ファーストユナイテッドの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 21, 2025

First United Corporation

(Exact name of registrant as specified in its charter)

Maryland	0-14237	52-1380770
(State or other jurisdiction of	(Commission file number)	(IRS Employer
incorporation or organization)		Identification No.)

19 South Second Street, Oakland, Maryland 21550

(Address of principal executive offices) (Zip Code)

(301) 334-9471

(Registrant’s telephone number, including area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of each exchange on which registered
Common Stock	FUNC	Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

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 standards provided pursuant to Section 13(a) of the Exchange Act. ¨

INFORMATION TO BE INCLUDED IN THE REPORT

Item 2.02. Results of Operation and Financial Condition.

On July 21, 2025, First United Corporation (the “Corporation”) issued a press release describing its financial results for the three- and six-months ended June 30, 2025. A copy of the press release is furnished herewith as Exhibit 99.1.

The information contained in this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

On July 21, 2025, the Corporation published an investor presentation that discusses certain aspects of its financial results for the three- and six-months ended June 30, 2025. A copy of the presentation is furnished herewith as Exhibit 99.2.

The information contained in this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The exhibits filed or furnished with this report are listed in the following Exhibit Index:

Exhibit No.	Description
99.1	Press release dated July 21, 2025 (furnished herewith)
99.2	Investor presentation dated July 21, 2025 (furnished herewith)
104	Cover page interactive data file (embedded within the iXBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIRST UNITED CORPORATION

Dated: July 21, 2025	By:	/s/ Tonya K. Sturm
		Tonya K. Sturm
		Senior Vice President & CFO

EX-99.1 2 tm2521255d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

FIRST UNITED CORPORATION ANNOUNCES

SECOND QUARTER 2025 FINANCIAL RESULTS

OAKLAND, MARYLAND— July 21, 2025: First United Corporation (the “Corporation”, “we”, “us”, and “our”) (NASDAQ: FUNC), a bank holding company and the parent company of First United Bank & Trust (the “Bank”), today announced financial results for the three- and six-month periods ended June 30, 2025. Consolidated net income was $6.0 million for the second quarter of 2025, or $0.92 per diluted common share, compared to $4.9 million, or $0.75 per diluted common share, for the second quarter of 2024 and $5.8 million, or $0.89 per diluted common share, for the first quarter of 2025. Net income for the first six months of 2025 was $11.8 million, or $1.81 per diluted common share, compared to $8.6 million, or $1.31 per diluted common share, for the same period of 2024. Annualized Return on Average Assets and Return on Average Equity for the six-month period ended June 30, 2025 were 1.20% and 12.78%, respectively.

According to Carissa Rodeheaver, Chairman, President and CEO, “The second quarter remained strong, driven by our increasing net interest margin. We were successful in controlling funding costs and the higher-than-expected interest rate environment led to favorable interest income in our loan portfolio. Loan production increased during the quarter and pipelines remain strong. We are excited to have expanded our Morgantown team during the first half of this year and are optimistic about the growth potential of that market. We will continue to add talent when the opportunity presents itself and to focus on technologies that will improve efficiencies long-term and to enhance our customer experience. ”

Second Quarter Financial Highlights:

	·	Net interest margin, on a non-GAAP, fully tax equivalent (“FTE”) basis, was 3.65% for the second quarter of 2025, reflecting increased loan yields and stable funding costs.
	·	Strong loan production during the quarter, with $65.1 million in commercial loan originations and $19.2 million in residential mortgage originations.
	·	Provision expense was $0.9 million in the second quarter driven by growth in both the loan portfolio and unfunded commitments and uncertainty of current economic conditions, partially offset by stable asset quality and improved qualitative factors.
	·	Operating income, including net gains, increased slightly by $0.2 million when compared to the linked quarter.
	·	Operating expenses increased by $0.4 million when compared to the linked quarter primarily due to data processing, other real estate owned (“OREO”) expenses and professional services expenses.
	·	A cash dividend of $0.22 per common share was declared in the second quarter.

Income Statement Overview

On a GAAP basis, net income for the second quarter of 2025 was $6.0 million. This compares to $5.8 million for the first quarter of 2025 and $4.9 million for the second quarter of 2024.

