First · NASDAQ:FUNC
First — First United — Shareholder Meeting (May 2023)
27 slides from First's shareholder meeting presentation, May 11, 2023
Slide 1: Annual Shareholders' Meeting May 11, 2023
MyBank.com Annual Shareholders’ Meeting May 11, 2023
Slide 2: Welcome and Introduction
2 John McCullough Lead Independent Director Welcome and Introduction
Slide 3: Management Presentation
3 Carissa Rodeheaver President, Chief Executive Officer, and Chairman of the Board Management Presentation
Slide 4: Forward looking statements
4 Forward looking statements This presentation contains forward - looking statements as defined by the Private Securities Litigation Reform Act of 1995 . Forward - looking statements do not represent historical facts, but are statements about management's beliefs, plans and objectives about the futu
Slide 5: Fed Funds Rate 2022 to Present
Fed Funds Rate 2022 to Present 5
Slide 6: Banking Industry Disruption
Banking Industry Disruption 6 ▪ Run on deposits at Silicon Valley and Signature Banks ▪ Negative social media and electronic access to funds fuel the deposit runs and create panic in the markets ▪ Failure of Silicon Valley and Signature Banks - March 2023 ▪ FDIC provides unlimited deposit insurance
Slide 7: First United Corporation Remains Strong
First United Corporation Remains Strong 7 ▪ Board and management risk oversight ▪ High levels of excess capital ▪ Only 29% uninsured/uncollateralized deposits ▪ Access to over $500 million in liquidity including the newly created Bank Term Lending Fund ▪ Low interest rate sensitivity ▪ Diversified d
Slide 8: 2022 Financial Highlights
2022 Financial Highlights $25.0 Million Net Income (1) $3.76 Diluted EPS (1) 1.39% ROAA (1) 19.94% ROATCE (1) 3.56% NIM ▪ Total assets increased by $118.3 million ▪ Consolidated net income (1) of $25.0 million ▪ Net interest income increased by 9.5% ▪ Strong asset quality ▪ Attractive efficiency rat
Slide 9: Purpose-Driven Culture
Purpose - Driven Culture 9 ▪ Giving back to our community through contributions and volunteerism ▪ Expressing gratitude to our employees ▪ Aligning our associates with shareholders through a stock ownership program ▪ Increasing shareholder dividend Our purpose is to enrich the lives of our associate
Slide 10: First Quarter 2023 Financial Highlights
First Quarter 2023 Financial Highlights $4.4 Million Net Income (1) $0.65 Diluted EPS (1) 0.94% * ROAA (1) 12.95% * ROATCE (1) 3.53% * NIM ▪ Total assets increased $89.3 million ▪ Consolidated net income (1) of $4.4 million ▪ Net interest income* increased by 8.6% ▪ Asset quality remains strong ▪ Ef
Slide 11: Long-Term Growth
11 Long - Term Growth Pre - Provision Net Revenue ($ in millions) (1) $17.8 $23.2 $30.8 $32.5 $6.3 2019 2020 2021 2022 1Q2023 +5.5% YoY (1) See Appendix for a reconciliation of these non - GAAP financial measures $1.85 $1.97 $3.54 $3.76 $0.65 2019 2020 2021 2022 1Q2023 +6.2% YoY Diluted Earnings per
Slide 12: Solid Profitability
12 Solid Profitability (1) See Appendix for a reconciliation of these non - GAAP financial measures 11.44% 11.92% 19.78% 19.94% 12.95% 2019 2020 2021 2022 1Q2023 Strategic Target 13% - 15% 0.93% 0.86% 1.35% 1.39% 0.94% 2019 2020 2021 2022 1Q2023 Strategic Target 1.35% - 1.65% Core ROAA (non - GAAP (
Slide 13: Total Shareholder Return
13 Total Shareholder Return Source: S&P Global Market Intelligence; includes price change and reinvested cash dividends (1) For the period ended March 31, 2023 (2) S&P U.S. SmallCap Banks (Industry Group) Index USD Total Return. 1 - Year 3 - Year 5 - Year FUNC - 22.67% 31.02% 1.50% S&P Bank Index (2
Slide 14: Prudent Capital Management
