Business
First United Corporation Announces Third Quarter 2019 Earnings
OAKLAND, Md., Oct. 21, 2019 /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., Oct. 21, 2019 /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- and nine-month periods ended September 30, 2019. \nThird Quarter 2019 Highlights:\nConsolidated net income was $4.5 million, or $3.4 million after excluding insurance proceeds received, compared to $2.8 million for the third quarter of 2018 Basic and diluted net income per common share were both $.63, or $.48 after excluding insurance proceeds received, compared to $.39 for the third quarter of 2018 Net interest income increased $.3 million over the third quarter of 2018 Net interest margin, on an FTE basis, was 3.62%, compared to 3.79% for the third quarter of 2018 Cost of deposits of .74% remained low Revenue remained diversified with fee income representing 30% of net revenue Loan production and deposit growth remain strong Voluntary employee separation program introduced in the third quarter of 2019 is projected to reduce 2020 salaries and benefits by approximately $1.4 million, with approximately $.1 million of net severance expense expected to be recognized in the fourth quarter 2019Commenting on the Bank's results, Carissa L. Rodeheaver, Chairman, President and Chief Executive Officer, said, \"Our results, in particular net income, demonstrate consistent progress as we execute on our strategy to grow retail, commercial and wealth management relationships with our existing and new customers. Our loan production has been strong, keeping pace with growth we witnessed in 2018, even given higher than normal payoffs. Furthermore, despite competitive pressures, we have remained disciplined in our credit and pricing terms which will ultimately maintain both the strength of our margin and credit profile. Deposit growth was also strong, positioning us to lower short-term borrowings and fund anticipated loan growth throughout the course of this year, while maintaining margins. As we look ahead through the remainder of the year, reducing operating costs and utilizing technology to become more efficient continues to be a focus, positioning for sustained growth in 2020.\"\nFinancial Highlights Comparing the Nine and Three Months of 2019 and 2018:\nNet interest income increased $1.8 million and $.3 million for th...