Slide 1: Investor Presentation Fourth Quarter 2024
INVESTOR PRESENTATION Fourth Quarter 2024 MyBank.com
Slide 2: Forward looking statements
2 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 3: Table of Contents
3 Table of Contents I. II. III. Corporate Overview Financial Performance Appendices Pg. 4 Pg. 10 Pg. 32
Slide 4: Our Mission and Corporate Overview
4 Our Mission To enrich the lives of our associates, customers, communities and shareholders through uncommon commitment to service and customized financial solutions. Corporate Overview Founded: 1900 Headquarters: Oakland, MD Locations: 22 branches Business Lines: ▪ Commercial & Retail Banking ▪ Tr
Slide 5: Core Markets
5 East Region Central Region West Region $578,713 $456,475 $324,594 Loans (000s) $511,884 $783,060 $139,625 Deposits (000s) 4% 45% 3% Deposit Market Share (1) (at June 30, 2024) 10 9 3 Branches Note: Out of market loans represent $122 million and are not reflected in this table (1) Source: FDIC Mark
Slide 6: Core Strengths
6 6 Core Strengths ▪ Diversified revenue stream driven by trust and brokerage fee income offsets tighter margin environements Diversified Revenue Stream ▪ Stable legacy markets produce steady low - cost funding ▪ Technology and business relationships drive growth Core Deposit Franchise ▪ Diverse and
Slide 7: Total Shareholder Return
7 7 Total Shareholder Return ▪ Average daily volume increased ▪ 13,807 shares 2023 (1 year ending 12.31.23) ▪ 19,663 shares 2024 (1 year ending 12.31.24) 1-Year 3-Year 5-Year First United 48.3 % 100.6 % 67.5 % S&P US Small Cap Banks 18.2 % 4.8 % 32.4 % 2022 Proxy Peer Group 7.1 % 4.3 % 11.1 %
Slide 8: Risk Management, Monitoring & Mitigation Underlies all Strategic Priorities
8 Risk Management, Monitoring & Mitigation Underlies all Strategic Priorities ▪ Low net charge - offs and strong asset quality resulting from conservative and proactive credit culture ▪ ACL level of 1.23%; future provisioning based on loan growth, economic environment and asset quality changes ▪ Div
Slide 9: Strategic Pillars & Key Objectives
9 Strategic Pillars & Key Objectives Culture & Human Capital ▪ Attract and hire passionate, diverse talent to engage with clients and prospects across broader geographics. ▪ Drive associate retention and foster career development through mentoring initiatives, leadership programs, and educational op
Slide 10: Fourth Quarter Financial Highlights
10 Fourth Quarter Financial Highlights $6.2 Million Net Income (1) $0.95 Diluted EPS (1) 1.27% * ROAA (1) 14.94 * ROATCE (1) 3.48% NIM ▪ Total assets increased $56.9 million compared to September 30, 2024 ▪ Consolidated net income (1) of $6.2 million in 4Q24 compared to $4.5 million in 4Q23 and $5.8
Slide 11: Year to Date Financial Highlights
11 Year to Date Financial Highlights $21.0 Million Net Income (1) $3.21 Diluted EPS (1) 1.08% * ROAA (1) 13.35% * ROATCE (1) 3.38% NIM ▪ Total assets increased $67.2 million compared to December 31, 2023 ▪ Consolidated net income (1) of $21.0 million as of December 31, 2024 compared to $18.8 million
Slide 12: Long-Term Growth
12 Long - Term Growth Pre - Provision Net Revenue ($ in millions) (1) $23.2 $30.8 $32.5 $25.9 $30.7 2020 2021 2022 2023 2024 (1) See Appendix for a reconciliation of these non - GAAP financial measures $1.97 $3.54 $3.76 $2.80 $3.21 2020 2021 2022 2023 2024 Diluted Earnings per Share (1) Total Deposi
Slide 13: Solid Profitability
13 Solid Profitability (1) See Appendix for a reconciliation of these non - GAAP financial measures Long - term Strategic Target 13% - 15% Long - term Strategic Target 1.25% - 1.60% Core ROAA (non - GAAP (1) ) Core ROATCE (non - GAAP (1) ) 0.86% 1.35% 1.39% 0.97% 1.08% 2020 2021 2022 2023 2024 11.92
Slide 14: Loan Diversification
14 Total 1 - 4 Family 35% CRE - NOO 20% C&I 19% CRE - OO 12% C&D 7% Consumer 4% Multi - family 3% Loan Diversification Loan Portfolio Mix (12/31/2024) RE/Rental/Leasing NOO 22% RE/Rental/ Leasing OO, C&I 18% All Other 18% Accommodations 12% Services 8% RE/Rental/Leasing Multifamily 5% Trade 5% Const
Slide 15: Commercial Industry Mix by Origination Year
15 Commercial Industry Mix by Origination Year Commercial Industry Mix by Origination Prior to 2000 2000 - 2005 2006 - 2010 2011 - 2015 2016 - 2020 2021 - Current Total RE / Rental / Leasing - NOO - 4,147,786 798,297 7,639,803 73,419,856 126,868,548 212,874,290$ RE / Rental / Leasing - OO, C&I 8,823