14 Prudent Capital Management 16.29% 16.08% 15.89% 16.12% 16.15% 2019 2020 2021 2022 1Q 2023 11.77% 10.36% 10.80% 11.46% 11.47% 2019 2020 2021 2022 1Q 2023 12.79% 12.61% 12.50% 12.96% 12.82% 2019 2020 2021 2022 1Q 2023 15.17% 14.83% 14.64% 15.06% 14.90% 2019 2020 2021 2022 1Q 2023 CET1 Ratio Leverag
Slide 15: Tangible Capital Positions
15 Tangible Capital Positions $16.17 $17.17 $19.61 $20.90 $21.01 2019 2020 2021 2022 1Q 2023 8.03% 6.97% 7.56% 7.59% 7.30% 2019 2020 2021 2022 1Q 2023 Tangible Book Value / Share TCE Ratio
Slide 16: Risk Drives Strategy
16 Risk Drives Strategy Cyber - Security & Fraud Monitoring Asset Quality Capital Liquidity Management Interest Rate Sensitivity
Slide 17: Strategic Pillars & Key Objectives
Strategic Pillars & Key Objectives Culture & Human Capital Digital & Data Analytics Market Awareness, Expansion & Opportunities Effective use of technology, marketing and communications, and an environmental focus underlies all strategic priorities. 17
Slide 18: Strong Investor Relations & Shareholder Engagement
Strong Investor Relations & Shareholder Engagement Clear long - term strategic plan with performance targets x Dedicated Investor Relations contact x Investor conferences and prospective investor engagement x Investor presentations and periodic outreach to institutional and retail shareholders x 18
Slide 19: My bank is mindful
fe My bank is mindful. t ma My bank is accommodating. My bank is dynamic. My bank is innovative. My bank is unwavering.
Slide 20: Our Dedicated Management Team
20 Our Dedicated Management Team Carissa L. Rodeheaver Chairman of the Board, President & CEO 30+ year career with First United with in - depth industry, wealth management, financial and operational experience Jason B. Rush SVP & Chief Operating Officer 29 years with in - depth industry, retail, ris
Slide 21: Board of Directors
21 21 John F. Barr Independent Director Owner, Ellsworth Electric, Inc. Brian Boal Independent Director , Audit Chair Boal & Associates, PC Sanu Chadha Independent Director Managing Partner, M&S Consulting Christy DiPietro Independent Director Chartered Financial Analyst, Hidden Cove Advisory Patric
Slide 22: Thank You
22 Thank You John McCullough Lead Independent Director
Slide 23: Thank You
y Bank is First United!” Thank Yau!
Slide 24: Non-GAAP financial measures notice
24 This presentation includes certain non - GAAP financial measures, including pre - provision net revenue, net income, earnings per share (basic and diluted), return on average assets, return on average tangible common equity, tangible common equity, tangible assets, the ratio of tangible common eq
Slide 25: Non-GAAP Reconciliation, continued
25 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2019 2020 2021 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 3/31/2023 Weighted Average Common shares - basic (actual) (d) 7,110,022 7,003,955 6,710,463 6,649,740 6,627,564 6,650,256 6,658,392 6,662,751 6,675,181 6,675
Slide 26: Non-GAAP Reconciliation, continued
26 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2019 2020 2021 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 3/31/2023 Return on Average Assets (quarter and YTD annualized) Average Assets ( c) 1,418,928$ 1,613,669$ 1,765,148$ 1,801,711$ 1,769,234$ 1,770,601$ 1,819,7
Slide 27: Non-GAAP Reconciliation, continued
27 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2019 2020 2021 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 3/31/2023 Tangible Book Value per Common Share Total common equity, as reported (h) 125,940$ 131,047$ 141,900$ 151,793$ 137,078$ 132,892$ 132,044$ 151,793$ 1