th
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For quarterly period ended
For the transition period from _______________ to ________________
Commission file number
(Exact name of registrant as specified in its charter)
| ||
(State or other jurisdiction of | (I. R. S. Employer Identification No.) | |
| ||
(Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Trading Symbols |
| Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated filer ◻ | Accelerated Filer ◻ |
Smaller Reporting Company | |
Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standard provided pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
INDEX TO QUARTERLY REPORT
FIRST UNITED CORPORATION
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
First United Corporation and Subsidiaries
Consolidated Statements of Financial Condition
(In thousands, except share data - Unaudited)
| September 30, |
| December 31, | |||
Assets | ||||||
Cash and due from banks | $ | | $ | | ||
Interest bearing deposits in banks | | | ||||
Cash and cash equivalents | | | ||||
Investment securities – available for sale (at fair value) | | | ||||
Investment securities – held to maturity, net of allowance for credit losses of $ | | | ||||
Restricted investment in bank stock, at cost | | | ||||
Loans held for sale | | | ||||
Loans | | | ||||
Unearned fees | ( | ( | ||||
Allowance for credit losses | ( | ( | ||||
Net loans | | | ||||
Premises and equipment, net | | | ||||
Goodwill and other intangibles | | | ||||
Bank owned life insurance | | | ||||
Deferred tax assets | | | ||||
Other real estate owned, net | | | ||||
Right of use assets | | | ||||
Pension asset | | | ||||
Accrued interest receivable | | | ||||
Other assets | | | ||||
Total Assets | $ | | $ | | ||
Liabilities and Shareholders’ Equity | ||||||
Liabilities: | ||||||
Non-interest bearing deposits | $ | | $ | | ||
Interest bearing deposits | | | ||||
Total deposits | | | ||||
Short-term borrowings | | | ||||
Long-term borrowings | | | ||||
Operating lease liability | | | ||||
SERP deferred compensation | | | ||||
Allowance for credit losses on off-balance sheet credit exposures | | | ||||
Accrued interest payable | | | ||||
Other liabilities | | | ||||
Dividends payable | | | ||||
Total Liabilities | | | ||||
Shareholders’ Equity: | ||||||
Common Stock – par value $ | | | ||||
Surplus | | | ||||
Retained earnings | | | ||||
Accumulated other comprehensive loss | ( | ( | ||||
Total Shareholders’ Equity | | | ||||
Total Liabilities and Shareholders’ Equity | $ | | $ | |
See accompanying notes to the consolidated financial statements
3
First United Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
Nine Months Ended | ||||||
September 30, | ||||||
| 2024 |
| 2023 | |||
(Unaudited) | ||||||
Interest income | ||||||
Interest and fees on loans | $ | | $ | | ||
Interest on investment securities | ||||||
Taxable | | | ||||
Exempt from federal income tax | | | ||||
Total investment income | | | ||||
Other | | | ||||
Total interest income | | | ||||
Interest expense | ||||||
Interest on deposits: | ||||||
Savings | | | ||||
Interest-bearing transaction accounts | | | ||||
Time deposits | | | ||||
Total interest on deposits | | | ||||
Interest on short-term borrowings | | | ||||
Interest on long-term borrowings | | | ||||
Total Interest Expense | | | ||||
Net Interest income | | | ||||
Credit loss expense - loans | | | ||||
Credit loss expense - debt securities held to maturity | | | ||||
Credit loss credit - off-balance sheet credit exposures | ( | ( | ||||
Total credit loss expense | | | ||||
Net interest income after provision for credit losses | | | ||||
Other operating income | ||||||
Net gains on sales of residential mortgage loans | | | ||||
Net gains | | | ||||
Other Income | ||||||
Service charges on deposit accounts | | | ||||
Other service charges | | | ||||
Trust department | | | ||||
Debit card income | | | ||||
Bank owned life insurance | | | ||||
Brokerage commissions | | | ||||
Other | | | ||||
Total other income | | | ||||
Total other operating income | | | ||||
Other operating expenses | ||||||
Salaries and employee benefits | | | ||||
FDIC premiums | | | ||||
Equipment expense | | | ||||
Occupancy expense of premises | | | ||||
Data processing expense | | | ||||
Marketing expense | | | ||||
Professional services | | | ||||
Contract labor | | | ||||
Telephone | | | ||||
Other real estate owned expense, net | | | ||||
Investor relations | | | ||||
Contributions | | | ||||
Other | | | ||||
