First United Corporation Reports 36% Increase in Net Income for Fiscal Year 2024

First United Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net income rising to $20.6 million, compared to $15.1 million in the previous year. This growth was driven by a 12.8% increase in interest income, which reached $92.0 million, primarily due to higher average loan balances and interest rates. The provision for credit losses also increased to $2.9 million from $1.7 million in 2023, reflecting a proactive approach to managing credit risk amid changing economic conditions.

The corporation's total assets grew to $2.0 billion, marking a $67.2 million increase from the previous year. This growth was attributed to a $74.1 million rise in net loans, which reached $1.5 billion, alongside a $23.9 million increase in total deposits, which amounted to $1.6 billion. The bank's net interest margin improved to 3.38%, up from 3.26% in 2023, indicating enhanced profitability from its lending activities. The bank's allowance for credit losses stood at 1.23% of total loans, slightly down from 1.24% the previous year, reflecting stable asset quality.

Strategically, First United Corporation has focused on optimizing its branch network, resulting in the closure of several branches in February 2024. This decision contributed to a decrease in occupancy and equipment expenses by $1.0 million. The bank also reported a notable increase in wealth management income, which rose by $1.1 million due to improved market conditions and growth in customer relationships. The total market value of assets under the bank's wealth management department increased to approximately $1.7 billion, up from $1.5 billion in 2023.

Operationally, First United Corporation maintained a workforce of 326 employees as of December 31, 2024, with a focus on enhancing customer service and expanding its market presence in Maryland and West Virginia. The bank operates 22 branches and has seen a shift in its deposit structure, with significant increases in interest-bearing demand deposits and money market accounts. The bank's market share in Allegany County, Maryland, remains strong at 32.41%, while it holds a 61.65% market share in Garrett County.

Looking ahead, First United Corporation expressed optimism about its growth trajectory, emphasizing its commitment to maintaining strong capital ratios and effective risk management practices. The bank's total risk-based capital ratio was reported at 15.92%, well above the regulatory minimum, positioning it favorably for future expansion opportunities. The management remains vigilant regarding market conditions and is prepared to adapt its strategies to ensure continued financial stability and growth.