	Q2 2025		Q1 2025		Q2 2024
Net Income, GAAP (millions)	$	6.0	$	5.8	$	4.9
Diluted net income per share, GAAP	$	0.92	$	0.89	$	0.75

The $1.1 million increase in quarterly net income when compared to the second quarter of 2024 was primarily driven by a $1.5 million increase in net interest income, a $0.3 million decrease in provision for credit loss, and a $0.2 million increase in non-interest income, partially offset by increases in non-interest expense of $0.6 million and income tax expense of $0.4 million. Comparing the second quarter of 2025 to the same period of 2024, interest and fees on loans increased by $2.1 million due to from the repricing of adjustable-rate loans and growth in our loan portfolio. Interest expense increased by $0.3 million when comparing year-over-year quarterly expense as increased funding was offset by reductions in deposit rates and borrowing costs. Other operating income increased by $0.2 million driven primarily by increases in wealth management income, and other operating expenses increased by $0.6 million driven by a $0.2 million increase in net OREO expenses, a $0.2 million increase in professional services and contract labor expenses, and a $0.2 million increase in data processing costs.

Compared to the linked quarter, net income increased slightly as net interest income increased by $0.7 million due to interest and fees on loans, and other operating income increased by $0.2 million due to increases in gains in sales of residential mortgages, trust department income and debit card income. These increases were partially offset by a $0.2 million increase in the provision for credit losses and a $0.4 million increase in other operating expenses driven by increased net OREO expenses and data processing, professional services, and investor relations expenses.

Net income for the first six months of 2025 was $11.8 million compared to $8.6 million for the same period in 2024. Net interest income increased by $3.7 million. Provision for credit losses decreased by $0.6 million related due primarily to a $1.1 million charge-off related to equipment loans of one commercial relationship in 2024. Other operating income increased by $0.3 million primarily due to increases in gains on sales of residential mortgages and wealth management income. These increases were partially offset by a $0.3 million increase in other operating expenses that was primarily related to a $0.2 million increase in salaries and employee benefits, a $0.1 million increase in marketing and professional services expenses, and a $0.2 million increase in net OREO costs.

Net Interest Income and Net Interest Margin

Net interest income, on a non-GAAP, FTE basis, increased by $1.5 million for the second quarter of 2025 when compared to the second quarter of 2024. This increase was driven by an increase of $1.8 million in interest income due to a $2.1 million increase in interest income on loans that resulted from an increase of 26 basis points in the overall yield on the loan portfolio, upward repricing of adjustable-rate loans, and an increase in average balances of $74.1 million. Interest income on Federal funds sold decreased by $0.4 million due to a decrease of 129 basis points in average rates and a decrease of $16.0 million in average balances. Interest expense increased by $0.3 million when compared to the second quarter of 2024. Interest expense paid on deposits increased by $0.4 million due to a $73.3 million increase in average balances, partially offset by a decrease of 2 basis points on the rate paid. Interest paid on short-term borrowings decreased by $0.5 million when compared to the same period of 2024 due to the repayment of the $40.0 million from the Bank Term Funding Program (“BTFP”) late in the third quarter of 2024. Interest paid on long-term borrowings increased by $0.4 million when compared to the second quarter of 2024 due to a $50.0 million increase in average balances, partially offset by a decrease in 100 basis points on rates paid.

Comparing the second quarter of 2025 to the first quarter of 2025, net interest income, on a non-GAAP, FTE basis, increased by $0.7 million. This increase was driven by a $0.8 million increase in interest income that resulted from an increase in interest and fees on loans of $0.5 million as average loan balances increased by $6.3 million and average yield increased by 6 basis points. Interest expense was stable when comparing the second quarter of 2025 to the linked quarter.

Comparing the six months ended June 30, 2025 to the six months ended June 30, 2024, net interest income, on a non-GAAP, FTE basis, increased by $3.7 million. Interest income increased by $3.9 million and was driven by an increase of $4.6 million on interest and fees on loans as average loan balances increased by $74.7 million and the overall yield increased by 36 basis points in correlation with upward repricing of adjustable-rate loans. Interest expense on deposits increased by $0.8 million as the average deposit balances increased by $75.3 million, driven by increases of $4.8 million in demand deposit accounts, $76.6 million in money market balances and $15.9 million in brokered time deposits, partially offset by decreases in savings balances of $16.1 million and $6.1 million in retail time deposits. Interest expense on short-term borrowings decreased by $0.9 million due to the Bank’s utilization of the BTFP program in 2024 and subsequent repayment late in the third quarter of 2024. The net interest margin for the six months ended June 30, 2025 was 3.61% compared to 3.31% for the six months ended June 30, 2024.

