||||||
| Net charge-offs for the quarter | $ | (138 | ) | $ | (99 | ) | ||
| Nonperforming assets: (Period End) | ||||||||
| Nonaccrual loans | $ | 3,162 | $ | 4,192 | ||||
| Loans 90 days past due and accruing | 604 | 477 | ||||||
| Total nonperforming loans and 90 day past due | $ | 3,766 | $ | 4,669 | ||||
| Other real estate owned | $ | - | $ | 1,083 | ||||
| Other repossessed assets | $ | 2,692 | $ | 2,802 | ||||
| Modified loans | $ | 6,913 | $ | 1,209 | ||||
| Allowance for credit losses to gross loans | 1.36 | % | 1.28 | % | ||||
| Allowance for credit losses to non-accrual loans | 688.20 | % | 464.46 | % | ||||
| Allowance for credit losses to non-performing assets | 336.96 | % | 227.61 | % | ||||
| Non-performing and 90 day past due loans to total loans | 0.23 | % | 0.31 | % | ||||
| Non-performing loans and 90 day past due loans to total assets | 0.18 | % | 0.22 | % | ||||
| Non-accrual loans to total loans | 0.20 | % | 0.28 | % | ||||
| Non-performing assets to total assets | 0.31 | % | 0.41 | % | ||||
FIRST UNITED CORPORATION
Oakland, MD
Stock Symbol : FUNC
Financial Highlights - Unaudited
| September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| (Dollars in thousands, except per share data) | 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||
| Results of Operations: | ||||||||||||||||||||||||||||
| Interest income | $ | 26,979 | $ | 26,169 | $ | 25,711 | $ | 26,153 | $ | 25,762 | $ | 24,871 | $ | 24,062 | ||||||||||||||
| Interest expense | 7,365 | 7,583 | 7,637 | 8,166 | 8,359 | 8,164 | 8,046 | |||||||||||||||||||||
| Net interest income | 19,614 | 18,586 | 18,074 | 17,987 | 17,403 | 16,707 | 16,016 | |||||||||||||||||||||
| Provision for credit losses | 1,930 | 781 | 879 | 717 | 510 | 860 | 656 | |||||||||||||||||||||
| Other operating income | 5,486 | 5,319 | 5,208 | 5,330 | 5,074 | 4,940 | 4,822 | |||||||||||||||||||||
| Net gains | 121 | 39 | 132 | (97 | ) | 261 | 146 | 92 | ||||||||||||||||||||
| Other operating expense | 13,815 | 15,765 | 13,693 | 14,869 | 12,986 | 12,974 | 12,576 | |||||||||||||||||||||
| Income before taxes | $ | 9,476 | $ | 7,398 | $ | 8,842 | $ | 7,634 | $ | 9,242 | $ | 7,959 | $ | 7,698 | ||||||||||||||
| Income tax expense | 2,295 | 1,731 | 2,179 | 1,857 | 2,294 | 1,975 | 1,892 | |||||||||||||||||||||
| Net income | $ | 7,181 | $ | 5,667 | $ | 6,663 | $ | 5,777 | $ | 6,948 | $ | 5,984 | $ | 5,806 | ||||||||||||||
| Per share data: | ||||||||||||||||||||||||||||
| Basic net income per share | $ | 1.11 | $ | 0.88 | $ | 1.03 | $ | 0.89 | $ | 1.07 | $ | 0.92 | $ | 0.90 | ||||||||||||||
| Diluted net income per share | $ | 1.11 | $ | 0.88 | $ | 1.03 | $ | 0.89 | $ | 1.07 | $ | 0.92 | $ | 0.89 | ||||||||||||||
| Adjusted basic net income (1) | $ | 1.11 | $ | 1.14 | $ | 1.02 | $ | 1.10 | $ | 1.07 | $ | 0.92 | $ | 0.90 | ||||||||||||||
| Adjusted diluted net income (1) | $ | 1.11 | $ | 1.14 | $ | 1.02 | $ | 1.10 | $ | 1.07 | $ | 0.92 | $ | 0.89 | ||||||||||||||
| Dividends declared per share | $ | 0.28 | $ | 0.26 | $ | 0.26 | $ | 0.26 | $ | 0.26 | $ | 0.22 | $ | 0.22 | ||||||||||||||
| Book value | $ | 33.15 | $ | 32.91 | $ | 31.84 | $ | 31.33 | $ | 30.65 | $ | 29.43 | $ | 28.35 | ||||||||||||||
| Diluted book value | $ | 33.10 | $ | 32.86 | $ | 31.78 | $ | 31.27 | $ | 30.59 | $ | 29.38 | $ | 28.27 | ||||||||||||||
| Tangible book value per share | $ | 31.41 | $ | 31.16 | $ | 30.08 | $ | 29.56 | $ | 28.87 | $ | 27.64 | $ | 26.55 | ||||||||||||||
| Diluted Tangible book value per share | $ | 31.37 | $ | 31.12 | $ | 30.02 | $ | 29.50 | $ | 28.82 | $ | 27.59 | $ | 26.47 | ||||||||||||||
| Closing market value | $ | 42.77 | $ | 44.11 | $ | 36.64 | $ | 37.19 | $ | 36.77 | $ | 31.01 | $ | 30.02 | ||||||||||||||
| Market Range: | ||||||||||||||||||||||||||||
| High | $ | 46.18 | $ | 45.98 | $ | 40.53 | $ | 40.79 | $ | 38.41 | $ | 32.09 | $ | 41.61 | ||||||||||||||
| Low | $ | 42.16 | $ | 36.27 | $ | 35.02 | $ | 33.63 | $ | 32.02 | $ | 25.90 | $ | 29.38 | ||||||||||||||
| Shares outstanding at period end: Basic | 6,456,055 | 6,453,836 | 6,446,717 | 6,499,476 | 6,496,908 | 6,494,611 | 6,478,634 | |||||||||||||||||||||
| Shares outstanding at period end: Diluted | 6,464,823 | 6,462,604 | 6,459,155 | 6,511,358 | 6,508,790 | 6,506,493 | 6,497,454 | |||||||||||||||||||||
| Performance ratios: (Year to Date Period End, annualized) | ||||||||||||||||||||||||||||
| Return on average assets | 1.26 | % | 1.20 | % | 1.29 | % | 1.21 | % | 1.24 | % | 1.20 | % | 1.19 | % | ||||||||||||||
| Adjusted return on average assets (1) | 1.36 | % | 1.36 | % | 1.28 | % | 1.28 | % | 1.24 | % | 1.20 | % | 1.19 | % | ||||||||||||||
| Return on average shareholders' equity | 12.37 | % | 11.92 | % | 13.06 | % | 12.70 | % | 13.23 | % | 12.78 | % | 12.83 | % | ||||||||||||||
| Adjusted return on average shareholders' equity (1) | 13.38 | % | 13.49 | % | 12.99 | % | 13.39 | % | 13.23 | % | 12.78 | % | 12.83 | % | ||||||||||||||
| Net interest margin (Non-GAAP), includes tax exempt income of $221 and $160 | 3.94 | % | 3.89 | % | 3.83 | % | 3.67 | % | 3.64 | % | 3.61 | % | 3.56 | % | ||||||||||||||
| Net interest margin GAAP | 3.93 | % | 3.87 | % | 3.82 | % | 3.66 | % | 3.63 | % | 3.60 | % | 3.55 | % | ||||||||||||||
| Efficiency ratio - non-GAAP (2) | 56.51 | % | 57.49 | % | 58.45 | % | 58.19 | % | 58.73 | % | 59.66 | % | 59.95 | % | ||||||||||||||
(1) See reconciliation of this non-GAAP financial measure provided elsewhere herein.
(2) Efficiency ratio is a non-GAAP measure calculated by dividing total operating expenses by the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities and/or fixed assets and costs incurred on core contract renewal.
