INVESTOR PRESENTATION
First Quarter 2025
MyBank.com
Table of Contents
I. Corporate Overview | Pg. 4 |
II. Financial Performance | Pg. 10 |
III. Appendices | Pg. 31 |
Corporate Overview
Overview
Founded: 1900
Headquarters: Oakland, MD
Locations: 22 branches
Business Lines:
- Commercial & Retail Banking
- Trust Services
- Wealth Management
Ticker: FUNC (Nasdaq)
Website: www.MyBank.com
Our Mission
To enrich the lives of our associates, customers, communities and shareholders through uncommon commitment to service and customized financial solutions.
Star denotes | ||||
Oakland, Maryland | ||||
•Pittsburgh, PA | Headquarters | |||
•Harrisburg, PA | ||||
•Columbus, OH | ● | Maryland | ||
Morgantown, WV | ||||
•Baltimore, MD | ||||
● | ||||
Winchester, VA | ||||
•Washington, DC |
West Virginia
•Richmond, VA
4
Core Markets
West Region | Central Region | East Region | |
Loans (000s) | $325,236 | $447,781 | $582,032 |
Deposits (000s) | $135,314 | $734,513 | $511,884 |
Deposit Market Share(1) (at June 30, 2024) | 3% | 45% | 4% |
Branches | 3 | 9 | 10 |
Note: Out of market loans represent $110 million and $50 million in brokered CDs are not reflected in this table
-
Source: FDIC Market Share Data, most current. Deposit market share for each region includes the following counties:
West: Monongalia, WV
Central: Garrett, MD; Allegany, MD; Mineral, WV
East: Washington, MD; Frederick, MD; Berkeley, WV
5
Core Strengths
Financial
Strength
- Regulatory capital ratios significantly above regulatory requirements
- Significant access to liquidity sources
Culture of
Engagement
- Supporting local causes with financial education, consultation and robust products and services
- Knowledgeable associates committed to helping clients & the communities we serve
Diversified Revenue
Stream
- Diversified revenue stream driven by trust and brokerage fee income offsets tighter margin environments
Expense
Structure
- Well-establishedoperational infrastructure will support future growth
- Expense management focus, hybrid work environment and technology drive cost savings
Core Deposit
Franchise
- Stable legacy markets produce steady low-costfunding
- Technology and business relationships drive growth
Robust Enterprise
Risk Management
- Strong underwriting guidelines and risk management framework
- Focus on risk mitigation, loan concentration management and information security
Engaged & Diverse
Leadership
- Diverse and experienced Board with the skills to oversee risks, strategic initiatives and governance best practices
- Ongoing Board succession strategy
Forward-Thinking
Approach
- Innovative, dynamic approach to attract and retain clients through customized solutions
- Investment in FinTech funds provides early exposure to new technology
6
Total Shareholder Return
1-Year | 3-Year | 5-Year | |||||
First United | 35.6% | 41.7% | 155.2% | ||||
S&P US Small Cap Banks | 18.1% | 2.1% | 120.5% | ||||
2025 Proxy Peers | 18.3% | 12.6% | 69.9% |
Risk Management, Monitoring & Mitigation
Asset
Quality
Interest Rate
Sensitivity
Cyber-Security
- Fraud Monitoring
Capital
Liquidity
Management
Underlies all Strategic Priorities
- Low net charge-offs and strong asset quality resulting from conservative and proactive credit culture
- ACL level of 1.25%; future provisioning based on loan growth, economic environment and asset quality changes
- Diversified commercial loan portfolio and geographic footprint
- Disciplined loan growth strategy, concentration management, stress testing and exception tracking and monitoring
- Well-definedloan approval levels
- Centralized risk rating and monitoring of risk rating migration and delinquency trends
- Robust annual third-party loan review
- Maintaining an asset sensitive balance sheet and positioning for down rate environment
- Limiting longer-term investment exposure and actively managing loan and deposit terms and pricing
- Focused on capturing core, low-cost deposits
- Monitoring dynamic and static rate ramp scenarios
- Board regularly briefed on cyber-security matters
- Robust information security training programs for associates and Board
- Regular third-party review and testing of information security, compliance processes and cybersecurity controls
- No security breaches to-date
- Adaptive fraud detection and management
- Strong capital levels well above regulatory "well-capitalized" definition
- Conservative dividend payout policy to improve TCE and maintain capital during uncertain economic and political environment
- Capital stress tests indicate Bank is well positioned to absorb potential losses
- Stock repurchase program approved by board and executed with shareholder in mind
- Loan to deposit ratio of 91%
- Liquidity contingency plan in place and funds position monitored daily
- Liquidity stress testing performed quarterly with strong liquidity under various scenarios
- Available borrowing capacity of $465 million through tested correspondent lines of credit, FHLB and Federal Reserve
- Strong, stable low-cost core deposit franchise of 88% of total deposit portfolio
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 opportunities.
- Expand associate engagement, cross-functional collaboration, and communication.
- Enhance succession plan by fostering forward-thinking strategies that promote innovation and long-term growth.
Product & Service Revenue Diversification
- Increase non-interestincome as a percentage of revenue to reduce dependence on net interest margin.
- Expand business development training and outreach efforts to drive strategic sales growth and deepen community- oriented business owner relationships.
- Revamp customer segmentation to focus on expanding product and service utilization by the existing customer base.
- Improve brand awareness in growth markets.
Resource Optimization
- Optimize balance sheet mix to maximize profitability.
- Expand net interest margin through a disciplined approach to loan and deposit portfolio repricing.
- Effectively manage Capital through repurchase opportunities and effective investor communication.
- Improve efficiency by utilizing technology, leveraging data, artificial intelligence, and digital alternatives.
- Reduce monetary loss and administrative costs associated with cyber security and fraud.
- Allocate resources to enhance market share and execute tactics to optimize geographic presence.
- Cultivate relationships for potential future bank and wealth expansion.
Effective use of technology, marketing and communications, and environmental focus underlies all strategic priorities. | 9 |
First Quarter Financial Highlights
$5.8 Million | $0.89 | 1.190%* | 13.70* | 3.56% |
Net Income(1) | Diluted EPS(1) | ROAA(1) | ROATCE(1) | NIM |
- Total assets increased $6.7 million compared to December 31, 2024
- Consolidated net income(1) of $5.8 million in 1Q25 compared to $3.7 million in 1Q24 and $6.2 million in linked quarter; pre-provision net revenue of $8.4 million compared to $6.4 million and $8.7, respectively
- Net interest income, on a non-GAAP, FTE basis* increased by $0.3 million in 1Q25 compared to 4Q24 driven by increased interest income and stable interest expense
- Asset quality remains stable with the ratio of the allowance for credit losses ("ACL") to loans outstanding at 1.25% in 1Q25 and 1.23% in the linked quarter
- Efficiency ratio of 59.95% (1) for the first quarter of 2025 compared to 58.05% for the linked quarter; increase primarily attributable to increased non-interest expense related to reduced salaries and benefits in the fourth quarter 2024 offset slightly by increased net interest income and stable non-interest income
(1) See Appendix for a reconciliation of these non-GAAP financial measures | * 1Q2025 Annualized | 10 |
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