Non-Interest Income

Other operating income, including net gains, for the second quarter of 2025 increased by $0.2 million when compared to the same period of 2024. This increase was driven by a $0.1 million increase in wealth management income, reflecting higher market valuations and expanded relationships with both new and existing clients. Additionally, gains on sales of residential mortgages increased by $0.1 million due to growth in production year-over-year.

On a linked quarter basis, other operating income, including net gains, increased by $0.2 million. Debit card income increased by $0.1 million, and gains on sales of residential mortgages increased by $0.1 million due to higher production volumes. Wealth management income was stable when compared to the prior quarter.

Other operating income for the six months ended June 30, 2025 increased by $0.3 million when compared to the same period of 2024. This was attributable to a $0.2 million increase in wealth management income, driven by improving market conditions, increased annuity sales and growth in new and existing customer relationships. Gains on sales of residential mortgages increased by $0.1 million. Service charge and debit card income were both stable when comparing the first six months of 2025 to the same period of 2024.

Non-Interest Expense

Operating expenses increased by $0.6 million in the second quarter of 2025 when compared to the second quarter of 2024. Net OREO expenses increased by $0.2 million due to a $0.1 million gain on the sale of OREO property in the second quarter of 2024 and an increase in costs associated with one OREO property in the second quarter of 2025. Data processing fees increased by $0.2 million and professional services expenses increased by $0.1 million. Salaries and employee benefits increased by $0.1 million due to a $0.3 million increase in salary expense related to normal merit increases effective April 1, 2025, partially offset by decreases in employee life and health insurance expense due to decreased claims.

Operating expenses increased by $0.4 million for the second quarter of 2025 when compared to the linked quarter. Net OREO expenses increased by $0.1 million due primarily to costs associated with one OREO property in the second quarter of 2025. Additionally, data processing, professional services, and investor relations expenses each increased by $0.1 million when compared to the linked quarter.

For the six months ended June 30, 2025, non-interest expense increased by $0.3 million when compared to the six months ended June 30, 2024. Salaries and employee benefits increased by $0.2 million due to normal merit increases effective April 1, 2025, increases in stock compensation expense as a result of to increased stock prices and 401K expenses offset by reduced life and health insurance costs related to reduced claims in 2025. Net OREO expenses increased by $0.2 million due to a $0.1 million gain on the sale of OREO in 2024 as well as one-time expense associated with an OREO property recorded in the second quarter of 2025, increases of $0.1 million in marketing and professional services and an increase in data processing expenses of $0.9 million. These increases were partially offset by a $0.7 million decrease in occupancy and equipment expenses related to accelerated depreciation expense recognized in the first quarter of 2024 related to branch closures.

The effective income tax rates as a percentage of income for the six-month periods ended June 30, 2025 and June 30, 2024 were 24.7% and 24.3%, respectively.

Balance Sheet Overview

Total assets at June 30, 2025 were $2.0 billion, representing a $34.4 million increase since December 31, 2024. During the first six months of 2025, the investment portfolio increased by $9.6 million as bonds were purchased to gain yield in anticipation of potential declines in long-term rates. Gross loans increased by $21.7 million. Management expects stronger growth in the second half of the year due to strong loan pipelines. Other assets, including deferred taxes, premises and equipment, bank owned life insurance, pension assets, and accrued interest receivable, increased by $4.0 million.

Total liabilities at June 30, 2025 were $1.8 billion, representing a $22.6 million increase since December 31, 2024. Total deposits increased by $39.4 million when compared to December 31, 2024 due primarily to the $50.0 million in new brokered deposits that were obtained in January 2025 to fund the repayment of the $50.0 million in overnight borrowings that were outstanding at December 31, 2024. Savings and money market accounts increased by $25.5 million and retail time deposits increased by $3.9 million. Interest-bearing demand deposits, primarily our ICS product, decreased by $39.1 million due primarily to seasonal fluctuations in municipal deposit accounts, and non-interest-bearing deposits decreased by $0.9 million due to increased spending by businesses and consumers related to inflation. Short-term borrowings decreased by $14.5 million due to a $20.9 million decrease in overnight borrowings, partially offset by increases in balances of the overnight investment sweep product.

