Business
First United Corporation Announces Third Quarter And Year To Date 2021 Earnings
Earnings per share up 37.1% compared to the first nine months of 2020 driven by wealth management, loan origination and PPP fees, and reduced provision
About this update from First
[{"type":"text","content":"Earnings per share up 37.1% compared to the first nine months of 2020 driven by wealth management, loan origination and PPP fees, and reduced provision expense despite settlement costs and prepayment penalties\n Paycheck Protection Program forgiveness of $150.0 million and origination fees of $3.2 million YTD\n\n\nOAKLAND, Md., Oct. 26, 2021 /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, 2021. \nThird Quarter Financial Highlights:\nTotal assets at September 30, 2021 decreased by $24.9 million, or 1.4%, when compared to December 31, 2020. Deployed cash during the third quarter to repay $70.0 million of Federal Home Loan Bank (\"FHLB\") advances and purchase a $39.0 million mortgage pool Gross loans increased by $16.5 million in the third quarter, driven by the purchase of a $39.0 million mortgage pool to offset the decline in mortgage portfolio balances that were refinanced to lower fixed rates. Core commercial growth of $12.7 million, offset by forgiveness of $83.7 of Paycheck Protection Program (\"PPP\") loans during the third quarter Deposits declined by $11.6 million during the third quarter; however, growth year to date was $22.1 million Declines in both non-interest bearing and interest bearing deposits as we allowed runoff in higher cost CDs, primarily municipalitiesThe ratio of the allowance for loan losses (\"ALL\") to loans outstanding was 1.46% at September 30, 2021 as compared to 1.36% at September 30, 2020. The ALL to loans outstanding, excluding PPP loan balances of $30.3 million, was 1.49% at September 30, 2021, non-GAAP. Total provision expense was a credit of $0.6 million for the third quarter of 2021 as compared to expense of $0.2 million for the third quarter of 2020 Lower provision expense due primarily to continued strong asset quality, stable economic factors and stabilization of modified loans that have returned to principal and interest payments Net interest margin, on a non-GAAP, fully tax equivalent (\"FTE\") basis, increased to 3.38% for the third quarter of 2021 compared to 3.12% for the third quarter of 2020 and 3.13% for the second quarter of 2021. Non-interest income, excluding gains, increased 14%, or $0.6 mil...