| September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||
| Financial Condition at period end: | ||||||||||||||||||||||||||||
| Assets | $ | 2,098,046 | $ | 2,082,092 | $ | 2,039,010 | $ | 2,087,453 | $ | 2,023,974 | $ | 2,007,471 | $ | 1,979,753 | ||||||||||||||
| Earning assets | $ | 1,879,432 | $ | 1,854,045 | $ | 1,810,557 | $ | 1,807,780 | $ | 1,784,056 | $ | 1,789,747 | $ | 1,762,891 | ||||||||||||||
| Gross loans | $ | 1,605,422 | $ | 1,572,131 | $ | 1,525,466 | $ | 1,521,704 | $ | 1,496,762 | $ | 1,502,481 | $ | 1,479,869 | ||||||||||||||
| Commercial Real Estate | $ | 616,483 | $ | 625,821 | $ | 609,491 | $ | 570,808 | $ | 554,418 | $ | 550,717 | $ | 532,764 | ||||||||||||||
| Acquisition and Development | $ | 124,429 | $ | 102,211 | $ | 97,785 | $ | 90,272 | $ | 93,968 | $ | 98,937 | $ | 94,063 | ||||||||||||||
| Commercial and Industrial | $ | 236,362 | $ | 242,013 | $ | 246,192 | $ | 277,034 | $ | 279,079 | $ | 281,484 | $ | 282,370 | ||||||||||||||
| Residential Mortgage | $ | 564,073 | $ | 547,118 | $ | 526,314 | $ | 536,912 | $ | 521,317 | $ | 521,968 | $ | 520,072 | ||||||||||||||
| Consumer | $ | 64,075 | $ | 54,968 | $ | 45,684 | $ | 46,678 | $ | 47,980 | $ | 49,375 | $ | 50,600 | ||||||||||||||
| Investment securities | $ | 271,242 | $ | 279,300 | $ | 282,711 | $ | 279,534 | $ | 278,898 | $ | 279,541 | $ | 275,143 | ||||||||||||||
| Total deposits | $ | 1,787,729 | $ | 1,735,513 | $ | 1,750,703 | $ | 1,735,149 | $ | 1,678,902 | $ | 1,614,207 | $ | 1,623,574 | ||||||||||||||
| Noninterest bearing | $ | 455,127 | $ | 441,365 | $ | 451,303 | $ | 453,036 | $ | 429,986 | $ | 425,784 | $ | 422,415 | ||||||||||||||
| Interest bearing | $ | 1,332,602 | $ | 1,294,148 | $ | 1,299,400 | $ | 1,282,113 | $ | 1,248,916 | $ | 1,188,423 | $ | 1,201,159 | ||||||||||||||
| Shareholders' equity | $ | 213,988 | $ | 212,374 | $ | 205,262 | $ | 203,634 | $ | 199,099 | $ | 191,147 | $ | 183,694 | ||||||||||||||
| Capital ratios: | ||||||||||||||||||||||||||||
| Tier 1 to risk weighted assets | 15.34 | % | 15.26 | % | 15.82 | % | 15.36 | % | 15.59 | % | 15.22 | % | 14.87 | % | ||||||||||||||
| Common Equity Tier 1 to risk weighted assets | 13.59 | % | 13.48 | % | 13.94 | % | 13.52 | % | 13.68 | % | 13.32 | % | 12.97 | % | ||||||||||||||
| Tier 1 Leverage | 12.83 | % | 12.70 | % | 12.23 | % | 12.21 | % | 12.10 | % | 12.08 | % | 11.94 | % | ||||||||||||||
| Total risk based capital | 16.60 | % | 16.51 | % | 17.07 | % | 16.61 | % | 16.84 | % | 16.47 | % | 16.10 | % | ||||||||||||||
| Asset quality: | ||||||||||||||||||||||||||||
| Net (charge-offs)/recoveries for the quarter | $ | (138 | ) | $ | (96 | ) | $ | (198 | ) | $ | (99 | ) | $ | (435 | ) | $ | (151 | ) | $ | (360 | ) | |||||||
| Nonperforming assets: (Period End) | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 3,162 | $ | 4,514 | $ | 4,695 | $ | 4,192 | $ | 3,825 | $ | 3,813 | $ | 4,026 | ||||||||||||||
| Loans 90 days past due and accruing | 604 | 391 | 66 | 477 | 801 | 535 | 233 | |||||||||||||||||||||
| Total nonperforming loans and 90 day past due | $ | 3,766 | $ | 4,905 | $ | 4,761 | $ | 4,669 | $ | 4,626 | $ | 4,348 | $ | 4,259 | ||||||||||||||
| Other real estate owned | $ | - | $ | - | $ | 1,083 | $ | 1,083 | $ | 2,718 | $ | 3,035 | $ | 3,062 | ||||||||||||||
| Other repossessed assets | $ | 2,692 | $ | 2,780 | $ | 2,692 | $ | 2,802 | $ | 3,043 | $ | 2,802 | $ | 2,802 | ||||||||||||||
| Modified loans | $ | 6,913 | $ | 1,199 | $ | 1,955 | $ | 1,209 | $ | 998 | $ | 1,198 | $ | 1,021 | ||||||||||||||
| Allowance for credit losses to gross loans | 1.36 | % | 1.31 | % | 1.31 | % | 1.28 | % | 1.28 | % | 1.27 | % | 1.25 | % | ||||||||||||||
| Allowance for credit losses to non-accrual loans | 688.20 | % | 456.16 | % | 424.94 | % | 464.46 | % | 499.06 | % | 499.45 | % | 458.69 | % | ||||||||||||||
| Allowance for credit losses to non-performing assets | 336.96 | % | 267.94 | % | 233.73 | % | 227.61 | % | 183.78 | % | 186.98 | % | 182.43 | % | ||||||||||||||
| Non-performing and 90 day past due loans to total loans | 0.23 | % | 0.31 | % | 0.31 | % | 0.31 | % | 0.31 | % | 0.29 | % | 0.29 | % | ||||||||||||||
| Non-performing loans and 90 day past due loans to total assets | 0.18 | % | 0.24 | % | 0.23 | % | 0.22 | % | 0.23 | % | 0.22 | % | 0.22 | % | ||||||||||||||
| Non-accrual loans to total loans | 0.20 | % | 0.29 | % | 0.31 | % | 0.28 | % | 0.26 | % | 0.25 | % | 0.27 | % | ||||||||||||||
| Non-performing assets to total assets | 0.31 | % | 0.37 | % | 0.42 | % | 0.41 | % | 0.51 | % | 0.51 | % | 0.51 | % | ||||||||||||||
Consolidated Statement of Condition
| (Dollars in thousands - Unaudited) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | ||||||||||||
| Assets | ||||||||||||||||
| Cash and due from banks | $ | 73,725 | $ | 84,195 | $ | 89,220 | $ | 129,830 | ||||||||
| Interest bearing deposits in banks | 1,147 | 993 | 627 | 1,782 | ||||||||||||
| Cash and cash equivalents | 74,872 | 85,188 | 89,847 | 131,612 | ||||||||||||
| Investment securities – available for sale (at fair value) | 101,978 | 107,997 | 109,004 | 107,144 | ||||||||||||
| Investment securities – held to maturity (at cost) | 168,212 | 170,259 | 172,672 | 171,361 | ||||||||||||
| Equity investments with readily determinable fair market values | 1,052 | 1,044 | 1,035 | 1,029 | ||||||||||||
| Restricted investment in bank stock, at cost | 1,621 | 1,621 | 1,621 | 4,630 | ||||||||||||
| Loans held for sale | — | — | 132 | 130 | ||||||||||||
| Loans | 1,605,422 | 1,572,131 | 1,525,466 | 1,521,704 | ||||||||||||
| Unearned fees | (711 | ) | (592 | ) | (512 | ) | (476 | ) | ||||||||
| Allowance for credit losses | (21,761 | ) | (20,591 | ) | (19,951 | ) | (19,470 | ) | ||||||||
| Net loans | 1,582,950 | 1,550,948 | 1,505,003 | 1,501,758 | ||||||||||||
| Premises and equipment, net | 29,149 | 29,550 | 30,020 | 29,665 | ||||||||||||
| Goodwill and other intangible assets | 11,196 | 11,279 | 11,361 | 11,444 | ||||||||||||
| Bank owned life insurance | 50,884 | 50,501 | 50,125 | 50,360 | ||||||||||||
| Deferred tax assets | 9,499 | 8,072 | 9,141 | 8,730 | ||||||||||||
| Other real estate owned, net | — | — | 1,083 | 1,083 | ||||||||||||
| Operating lease asset | 788 | 862 | 939 | 1,015 | ||||||||||||
| Pension asset | 23,140 | 24,044 | 20,036 | 20,798 | ||||||||||||
| Accrued interest receivable and other assets | 42,705 | 40,727 | 36,991 | 46,694 | ||||||||||||
| Total Assets | $ | 2,098,046 | $ | 2,082,092 | $ | 2,039,010 | $ | 2,087,453 | ||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||
| Liabilities: | ||||||||||||||||
| Non-interest bearing deposits | $ | 455,127 | $ | 441,365 | $ | 451,303 | $ | 453,036 | ||||||||
| Interest bearing deposits | 1,332,602 | 1,294,148 | 1,299,400 | 1,282,113 | ||||||||||||
| Total deposits | 1,787,729 | 1,735,513 | 1,750,703 | 1,735,149 | ||||||||||||
| Short-term borrowings | 32,838 | 69,233 | 19,588 | 17,661 | ||||||||||||
| Long-term borrowings | 30,929 | 30,929 | 30,929 | 95,929 | ||||||||||||
| Operating lease liability | 927 | 1,009 | 1,095 | 1,180 | ||||||||||||
| Allowance for credit loss on off balance sheet exposures | 2,074 | 1,463 | 1,418 | 1,218 | ||||||||||||
| Accrued interest payable and other liabilities | 27,753 | 29,893 | 28,323 | 30,992 | ||||||||||||