Outstanding loans of $1.5 billion at June 30, 2025 reflected a $21.7 million increase since December 31, 2024.

Loan Type (in millions)	Change since March 31, 2025			Change since December 31, 2024
Commercial	$	21.9		$	21.9
1 to 4 Family Mortgages	$	1.9		$	3.2
Consumer	$	(1.2	)	$	(3.4	)
Gross Loans	$	22.6		$	21.7

Since December 31, 2024, commercial real estate loans increased by $24.4 million, acquisition and development loans increased by $3.6 million, commercial and industrial loans decreased by $6.1 million, residential mortgage loans increased by $3.2 million, and consumer loans decreased by $3.4 million.

New commercial loan production for the second quarter of 2025 was approximately $65.1 million. The pipeline of commercial loans as of June 30, 2025 was $32.3 million and unfunded, committed commercial construction loans totaled approximately $47.0 million. Commercial amortization and payoffs were approximately $27.0 million for the three months ended June 30, 2025, due primarily to pay-offs of short-term commercial loans as well as normal amortizations of the commercial loan portfolio.

New consumer mortgage loan production for the second quarter of 2025 was approximately $19.2 million, with most of this production comprised of in-house mortgages. The pipeline of in-house, portfolio loans as of June 30, 2025 was $11.4 million. Unfunded commitments related to residential construction loans totaled $10.0 million at June 30, 2025.

Total deposits at June 30, 2025 increased by $39.4 million when compared to December 31, 2024.

Deposit Type (in millions)	Change since March 31, 2025			Change since December 31, 2024
Non-Interest-Bearing	$	3.4		$	(0.9	)
Interest-Bearing Demand	$	(21.2	)	$	(39.1	)
Savings and Money Market	$	6.7		$	25.5
Time Deposits- Retail	$	1.7		$	3.9
Tim Deposits- Brokered	$	0.0		$	50.0
Total Deposits	$	(9.4	)	$	39.4

In January 2025, $50.0 million in brokered time deposits with an average interest rate of 4.24% were obtained to fund the repayment of $50.0 million in overnight borrowings that were outstanding at December 31, 2024. Savings and money market accounts increased by $25.5 million due primarily to the expansion of current and new relationships throughout the first six months of 2025. Non-interest-bearing checking deposits decreased by $0.9 million and interest-bearing checking deposits decreased by $39.1 million due primarily to seasonal fluctuations in municipal and commercial account balances and increased spending by businesses and consumers related to inflation. Retail time deposits increased by $3.9 million since December 31, 2024.

The book value of the Corporation’s common stock was $29.43 per share at June 30, 2025 compared to $27.71 per share at December 31, 2024. At June 30, 2025, there were 6,494,611 basic outstanding shares and 6,506,493 diluted outstanding shares of common stock. The increase in the book value at June 30, 2025 was due to the undistributed net income of $8.9 million for the first six months of 2025.

Asset Quality

The allowance for credit losses (“ACL”) was $19.0 million at June 30, 2025 compared to $17.9 million at June 30, 2024 and $18.2 million at December 31, 2024. The provision for credit losses was $0.9 million for the quarter ended June 30, 2025 compared to $1.2 million for the quarter ended June 30, 2024 and $0.7 million for the first quarter of 2025. The decreased provision expense recorded in the second quarter of 2025 when compared to the same period in 2024 was primarily due to $1.1 million in charge-offs related to one non-accrual commercial loan relationship that occurred in 2024. The increase in provision expense compared to the linked quarter was due to an increase of $22.6 in unfunded loan commitments quarter over quarter. Asset quality remained strong during the second quarter of 2025. Net charge-offs of $0.2 million were recorded for the quarter ended June 30, 2025 compared to net charge-offs of $1.3 million for the quarter ended June 30, 2024. The ratio of the ACL to loans outstanding has been consistent at 1.27% at June 30, 2025 compared to1.25% at March 31, 2025 and 1.26% at June 30, 2024.

The ratio of net charge offs to average loans was 0.07% for the six months ended June 30, 2025, and 0.25% for the six months ended June 30, 2024. The commercial and industrial portfolio had net charge offs of 0.25% and 0.89% for the six-month periods ended June 30, 2025 and 2024, respectively. This shift was due primarily to charge offs of equipment loan balances on one non-accrual commercial relationship during 2024. The acquisition and development portfolio had net recoveries of 0.13% and 0.01% for the six-month periods ended June 30, 2025 and 2024, respectively. This shift was due primarily to recoveries recognized in 2025 related to one relationship that was previously charged off in 2021. The decrease in net charge offs in consumer loans in the first six months of 2025 was primarily driven by approximately $0.3 million in charge offs of demand deposit balances during the first quarter of 2024. Details of the ratios, by loan type, are shown below. Our special assets team continues to actively collect on charged-off loans, resulting in overall low net charge-off ratios.

