Business
First United Corporation Announces Third Quarter 2020 Earnings
Strong mortgage production, low cost of funds and controlled expenses led to increased pre-tax, pre-provision earnings for the nine months ended September 30,
About this update from First
[{"type":"text","content":"Strong mortgage production, low cost of funds and controlled expenses led to increased pre-tax, pre-provision earnings for the nine months ended September 30, 2020 of 25% over same period in 2019\n Asset quality remains stable as loan modifications decrease to 1.8% of total loans as of October 30, 2020\n\n\nOAKLAND, Md., Nov. 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 nine- and three-month periods ended September 30, 2020 and 2019. \nThird Quarter and Year to Date 2020 Financial Highlights:\nTotal assets at September 30, 2020 grew by $243.9 million since December 31, 2019, a 16.9% increase, due to loan growth of 13.5% ($142.0 million) and increased cash balances due to deposit growth of 20.6% ($235.3 million) Paycheck Protection Program (\"PPP\") loans totaled $148.9 million and were offset by a decline of $6.9 million in core loans, primarily influenced by a $40.0 million reduction in mortgage loans Mortgage loan production, primarily in loans sold to the secondary market, totaled $101.8 million at September 30, 2020, leading to strong net gains of $1.5 million year-to-date and $0.7 million for the quarter Mortgage loans were primarily sold to the secondary market due to the low interest rate environment and consumer preference for long-term, fixed rate loans Total deposits increased by $235.3 million, driven equally by PPP and core deposit growthNet interest margin, on a fully tax equivalent (\"FTE\") basis, decreased to 3.43% at September 30, 2020 compared to 3.67% at September 30, 2019 and 3.68% at December 31, 2019 as a result of a reduction in loan yield and increased cash levels Allowance for Loan Losses (\"ALL\") to loans outstanding, including PPP loan balances, was 1.36% at September 30, 2020 compared to 1.20% at September 30, 2019 and 1.43% at June 30, 2020. The ALL to loans outstanding, excluding PPP loan balances of $148.9 million, was 1.55%. Consolidated net income increased to $5.0 million for the three months ended September 30, 2020 compared to $4.5 million for the same period of 2019, basic and diluted net income per share were both $0.70 for the third quarter of 2020 and were both $0.63 for the third quarter of 2019 Other operating income, excluding gains, d...