First · NASDAQ:FUNC
First — First United — Shareholder Meeting (May 2018)
36 slides from First's shareholder meeting presentation, May 17, 2018
Slide 1: First United Corporation Annual Shareholders' Meeting
First United Corporation Annual Shareholders’ Meeting May 17, 2018
Slide 2: John W. McCullough, Chairman of the Shareholders Meeting
John W. McCullough Director and Chairman of the Shareholders Meeting
Slide 3: Carissa Rodeheaver, Chief Executive Officer
Carissa Rodeheaver 3 Chief Executive Officer and Chairman of the Board
Slide 4: Forward Looking Statements
4 FORWARD LOOKING STATEMENTS This presentation contains “forward - looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995 relating to, among other things, First United Corporation’s plans, strategies, objectives, expectations, intentions and adequacy of resour
Slide 5: Journey to Your Financial Future
5 JOURNEY TO YOUR FINANCIAL FUTURE
Slide 6: Innovative, Modern Community Offices
6 INNOVATIVE, MODERN COMMUNITY OFFICES
Slide 7: Banking with Convenience
7 BANKING WITH CONVENIENCE
Slide 8: Relevant Personalized Efficient
8 Relevant Personalized Efficient
Slide 9: Blending Personal Service and Technology
9 BLENDING PERSONAL SERVICE AND TECHNOLOGY
Slide 10: Community Support
10 "First United Bank & Trust is more than just a bank. The people there are engaged and caring members of our community. So much so that they make available for volunteer and civic groups a fully equipped conference room in their banking offices that is accessible 24 hours a day, 7 days a week. Thi
Slide 11: First United Branch & ATM Locations
11 FIRST UNITED BRANCH & ATM LOCATIONS
Slide 12: Tonya Sturm, Chief Financial Officer
Tonya Sturm 12 Senior Vice President and Chief Financial Officer
Slide 13: Balance Sheet Trends: Total Assets
13 Trend in Total Assets $200 $400 $600 $800 $1,000 $1,200 $1,400 2013 2014 2015 2016 2017 Q1 18 Millions 6% 18% 67% 9% Cash and cash equivalents Investment securities and FHLB stock Loans Other assets Asset Mix – December 2017 BALANCE SHEET TRENDS Q1 18 Unaudited
Slide 14: Balance Sheet Trends: Total Loans
14 $300 $400 $500 $600 $700 $800 $900 $1,000 2013 2014 2015 2016 2017 Q1 18 Loans in Millions Total Loans 53% 47% CRE / A&D / C&I Consumer mortgage / installment Composition at December 2017 BALANCE SHEET TRENDS Q1 18 Unaudited
Slide 15: Balance Sheet Trends: Total Deposits
15 $0 $200 $400 $600 $800 $1,000 $1,200 2013 2014 2015 2016 2017 Q1 18 Millions Core Retail CDs Brokered Total Deposits 24% 17% 37% 22% NIB Demand NOW Money market / savings CDs Composition at December 2017 Money market includes ICS deposits held for Wealth Management customers; CDs include reciproc
Slide 16: Asset Quality Trends
16 103.80% 60.91% 34.76% 29.81% 20.67% 17.35% 0% 20% 40% 60% 80% 100% 120% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2012 2014 2015 2016 2017 Q1 18 Adversely Classified Assets (millions) Adv Classified Loans Other Real Estate Owned Adv Classified CDOs Corp Coverage Ratio Trends in Adversely Classi
Slide 17: Components of Capital
17 45% 15% 13% (18)% 9% Tier 1: Common Equity, before AOCI Tier 1: Qualifying TRUPs Tier 1: Series A Preferred Stock Tier 1 Reductions: Goodwill, Disallowed DTA, AOCI (2014) Tier 2: Qualifying ALL, excess TRUPs December 2014 71% 16% (8)% 5% December 2017 COMPONENTS OF CAPITAL
Slide 18: Net Interest Margin
18 4.23% 3.90% 3.83% 3.88% 3.99% 4.28% 1.13% 1.07% 0.97% 0.84% 0.78% 0.76% 3.25% 3.00% 3.04% 3.19% 3.37% 3.68% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 2013 2014 2015 2016 2017 Q1 18 Yield on Earning Assets Cost of Interest-bearing Liabilities Net Interest Margin NET I