Ratio of Net (Charge Offs)/Recoveries to Average Loans
	6/30/2025			6/30/2024
Loan Type	(Charge Off) / Recovery			(Charge Off) / Recovery
Commercial Real Estate		0.00	%		0.01	%
Acquisition & Development		0.13	%		0.01	%
Commercial & Industrial		(0.25	%)		(0.89	%)
Residential Mortgage		0.01	%		(0.01	%)
Consumer		(0.96	%)		(2.02	%)
Total Net (Charge Offs)/Recoveries		(0.07	%)		(0.25	%)

Non-accrual loans totaled $3.8 million at June 30, 2025 compared to $4.9 million at December 31, 2024. The decrease in non-accrual balances at June 30, 2025 was related to principal reductions.

Non-accrual loans that have been subject to partial charge-offs totaled $0.7 million at both June 30, 2025 and December 31, 2024. Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $0.1 million and $1.6 million at June 30, 2025 and December 31, 2024, respectively. As a percentage of the loan portfolio, accruing loans past due 30 days or more was 0.27% at June 30, 2025 compared to 0.32% at December 31, 2024 and 0.26% as June 30, 2024.

ABOUT FIRST UNITED CORPORATION

First United Corporation is a Maryland corporation chartered in 1985 and a financial holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended, that elected financial holding company status in 2021. The Corporation’s primary business is serving as the parent company of the Bank, First United Statutory Trust I (“Trust I”) and First United Statutory Trust II (“Trust II” and together with Trust I, “the Trusts”), both Connecticut statutory business trusts. The Trusts were formed for the purpose of selling trust preferred securities that qualified as Tier 1 capital. The Bank has two consumer finance company subsidiaries- Oak First Loan Center, Inc., a West Virginia corporation, and OakFirst Loan Center, LLC, a Maryland limited liability company – and two subsidiaries that it uses to hold real estate acquired through foreclosure or by deed in lieu of foreclosure – First OREO Trust, a Maryland statutory trust, and FUBT OREO I, LLC, a Maryland limited liability company. In addition, the Bank owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland, and a 99.9% non-voting membership interest in MCC FUBT Fund, LLC, an Ohio limited liability company formed for the purpose of acquiring, developing and operating low-income housing units in Allegany County, Maryland (the “MCC Fund”). The Corporation’s website is www.mybank.com.

FORWARD-LOOKING STATEMENTS

This press release 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 future, as well as its assumptions and judgments concerning such beliefs, plans and objectives. These statements are evidenced by terms such as "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions. Although these statements reflect management's good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. The beliefs, plans and objectives on which forward-looking statements are based involve risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports that First United Corporation files with the Securities and Exchange Commission entitled "Risk Factors". In addition, investors should understand that the Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the consolidated financial statements included in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 and the impact that any such events have on our critical accounting assumptions and estimates made as of June 30, 2025, which could require us to make adjustments to the amounts reflected in this press release.

FIRST UNITED CORPORATION

Oakland, MD

Stock Symbol : FUNC

Financial Highlights - Unaudited

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,		June 30,
(Dollars in thousands, except per share data)	2025			2024			2025		2024
Results of Operations:
Interest income	$	24,871		$	23,113		$	48,933	$	45,011
Interest expense		8,164			7,875			16,210		15,961
Net interest income		16,707			15,238			32,723		29,050
Provision for credit losses		860			1,194			1,516		2,140
Other operating income		4,940			4,782			9,762		9,575
Net gains		146			59			238		141
Other operating expense		12,974			12,364			25,550		25,245
Income before taxes	$	7,959		$	6,521		$	15,657	$	11,381
Income tax expense		1,975			1,607			3,867		2,769
Net income	$	5,984		$	4,914		$	11,790	$	8,612