Slide 16: Commercial Real Estate
16 Commercial Real Estate Focus on risk mitigation and managing of concentrations ▪ CRE / Total Capital: 235% ▪ ADC / Total Capital: 43% * There are no office buildings located in metropolitan markets or over four stories. ** There are no major/big box retail tenants. OFFICE* Geography Note Book Bal
Slide 17: Variable Rate Loans and Repricing
17 Variable Rate Loans and Repricing * Includes personal lines of credit and home equity lines Loan Type Reprices Monthly % to Total Type Repricing Repricing 2025 % to Total Type Repricing Repricing 2026 % to Total Type Repricing Repricing 2027 + % to Total Type Repricing Grand Total Commercial Loan
Slide 18: Credit Quality
18 Credit Quality ALL / ACL Trends (Net Charge - Offs)/Average Loans Nonaccrual Loans / Total Loans NPAs / Total Assets 0.35% 0.21% 0.27% 0.28% 0.33% 2020 2021 2022 2023 2024 0.99% 0.60% 0.46% 0.48% 0.45% 2020 2021 2022 2023 2024 1.41% 1.38% 1.14% 1.24% 1.23% 2020 2021 2022 2023 2024 0.13% - 0.02% -
Slide 19: Investment Portfolio
19 Investment Portfolio Duration Book Yield Portfolio % Par (000s) Sector 6.39 2.28% 28% 78,388 Treasury/Agency 5.35 2.59 2.63% 5.22% 19% 1% 53,478 2,000 Fixed MBS Floating MBS 6.47 1.97% 26% 73,522 CMO 7.42 4.27% 4% 11,375 Municipal 2.00 5.49% 1% 1,000 Corporate 4.24 2.11% 21% 59,330 Other 5.77 2.3
Slide 20: Shocked Investment Portfolio Unrealized Gains / Losses Capital Impact
20 Shocked Investment Portfolio Unrealized Gains / Losses Capital Impact Up400 Up300 Up200 Up100 BaseCase Dn100 Dn200 Intent - 31,990 - 28,928 - 25,322 - 21,541 - 17,652 - 13,862 - 10,223 AFS - 63,344 - 56,480 - 48,308 - 39,629 - 30,797 - 21,396 - 11,835 HTM - 95,333 - 85,409 - 73,630 - 61,170 - 48,
Slide 21: Deposits
21 Deposits 30% 34% 32% 28% 27% 14% 16% 23% 23% 25% 40% 39% 36% 37% 39% 16% 11% 8% 10% 9% 0% 0% 0% 2% 0% 2020 2021 2022 2023 2024 NIB Demand IB Demand MMA & Savings CDs - Retail CDs - Brokered $1.57 $1.42 $1.57 $1.57 $1.58 Deposit Composition ($ in billions as of 12/31/2024) 82% 79% 81% 91% 94% Loan
Slide 22: Funding
22 Funding 45% 45% 10% Commercial Deposits Retail Deposits Borrowings Funding Mix Brokered/Wholesale Maturities $40 $25 $25 March 2026 March 2026 September 2025 Dollars (in millions) FHLB Advance FHLB Advance 3.83% Federal Home Loan Bank 4.04% 3.83% Brokered CD Federal Home Loan Bank Federal Home Lo
Slide 23: Net Interest Margin
23 Net Interest Margin (1) See Appendix for a reconciliation of these non - GAAP financial measures 3.99% 3.63% 3.85% 4.63% 5.73% 0.91% 0.51% 0.44% 1.92% 2.51% 3.34% 3.28% 3.56% 3.26% 3.38% 0.49% 0.24% 0.21% 1.16% 1.62% 0.1% 1.1% 2.1% 3.1% 4.1% 5.1% 2020 2021 2022 2023 2024 Yield on Earning Assets C
Slide 24: Diversified Fee Income
24 Diversified Fee Income (1) See Appendix for a reconciliation of these non - GAAP financial measures Composition 53% Trust and Brokerage 17% Service Charges 1% Net Gain on Loan Sales 22% Debit Card Income 6% Bank - owned Life Insurance 1% Other Noninterest Income Non - Interest Income Mix 2024 Tru
Slide 25: Committed to Efficiency & Innovation
25 Committed to Efficiency & Innovation (1) See Appendix for a reconciliation of these non - GAAP financial measures Efficient operational platforms and fraud protection ▪ Mortgage Bot ▪ SecureLOCK Premium Debit Card Fraud ▪ Credit Insights/ Savvy Money Cross Marketing Tool ▪ ProfitStars forecasting
Slide 26: Liquidity Position
26 Liquidity Position Net Availability ($ in thousands) Amount Used ($ in thousands) Amount Available ($ in thousands) Liquidity Sources (12/31/2024) Internal Sources $62,251 $62,251 Excess Cash $39,865 $39,865 Unpledged Securities (BV) External Sources $36,624 $50,000* $86,624 Federal Reserve (Disc
Slide 27: Interest Rate Risk
27 Interest Rate Risk (1) Standard Model Assumptions Interest Rate Risk Sensitivity ▪ The Bank’s interest rate risk position is stress tested under three interest rate ramp scenarios to determine the impact on net interest income, net income and capital under dynamic and static balance sheet conditi
Slide 28: Capital Management
