Slide 1: Bill Grant, CEO & Chairman of the Board
Bill Grant CEO & Chairman of the Board
Slide 2: Bob Kurtz, President & Chief Risk Officer
Bob Kurtz President & Chief Risk Officer
Slide 3: Foreclosures Will Reach Record Highs
Foreclosures Will Reach Record Highs Legislators Submit New Bills to Control Lending
Slide 4: Sub-Prime Lending = Higher Defaults & Foreclosures
Sub-Prime Lending = Higher Defaults & Foreclosures 1-4 Family Residential Delinquencies: * 2007 National Average 5.82% * First United Average for 2007 0.99%
Slide 5: Non-Performing Assets / Loans
Non -Performin J Assets / Loans 1 0.9- 0.8- 0.7- 0.6- 2 St 0.5 0.83% 3 O04 0.3. 0.49% 0.24 0.35% On 0. 2003 2004 +2005 2006 Sep-07 2007
Slide 6: Carissa Rodeheaver, EVP & CFO
Carissa Rodeheaver Executive Vice President & Chief Financial Officer
Slide 7: Pollyanna Principle
Pollyanna Principle
Slide 8: Net Income
Net Income $14.00- $13.00. $12.00+ $11.005 $10.00- $9.00+7] $8.00 $7.00 $6.00 $5.00 Millions 2002 2003 2004 2005 2006 2007 2007* d associated income and tax 2007% - 2007 actual results adjuste n-recurring loss
Slide 9: Asset Growth
Asset Growth $1,600 $1,400 $1,200 $1,000 $800 $600 Millions $400 2002 2003 2004 2005 2006 2007
Slide 10: Loan Growth
Loan Growth $1,1007 $1,000+ $9004 $800- $700- $600- $500- $400- $300. 2002 2003 2004 2005 2006 2007 10
Slide 11: Deposit Growth
Deposit Growth $1,100 $1,0004 $9007 $800 $7005 Millions $6007 $500+ $400+ $3004 2002 2003 2004 2005 2006 2007 lL
Slide 12: Net Interest Income
Net Interest Income Interest Income: Trends in Net ¢ Loans Interest Income * Investments on Securities (in millions) Less Interest Expense: 2007 - $44.2 * Savings 2006 - $40.9 * Transaction Accounts 2005 - $40.3 * Time Deposits 2004 - $36.7 * FHLB Borrowings 2003 - $34.0 Equals - Net Interest Income
Slide 13: Net Interest Margin
Net Interest Margin 4.09% 4.00%4 3.58% % aaoy, 349% «352% 3.51% 3.50% 3.00%+ 2.50%-+ 2.00% 2002 2003 2004 2005 2006 2007 13
Slide 14: Non Interest Income (Fee Income)
Non Interest Income (Fee Income) $17.00- $16.00+ $15.004 $14.00+ £ $13.004 $12.00+ $11.004 $10.00 $9.00+ $8.00 2002 2003 2004 2005 2006 2007 2007* 2007% - 2007 actual results adjusted for non-recurring loss 14
Slide 15: Non Interest Expense
Non Interest Expense $40.00 $35.00 $30.00 $25.00 $20.00 2002 2003 2004 2005 2006 2007 15
Slide 16: Efficiency Ratio
Efficiency Ratio 75.00% 70.00% 65.00%-+ 60.00% 55.00% + 50.00% 2002 2003 2004 2005 2006 2007 2007* 2007* - 2007 actual results adjusted for non-recurring loss and associated income and tax 16
Slide 17: Return on Average Equity
Return on Average Equity 15.00%- 13.75%4 12.50% 71 11.25% 71 10.00% +1 8.75% 7.50% 2002 2003 2004 2005 2006 2007 2007* 2007% - 2007 actual results adjus iciated income and tax for non-recurring loss and ¢ 17
Slide 18: Earnings Per Share
Earnings Per Share $2.20- $2.00 $1.804 $1.604 $1.404 $1.20774 $1.00 2002 2003 2004 2005 2006 2007 2007* 2007+ - 2007 actual results adjusted for non-recurring loss and associated income and tax 18
Slide 19: 2008 ?
Slide 20: Steve Lantz, SVP & Senior Lending Officer
Steve Lantz Senior Vice President & Senior Lending Officer
Slide 21: Loans Outstanding as of December 31, 2007
Loans Outstanding as of December 31, 2007 (Dollars in Thousands) $373,893 Commercial $492,302 $408,361 $404,681 ential Real $384,420 $359,601 $337,559 $319,033 Estate Consumer $153,393 $181,574 $193,275 $199,862 Installment 21
Slide 22: Robin Murray, SVP & Director of Retail Banking
Robin M urray Senior Vice President & Director of Retail Banking
Slide 23: My Bank! First United Bank & Trust: 2007 Deposit Growth
My Bank! First United Bank & Trust 2007 Deposit Growth $85,000,000 $75,000,000 $65,000,000 $55,000,000 $45,000,000 $35,000,000 $25,000,000 « a $15,000,000 $5,000,000 (5,000,000) ($15,000,000) 0g [dy 007 Key
Slide 24: Top Maryland Banks: YTD 2007 Deposit Growth
‘Top Maryland Ban YTD 2007 Deposit Growth Ranked by YTD % Growth ! Sandy Spring Bank 1 24% First United Bank 2 15.0% Fastern Savings 3 $0.8 9.5% Wachovia Bank 4 $7.5 6.5% First Mariner Bank 5 30.9 3.1% Chevy Chase Bank 6 $8.0 2.6% Provident Bank 7 $3.5 1.3% Bank of America 8 sIT4 0.8% M&T Bank 9 $7.