Per share data:
Basic net income per share	$	0.92		$	0.75		$	1.82	$	1.31
Diluted net income per share	$	0.92		$	0.75		$	1.81	$	1.31
Adjusted Basic net income (1)	$	0.92		$	0.75		$	1.82	$	1.37
Adjusted Diluted net income (1)	$	0.92		$	0.75		$	1.81	$	1.37
Dividends declared per share	$	0.22		$	0.20		$	0.44	$	0.40
Book value	$	29.43		$	25.39
Diluted book value	$	29.38		$	25.34
Tangible book value per share	$	27.64		$	23.55
Diluted Tangible book value per share	$	27.59		$	23.49

Closing market value	$	31.01		$	20.42
Market Range:
High	$	32.09		$	22.88
Low	$	25.90		$	19.40

Shares outstanding at period end: Basic		6,494,611			6,465,601
Shares outstanding at period end: Diluted		6,506,493			6,479,624

Performance ratios: (Year to Date Period End, annualized)
Return on average assets		1.20	%		0.89	%
Adjusted return on average assets		1.20	%		0.98	%
Return on average shareholders' equity		12.78	%		10.48	%
Adjusted return on average shareholders' equity		12.78	%		11.52	%
Net interest margin (Non-GAAP), includes tax exempt income of $104 and $116		3.61	%		3.31	%
Net interest margin GAAP		3.60	%		3.29	%
Efficiency ratio - non-GAAP (1)		59.66	%		63.48	%

(1) Efficiency ratio is a non-GAAP measure calculated by dividing total operating expenses by the sum of tax equivalent net interest income and other operating income, less gains/(losses) on sales of securities and/or fixed assets.

	June 30,			December 31
	2025			2024
Financial Condition at period end:
Assets	$	2,007,471		$	1,973,022
Earning assets	$	1,789,747		$	1,758,665
Gross loans	$	1,502,481		$	1,480,793
Commercial Real Estate	$	550,717		$	526,364
Acquisition and Development	$	98,937		$	95,314
Commercial and Industrial	$	281,484		$	287,534
Residential Mortgage	$	521,968		$	518,815
Consumer	$	49,375		$	52,766
Investment securities	$	279,541		$	269,991
Total deposits	$	1,614,207		$	1,574,829
Noninterest bearing	$	425,784		$	426,737
Interest bearing	$	1,188,423		$	1,148,092
Shareholders' equity	$	191,147		$	179,295


Capital ratios:
Tier 1 to risk weighted assets		15.22	%		14.70	%
Common Equity Tier 1 to risk weighted assets		13.32	%		12.79	%
Tier 1 Leverage		12.08	%		11.88	%
Total risk based capital		16.47	%		15.92	%

Asset quality:
Net charge-offs for the quarter	$	(151	)	$	(362	)
Nonperforming assets: (Period End)
Nonaccrual loans	$	3,813		$	4,931
Loans 90 days past due and accruing		535			918
Total nonperforming loans and 90 day past due	$	4,348		$	5,849

Other real estate owned	$	3,035		$	3,062
Other repossessed assets	$	2,802		$	2,802
Modified loans	$	1,198		$	1,006

Allowance for credit losses to gross loans		1.27	%		1.23	%
Allowance for credit losses to non-accrual loans		499.45	%		368.49	%
Allowance for credit losses to non-performing assets		186.98	%		155.13	%
Non-performing and 90 day past due loans to total loans		0.29	%		0.39	%
Non-performing loans and 90 day past due loans to total assets		0.22	%		0.30	%
Non-accrual loans to total loans		0.25	%		0.33	%
Non-performing assets to total assets		0.51	%		0.59	%

FIRST UNITED CORPORATION

Oakland, MD

Stock Symbol : FUNC

Financial Highlights - Unaudited

	June 30,			March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share data)	2025			2025			2024			2024			2024			2024
Results of Operations:
Interest income	$	24,871		$	24,062		$	23,725		$	23,257		$	23,113		$	21,898
Interest expense		8,164			8,046			8,025			8,029			7,875			8,086
Net interest income		16,707			16,016			15,700			15,228			15,238			13,812
Provision for credit losses		860			656			529			264			1,194			946
Other operating income		4,940			4,822			4,924			4,912			4,782			4,793
Net gains		146			92			132			141			59			82
Other operating expense		12,974			12,576			12,081			12,314			12,364			12,881
Income before taxes	$	7,959		$	7,698		$	8,146		$	7,703		$	6,521		$	4,860
Income tax expense		1,975			1,892			1,960			1,932			1,607			1,162
Net income	$	5,984		$	5,806		$	6,186		$	5,771		$	4,914		$	3,698

