First · NASDAQ:FUNC
First — First United — Shareholder Meeting (May 2016)
46 slides from First's shareholder meeting presentation, May 12, 2016
Slide 1: First United Corporation Annual Shareholders' Meeting
First United Corporation Annual Shareholders’ Meeting May 12, 2016
Slide 2: Carissa Rodeheaver, Chief Executive Officer and Chairman
Carissa Rodeheaver Chief Executive Officer and Chairman of the Board
Slide 3: Forward-Looking Statements
Forward - Looking Statements Forward - looking statements in this presentation relating to First United Corporation’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of
Slide 4: Our Mission
Our Mission To enrich the lives of our customers, our employees and our shareholders through uncommon commitment to service and solution. 4
Slide 5: Our Story
Our Story For over a century, our My Bank First United team has been serving our local communities and community oriented business owners in Maryland, West Virginia, Pennsylvania and Virginia. Our tweener size and team approach allows us to be small enough to get to know you, yet large enough to cus
Slide 6: Our Long-Term Strategies
1. Deliver a total market return to shareholders through efficient and effective delivery channels. 2. Utilize a seamless, omni - channel approach that provides a single, unified experience for the customer across all access channels. 3. Be the employer of choice for a customer - oriented, cross - t
Slide 7: Tonya Sturm, Senior Vice President and Chief Financial Officer
Tonya Sturm Senior Vice President and Chief Financial Officer
Slide 8: Deliver a Total Market Return to Shareholders
DELIVER A TOTAL MARKET RETURN TO SHAREHOLDERS THROUGH EFFICIENT AND EFFECTIVE DELIVERY CHANNELS 8
Slide 9: 2015 Initiatives
2015 Initiatives » Profitably grow high quality assets » Improve capital ratios » Strengthen core earnings and increase fee income » Higher return to Shareholders 9
Slide 10: Balance Sheet
BALANCE SHEET 10
Slide 11: Trend in Total Assets
Trend in Total Assets $300 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 2011 2012 2013 2014 2015 $1,391 $1,321 $1,334 $1,332 $1,323 Millions 11
Slide 12: Balance Sheet - Asset Mix
Balance Sheet - Asset Mix 4% 21% 66% 9% Cash and cash equivalents Investment securities and FHLB stock Loans Other assets December 2015 12
Slide 13: Trend in Net Loan Balances
Trend in Net Loan Balances $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 2011 2012 2013 2014 2015 2016 Q1 $919 $859 $797 $828 $867 $888 Millions 13 (unaudited)
Slide 14: Loan Portfolio Composition
32% 13% 8% 44% 3% Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Installment December 2015 Loan Portfolio Composition 14
Slide 15: Trends in Adversely Classified Assets
Trends in Adversely Classified Assets 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% $0 $50 $100 $150 $200 $250 $300 2010 2012 2014 2015 Adversely Classified Assets (millions) Adv Classified Loans Other Real Estate Owned Adv Classified CDOs Corp Coverage Ratio 15
Slide 16: Trend in Deposits
Trend in Deposits $0 $200 $400 $600 $800 $1,000 $1,200 2011 2012 2013 2014 2015 2016 Q1 Millions Core Retail CDs Brokered 16 $977 $999 $1,028 $977 $981 $1,016 (unaudited)
Slide 17: Corporation Remains Well-Capitalized
Corporation Remains Well - Capitalized 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2011 2012 2013 2014 2015 CET1 Leverage Tier 1 Total Well - Capitalized 17
Slide 18: Components of Capital
Components of Capital 18 52% 15% 14% (9)% 10% Tier 1: Common Equity, before AOCI Tier 1: Qualifying TRUPs Tier 1: Series A Preferred Stock Tier 1 Reductions: Goodwill, Disallowed Deferred Tax Asset Tier 2: Qualifying ALL, excess TRUPs December 2015
Slide 19: Earnings
EARNINGS 19
Slide 20: Net Interest Income
Net Interest Income $38.3 $39.1 $38.2 $35.5 $35.6 2.96% 3.30% 3.25% 3.00% 3.04% 2.7% 2.8% 2.9% 3.0% 3.1% 3.2% 3.3% 3.4% $0 $10 $20 $30 $40 $50 2011 2012 2013 2014 2015 Net Interest Income (millions) Net Interest Income Net Interest Margin 20
Slide 21: Providing for Loan Losses
$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2011 2012 2013 2014 2015 Millions Provision Net Charge-offs Allowance Providing for Loan Losses 21
