First United Corporation (FUNC) reported first‑quarter 2026 results that surpassed analyst expectations, with GAAP net income of $6.7 million ($1.03 per diluted share) and non‑GAAP net income of $6.6 million ($1.02 per diluted share). The company’s revenue of $23.34 million beat the consensus estimate of $22.83 million by $0.51 million, a 2.2% lift that reflects stronger demand across its core banking segments.
Revenue growth was driven by a 1.5% increase in community‑banking income and a 3.2% rise in wealth‑management fees, offsetting a modest decline in loan origination revenue. The earnings beat was largely attributable to disciplined cost management and a favorable mix of higher‑margin loan products.
Net interest income rose $2.1 million to $12.4 million, lifting the net interest margin to 3.83% from 3.75% in the prior quarter. The margin expansion was supported by higher loan yields, a modest rise in average loan balances, and a reduction in funding costs after the company repaid a $25 million brokered certificate of deposit and $65 million in Federal Home Loan Bank borrowings.
Operating expenses increased $1.1 million year‑over‑year, primarily due to a $0.9 million rise in salary and benefits. However, compared with the fourth quarter of 2025, operating expenses fell $1.2 million because the company avoided a prior OREO write‑down, illustrating effective expense control.
Credit quality remained strong, with an allowance for credit losses of $20 million and a provision of $0.9 million for the quarter. CEO Jason Rush noted that “overall growth was again tempered by elevated loan payoffs and paydowns, but we maintained solid credit performance and believe our balance sheet is well‑positioned.” The company also maintained its quarterly cash dividend of $0.26 per share, underscoring its commitment to shareholder returns.
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