| Dividends payable | 1,808 | 1,678 | 1,692 | 1,690 | ||||||||||||
| Total Liabilities | 1,884,058 | 1,869,718 | 1,833,748 | 1,883,819 | ||||||||||||
| Shareholders’ Equity: | ||||||||||||||||
| Common Stock – par value $0.01 per share; Authorized 25,000,000 shares; issued and outstanding 6,456,055 shares at September 30, 2026, and 6,499,476 at December 31, 2025 | 65 | 64 | 64 | 65 | ||||||||||||
| Surplus | 19,706 | 19,514 | 19,360 | 21,551 | ||||||||||||
| Retained earnings | 221,636 | 216,262 | 212,255 | 207,284 | ||||||||||||
| Accumulated other comprehensive loss | (27,419 | ) | (23,466 | ) | (26,417 | ) | (25,266 | ) | ||||||||
| Total Shareholders’ Equity | 213,988 | 212,374 | 205,262 | 203,634 | ||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 2,098,046 | $ | 2,082,092 | $ | 2,039,010 | $ | 2,087,453 | ||||||||
Historical Income Statement
| 2026 | 2025 | |||||||||||||||||||||||||||||||
| Q3 | Q2 | Q1 | Year to date | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| In thousands | (Unaudited) | |||||||||||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 24,861 | $ | 23,779 | $ | 22,502 | $ | 90,328 | $ | 23,219 | $ | 23,060 | $ | 22,294 | $ | 21,755 | ||||||||||||||||
| Interest on investment securities | ||||||||||||||||||||||||||||||||
| Taxable | 1,837 | 1,907 | 1,880 | 7,210 | 1,845 | 1,826 | 1,776 | 1,763 | ||||||||||||||||||||||||
| Exempt from federal income tax | 59 | 59 | 59 | 218 | 59 | 57 | 57 | 45 | ||||||||||||||||||||||||
| Total investment income | 1,896 | 1,966 | 1,939 | 7,428 | 1,904 | 1,883 | 1,833 | 1,808 | ||||||||||||||||||||||||
| Other | 222 | 424 | 1,270 | 3,092 | 1,030 | 819 | 744 | 499 | ||||||||||||||||||||||||
| Total interest income | 26,979 | 26,169 | 25,711 | 100,848 | 26,153 | 25,762 | 24,871 | 24,062 | ||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||
| Interest on deposits | 6,784 | 7,033 | 6,631 | 27,524 | 7,044 | 7,009 | 6,788 | 6,683 | ||||||||||||||||||||||||
| Interest on short-term borrowings | 50 | 26 | 11 | 75 | 17 | 17 | 21 | 20 | ||||||||||||||||||||||||
| Interest on long-term borrowings | 531 | 524 | 995 | 5,136 | 1,105 | 1,333 | 1,355 | 1,343 | ||||||||||||||||||||||||
| Total interest expense | 7,365 | 7,583 | 7,637 | 32,735 | 8,166 | 8,359 | 8,164 | 8,046 | ||||||||||||||||||||||||
| Net interest income | 19,614 | 18,586 | 18,074 | 68,113 | 17,987 | 17,403 | 16,707 | 16,016 | ||||||||||||||||||||||||
| Credit loss expense/(credit) | ||||||||||||||||||||||||||||||||
| Loans | 1,308 | 736 | 679 | 2,345 | 480 | 480 | 728 | 657 | ||||||||||||||||||||||||
| Debt securities held to maturity | 11 | — | — | 43 | — | 43 | — | — | ||||||||||||||||||||||||
| Off balance sheet credit exposures | 611 | 45 | 200 | 355 | 237 | (13 | ) | 132 | (1 | ) | ||||||||||||||||||||||
| Provision for credit losses | 1,930 | 781 | 879 | 2,743 | 717 | 510 | 860 | 656 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 17,684 | 17,805 | 17,195 | 65,370 | 17,270 | 16,893 | 15,847 | 15,360 | ||||||||||||||||||||||||
| Other operating income | ||||||||||||||||||||||||||||||||
| Net gains on investments, available for sale | — | — | — | 97 | — | 97 | — | — | ||||||||||||||||||||||||
| Gains on sale of residential mortgage loans | 89 | 39 | 86 | 533 | 132 | 163 | 146 | 92 | ||||||||||||||||||||||||
| Gains/(Losses) on disposal of fixed assets | 32 | — | 46 | (228 | ) | (229 | ) | 1 | — | — | ||||||||||||||||||||||
| Net gains/(losses) | 121 | 39 | 132 | 402 | (97 | ) | 261 | 146 | 92 | |||||||||||||||||||||||
| Other Income | ||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 590 | 568 | 547 | 2,255 | 568 | 563 | 577 | 547 | ||||||||||||||||||||||||
| Other service charges | 201 | 204 | 189 | 845 | 207 | 218 | 214 | 206 | ||||||||||||||||||||||||
| Trust department | 2,723 | 2,684 | 2,554 | 9,824 | 2,667 | 2,448 | 2,386 | 2,323 | ||||||||||||||||||||||||
| Debit card income | 1,045 | 1,046 | 931 | 4,057 | 1,173 | 980 | 983 | 921 | ||||||||||||||||||||||||
| Bank owned life insurance | 384 | 376 | 539 | 1,408 | 364 | 355 | 348 | 341 | ||||||||||||||||||||||||
| Brokerage commissions | 385 | 388 | 382 | 1,445 | 308 | 346 | 370 | 421 | ||||||||||||||||||||||||
| Other | 158 | 53 | 66 | 332 | 43 | 164 | 62 | 63 | ||||||||||||||||||||||||
| Total other income | 5,486 | 5,319 | 5,208 | 20,166 | 5,330 | 5,074 | 4,940 | 4,822 | ||||||||||||||||||||||||
| Total other operating income | 5,607 | 5,358 | 5,340 | 20,568 | 5,233 | 5,335 | 5,086 | 4,914 | ||||||||||||||||||||||||
| Other operating expenses | ||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 8,122 | 8,157 | 8,201 | 29,347 | 7,108 | 7,589 | 7,319 | 7,331 | ||||||||||||||||||||||||
| FDIC premiums | 280 | 274 | 279 | 1,051 | 273 | 266 | 267 | 245 | ||||||||||||||||||||||||
| Equipment | 484 | 525 | 521 | 2,217 | 559 | 515 | 565 | 578 | ||||||||||||||||||||||||
| Occupancy | 683 | 690 | 725 | 2,860 | 817 | 679 | 675 | 689 | ||||||||||||||||||||||||
| Data processing | 1,845 | 1,739 | 1,664 | 6,243 | 1,623 | 1,517 | 1,600 | 1,503 | ||||||||||||||||||||||||
| Marketing | 263 | 193 | 234 | 904 | 288 | 182 | 196 | 238 | ||||||||||||||||||||||||
| Professional services | 599 | 2,702 | 570 | 2,449 | 745 | 639 | 589 | 476 | ||||||||||||||||||||||||
| Contract labor | 156 | 189 | 166 | 634 | 178 | 127 | 166 | 163 | ||||||||||||||||||||||||
| Telephone | 96 | 93 | 96 | 380 | 97 | 89 | 96 | 98 | ||||||||||||||||||||||||
| Other real estate owned | 4 | 59 | 123 | 2,235 | 1,866 | 69 | 208 | 92 | ||||||||||||||||||||||||
| Investor relations | 60 | 85 | 60 | 306 | 55 | 57 | 132 | 62 | ||||||||||||||||||||||||
| Contributions | 66 | 81 | 65 | 344 | 120 | 90 | 78 | 56 | ||||||||||||||||||||||||
| Other | 1,157 | 978 | 989 | 4,435 | 1,140 | 1,167 | 1,083 | 1,045 | ||||||||||||||||||||||||
| Total other operating expenses | 13,815 | 15,765 | 13,693 | 53,405 | 14,869 | 12,986 | 12,974 | 12,576 | ||||||||||||||||||||||||
| Income before income tax expense | 9,476 | 7,398 | 8,842 | 32,533 | 7,634 | 9,242 | 7,959 | 7,698 | ||||||||||||||||||||||||
| Provision for income tax expense | 2,295 | 1,731 | 2,179 | 8,018 | 1,857 | 2,294 | 1,975 | 1,892 | ||||||||||||||||||||||||
| Net Income | $ | 7,181 | $ | 5,667 | $ | 6,663 | $ | 24,515 | $ | 5,777 | $ | 6,948 | $ | 5,984 | $ | 5,806 | ||||||||||||||||
| Basic net income per common share | $ | 1.11 | $ | 0.88 | $ | 1.03 | $ | 3.78 | $ | 0.89 | $ | 1.07 | $ | 0.92 | $ | 0.90 | ||||||||||||||||
| Diluted net income per common share | $ | 1.11 | $ | 0.88 | $ | 1.03 | $ | 3.77 | $ | 0.89 | $ | 1.07 | $ | 0.92 | $ | 0.89 | ||||||||||||||||
| Weighted average number of basic shares outstanding | 6,455 | 6,451 | 6,483 | 6,490 | 6,499 | 6,496 | 6,489 | 6,474 | ||||||||||||||||||||||||
| Weighted average number of diluted shares outstanding | 6,464 | 6,461 | 6,494 | 6,504 | 6,510 | 6,508 | 6,506 | 6,490 | ||||||||||||||||||||||||
| Dividends declared per common share | $ | 0.28 | $ | 0.26 | $ | 0.26 | $ | 0.96 | $ | 0.26 | $ | 0.26 | $ | 0.22 | $ | 0.22 | ||||||||||||||||
Non-GAAP Financial Measures (unaudited)
Reconciliation of as reported (GAAP) and non-GAAP financial measures
The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.