28 Capital Management CET1 Ratio Leverage Ratio Tier 1 Ratio Total Risk - Based Capital Ratio Regulatory Well - Capitalized 10% 5% 8% 6.5% 14.83% 14.64% 15.06% 14.42% 14.70% 2020 2021 2022 2023 2024 16.08% 15.89% 16.12% 15.64% 15.92% 2020 2021 2022 2023 2024 10.36% 10.80% 11.46% 11.30% 11.88% 2020 2
Slide 29: Capital Management: Tangible Book Value / Share and TCE Ratio
29 Capital Management Tangible Book Value / Share TCE Ratio $17.17 $19.61 $20.90 $22.56 $25.89 2020 2021 2022 2023 2024 6.97% 7.56% 7.59% 7.91% 8.54% 2020 2021 2022 2023 2024
Slide 30: Strategic Targets
30 Strategic Targets Long Term Strategic Target Range (*) Non - GAAP 12/31/2024 Actual 12/31/2024 Non - GAAP 12/31/2023 Actual 12/31/2023 Metric 8% - 12% 15% 41% - 26% (1) - 40% EPS Growth (YoY) Strong Shareholder Return 20% - 25% 27.0% 27.0% 34.6% 34.6% Dividend Payout Ratio 1.25% - 1.60% 1.08% 1.0
Slide 31: Strong Investor Relations & Shareholder Engagement
31 Strong Investor Relations & Shareholder Engagement Members of the Board and senior management routinely engage with shareholders and other stakeholders, and management regularly updates the Board in the context of ongoing investor discussions. These engagements help the Board and management gathe
Slide 32: Appendices
32 I. II. III. IV. Management Team Board of Directors ESG Journey & Statistics Non - GAAP Reconciliation Pg. 33 Pg. 34 Pg. 37 Pg. 39 Appendices
Slide 33: Management Team
33 Management Team Carissa L. Rodeheaver Chairman of the Board, President & CEO 33+ years career with First United with in - depth industry, wealth management, financial and operational experience Jason B. Rush SVP & Chief Operating Officer 30+ years with in - depth industry, retail, risk and compli
Slide 34: Board of Directors
34 34 John F. Barr Independent Director Chairman of the Board, Ellsworth Electric, Inc. Sanu Chadha Independent Director Managing Partner, M&S Consulting Christy DiPietro Independent Director, Audit Chair Chartered Financial Analyst, Hidden Cove Advisory Patricia Milon Independent Director Principal
Slide 35: Board of Directors: Thoughtful Evaluation and Evolution
35 Board of Directors Thoughtful Evaluation and Evolution Our Board is comprised of a diverse group of directors who bring a variety of perspectives, experience, and characteristics to First United. Director Diversity 50% 90% of our directors are gender and/or racially diverse of our directors are i
Slide 36: Board of Directors Skills Matrix
36 Board of Directors The First United board of directors brings a diverse range of skills, experiences, and backgrounds to the work of overseeing ris k and strategy. With experience in fields such as banking, government, accounting, investing, project management, technology, and a range of local en
Slide 37: Continuous Progress
37 Continuous Progress We continue to advance our ESG profile over time, recognizing the importance of our key stakeholders – including our customers a nd our communities – to our business. Over the past few years, we have implemented several important enhancements to align our ESG profile with our
Slide 38: ESG at First United
38 ESG at First United ▪ LED lighting installed throughout branch network and operations center ▪ Recycling, focus on reduced printing (65% reduction since pre - COVID) ▪ Leveraging virtual meeting opportunities to reduce travel footprint ▪ 46% of deposit customers and 11% of loan customers enrolled
Slide 39: Non-GAAP financial measures
39 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 40: Non-GAAP Reconciliation, continued
40 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2020 2021 2022 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 12/31/2024 Weighted Average Common shares - basic (actual) (d) 7,003,955 6,710,463 6,649,740 6,685,676 6,675,181 6,703,805 6,714,267
Slide 41: Non-GAAP Reconciliation, continued
41 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2020 2021 2022 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 12/31/2024 Return on Average Assets (quarter and YTD annualized) Average Assets ( c) 1,613,669$ 1,765,148$ 1,801,711$ 1,924,119$ 1,89
Slide 42: Non-GAAP Reconciliation, continued
42 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2020 2021 2022 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 12/31/2024 Tangible Book Value per Common Share Total common equity, as reported (h) 131,047$ 141,900$ 151,793$ 161,873$ 152,868$ 155