First · NASDAQ:FUNC
First — First United — Shareholder Meeting (April 2006)
65 slides from First's shareholder meeting presentation, Apr 25, 2006
Slide 1: Shareholders' Meeting 2006 – Our Vision, Mission and Critical Success Factors
Our Vision Our Mission Our Critical Success Factors Shareholders’ Meeting 2006 First United Corporation Uncommon commitment to service and solutions. To enrich the lives of our customers, our employees and our shareholders through uncommon service and effective financial solutions. Effective Communi
Slide 2: Bill Grant, Chairman & CEO
Bill Grant Chairman of the Board & Chief Executive Officer
Slide 3: Bob Kurtz, President & Chief Risk Officer
Bob Kurtz President & Chief Risk Officer
Slide 4: Net Income
Net Income $7.7 Million $12.2 Million
Slide 5: Treasury Rates (Flat Yield Curve)
Treasury Rates (Flat Yield Curve) As of 4/3/06
Slide 6: Sarbanes-Oxley Act of 2002 (SOX)
Sarbanes-Oxley Act of 2002 (SOX) Section 404 Financial Controls
Slide 7: Drug Trafficking / Terrorist Activities compliance
| Drug Trafficking now Your Customer — —_Sagpcigys Antti yational Securig, 4 Terrorist Activities Banking my way. aO> #0=sAdT OC
Slide 8: Enterprise Risk Management (ERM)
Enterprise Risk Management (ERM) Credit Market OPERATIONAL
Slide 9: Carissa Rodeheaver, Chief Financial Officer
Carissa Rodeheaver Chief Financial Officer
Slide 10: $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 02 2003 2004 2005
$13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 2002 2003 2004 2005
Slide 11: $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 2002 2003 2004
$1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 2002 2003 2004 2005
Slide 12: $1,000 $900 $300 $700 $600 $500 $400 $300 2002 2003 2004 5
$1,000 $900 $300 $700 $600 $500 $400 $300 2002 2003 2004 2005
Slide 13: $1,000 $900 $800 $700 $600 $500 $400 $300 2002 2003 2004 5
$1,000 $900 $800 $700 $600 $500 $400 $300 2002 2003 2004 2005
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) 2005 - $40.3 2004 - $36.7 2003 - $34.0 2002 - $31.8
Slide 15: 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 2002 2003 2004 2005
4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 2002 2003 2004 2005
Slide 16: Non-Interest Income (Fee Income)
Non-Interest Income (Fee Income) Millions
Slide 17: Non-Interest Expense
Non-Interest Expense Millions
Slide 18: 15.00% 13.75% 12.50% 11.25% 10.00% 8.75% 7.50% 2002 2003 4 2005 Banking my way.
15.00% 13.75% 12.50% 11.25% 10.00% 8.75% 7.50% 2002 2003 2004 2005 Banking my way.
Slide 19: $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 2002 2003 2004 2005
$2.00 $1.80 $1.60 $1.40 $1.20 $1.00 2002 2003 2004 2005
Slide 20: 75.00% 70.00% 65.00% 60.00% 55.00% 50.00% 2002 2003 ™" 2004 2005
75.00% 70.00% 65.00% 60.00% 55.00% 50.00% 2002 2003 ™" 2004 2005
Slide 21: 2006?
2006?
Slide 22: Steve M. Lantz, Senior Lending Officer
Steve M. Lantz Senior Vice President & Senior Lending Officer
Slide 23: Commercial Loan Growth
Commercial Loan Growth Millions
Slide 24: Other Loan Engines
Other Loan Engines Residential Mortgages Grew $19 million Sold $31 million to improve yield and margin Home Equity Loans Modest Growth Indirect Auto Loans $6.6 million planned portfolio loss
Slide 25: 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 2000 2001 2002 2003 2004 2005
0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 2000 2001 2002 2003 2004 2005
Slide 26: 0.40% 0.30% 0.20% 0.10% 2000 2001 2002 2003 2004 2005
0.40% 0.30% 0.20% 0.10% 2000 2001 2002 2003 2004 2005
Slide 27: Rick Thayer, Director of Retail Banking
Rick Thayer Senior Vice President & Director of Retail Banking
Slide 28: 2005 Performance
2005 Performance Deposit Growth $74,394,000 Mortgage Referrals $29,474,000 Trust Referrals $13,342,000 PrimeVest Referrals $ 8,799,000
Slide 29: Branch Expansion
Branch Expansion Sabraton Opened March 3, 2005 Deposit Growth $8,785,000 Loan Growth $1,157,000 Star City Opened September 6, 2005 Deposit Growth $540,000 Wesel Boulevard Land lease signed
Slide 30: Processes & Products
Processes & Products Area Managers Business Development Officers Enhanced Small Business Product Line Free Checking Cash Management Merchant Services Business Custom Capital
Slide 31: Val Teagarden, First United Insurance Group CEO
Val Teagarden First United Insurance Group CEO
Slide 32: 2005 Strategic Objectives
2005 Strategic Objectives Additional Resources Growth Opportunities
Slide 33: Banking my way.
$1,550,500 $1,169,756 $1,241:450 $1,043,000 Banking my way.
