First · NASDAQ:FUNC
First — First United — Investor Presentation (May 2009)
54 slides from First's investor presentation, May 14, 2009
Slide 1: Bill Grant, Chief Executive Officer & Chairman
Bill Grant Chief Executive Officer & Chairman of the Board
Slide 2: Bob Kurtz, President & Chief Risk Officer
Bob Kurtz President & Chief Risk Officer
Slide 3: ff iy NIC
ff iy NIC ii bila hey a,
Slide 4: "and the world entered the sharpest, most globalized downturn"
“and the world entered the sharpest, most globalized downturn since the Great Depression.”
Slide 5: Bankruptcies and Foreclosures
Bankruptcies and Foreclosures 2007 2008 2009
Slide 6: Loan Loss Provision
Loan Loss Provision $15,000,000 12/31/08 ($12.9 million) $10,000,000 $5,000,000 12/31/07 ($2.3 million) Ne ae Loans $30,000,000 12/31/08 ($28 million) $20,000,000 fai $10,000,000 12/31/07 ($8.7 million) $0
Slide 7: Working with consumer and commercial customers through difficult economic times
2009 Working with consumer and commercial customers through difficult economic times.
Slide 8: Carissa Rodeheaver, Executive Vice President & CFO
Carissa Rodeheaver Executive Vice President & Chief Financial Officer
Slide 9: TBA
TBA
Slide 10: Net Income
Net Income Millions ‘$14,000.00 $12,000.00 $10,000.00 $8,000.00 $36,000.00 $4,000.00 $2,000.00 $0.00
Slide 11: Asset Growth
Asset Growth $1,900 + $1,400 + Millions $900 + $400 + 2002 2003 2004 2005 2006 2007 A
Slide 12: Loan Growth
Loan Growth $1,200 $1,100 $1,000 $900 Millions 2002 -2003,—= 2004 += 2005-2006 = 2007-2008
Slide 13: Deposit Growth
Deposit Growth Millions $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 Le 2002 2003 2004 2005 2006 2007 2008
Slide 14: Net Interest Income
Net Interest Income Interest Income: * Loans + Investments on Securities Less Interest Expense: + Savings + Transaction Accounts - Time Deposits - FHLB Borrowings Equals - Net Interest Income Trends in Net Interest Income (in millions) 2008 2007 2006 2005 2004. 2003 2002 $52.2 $44.2 $40.9 $40.3 $36.
Slide 15: Net Interest Margin
Net Interest Margin 4.09% 4.00% 3.50% 3.00% 2.50% 2.00% 2002 ©2003 2004 = 2005 2006 = 2007.-— 2008 ;
Slide 16: Non Interest Income (Fee Income)
Non Interest Income (Fee Income) Millions $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 2002 2003.-«= «2004. «2005-2006. «2007 “A
Slide 17: Non Interest Expense
‘Non Interest Expense Millions $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 2002 2003-2004 ~—-2005--—=—-2006. 2007 ~ A
Slide 18: Efficiency Ratio
Efficiency Ratio 73.00% 70.00% 65.00% 60.00% 55.00% 50.00% 14 2002-2003 «2004 = 2005-2006. «= 2007S 2008
Slide 19: Return on Average Equity
Return on Average Equity 15.00% 13.75% 12.50% 11.25% 10.00% 8.75% 7.50% 4A 2002 2003-2004 += 2005-2006 = 2007-2008
Slide 20: Earnings Per Share
Earnings Per Share 2002-2003» -2004 = 2005-2006.» 2007-2008. SA
Slide 21: 2009 ?
2009 ?
Slide 22: March 31, 2009 Financial Results
March 31, 2009 Financial Results Net Income Loan Growth Deposit Growth Net Interest Margin Non-Interest Income Non-Interest Expense Efficiency Ratio Return on Average Equity Earnings Per Common Share $2.1 million ($12.0 million) $.7 million 3.83% $2.6 million $11.0 million 64.87% 9.66% 22
Slide 23: Thank you!
Slide 24: Steve Lantz, Senior Lending Officer
Steve Lantz Senior Vice President & Senior Lending Officer
Slide 25: Loans Outstanding as of December 31, 2008
Loans Outstanding as of December 31, 2008 (Dollars in Thousands) 2008 Commercial $575,962 Residential Real Bots $403,708 Consumer Installment $140,234 2007 $492,302 $384,420 $153,393, 2006 $408,361 $359,601 $181,574 2005 $404,081 $337,559 $193,275
Slide 26: Robin Murray, Director of Retail Banking
Robin Murray Senior Vice President & Director of Retail Banking
Slide 27: My Bank! Quarterly Deposit Growth 2007 & 2008
My Bank! First United Bank & Trust Quarterly Deposit Growth 2007 & 2008 $70,000,000 $60,000,000 ~ $50,000,000 - $40,000,000 ~ $30,000,000 - $20,000,000 ~ $10,000,000 ~ $0 - r istQuarter 2ndQuarter 3rdQuarter 4th Quarter 2007. = 2008 Ti
Slide 28: Deposit Growth - Month Period Ending
Deposit Growth - 12 Month Period Ending June 2008 ; (FDIC Deposit Data) « First United Bank & Trust = Maryland Bank Average @ National Bank Average 4.8% * The Retail Team continues to excel in deposit growth efforts, outpacing Statewide and National deposit growth rates by appreciable margins. Overa
Slide 29: Growing Relationships through Team Sales
Growing Relationships through Team Sales Strategies
Slide 30: Initiatives
8009 Initiatives * Community Oriented Business Owners Activities y ¢ “Word of Mout A ~ Marketing
Slide 31: My Bank! Moving Forward!