The following non-GAAP financial measures exclude gains on disposal of fixed assets and consulting fees incurred with core processing contract in 2026.
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| (in thousands, except for per share amount) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income - as reported | $ | 7,181 | $ | 6,948 | $ | 19,511 | $ | 18,738 | ||||||||
| Adjustments: | ||||||||||||||||
| Gain on disposal of fixed assets | (32 | ) | — | (78 | ) | — | ||||||||||
| Consulting fee on core processing contract | — | — | 2,179 | — | ||||||||||||
| Income tax effect of adjustments | 8 | — | (508 | ) | — | |||||||||||
| Adjusted net income (non-GAAP) | $ | 7,157 | $ | 6,948 | $ | 21,104 | $ | 18,738 | ||||||||
| Basic earnings per share - as reported | $ | 1.11 | $ | 1.07 | $ | 3.02 | $ | 2.89 | ||||||||
| Adjustments: | ||||||||||||||||
| Gain on disposal of fixed assets | — | — | (0.01 | ) | — | |||||||||||
| Consulting fee on core processing contract | — | — | 0.26 | — | ||||||||||||
| Adjusted basic earnings per share (non-GAAP) | $ | 1.11 | $ | 1.07 | $ | 3.27 | $ | 2.89 | ||||||||
| Diluted earnings per share - as reported | $ | 1.11 | $ | 1.07 | $ | 3.01 | $ | 2.88 | ||||||||
| Adjustments: | ||||||||||||||||
| Gain on disposal of fixed assets | — | — | (0.01 | ) | — | |||||||||||
| Consulting fee on core processing contract | — | — | 0.26 | — | ||||||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 1.11 | $ | 1.07 | $ | 3.26 | $ | 2.88 | ||||||||
| As of or for the three months ended | As of or for the nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Per Share Data | ||||||||||||||||
| Basic net income per share - as reported | $ | 1.11 | $ | 1.07 | $ | 3.02 | $ | 2.89 | ||||||||
| Basic net income per share - non-GAAP | 1.11 | 1.07 | 3.27 | 2.89 | ||||||||||||
| Diluted net income per share - as reported | $ | 1.11 | $ | 1.07 | $ | 3.01 | $ | 2.88 | ||||||||
| Diluted net income per share - non-GAAP | 1.11 | 1.07 | 3.26 | 2.88 | ||||||||||||
| Basic book value per share | $ | 33.15 | $ | 30.65 | ||||||||||||
| Diluted book value per share | 33.10 | 30.59 | ||||||||||||||
Significant Ratios:
| As of or for the nine months ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Return on Average Assets - as reported | 1.26 | % | 1.24 | % | ||||
| Adjustments: | ||||||||
| Gain on disposal of fixed assets | (0.01 | )% | - | |||||
| Consulting fee on core processing contract | 0.11 | % | - | |||||
| Adjusted Return on Average Assets (non-GAAP) | 1.36 | % | 1.24 | % | ||||
| Return on Average Equity - as reported | 12.37 | % | 13.23 | % | ||||
| Gain on disposal of fixed assets | (0.04 | )% | - | |||||
| Consulting fee on core processing contract | 1.05 | % | - | |||||
| Adjusted Return on Average Equity (non-GAAP) | 13.38 | % | 13.23 | % | ||||
| Three Months Ended | ||||||||||||||||||||||||
| September 30 | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Loans | $ | 1,580,631 | $ | 24,897 | 6.25 | % | $ | 1,501,876 | 23,072 | 6.09 | % | |||||||||||||
| Investment Securities: | ||||||||||||||||||||||||
| Taxable | 286,479 | 1,837 | 2.54 | % | 285,623 | 1,826 | 2.54 | % | ||||||||||||||||
| Non taxable | 7,480 | 106 | 5.62 | % | 7,516 | 102 | 5.38 | % | ||||||||||||||||
| Total | 293,959 | 1,943 | 2.62 | % | 293,139 | 1,928 | 2.61 | % | ||||||||||||||||
| Federal funds sold | 52,274 | 177 | 1.34 | % | 70,731 | 697 | 3.91 | % | ||||||||||||||||
| Interest-bearing deposits with other banks | 1,102 | 14 | 5.04 | % | 5,324 | 30 | 2.24 | % | ||||||||||||||||
| Other interest earning assets | 2,668 | 31 | 4.61 | % | 5,660 | 92 | 6.45 | % | ||||||||||||||||
| Total earning assets | 1,930,634 | 27,062 | 5.56 | % | 1,876,730 | 25,819 | 5.46 | % | ||||||||||||||||
| Allowance for credit losses | (20,866 | ) | (19,343 | ) | ||||||||||||||||||||
| Non-earning assets | 160,300 | 185,364 | ||||||||||||||||||||||
| Total Assets | $ | 2,070,068 | $ | 2,042,751 | ||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 406,335 | $ | 1,798 | 1.76 | % | $ | 367,771 | $ | 1,509 | 1.63 | % | ||||||||||||
| Interest-bearing money markets- retail | 569,149 | 3,848 | 2.68 | % | 489,088 | 3,834 | 3.11 | % | ||||||||||||||||
| Interest-bearing money markets- brokered | 1 | — | — | % | 436 | 1 | 0.91 | % | ||||||||||||||||
| Savings deposits | 156,736 | 39 | 0.10 | % | 163,433 | 43 | 0.10 | % | ||||||||||||||||
| Time deposits - retail | 146,182 | 1,030 | 2.80 | % | 148,955 | 1,064 | 2.83 | % | ||||||||||||||||
| Time deposits - brokered | 6,371 | 69 | 4.30 | % | 50,000 | 558 | 4.43 | % | ||||||||||||||||
| Total deposits | 1,284,774 | 6,784 | 2.09 | % | 1,219,683 | 7,009 | 2.28 | % | ||||||||||||||||
| Short-term borrowings | 20,732 | 50 | 0.96 | % | 21,378 | 17 | 0.32 | % | ||||||||||||||||
| Long-term borrowings | 30,929 | 531 | 6.81 | % | 117,668 | 1,333 | 4.49 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,336,435 | 7,365 | 2.19 | % | 1,358,729 | 8,359 | 2.44 | % | ||||||||||||||||
| Non-interest-bearing deposits | 486,337 | 456,773 | ||||||||||||||||||||||
| Other liabilities | 31,965 | 31,020 | ||||||||||||||||||||||
| Shareholders’ Equity | 215,331 | 196,229 | ||||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 2,070,068 | $ | 2,042,751 | ||||||||||||||||||||
| Net interest income and spread | $ | 19,697 | 3.37 | % | $ | 17,460 | 3.02 | % | ||||||||||||||||
| Net interest margin | 4.05 | % | 3.69 | % | ||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||
| September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Loans | $ | 1,544,575 | $ | 71,223 | 6.17 | % | $ | 1,491,573 | $ | 67,144 | 6.02 | % | ||||||||||||
| Investment Securities: | ||||||||||||||||||||||||
| Taxable | 289,495 | 5,624 | 2.60 | % | 285,293 | 5,365 | 2.51 | % | ||||||||||||||||
| Non taxable | 7,488 | 317 | 5.66 | % | 7,158 | 284 | 5.30 | % | ||||||||||||||||
| Total | 296,983 | 5,941 | 2.67 | % | 292,451 | 5,649 | 2.58 | % | ||||||||||||||||
| Federal funds sold | 69,889 | 1,690 | 3.23 | % | 54,385 | 1,709 | 4.20 | % | ||||||||||||||||
| Interest-bearing deposits with other banks | 1,433 | 43 | 4.01 | % | 3,899 | 65 | 2.23 | % | ||||||||||||||||
| Other interest earning assets | 3,515 | 183 | 6.96 | % | 5,749 | 288 | 6.70 | % | ||||||||||||||||
| Total earning assets | 1,916,395 | 79,080 | 5.52 | % | 1,848,057 | 74,855 | 5.42 | % | ||||||||||||||||
| Allowance for credit losses | (20,285 | ) | (18,812 | ) | ||||||||||||||||||||
| Non-earning assets | 172,002 | 184,309 | ||||||||||||||||||||||
| Total Assets | $ | 2,068,112 | $ | 2,013,554 | ||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 397,119 | $ | 5,066 | 1.71 | % | $ | 368,384 | $ | 4,682 | 1.70 | % | ||||||||||||
| Interest-bearing money markets- retail | 559,723 | 11,276 | 2.69 | % | 475,592 | 10,958 | 3.08 | % | ||||||||||||||||
| Interest-bearing money markets- brokered | 56 | 1 | 2.39 | % | 357 | 7 | 2.62 | % | ||||||||||||||||
| Savings deposits | 158,512 | 120 | 0.10 | % | 167,905 | 131 | 0.10 | % | ||||||||||||||||
| Time deposits - retail | 148,061 | 3,324 | 3.00 | % | 146,985 | 3,241 | 2.95 | % | ||||||||||||||||
| Time deposits - brokered | 20,737 | 661 | 4.26 | % | 45,398 | 1,461 | 4.30 | % | ||||||||||||||||
| Total deposits | 1,284,208 | 20,448 | 2.13 | % | 1,204,621 | 20,480 | 2.27 | % | ||||||||||||||||
| Short-term borrowings | 19,755 | 87 | 0.59 | % | 21,408 | 58 | 0.36 | % | ||||||||||||||||
| Long-term borrowings | 49,500 | 2,050 | 5.54 | % | 119,830 | 4,031 | 4.50 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,353,463 | 22,585 | 2.23 | % | 1,345,859 | 24,569 | 2.44 | % | ||||||||||||||||
| Non-interest-bearing deposits | 471,165 | 447,478 | ||||||||||||||||||||||
| Other liabilities | 32,645 | 30,795 | ||||||||||||||||||||||
