First United Corporation (FUNC) reported its fourth‑quarter and full‑year 2025 results, posting GAAP net income of $5.8 million for Q4 and $24.5 million for the year, translating to diluted earnings of $0.89 and $3.77 per share, respectively.
The quarter’s GAAP net income was slightly lower than the $6.2 million earned in Q4 2024, but the full‑year figure rose 19% from $20.6 million in 2024. The decline in the quarter was largely offset by a $1.2 million write‑down of a legacy OREO property, while net interest income increased by $2.3 million, reflecting higher loan yields and a modest rise in average loan balances.
Non‑GAAP net income for Q4 2025 was $7.2 million, up from $6.2 million in Q4 2024, and the company’s non‑GAAP EPS of $1.10 beat the consensus estimate of $0.96 by $0.14. Revenue of $23.5 million also surpassed the $22.8 million estimate, driven by stronger loan and deposit growth and a 5% increase in wealth‑management fees. Compared with Q3 2025, non‑GAAP net income rose 4% to $7.2 million, indicating a steady upward trend.
Net interest margin for the year expanded to 3.67%, up from 3.48% in Q4 2024, as the bank captured higher yields on its loan portfolio and benefited from increased investment income on its securities holdings. The margin improvement also reflects disciplined expense management, with operating expenses growing only 2% year‑over‑year.
Executive Chairman Carissa L. Rodeheaver highlighted the 125th‑anniversary year as a period of record core earnings, attributing the performance to a strong net‑interest margin, robust loan and deposit growth, and disciplined cost control. She emphasized that the bank will continue to focus on margin management and strategic investments in high‑return segments as it moves into 2026.
The company also noted a $0.2 million sale of a retail branch office, a contracted sale that allowed the bank to relocate to a more convenient site in Morgantown, WV, and to streamline its branch footprint.
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