My Bank!....... Moving Forward! Celebrating Baughman’s Lane Grand Opening In Frederick , MD Suncrest Town Centre Office Grand Opening Scheduled for June In Morgantown, WV
Slide 32: Rick Thayer, Director of Marketing & Strategic Planning
Rick Thayer Senior Vice President & Director of Marketing & Strategic Planning
Slide 33: My Bank! First United Bank & Trust
My Bank! First United Bank & Trust * Our Vision — Uncommon commitment to service and solutions. * Our Mission — To enrich the lives of our customers, our employees and our shareholders through nn service and effecti solutions. ¢ Our Critical Success Factors — Effective Communication — Employee Enabl
Slide 34: Why Take A Chance With Your Business?
vy Why Take A Chance With Your Business? ssl fay FIRST UNITED Insurance Group Customized Insurance Solutions for Frederick Business Owners It's Not Just About Reducing Costs. Its About Minin Soreez-saz3 fl FIRST UNITED Insurance Group 34
Slide 35: "We Know What Matters Most"
“WE KNOW WHAT MATTERS MOST” Your Future. | goals and outlook Than 50 ‘As Trust and Investment Professionals, we are held to. higher fiduciary standard. By law we are required to act solely in the best interest of our client. ‘our motivation.” Call for prompt direct access toa fiduciary Jason Sweitze
Slide 36: The President's Club
Slide 37: Jeannette Fitzwater, Director of Human Resources
Jeannette Fitzwater Senior Vice President & Director of Human Resources
Slide 38: Eugene Helbig, Jr., Senior Trust Officer
Eugene Helbig, Jr. Senior Vice President & Senior Trust Officer WHAT MATTERS MOST
Slide 39: Trust Department Market Value
Trust Department Market Value Trust. 600,000,000 500,000,000 $472,427,780 400,000,000 300,000,000 © Market Value 200,000,000 100,000,000
Slide 40: Trust Department Income
Trust Department Income 4,500,000 $4,029,358 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 » Income 1,500,000 1,000,000 500,000 rt aa TT
Slide 41: MAP Performance Review Years Ended 2008
MAP Performance Review 5 Years Ended 2008 (5 Year Average) Tax Free 1.40% -1.44% Bond Income 4.53% ae 2.30% Fixed Income 3.15% 123% 1.92% Growth/Income 3.30% 116% 2.23% Balance 3.50% 0.98% 2.52% Growth 3.27% 0.54% 2.73% Aggressive Growth 3.38% 0.31% 3.07% ‘Avg. All Models 1.92% Avg, Ex-Bond 2.48% In
Slide 42: Balanced MAP Objective
Balanced MAP Objective Growth of $1,000,000 $2,000,000 2001 2003 2005 (2007 LL aw Toe $1,146,439 $1,000,000 — No \ $718,078 $0 9 Years Ending 12/31/08 Balanced MAP. (From Beginning of Last Major Bear Market) —saP 500
Slide 43: Noteworthy Points from 2008
Noteworthy Points from 2008 « Customer Service retains customer accounts « New Business Development meets 89% of goal ¢ Regular communication — Economic Conference Calls can be found at mybank4.com « Prudently applying Fiduciary Standards SA 43 eRe
Slide 44: Val Teagarden, First United Insurance Group CEO
Val Teagarden First United Insurance Group Chief Executive Officer
Slide 45: Jason Rush, Director of Operations & Support
Jason Rush Senior Vice President & Director of Operations & Support
Slide 46: Business Owners: Employment at My Bank! Solutions Center
business owneRs:| [Employment at My Bank! Anwenrpaahmes Solutions Center Ss
Slide 47: Lean Tools
Lean Tools Many useful tools are built upon the Lean Fundamentals: + Toc + DOE Materials + Autonomation Systems + Visual Control + Production + DEM ‘Smoothing nor + Flow / Pull + SMED The most commonly used Lean Tools are: Standard Work 5S / Visual Mgmt. Pull Systems Setup Reduction Cellular Product
Slide 48: Bill Grant, Chief Executive Officer & Chairman
Bill Grant Chief Executive Officer & Chairman of the Board
Slide 49: Wall Street Recession
Fil Wall Street Recession
Slide 50: First United
First United * Well capitalized and strong ¢ Profitable ¢ Paying dividends
Slide 51: Evaluating Performance
Evaluating Performance * Non-Performing Assets as a Percent of Assets ¢ Return on Equity ¢ The Efficiency Ratio
Slide 52: First United Corporation Annual Report
FIRST UNITED ORPORATION nnual Report
Slide 53: Dispelling the misperceptions of banks...
Dispelling the misperceptions of banks... ¢ Traditional Banks are the solution, not the problem. ¢ Banks are lending. ¢ Banks are not bankrupt. ¢ CPP is not a bailout.
Slide 54: Thank You!
Thank You!