Total other operating expenses | | | ||||
Income before income tax expense | | | ||||
Provision for income tax expense | | | ||||
Net Income | $ | | $ | | ||
Basic net income per share | $ | | $ | | ||
Diluted net income per share | $ | | $ | | ||
Weighted average number of basic shares outstanding | | | ||||
Weighted average number of diluted shares outstanding | | | ||||
Dividends declared per common share | $ | | $ | |
See accompanying notes to the consolidated financial statements
4
First United Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended | ||||||
September 30, | ||||||
| 2024 |
| 2023 | |||
(Unaudited) | ||||||
Interest income | ||||||
Interest and fees on loans | $ | | $ | | ||
Interest on investment securities | ||||||
Taxable | | | ||||
Exempt from federal income tax | | | ||||
Total investment income | | | ||||
Other | | | ||||
Total interest income | | | ||||
Interest expense | ||||||
Interest on deposits: | ||||||
Savings | | | ||||
Interest-bearing transaction accounts | | | ||||
Time deposits | | | ||||
Total interest on deposits | | | ||||
Interest on short-term borrowings | | | ||||
Interest on long-term borrowings | | | ||||
Total Interest Expense | | | ||||
Net Interest income | | | ||||
Credit loss expense - loans | | | ||||
Credit loss expense - debt securities held to maturity | | | ||||
Credit loss expense/(credit) - off-balance sheet credit exposures | | ( | ||||
Total credit loss expense | | | ||||
Net interest income after provision for credit losses | | | ||||
Other operating income | ||||||
Gains on sales of residential mortgage loans | | | ||||
Net gains | | | ||||
Other Income | ||||||
Service charges on deposit accounts | | | ||||
Other service charges | | | ||||
Trust department | | | ||||
Debit card income | | | ||||
Bank owned life insurance | | | ||||
Brokerage commissions | | | ||||
Other | | | ||||
Total other income | | | ||||
Total other operating income | | | ||||
Other operating expenses | ||||||
Salaries and employee benefits | | | ||||
FDIC premiums | | | ||||
Equipment | | | ||||
Occupancy | | | ||||
Data processing | | | ||||
Marketing | | | ||||
Professional services | | | ||||
Contract labor | | | ||||
Telephone | | | ||||
Other real estate owned expense, net | | | ||||
Investor relations | | | ||||
Contributions | | | ||||
Other | | | ||||
Total other operating expenses | | | ||||
Income before income tax expense | | | ||||
Provision for income tax expense | | | ||||
Net Income | $ | | $ | | ||
Basic net income per common share | $ | | $ | | ||
Diluted net income per common share | $ | | $ | | ||
Weighted average number of basic shares outstanding | | | ||||
Weighted average number of diluted shares outstanding | | | ||||
Dividends declared per common share | $ | | $ | |
See accompanying notes to the consolidated financial statements
5
First United Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income
(In thousands)
Nine Months Ended | ||||||
September 30, | ||||||
2024 | 2023 | |||||
Comprehensive Income | (Unaudited) | |||||
Net Income | $ | | $ | | ||
Other comprehensive income/(loss), net of tax and reclassification adjustments: | ||||||
Available for sale securities: | ||||||
Unrealized holding gains/(losses) on investments with credit related impairment | $ | | $ | ( | ||
Reclassification adjustment for accretable yield realized in income | | | ||||
Other comprehensive loss on investments with credit related impairment | ( | ( | ||||
Unrealized holding gains/(losses) on all other AFS investments | $ | | $ | ( | ||
Other comprehensive income/(loss) on all other AFS investments | | ( | ||||
Held to Maturity Securities | ||||||
Unrealized holding gains on securities transferred to held to maturity | $ | — | $ | — | ||
Reclassification adjustment for amortization realized in income | ( | ( | ||||
Other comprehensive income on HTM investments | | | ||||
Cash flow hedges: | ||||||
Unrealized holding (losses)/gains on cash flow hedges | $ | ( | $ | | ||
Other comprehensive (loss)/income on cash flow hedges | ( | | ||||
Pension plan liability: | ||||||
Unrealized holding gains/(losses) on pension plan liability | $ | | $ | ( | ||
Reclassification adjustment for amortization of unrecognized losses realized in income | ( | ( | ||||
Other comprehensive income/(loss) on pension plan liability | | ( | ||||
SERP liability: | ||||||
Unrealized holding gains on SERP liability | $ | — | $ | — | ||
Reclassification adjustment for amortization of unrealized (losses)/gains realized in income | ( |