| Shareholders’ Equity | 210,839 | 189,422 | ||||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 2,068,112 | $ | 2,013,554 | ||||||||||||||||||||
| Net interest income and spread | $ | 56,495 | 3.29 | % | $ | 50,286 | 2.98 | % | ||||||||||||||||
| Net interest margin | 3.94 | % | 3.64 | % | ||||||||||||||||||||
Exhibit 99.2
MyBank.com INVESTOR PRESENTATION Third Quarter 2026
Forward looking statements This presentation contains forward - looking statements as defined by the Private Securities Litigation Reform Act of 1995 . Forward - looking statements do not represent historical facts, but are statements about management's beliefs, plans and objectives about the future, as well as its assumptions and judgments concerning such beliefs, plans and objectives . These statements are evidenced by terms such as "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions . Although these statements reflect management's good faith beliefs and projections, they are not guarantees of future performance and they may not prove true . The beliefs, plans and objectives on which forward - looking statements are based involve risks and uncertainties that could cause actual results to differ materially from those addressed in the forward - looking statements . For a discussion of these risks and uncertainties, see the section of the periodic reports that First United Corporation files with the Securities and Exchange Commission entitled "Risk Factors . Whether actual results will conform to expectations and predictions is subject to known and unknown risks and uncertainties . Actual results could be materially different from management’s expectations . This presentation should be read in conjunction with our Annual Report on Form 10 - K, for the year ended December 31 , 2025 , including the sections of the report entitled “Risk Factors”, as well as the reports and other documents that we subsequently file with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www . sec . gov or at our website at www . mybank . com . Except as required by law, we do not intend to publish updates or revisions of any forward - looking statements we make to reflect new information, future events or otherwise . 2
Table of Contents I. II. III. Corporate Overview Financial Performance Appendices Pg. 4 Pg. 10 Pg. 23
Our Mission To enrich the lives of our associates, customers, communities and shareholders through uncommon commitment to service and customized financial solutions. Corporate Overview Founded: 1900 Headquarters: Oakland, MD Locations: 23 branches Business Lines: ▪ Commercial & Retail Banking ▪ Trust Services ▪ Wealth Management Ticker: FUNC (Nasdaq) Website: www.MyBank.com Overview Morgantown, WV භ West Virginia Maryland • Pittsburgh, PA • Washington, DC • Baltimore, MD • Harrisburg, PA Winchester, VA භ Star denotes Oakland, Maryland Headquarters 4
Rooted in Community. Built on Trust. 1935 First National Bank of Oakland purchased Farmers Bank of Oakland. 1960 First National Bank of Oakland purchased First National Bank of Friendsville. 1963 Bank By Boat - the Lake Community Office opened, was called America's First Banking by Boat Office. 1988 Merger with First National Bank of Piedmont, marking first expansion into West Virginia. 1993 Acquisition of Myersville Bank continued our expansion into eastern market. 2004 First Morgantown area office opened in Sabraton. 2008 Enhanced digital customer solutions, offering online account opening. 2011 First United Trust & Investments department celebrates it's 50th year. 2016 Carissa Rodeheaver is named Chairman of the Board, Chief Executive Officer and President. 2020 Honored by 2020 Women on Boards for Female Board Representation. 2025 Celebrated 125 th anniversary and opened WestRidge , WV and Boonsboro, MD offices.
Note: Out of market loans representing $207 million are not reflected in this table (1) Source: FDIC Market Share Data, most current. Deposit market share for each region includes the following counties: West : Monongalia, WV Central: Garrett, MD; Allegany, MD; Mineral, WV East: Washington, MD; Frederick, MD; Berkeley, WV Core Markets 6 West Region Loans (000s) : $368,352 Deposits (000s) : $165,247 Deposit Market Share (1) (at 6/30/2026) : 3% Branches: 3 Central Region Loans (000s) : $433,710 Deposits (000s) : $810,663 Deposit Market Share (1) (at 6/30/2026) : 47% Branches: 9 East Region Loans (000s) : $595,121 Deposits (000s) : $551,071 Deposit Market Share (1) (at 6/30/2026) : 5% Branches: 11
7 Core Strengths ▪ Diversified revenue stream driven by trust and brokerage fee income supplements margin Diversified Revenue Stream ▪ Stable legacy markets produce steady low - cost funding ▪ Technology and business relationships drive growth ▪ Opportunities in growth markets Core Deposit Franchise ▪ Diverse and experienced Board with skills to oversee risks, strategic initiatives and governance best practices ▪ Ongoing Board and management succession strategy Engaged & Diverse Leadership ▪ Well - established operational infrastructure will support future growth ▪ Expense management focus, hybrid work environment and technology drive cost savings Expense Structure ▪ Strong underwriting guidelines and risk management framework ▪ Focus on risk mitigation, loan concentration management and information security ▪ Pristine asset quality and clean balance sheet Robust Enterprise Risk Management ▪ Innovative, dynamic approach to attract and retain clients through customized solutions ▪ Investment in FinTech funds provides early exposure to new technology ▪ Disciplined introduction of AI technology to drive efficiencies Forward - Thinking Approach ▪ Regulatory capital ratios significantly above regulatory requirements ▪ High balance sheet liquidity allowing for flexibility Financial Strength ▪ Supporting local causes with financial education, consultation and robust products and services ▪ Knowledgeable associates committed to helping clients & the communities we serve Culture of Engagement
Shareholder Value 8 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 172.84% 29.97% 63.83% FUNC S&P US Small Cap Banks 2026 Proxy Peers 5 Year Total Shareholder Return $0.60 $0.78 $0.82 $0.92 $1.06 2022 2023 2024 2025 2026 Dividends (per share, paid during year)
9 ??????? ▪ Explore opportunities and strategies to expand both net - interest income and non - interest income through non - traditional lines of business and digital product and service offerings ▪ Improve brand awareness and market share in growth markets. ▪ Foster customized relationship banking approach to deliver enhanced value to customer relationships. ▪ Optimize balance sheet mix to maximize profitability. ▪ Utilize data to expand share of wallet with existing relationships and to refine prospecting for new relationships ▪ Improve efficiency by utilizing new and existing technology, leveraging data, artificial intelligence, and digital alternatives. ▪ Allocate resources to optimize geographic presence. ▪ Cultivate relationships for potential future bank and wealth expansion. Culture & Human Capital Profitable Growth Resource Optimization ▪ Attract, hire and retain passionate, diverse talent to engage with clients and prospects across broader geographics. ▪ Expand associate engagement , cross - functional collaboration , and communication . ▪ Reinforce a values - based sales and training philosophy to drive strategic sales growth . ▪ Enhance succession plan through hands - on leadership opportunities, fostering forward - thinking strategies that encourage innovation and long - term personal growth. Effective use of technology, marketing and communications, and environmental focus underlies all strategic priorities.
