Business
First United Corporation Announces Second Quarter 2020 Earnings
Pre-tax, pre-provision earnings increased 46% over same period in 2019 and 11% over first quarter 2020 Loan production remains strong, driven by participation
About this update from First
[{"type":"text","content":"Pre-tax, pre-provision earnings increased 46% over same period in 2019 and 11% over first quarter 2020\n Loan production remains strong, driven by participation in Paycheck Protection Program, other commercial and mortgage lending\n\n\nOAKLAND, Md., Aug. 10, 2020 /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 six- and three-month periods ended June 30, 2020 and 2019. \nSecond Quarter 2020 Financial Highlights:\nTotal assets at June 30, 2020 grew by $197.6 million, a 13.7% increase when compared to total assets at December 31, 2019, due to loan and deposit growth of 13.4% and 18.4%, respectively Paycheck Protection Program (\"PPP\") loans totaled $144.4 million offset by a slight decline of $3.3 million in core loans Mortgage production, primarily in loans sold to the secondary market, totaled $61.4 million through June 30, 2020, double the production for the same period in 2019, leading to strong gains Total deposits increased by $209.5 million inclusive of PPP deposits Net interest margin, on a fully tax equivalent (\"FTE\") basis, decreased to 3.61% at June 30, 2020 compared to 3.70% at June 30, 2019 and 3.68% at December 31, 2019 Asset quality remains strong, with low delinquency and low net charge-offs Allowance for Loan Losses (\"ALL\") to loans outstanding, including PPP loan balances, was 1.43% at June 30, 2020 compared to 1.19% at June 30, 2019. The ALL to loans outstanding, excluding PPP loan balances of $144.4 million, was 1.62%. Consolidated net income remained stable at $2.6 million for the three months ended June 30, 2020 and 2019 despite an increase in provision expense for the second quarter of 2020 of $1.8 million when compared to the second quarter of 2019; basic and diluted net income per share were both $.37 for the second quarter of 2020 and 2019 Pre-tax, pre-provision income was $5.4 million for the quarter ended June 30, 2020 as compared to $3.7 million for the quarter ended June 30, 2019 and $4.9 million for the quarter ended March 31, 2020, representing increases of 46% and 10%, respectively Other operating income, excluding gains, declined slightly due to decreased wealth management income related to a decline in market values and decreased service charge income pr...