Slide 19: Other Operating Income and Expense
19 $8 $10 $12 $14 2013 2014 2015 2016 2017 Millions * Excluding gains/(losses), securities impairment, arbitration recovery Other Operating Income* $8 $18 $28 $38 $48 2013 2014 2015 2016 2017 Millions Operating Expense OTHER OPERATING INCOME AND EXPENSE
Slide 20: Wealth Management
20 $0 $200 $400 $600 $800 $1,000 2013 2014 2015 2016 2017 Q1 2018 Millions Trust Assets Investment Assets Assets Under Management $0.0 $2.0 $4.0 $6.0 $8.0 2013 2014 2015 2016 2017 Millions Revenue WEALTH MANAGEMENT
Slide 21: Net Income Available to Common Shareholders
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS 21 $4.7 $3.0 $10.3 $5.3 $4.1 $3.2 $0 $2 $4 $6 $8 $10 $12 2013 2014 2015 2016 2017 Millions Impact of one - time arbitration award, securities activity $ 4.9 $5.4 $ 7.3 Impact of one - time deferred tax asset revaluation
Slide 22: Earnings Per Common Share
EARNINGS PER COMMON SHARE 22 $0.76 $0.48 $1.65 $0.84 $0.58 $0.49 $0.00 $0.40 $0.80 $1.20 $1.60 $2.00 2013 2014 2015 2016 2017 $ 1.07 Impact of one - time arbitration award, securities activity Impact of one - time deferred tax asset revaluation $ 0.78 $0.87
Slide 23: Carissa Rodeheaver, Chief Executive Officer
Carissa Rodeheaver 23 Chief Executive Officer and Chairman of the Board
Slide 24: Rights Offering
RIGHTS OFFERING 24 New tangible capital $9.2 million 12/31/16 Tangible Book Value per Share: Before Actions 13.76$ After 1Q2017 Actions 13.53$ Dilution -1.6% EPS Available to Common Shareholders (*): Before Actions 0.88$ After 1Q2017 Actions 0.99$ Accretion 12.9% (*) Using 2016 Net Income as calcula
Slide 25: Common Stock Dividend
25 COMMON STOCK DIVIDEND $.09 per share
Slide 26: Total Return % Change: FUNC vs. SNL Bank & Thrift Index
26 TOTAL RETURN % CHANGE: FUNC VS. SNL BANK & THRIFT INDEX
Slide 27: First United Corporation (FUNC) Stock Price
27 FIRST UNITED CORPORATION (FUNC) STOCK PRICE December 31, 2015 $11.70 December 29, 2017 $17.40 April 30, 2018 $19.25 May 14, 2018 $20.40 49% 62%
Slide 28: Capital Ratio Trends at Corporation
28 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2013 2014 2015 2016 2017 CET1 Leverage Tier 1 Total Regulatory Well - Capitalized Regulatory Minimum plus fully phased - in Capital Conservation Buffer CET1 7.0% Tier 1 RB 8.5% Leverage 5.0% Total 10.5% CAPITAL RATIO TRENDS AT CORPORATION
Slide 29: 2018 High Level Strategies
2018 HIGH LEVEL STRATEGIES 29 1. Increase core earnings through regionalized plans 2. Provide a seamless, frictionless customer experience – people and process
Slide 30: Slide:
30 Slide:
Slide 31: 2018 High Level Strategies
2018 HIGH LEVEL STRATEGIES 31 1. Increase core earnings through regionalized plans 2. Provide a seamless, frictionless customer experience – people and process 3. Plan for future growth and expansion (capital) 4. Continue our branch transformation, branding initiatives and technology penetration
Slide 32: What Does the Future Hold?
32 WHAT DOES THE FUTURE HOLD?
Slide 33: First United's Future
33 FIRST UNITED’S FUTURE Relationship Building Technology Personal Service Community Engagement Fr Franchise Growth Fr Innovative Products & Services
Slide 34: Thank You for Your Service!
THANK YOU FOR YOUR SERVICE! 34 • Robin Murray , SVP and Director of Retail Banking • Patricia Young , Market President of Washington County • Shirley Fitzwater , VP and Senior Wealth Advisor and Team Leader • Scott Rush , VP and Senior Trust Investment Officer
Slide 35: "My bank is First United!"
“My bank is First United!” 35
Slide 36: Thank You!
36 Thank You! u