10 $ 7.2 Million Net Income (1) $1.11 Diluted EPS (1) 1.38% * ROAA (1) 13.91% * ROATCE (1) 4.05 % NIM Third Quarter Financial Highlights ▪ Total assets in creased $ 16.0 million compared to June 30, 2026 ▪ Consolidated net income (1) of $ 7.2 million in 3Q26 compared to $ 6.9 million in 3 Q25 and $ 5.7 million in linked quarter; pre - provision net revenue of $11.4 million compared to $9.7 million and $10.4 million , respectively ▪ Net interest income, on a non - GAAP, FTE basis* increased $1.0 million in 3Q26 compared to 2Q26; increasing yield on earning assets and reduced funding costs ▪ Asset quality remains stable with the ratio of the allowance for credit losses (“ACL”) to loans outstanding at 1.36% in 3Q26 and 1.31% in the linked quarter ▪ Efficiency ratio of 54.67% (1) for the third quarter of 2026 compared to 56.55% for the linked quarter; Decrease primarily attributable to increased net interest income and stable non - interest income and non - interest expense (1) See Appendix for a reconciliation of these non - GAAP financial measures * 3Q2026 Annualized
11 $21.1 Million Net Income (1) $3.26 Diluted EPS (1) 1.36% * ROAA (1) 14.14% * ROATCE (1) 3.94% NIM Year to Date Financial Highlights ▪ Total assets in creased $10.6 million compared to Dec ember 31, 2025 ▪ Consolidated net income (1) of $21.1 million in 2026 compared to $18.7 million in 2025; pre - provision net revenue of $31.4 million compared to $26.8 million , respectively ▪ Net interest income, on a non - GAAP, FTE basis* increased $6.2 million comparing the nine months ended September 30, 2026 to the same period of 2025; increasing yield on earning assets and reduced funding costs ▪ Asset quality remains stable with the ratio of the allowance for credit losses (“ACL”) to loans outstanding at 1.36% in 3Q26 and 1.31% in 2Q26 ▪ Efficiency ratio of 56.51% (1) for the first nine months of 2026 compared to 58.73% for the first nine months of 2025. Decrease primarily attributable to increased net interest income, stable non - interest income and non - interest expense (1) See Appendix for a reconciliation of these non - GAAP financial measures * 3Q2026 Annualized
Solid Profitability Pre - Provision Net Revenue ($ in millions) (1) $32.5 $25.9 $30.7 $37.0 $31.4 2022 2023 2024 2025 3Q2026 (1) See Appendix for a reconciliation of these non - GAAP financial measures $3.76 $2.80 $3.21 $3.99 $3.26 2022 2023 2024 2025 3Q2026 Diluted Earnings per Share (1) 12 1.39% 0.97% 1.08% 1.28% 1.36% 2022 2023 2024 2025 3Q2026 Core ROAA (non - GAAP (1) ) Long - term Strategic Target 1.25% - 1.60% 19.94% 12.92% 13.35% 14.25% 14.14% 2022 2023 2024 2025 3Q2026 Core ROATCE (non - GAAP (1) ) Long - term Strategic Target 13% - 15%
Total 1 - 4 Family 34% CRE - NOO 21% C&I 18% CRE - OO 13% C&D 7% Consumer 4% Multi - family 3% Loan Diversification Loan Portfolio Mix (9/30/2026) RE/Rental/Leasing NOO 25% RE/Rental/ Leasing OO, C&I 17% All Other 17% Accommodations 12% Services 4% RE/Rental/Leasing Multifamily 5% Trade 4% Construction - Developers 5% Health Care / Social Assistance 4% RE/Rental/Leasing - Developers 3% Construction - All Other 4% Commercial Loan Mix (9/30/2026) 13
ALL / ACL Trends (Net Charge - Offs)/Average Loans Nonaccrual Loans / Total Loans NPAs / Total Assets 0.27% 0.28% 0.33% 0.28% 0.20% 2022 2023 2024 2025 3Q2026 0.46% 0.48% 0.59% 0.41% 0.31% 2022 2023 2024 2025 3Q2026 1.14% 1.24% 1.23% 1.28% 1.36% 2022 2023 2024 2025 3Q2026 --- - 0.06% - 0.07% - 0.16% - 0.07% - 0.04% 2022 2023 2024 2025 3Q2026 Credit Quality 14
15 Investment Portfolio Duration Book Yield Portfolio % Par (000s) Sector 5.12 2.29% 26% 73,388 Treasury/Agency 5.48 3.06 2.84% 5.11% 18% 2% 49,968 5,153 Fixed MBS Floating MBS 6.30 2.31% 26% 72,631 CMO 7.32 4.57% 6% 15,475 Municipal 0.42 5.82% 0% 1,000 Corporate 6.78 2.16% 22% 62,662 Other 5.90 2.56% 100.0 $280,277 TOTAL Ratings: 100% of municipal holdings are rated A or better* $28 0.3 Million Thereafter 2030 2029 2028 2027 2026 Year $152,082 $23,017 $20,075 $21,583 $35,681 $5,709 Annual Cashflow ($000’s) Base Case Portfolio Total Cashflow Treasury/ Agency CMO Fixed MBS Other Municipal Corporate The Other category above of $63.0 million includes agency backed multi - family, commercial mortgage - backed securities. Trust Preferred securities are not included in total above. Floating MBS
Deposits 16 32% 28% 27% 26% 25% 23% 23% 25% 23% 26% 36% 37% 39% 39% 42% 8% 10% 9% 9% 8% 0% 2% 0% 3% 0% 2022 2023 2024 2025 3Q2026 NIB Demand IB Demand MMA & Savings CDs - Retail CDs - Brokered $1.575 $1.571 $1.788 $1.551 $1.735 Deposit Composition ($ in billions as of 9/30/2026) 81% 91% 94 % 88% 90% Loan to Deposit Ratio 2022 2023 2024 2025 3 Q 2026 Deposit levels relatively flat due to fierce competition for deposits and recent inflationary spending by consumers, businesses and municipalities. % Balance Deposit Type 77% $1,374,119.556 Insured Deposits 17% $ 312,033,777 Uninsured – Uncollateralized Deposits 6% $ 101,575,412 Uninsured - Collateralized Deposits % Balance (MMs) Deposit Type 45% $808,225,363 Retail Deposits 55% $979,503,371 Business Deposits
Net Interest Margin 17 (1) See Appendix for a reconciliation of these non - GAAP financial measures 3.85% 4.63% 5.17% 5.43% 5.45% 5.49% 5.52% 0.44% 1.92% 2.51% 2.42% 2.22% 2.25% 2.23% 3.56% 3.26% 3.38% 3.67% 3.83% 3.89% 3.94% 0.21% 1.16% 1.68% 1.66% 1.53% 1.58% 1.56% 0.1% 1.1% 2.1% 3.1% 4.1% 5.1% 2022 2023 2024 2025 1Q2026 2Q2026 3Q2026 Yield on Earning Assets Cost of Interest-bearing Liabilities Net Interest Margin Cost of Deposits
Diversified Fee Income 18 (1) See Appendix for a reconciliation of these non - GAAP financial measures Composition 56% Trust and Brokerage 14% Service Charges 1% Net Gain on Loan Sales 19% Debit Card Income 8% Bank - owned Life Insurance 2% Other Noninterest Income Non - Interest Income Mix 2026 Trust & Brokerage Assets Under Management (MMs) ▪ First United’s non - interest income (1) comprised 22% of operating revenue as of September 30, 2026 ▪ Fee - based business provides stable growth, and a diversified revenue stream not directly tied to interest rates, as well as opportunities to build client relationships ▪ First United’s diverse array of products provides opportunities to fully engage with customers and produce stable increases to earnings $1,359 $1,532 $1,677 $1,840 $1,934 2022 2023 2024 2025 3Q2026
Capital Management 19 CET1 Ratio Leverage Ratio Tier 1 Ratio Total Risk - Based Capital Ratio Regulatory Well - Capitalized 10% 5% 8% 6.5% 15.06% 14.42% 14.70% 15.36% 15.34% 2022 2023 2024 2025 3Q2026 16.12% 15.64% 15.92% 16.61% 16.60% 2022 2023 2024 2025 3Q2026 11.46% 11.30% 11.88% 12.21% 12.83% 2022 2023 2024 2025 3Q2026 12.96% 12.44% 12.79% 13.52% 13.59% 2022 2023 2024 2025 3Q2026 Strong capital levels allowing for continued growth.