Slide 25: Successful Relationship Sales & Service Performance
Successful Relationship Sales & Service Performance = COBO Growth * Deposit Growth: 63% $29,580,813 * Loan Growth: 43% $ 9,097,331 25
Slide 26: Successful Relationship Sales & Service Performance
Successful Relationship Sales & Service Performance = High Customer Satisf. 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 = Service Performance Results == Customer Satisfaction Index
Slide 27: Successful Relationship Sales & Service Performance
Successful Relationship Sales & Service Performance = Profitable 2008 Execution * Strong Relationship Building Initiatives * Effective Attraction of New Customers * Exceptional Customer Retention * Robust Multi-Product Utilization * Extraordinary Community Involvement
Slide 28: Rick Thayer, SVP & Director of Marketing & Strategic Planning
Rick Tha iyer 28 Senior Vice President & Director of Marketing « Strategic Planning
Slide 29: Strategic Planning
Strategic Planning Community Oriented Business Owner * Market Presidents * Growth Markets x Fee for Service Initiatives 29
Slide 30: Marketing
Marketing *= Brand * My Bank! Delivers Solutions * Customer Campaigns =Retention «Relationship Deepening * Acquisition 30
Slide 31: Jeannette Fitzwater, SVP & Director of Human Resources
Jeannette Fitzwater Senior Vice President & Director of Human Resources
Slide 32: Increase Wellness of Associates
Increase Wellness of Associates Decrease Health Expense Improve Productivity Enhance Employee Morale
Slide 33: More Efficient and Effective Staffing
More Efficient and Effective Staffing ® Decrease Time to Fill Positions * Decrease Short-Term Turnover Rates
Slide 34: Better Communication, While Gaining Efficiencies
Better Communication, While Gaining Efficiencies ® Enhance On-line Solutions x Improve Communication
Slide 35: Continual Learning to Support Corporate Goals
Continual Learning to Support Corporate Goals ® Focus on COBOs * Increase Training Efficiency
Slide 36: My Bank! Delivers
mar DELIVERS |
Slide 37: Eugene Helbig, Jr., SVP & Senior Trust Officer
Eugene Helbig, Jr. Senior Vice President & Senior Trust Officer
Slide 38: Trust Department Market Value
my (Ban DELIVERS Trust Department Market Value 600,000,000: $547,059,702 $500,000,0004- - —- —- —-—-—-—--—-—-—--—-—-—---—--------- $400,000,0004- - —- —- —-—-—--—---—-—------—----------- $300,000,0004- - —- —- —-—-—--—--—-—-—---—-—-----—- $200,000,0004- - —- —- —-—-—--—--—-—--—------- $100,000,0004-
Slide 39: Trust Department Income
Trust Department Income $4,139,258
Slide 40: First United Trust & Investment Major Findings
First United Trust & Investment Major Findings 40 OVERALL RATINGS OF TRUST RELATIONSHIP MANAGERS 100 90. 1 Overall Ratings of 80. Trust Relationship Manager 70: 60: Top Box Excellent Top 2 Box Excellent/Very Good
Slide 41: First United Trust & Investment Major Findings
First United Trust & Investment Major Findings How Well Has FUT&I Met Your Expectations? Trust Customers 100 as Trust 50 Customers : “sy ; 7 Exceeded Met Fell Short of Expectations Expectations Expectations 41
Slide 42: What do you consider to be Excellent Service
What do you consider to be “Excellent Service” from First United Trust? + Always listen, carry out request promptly and go beyond in assisting and advising + Always available if I have problems + Professional manner, trustworthy, helpful + Always has time for us + Excellent attitude Gas ood feedback
Slide 43: Managed Asset Portfolio Results
Managed Asset Portfolio Results 5-Year 10-Year 2006 Average Annual Average Annual Return Inyestment Objective Return Bond Income 6.70% 5.24% 4.91% 4.99% Fixed Income 8.16% 7.76% 6.83% 5.66% Growth /Income 9.73% 9.46% 9.90% 6.54% Balanced 11.18% 11.44% 12.78% 6.96% Aggressive 13.47% 14.78% 16.50% 8.2
Slide 44: Val Teagarden, First United Insurance Group CEO
Val Teagarden First United Insurance Group CEO
Slide 45: Accomplishments
Accomplishments * Restructure Organization Acquisition Opportunities * M. J. Fisher Agency * Shaffer Book of Business /
Slide 46: Commissions and Contingency
Commissions and Contingency $2,496,831 $1,241,450 $1,169,756 $1,043,000 ] $1,550,500 $1,610,617 2002 2003 2004 2005, 2006
Slide 47: Return on Revenue
Return on Revenue HExpense “# Revenue $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 so 7 , ; , 2002 2003 2004 2005 2006 2007
Slide 48: Return on Investment
Return on Investment 2002 2004 18.87 15.20 15.18 14.68 2005 2006 2007
Slide 49: Jason Rush, VP & Director of Operations Support
Jason Rush Vice President & Director of Operations « Support 49
Slide 50: Creating Efficiencies Everyday Through Processes
Creating Efficiencies Everyday Through Processes
Slide 51: New Systems = Efficiency Gains
New Systems = Efficiency Gains Branch Capture.... Good for our Bank... Great for our customers ] 51
Slide 52: New Systems = Efficiency Gains
New Systems = Efficiency Gains That was then...... This is NOW!! 52
Slide 53: Wesel Boulevard and My Bank Express Offices
Wesel Boulevard and My Bank Express Offices 53
Slide 54: Bill Grant, CEO & Chairman of the Board
Bill Grant CEO & Chairman of the Board
Slide 55: 13%
13%
Slide 56: 8%
Slide 57: 4%
4%
Slide 58: RATIOS
RATIOS
Slide 59: 83rd Percentile
83" Percentile