Business
FIRST UNITED CORPORATION ANNOUNCES FIRST QUARTER 2023 EARNINGS
OAKLAND, Md., April 24, 2023 /PRNewswire/ -- First United Corporation (NASDAQ: FUNC), a bank holding company and the parent company of First United Bank &
About this update from First
[{"type":"text","content":"OAKLAND, Md., April 24, 2023 /PRNewswire/ -- First United Corporation (NASDAQ: FUNC), a bank holding company and the parent company of First United Bank & Trust (the \"Bank\"), today announced earnings results for the three-month period ended March 31, 2023. Consolidated net income was $4.4 million for the first quarter of 2023, or $0.65 per diluted share, compared to $5.7 million, or $0.86 per diluted share, for the first quarter of 2022 and $7.0 million, or $1.04 per diluted share, for the fourth quarter of 2022. \nAccording to Carissa Rodeheaver, President and CEO, \"Given the market instability in March, management strategically added liquidity to the balance sheet to increase cash levels and provide assurance to our depositors. While this increased cash position will impact the margin and earnings in 2023, we felt that it was prudent in light of the economic environment. We did experience deposit outflows early in the quarter due to the competitive deposit landscape and depositors spending cash. However, we did not experience changed deposit levels directly related to the recent market concerns.\" Rodeheaver further added \"Our balance sheet is strong with excess capital, strong cash positions and high-quality investments and loans. Earnings were impacted for the quarter due primarily to increased deposit costs, proactively increasing our allowance for credit losses, high costs related to unusually high health insurance claims and increased salaries and incentives. We are closely monitoring expenses and expect to see them level out as the year progresses. We continue to see solid residential and commercial loan demand and are experiencing high levels of production in our wealth division.\"\nFirst Quarter Financial Highlights:\nTotal assets at March 31, 2023 increased by $89.3 million, or 4.8%, when compared to December 31, 2022. Significant changes during the first quarter included:Cash balances increased by $81.6 million when compared to December 31, 2022. The increase in cash was related to management's strategic decision to obtain $80.0 million in Federal Home Loans Bank (\"FHLB\") borrowings and $61.1 million in brokered deposits, offset by decreases in commercial and municipal deposit balances.Investment securities decreased by $4.5 million when compared to December 31, 2022 due to the normal principal amortization in ...