Capital and Liquidity Overview 20 $20.90 $22.56 $25.89 $29.57 $31.41 2022 2023 2024 2025 3Q2026 Tangible Book Value / Share 7.59% 7.91% 8.54% 9.26% 9.72% 2022 2023 2024 2025 3Q2026 TCE Ratio Net Availability ($ in thousands) Amount Used ($ in thousands) Amount Available ($ in thousands) Liquidity Sources (9/30/2026) Internal Sources $52,274 $52,274 Excess Cash $23,770 $23,770 Unpledged Securities (BV) External Sources $51,406 $10,000 $61,406 Federal Reserve (Discount Window) $140,000 $348,178 $5,859 $140,000 $354,037 Correspondent Unsecured Lines of Credit FHLB $615,628 $15,859 $631,487 Total Funding Sources
Operational Efficiency Key Drivers: ▪ ProfitStar forecasting model ▪ Automated loan booking ▪ Project management enhancements ▪ Evaluation of core banking technology ▪ Proactive contract negotiations ▪ Vendor consolidation (1) See Appendix for a reconciliation of these non - GAAP financial measures 21 Efficiency Ratio (1) Strategic Target 53% - 58% Decrease for the first nine months of 2026 due to increased net interest income and stable non - interest income and non - interest expense. 56.4% 65.1% 61.3% 58.2% 56.5% 2022 2023 2024 2025 3Q2026 ▪ Commercial and consumer loan software ▪ Re - imaged consumer mobile banking ▪ Process automation ▪ Additional customer payment rails Technology Enhancements ▪ Check fraud prevention solution ▪ Customer service chatbot & voicebot ▪ Agentic AI transformation program Artificial Intelligence ▪ Identity and access management ▪ FinTech funds FinTech Investments
Strategic Targets Long Term Strategic Target Range (*) Non - GAAP 12/31/2025 Actual 12/31/2025 Non - GAAP 12/31/2024 Actual 12/31/2024 Metric 8% - 12% 27% 20% 15% 41% EPS Growth (YoY) Strong Shareholder Return 22% - 27% 24% 24% 27.0% 27.0% Dividend Payout Ratio 1.25% - 1.45% 1.28% 1.21% 1.08% 1.06% ROAA 13% - 15% 14.25% 13.52% 13.35% 13.08% ROATCE 8% - 10% 9.26% 9.26% 8.54% 8.54% TCE Ratio 8% - 10% 11% 11% 12% 12% Revenue Growth (YoY) High Quality, Diversified Revenue Stream 23% - 25% 23.2% 23.2% 24.8% 24.8% Non - Int Inc / Revenue 3.5% - 3.8% 3.67% 3.67% 3.38% 3.38% N IM 7% - 9% 2.8% 2.8% 5.3% 5.3% % Loan Growth Balance Sheet Growth 75% - 80% 73% 73% 75% 75% Loans / Assets 90% - 95% 88% 88% 94% 94% Loans / Deposits 55% - 60% 58.19% 58.19% 61.31% 61.31% Efficiency Ratio (adjusted for non - core items) Highly Efficient Operations 0.50% - 1.00% 0.28% 0.28% 0.33% 0.33% NPLs / Loans Robust Risk Enterprise Management 0.10% - 0.50% - .07% - .07% - 0.16% - 0.16% Net Charge Offs / Avg. Total Loans (*) Targets reviewed on an annual basis Revised July 2026 (1) See Appendix for a reconciliation of these non - GAAP financial measures 22
I. II. III. IV. Management Team Board of Directors Community Engagement Non - GAAP Reconciliation Pg. 24 Pg. 25 Pg. 26 Pg. 28 Appendices
Tonya K. Sturm EVP & Chief Financial Officer, Corp. Secretary & Treasurer 35+ years of banking, audit, credit, retail, risk and compliance and financial and operational experience R.L. Fisher EVP & Chief Banking Officer 25+years with in - depth industry, retail, commercial and mortgage banking experience Keith R. Sanders EVP & Chief Wealth Officer 30+ years specializing in wealth management, estate planning, trust administration and financial planning Our leadership team reflects the diversity of thought from the communities we serve, executes on our strategy and drives shar eho lder returns. Julie W. Peterson EVP & Chief Credit Officer 30+ years with in - depth industry, commercial banking, and credit experience Jason B. Rush Chairman of the Board, President and CEO 30+ years with in - depth industry, retail, risk and compliance, asset/liability management and operations experience Anthony “AJ” Tasker SVP & Chief Operating Officer 10+ years of banking, information technology, and operational experience Management Team 24
John F. Barr Independent Director Chairman of the Board, Ellsworth Electric, Inc. Sanu Chadha Independent Director Managing Partner, M&S Consulting Christy DiPietro Independent Director, Audit Chair Chartered Financial Analyst, Hidden Cove Advisory Patricia Milon Independent Director Principal, Milford Advisory Group, LLC I. Robert Rudy Independent Director Retired H. Andrew Walls, III Independent Director President, MPB Print & Sign Superstore Member, MEGBA, LLC Beth E. Moran Independent Director, The Law Offices of Beth E. Moran Brian Boal Lead Independent Director, Nomination & Governance Chair Boal & Associates, PC Kevin Hessler Independent Director , Principal, LSWG, Inc. First United's Board of Directors represents individuals with varied backgrounds and viewpoints, contributing to its well - rounde d leadership and governance. Jason B. Rush Chairman of the Board, President and CEO First United Corporation and First United Bank & Trust Board of Directors 25
26 A proud community partner dedicated to Strengthening the places we call home. Commitment to Comm nity At First United Bank & Trust, our commitment extends beyond banking. Through financial education, volunteerism, charitable giving, and local partnerships, we invest in programs and initiatives that help individuals, families, businesses, and neighborhoods thrive. These initiatives reflect our dedication to creating opportunities for economic growth, financial well - being, and community succ ess. Education & Prosperous Future • Finture® Financial Education program • Student and youth development programs • Scholarship and educational initiatives • Workforce development partnerships • Career and technical education support • Mentorship and youth engagement programs Healthy Family & Safe, Affordable Housing • First United Community Dreams Foundation • FHLBank Atlanta Community Partners Program • Homeownership & Financial Literacy Education • Nonprofit Housing & Family Support Partnerships • Veteran & Underserved Population Housing Initiatives Vibrant & Equitable Neighborhoods & Businesses • Commercial banking relationships & Small business lending and advisory services • Community & economic development investments • Chamber of Commerce partnerships • Arts and cultural sponsorships • Downtown revitalization efforts • Entrepreneur and startup support programs
Recognition That Demonstrates Our Strength & Purpose Recognition is an important part of who we are. By celebrating accomplishments, milestones, and exceptional service, First United Bank & Trust reinforces a workplace culture where associates feel valued, supported, and empowered to make a lasting impact. Award - Winning Commitment to Empowering Women and Building Diverse Leadership A Trusted Leader in Banking, Business, and Community Impact
This presentation includes certain non - GAAP financial measures, including pre - provision net revenue, net income, earnings per share (basic and diluted), return on average assets, return on average tangible common equity, tangible common equity, tangible assets, the ratio of tangible common equity to tangible assets, tangible book value per share, net interest margin, and efficiency ratio . These non - GAAP financial measures and any other non - GAAP financial measures that are discussed in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP . There are a number of limitations related to the use of these non - GAAP financial measures versus their nearest GAAP equivalents . For example, other companies may calculate non - GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the Company’s non - GAAP financial measures as tools for comparison . The following is a reconciliation of the non - GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures . Non - GAAP Reconciliation 28 ($000s, except where otherwise noted) YTD 2022 2023 2024 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 3Q2026 Pre-Provision Net Revenue ("PPNR") Pre-tax income, as reported 33,181$ 19,476$ 27,229$ 32,532$ 7,698$ 7,958$ 9,242$ 7,634$ 8,842$ 7,398$ 9,476$ 25,716$ Add back: Provision expense (643) 1,619 2,933 2,743 656 860 510 717 879 781 1,930 3,590 Add back: Securities loss/(gain) - 4,214 - (97) - - (97) - - - - - Add back: Branch closure expenses - 623 562 - - - - - - - - - Add back: OREO Writedown - - - 1,635 - - - 1,635 - - - - Add back: (Gain)/loss on Sale of Star City - - - 228 - - - 228 (46) - (32) (78) Add back: Consulting Fee 2,179 - 2,179 Pre-Provision Net Revenue, as adjusted 32,538$ 25,932$ 30,724$ 37,041$ 8,354$ 8,818$ 9,655$ 10,214$ 9,675$ 10,358$ 11,374$ 31,407$ Net Income Net income, as reported 25,048$ 15,060$ 20,568$ 24,515$ 5,806$ 5,984$ 6,948$ 5,777$ 6,663$ 5,667$ 7,181$ 19,511$ Less: Preferred stock dividends - - - - - - - Net income, as reported (a) 25,048$ 15,060$ 20,568$ 24,515$ 5,806$ 5,984$ 6,948$ 5,777$ 6,663$ 5,667$ 7,181$ 19,511$ Add back: Securities loss/(gain) 3,259 - (73) - - (73) - - - - - Add back: Branch closure expenses 482 425 - - - - - - - - - Add back: OREO Writedown 1,232 - - - 1,232 - - - - Add back: (Gain)/loss on Sale of Star City 172 - - - 172 (35) - (24) (59) Add back: Consulting Fee 1,652 - 1,652 Net income, as adjusted (b) 25,048$ 18,801$ 20,993$ 25,846$ 5,806$ 5,984$ 6,875$ 7,181$ 6,628$ 7,319$ 7,157$ 21,104$