Slide 34: senoom $1,550,500
senoom $1,550,500 1,241 450 $1,169,786 as $1,043,000 $1,183,080 ate Jme—reverue Jpemexpense $956,617 $799,219 20 2005 2004 2005 Banking my way.
Slide 35: wae, 13.01%
15.18% wae, 13.01% 13.70% 14.68% Banking my way.
Slide 36: Eugene D. Helbig, Jr., Senior Trust Officer
Eugene D. Helbig, Jr. Senior Vice President & Senior Trust Officer
Slide 37: Trust Department Market Value
Trust Department Market Value 1977 $468,500,000 2005
Slide 38: Trust Department Income
Trust Department Income $3,283,487 1977 2005
Slide 39: Trust Sales of New Revenue
Trust Sales of New Revenue * $348,853 Non-Recurring 5,153 $583,269 2005 3,284 $555,376 2003 4,113 *$902,575 2004 3,051 $437,115 2002 2,886 $419,808 2001 # of Contacts Sales
Slide 40: Managed Asset Portfolio Results
Managed Asset Portfolio Results 8.95% 31.05% 15.52% 8.83% Aggressive 7.63% 23.63% 11.97% 6.39% Balanced 7.49% 16.82% 9.45% 4.39% Growth/Income 6.48% 9.64% 5.54% 3.15% Fixed Income 5.01% 5.12% 4.69% 2.86% Bond Income 8 Year Average Annual Return 2003 Annual Return 2004 Annual Return 2005 Annual Retur
Slide 41: Contribution of Trust & PrimeVest to Corporate Income
Contribution of Trust & PrimeVest to Corporate Income 1999 13.34% 2000 13.77% 2001 16.08% 2002 11.64% 2003 13.79% 2004 26.24% 2005 15.56%
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Slide 44: Jason Rush, Director of Operations & Cash Management
Jason Rush Director of Operations & Cash Management Services
Slide 45: Slide 45
Slide 46: Cash Management – Number of Customers
Cash Management – Number of Customers 2000 2001 2002 2003 2004 2005
Slide 47: Cash Management – Dollar Range
Cash Management – Dollar Range $16,423,984 $32,291,279 $48,569,847 $85,705,265 $115,440,050 $140,931,514 $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 2000 2001 2002 2003 2004 2005
Slide 48: Jeannette R. Fitzwater, Director of Human Resources
Jeannette R. Fitzwater Senior Vice President & Director of Human Resources
Slide 49: Planning for Your Investment
Planning for Your Investment Short-Term Planning Long-Term Planning Succession Planning
Slide 50: Growing Your Investment
Growing Your Investment Orientation Training Coaching & Mentoring
Slide 51: Managing Your Investment
Managing Your Investment Realignment of Resources Expense Management
Slide 52: Human Resource Investment Strategy
Human Resource Investment Strategy Goal: Maximize your Investment!
Slide 53: At First United...
At First United... People Truly are Our Primary Point of Difference!
Slide 54: Robin Murray, Director of Marketing
Robin Murray Senior Vice President & Director of Marketing
Slide 55: Customer Research
Customer Research Revamped Customer Satisfaction Survey Realigned Mystery Shopping Program Compare Satisfaction Survey Results to Mystery Shopping Results Improve Sales and Service Initiatives
Slide 56: New Product Development
New Product Development Health Savings Account Team of Specialists Approach Enhanced Existing Products New Business Checking Account Total Financial Solutions!
Slide 57: Competitive Research
Competitive Research Engaged Research Firm Study of Deposit Products Analysis of Fees
Slide 58: Database Marketing
Database Marketing Predictive Modeling System Penetration Efforts - Next Financial Service Retention Efforts – Risk of Leaving Personalized Direct Mail/Telephone Call
Slide 59: 2006 Marketing Strategies
2006 Marketing Strategies Attraction of Targeted Prospects Retention of Key Customers Growth in Existing Relationships Small Business Initiatives Great Financial Services Provider!
Slide 60: Bill Grant, Chairman & CEO
Bill Grant Chairman of the Board & Chief Executive Officer
Slide 61: Relative Performance VS Small Cap Banks
Relative Performance VS Small Cap Banks Return on Equity 211 out of 777 Non-Performing Assets 355 out of 777 Efficiency Ratio 338 out of 777 Overall: 249 out of 777 Top 32%!
Slide 62: Deposit Growth
Deposit Growth _ Compound Growth Rate , 2 | 9.39%) dulaaldd -== i Loan Growth | Hl Pee
Slide 63: Growth of $10,000
Growth of $10,000: Holding(s) from 06-01-1996 to 12-31-2005 Total Annualized ‘Amount at tocWindex Stoclvinde Return % Return % End of Period $ @ first United ; 105.81 7.82 20,581 @ © Standard & Poor's 500 NASDAQ C ae 117.29 8.44 21,729 ome 7737 6.16 17,737 ernat ingen Mrmr a gars amperes and aray, W
Slide 64: The Team of Associates Dedicated to Serving You
/ The Team ot associates Dedicated to Serving You Yet sr reo
Slide 65: Our Mission
ee Our Mission To Enrich the Lives of Our Customers, Our Employees and Our Shareholders Through Uncommon Service and Effective Financial Solutions Banking my way.