Slide 22: Net Charge-Offs as % of Average Loans
Net Charge - Offs as % of Average Loans 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 2011 2012 2013 2014 2015 1.24% 1.41% 0.34% 0.49% 0.14% 22
Slide 23: Other Operating Income
Other Operating Income * $8 $10 $12 $14 $16 2010 2011 2012 2013 2014 2015 $15.4 $15.0 $13.7 $13.1 $12.9 $13.4 Millions * Excluding gains/(losses), securities impairment, arbitration recovery 23
Slide 24: Trust & Investments Revenue
Trust & Investments Revenue “WHAT MATTERS MOST” Trust . $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2011 2012 2013 2014 2015 $5.2 $5.4 $5.8 $6.1 $6.5 Millions 24
Slide 25: Trust and Investments Assets Under Management
Trust and Investments Assets Under Management “WHAT MATTERS MOST” Trust . $0 $100 $200 $300 $400 $500 $600 $700 $800 2011 2012 2013 2014 2015 $595 $637 $675 $702 $718 $189 $215 $234 $237 $240 Millions Trust Assets Investment Assets 25
Slide 26: Operating Expense
Operating Expense $8 $13 $18 $23 $28 $33 $38 $43 $48 2011 2012 2013 2014 2015 $43.4 $39.5 $42.4 $40.1 $41.1 Millions 26
Slide 27: Net Gains/(Losses), Securities Impairment Losses and Arbitration Recovery
Net Gains / (Losses), Securities Impairment Losses and Arbitration Recovery -$17 -$12 -$7 -$2 $3 $8 2010 2011 2012 2013 2014 2015 $(14.4) $2.3 $1.7 $0.2 $1.1 $9.1 Millions 27
Slide 28: Net Income Available to Common Shareholders
Net Income Available to / Net (Loss) Attributable to Common Shareholders -$12 -$10 -$8 -$6 -$4 -$2 $0 $2 $4 $6 $8 $10 2010 2011 2012 2013 2014 2015 - $11.8 $2.0 $3.0 $4.7 $3.0 $8.2 Millions 28
Slide 29: Carissa Rodeheaver, Chief Executive Officer and Chairman
Carissa Rodeheaver Chief Executive Officer and Chairman of the Board
Slide 30: Be the Employer of Choice
BE THE EMPLOYER OF CHOICE FOR A CUSTOMER - ORIENTED, CROSS - TRAINED, MULTI - FUNCTIONAL STAFF 30
Slide 31: Employee Value Proposition
• Confidence • Passion • Curious and caring • Competence • Demonstrate mutual respect • Community oriented • Trustworthy • Family oriented • Focused Employee Value Proposition 31
Slide 32: Growing Universal Banker Approach
Growing Universal Banker Approach • Successful execution of branch transformation • Stronger ties in local communities • Enriching trusted advisors commitment • Providing value to customers, associates and shareholders 32
Slide 33: Enhance Visibility, Engagement and Support in Local Communities
ENHANCE VISIBILITY, ENGAGEMENT AND SUPPORT IN OUR LOCAL COMMUNITIES 33
Slide 34: Relationships with Organizations / Boards in each Market Area
Relationships with Organizations / Boards in each Market Area 34
Slide 35: Invest Resources in Financial Education and Community Support
Invest resources that provide financial education and other support to our communities 35 Preston County Middle School Girl Scouts of America
Slide 36: Community Support Examples
36 Frederick Rescue Mission Yough Glades Elementary School United Way Golf Tourney Invest resources that provide financial education and other support to our communities
Slide 37: Single, Unified Experience Across All Access Channels
PROVIDE A SINGLE, UNIFIED EXPERIENCE FOR THE CUSTOMER ACROSS ALL ACCESS CHANNELS USING A SEAMLESS, OMNI - CHANNEL APPROACH 37
Slide 38: Delivery Channel Usage
Delivery Channel Usage ACH 19% Internet / Mobile 9% Point of Sale 38% Checks 11% Teller 23% 2015 38
Slide 39: Growth in Mobile Banking Customers
Growth in Mobile Banking Customers 1,106 2,396 3,830 5,278 7,735 8,649 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2011 2012 2013 2014 2015 Q1 16 39
Slide 40: Technology Initiatives
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Slide 41: Customer Engagement Strategy: Branch Built for Engagement
Customer Engagement Strategy Branch Built for Engagement! 41
Slide 42: First United's Branch of the Future
First United’s Branch of the Future! 42
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Slide 44: Educational & Engaging
Educational & Engaging! 44
Slide 45: Tribute to William B. Grant
Tribute to William B. Grant 45
Slide 46: Thank you
Thank you mybank4.com 888 - 692 - 2654