Non - GAAP Reconciliation , continued 29 ($000s, except where otherwise noted) YTD 2022 2023 2024 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 3Q2026 Weighted Average Common shares - basic (actual) (d) 6,649,740 6,685,676 6,527,077 6,489,581 6,474,368 6,489,245 6,496,122 6,498,587 6,482,525 6,451,403 6,455,242 6,463,057 Weighted Average Common shares - diluted (actual) (e) 6,661,055 6,701,243 6,539,521 6,503,554 6,489,990 6,505,753 6,508,004 6,510,469 6,494,059 6,461,394 6,464,010 6,473,155 Earnings Per Share - Basic Earnings Per Share - Basic, as reported (a)/(d) 3.77$ 2.25$ 3.15$ 3.78$ 0.90$ 0.92$ 1.06$ 0.89$ 1.03$ 0.88$ 1.11$ 3.02$ Add back: Securities loss/(gain) 0.49 - (0.01) - - (0.01) - - - - - Add back: Branch closure expenses 0.07 0.06 - - - - - - - - Add back: OREO Writedown 0.19 - - 0.19 - - - - Add back: (Gain)/loss on Sale of Star City 0.03 - - - 0.03 (0.01) (0.00) (0.01) Add back: Consulting Fee 0.26 - 0.26 Earnings Per Share - Basic, as adjusted (b)/(d) 3.77$ 2.81$ 3.21$ 3.99$ 0.90$ 0.92$ 1.05$ 1.11$ 1.02$ 1.13$ 1.11$ 3.27$ Earnings Per Share - Diluted Earnings Per Share - Diluted, as reported (a)/(e) 3.76$ 2.24$ 3.15$ 3.77$ 0.89$ 0.92$ 1.07$ 0.89$ 1.03$ 0.87$ 1.11$ 3.01$ Add back: Securities loss/(gain) 0.49 - (0.01) - - (0.01) - - - - - Add back: Branch closure expenses 0.07 0.06 - - - - - - - - - Add back: OREO Writedown 0.18 - - - 0.18 - - - - Add back: (Gain)/loss on Sale of Star City 0.03 - - - 0.03 (0.01) - - (0.01) Add back: Consulting Fee 0.26 - 0.26 Earnings Per Share - Diluted, as adjusted (b)/(e) 3.76$ 2.80$ 3.21$ 3.97$ 0.89$ 0.92$ 1.06$ 1.10$ 1.02$ 1.12$ 1.11$ 3.26$
Non - GAAP Reconciliation , continued 30 ($000s, except where otherwise noted) YTD 2022 2023 2024 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 3Q2026 Return on Average Assets (quarter and YTD annualized) Average Assets ( c) 1,801,711$ 1,924,119$ 1,946,724$ 2,022,002$ 1,976,702$ 1,997,750$ 2,042,751$ 2,070,950$ 2,098,817$ 2,039,072$ 2,070,068$ 2,068,112$ Return on Average Assets, as reported (a)/(c) 1.39% 0.78% 1.06% 1.21% 1.19% 1.20% 1.35% 1.11% 1.29% 1.11% 1.38% 1.26% Add back: Securities loss/(gain) 0.17% 0.00% (0) - - -0.01% - - - - - Add back: Branch closure expenses 0.02% 0.02% - - - - - - - - Add back: OREO Writedown 0 - - - 0.24% - - - - Add back: (Gain)/loss on Sale of Star City 0 - - - 0.03% -0.01% - 0.00% -0.01% Add back: Consulting Fee - 0.32% - 0.11% Return on Average Assets, as adjusted (b)/(c) 1.39% 0.97% 1.09% 1.28% 1.19% 1.20% 1.34% 1.38% 1.28% 1.44% 1.38% 1.36% Return on Average Common Stockholders' Equity Return on Average Tangible Common Stockholders' Equity Average common stockholders' equity (f) 137,685$ 155,631$ 169,189$ 193,001$ 183,463$ 188,572$ 196,229$ 203,738$ 206,907$ 210,278$ 215,331$ 210,839$ Average common stockholders' equity, as adjusted 137,685 155,631 169,189 193,001 183,463 188,572 196,229 203,738 206,907 210,278 215,331 210,839 Less: Average goodwill and intangibles 12,043 12,279 11,949 11,620 11,745 11,662 11,580 11,497 11,415 11,331 11,251 11,332 Average tangible common equity (g) 125,642$ 143,352$ 157,240$ 181,381$ 171,718$ 176,910$ 184,649$ 192,241$ 195,492$ 198,947$ 204,080$ 199,507$ Return on average common stockholders' equity, as reported (a)/(f) 18.19% 9.68% 12.16% 12.70% 12.83% 12.73% 14.05% 11.25% 13.06% 10.69% 13.23% 12.37% Add back: Securities loss/(gain) 0.00% 2.10% 0.00% (0) - - -0.15% - - - - - Add back: Branch closure expenses 0.31% 0.25% - - - - - - - - - Add back: OREO Writedown 0 - - - 2.40% - - - - Add back: Gain/(loss) on Sale of Star City 0 - - - 0.33% -0.07% - (0.00) -0.04% Add back: Consulting Fee - 0.00% - 3.15% - 1.05% Return on average common stockholders' equity, as adjusted (b)/(f) 18.19% 12.09% 12.41% 13.39% 12.83% 12.73% 13.90% 13.98% 12.99% 13.84% 13.19% 13.38% Return on average tangible common equity, as reported (a)/(g) 19.94% 10.51% 13.08% 13.52% 13.71% 13.57% 14.93% 11.92% 13.82% 11.43% 13.96% 13.08% Add back: Securities loss/(gain) - 2.10% - (0) - - -0.16% - - - - - Add back: Branch closure expenses - 0.31% 0.27% - - - - - - - - - Add back: OREO Writedown - - - 0 - - - 2.54% - - - - Add back: (Gain)/loss on Sale of Star City - - - 0 - - - 0.35% -0.07% - (0.00) -0.04% Add back: Consulting Fee - - 3.33% - 1.11% Return on average tangible common equity, as adj (b)/(g) 19.94% 12.92% 13.35% 14.25% 13.71% 13.57% 14.77% 14.82% 13.75% 14.76% 13.91% 14.14%
Non - GAAP Reconciliation , continued 31 2022 2023 2024 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 3Q2026 Tangible Book Value per Common Share Total common equity, as reported (h) 151,793$ 161,873$ 179,295$ 203,634$ 183,694$ 191,147$ 199,099$ 203,634$ 205,261$ 212,374$ 213,988$ 213,988$ 11,279 Less: Goodwill and intangibles 12,433 12,103 11,773 11,444 11,691 11,609 11,526 11,444 11,361 11,279 11,196 11,196 Total tangible common equity (i) 139,360$ 149,770$ 167,522$ 192,190$ 172,003$ 179,538$ 187,573$ 192,190$ 193,900$ 201,095$ 202,792$ 202,792$ Common shares outstanding - basic (actual) (j) 6,666,428 6,639,888 6,471,096 6,499,476 6,478,634 6,494,611 6,496,908 6,499,476 6,446,717 6,453,836 6,456,055 6,456,055 Tangible book value per basic common share (i)/(j) 20.90$ 22.56$ 25.89$ 29.57$ 26.55$ 27.64$ 28.87$ 29.57$ 30.08$ 31.16$ 31.41$ 31.41$ Tangible common equity to tangible assets ("TCE Ratio") Total assets, as reported (k) 1,848,169 1,905,860 1,973,022 2,087,453 1,979,753 2,007,471 2,023,974 2,087,453 2,039,010 2,082,092 2,098,046 2,098,046 Less: Goodwill 12,433 12,103 11,773 11,444 11,691 11,609 11,526 11,444 11,361 11,279 11,196 11,196 Total tangible assets (l) 1,835,736$ 1,893,757$ 1,961,249$ 2,076,009$ 1,968,062$ 1,995,862$ 2,012,448$ 2,076,009$ 2,027,649$ 2,070,813$ 2,086,850$ 2,086,850$ Tangible common equity to tangible assets (k)/(l) 7.59% 7.91% 8.54% 9.26% 8.74% 9.00% 9.32% 9.26% 9.56% 9.71% 9.72% 9.72% Net interest margin (tax equivalent) Net interest income 57,631$ 56,869$ 59,981$ 68,113$ 16,017$ 16,707$ 17,403$ 17,986$ 18,074$ 18,586$ 19,615$ 56,275$ Tax equivalent adjustment 940 629 227 218 49 54 57 58 58 80 83 221 Tax equivalent net interest income (m) 58,571$ 57,498$ 60,208$ 68,331$ 16,066$ 16,761$ 17,460$ 18,044$ 18,132$ 18,666$ 19,698$ 56,496$ Average earning assets (n) 1,647,151$ 1,766,240$ 1,782,241$ 1,862,391$ 1,829,989$ 1,841,112$ 1,876,730$ 1,907,725$ 1,918,961$ 1,879,978$ 1,930,634$ 1,916,395$ Net interest margin (tax equivalent) (m)/(n) 3.56% 3.26% 3.38% 3.67% 3.56% 3.65% 3.69% 3.75% 3.83% 3.98% 4.05% 3.94% Efficiency Ratio Noninterest expense, as reported 43,145$ 50,244$ 49,642$ 53,404$ 12,577$ 12,976$ 12,986$ 14,865$ 13,692$ 15,765$ 13,815$ 43,272$ Less: Branch closure expenses - 623 562 - - - - - - - Less: OREO Writedown - - - (1,598) - - 37 (1,635) - - Less: Consulting Fee (2,179) (2,179) Noninterest expense, adjusted (o) 43,145 49,621 49,080 51,806 12,577 12,976 13,023 13,230 13,692 13,586 13,815 41,093 Net interest income 57,631$ 56,868$ 59,981$ 68,113$ 16,017$ 16,707$ 17,404$ 17,985$ 18,074$ 18,586$ 19,615$ 56,275$ Noninterest income 17,906 14,471 19,827 20,567 4,914 5,087 5,335 5,231 5,340 5,358 5,606 16,304 Less: Securities loss/(gain) (4,214) - (97) - - (97) - - - - Less: Sale of Star City 229 229 (46) - (32) (78) Tax equivalent adjustment 940 629 227 218 49 54 57 58 58 80 83 221 Total tax equivalent revenue (p) 76,477$ 76,182$ 80,035$ 89,030$ 20,980$ 21,848$ 22,699$ 23,503$ 23,426$ 24,024$ 25,272$ 72,722$ Efficiency ratio, as adjusted (o)/(p) 56.41% 65.12% 61.31% 58.19% 59.95% 59.39% 57.37% 56.29% 58.45% 56.55% 54.67% 56.51%