Per share data:
Basic net income per share	$	0.92		$	0.90		$	0.95		$	0.89		$	0.75		$	0.56
Diluted net income per share	$	0.92		$	0.89		$	0.95		$	0.89		$	0.75		$	0.56
Adjusted basic net income (1)	$	0.92		$	0.90		$	0.95		$	0.89		$	0.75		$	0.62
Adjusted diluted net income (1)	$	0.92		$	0.89		$	0.95		$	0.89		$	0.75		$	0.62
Dividends declared per share	$	0.22		$	0.22		$	0.22		$	0.22		$	0.22		$	0.20
Book value	$	29.43		$	28.35		$	27.71		$	26.90		$	25.39		$	24.89
Diluted book value	$	29.38		$	28.27		$	27.65		$	26.84		$	25.34		$	24.86
Tangible book value per share	$	27.64		$	26.55		$	25.89		$	25.06		$	23.55		$	23.08
Diluted Tangible book value per share	$	27.59		$	26.47		$	25.83		$	25.01		$	23.49		$	23.05

Closing market value	$	31.01		$	30.02		$	33.71		$	29.84		$	20.42		$	22.91
Market Range:
High	$	32.09		$	41.61		$	36.17		$	30.77		$	22.88		$	23.85
Low	$	25.90		$	29.38		$	29.63		$	20.40		$	19.40		$	21.21

Shares outstanding at period end: Basic		6,494,611			6,478,634			6,471,096			6,468,625			6,465,601			6,648,645
Shares outstanding at period end: Diluted		6,506,493			6,497,454			6,485,119			6,482,648			6,479,624			6,657,239

Performance ratios: (Year to Date Period End, annualized)
Return on average assets		1.20	%		1.19	%		1.06	%		0.99	%		0.89	%		0.76	%
Adjusted return on average assets (1)		1.20	%		1.19	%		1.08	%		1.01	%		0.98	%		0.85	%
Return on average shareholders' equity		12.78	%		12.83	%		12.16	%		11.52	%		10.48	%		9.07	%
Adjusted return on average shareholders' equity (1)		12.78	%		12.83	%		12.42	%		11.78	%		11.52	%		10.11	%
Net interest margin (Non-GAAP), includes tax exempt income of $104 and $116		3.61	%		3.56	%		3.38	%		3.34	%		3.31	%		3.12	%
Net interest margin GAAP		3.60	%		3.55	%		3.36	%		3.32	%		3.29	%		3.10	%
Efficiency ratio - non-GAAP (1)		59.66	%		59.95	%		61.31	%		62.46	%		63.48	%		65.71	%

	June 30,			March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2025			2024			2024			2024			2024
Financial Condition at period end:
Assets	$	2,007,471		$	1,979,753		$	1,973,022		$	1,916,126		$	1,868,599		$	1,912,953
Earning assets	$	1,789,747		$	1,762,891		$	1,758,665		$	1,722,346		$	1,695,425		$	1,695,962
Gross loans	$	1,502,481		$	1,479,869		$	1,480,793		$	1,447,883		$	1,422,975		$	1,412,327
Commercial Real Estate	$	550,717		$	532,764		$	526,364		$	502,828		$	506,273		$	492,819
Acquisition and Development	$	98,937		$	94,063		$	95,314		$	92,909		$	88,215		$	83,424
Commercial and Industrial	$	281,484		$	282,370		$	287,534		$	277,994		$	260,168		$	274,722
Residential Mortgage	$	521,968		$	520,072		$	518,815		$	519,168		$	511,354		$	501,990
Consumer	$	49,375		$	50,600		$	52,766		$	54,984		$	56,965		$	59,372
Investment securities	$	279,541		$	275,143		$	269,991		$	267,214		$	267,151		$	278,716
Total deposits	$	1,614,207		$	1,623,574		$	1,574,829		$	1,540,395		$	1,537,071		$	1,563,453
Noninterest bearing	$	425,784		$	422,415		$	426,737		$	419,437		$	423,970		$	422,759
Interest bearing	$	1,188,423		$	1,201,159		$	1,148,092		$	1,120,958		$	1,113,101		$	1,140,694
Shareholders' equity	$	191,147		$	183,694		$	179,295		$	173,979		$	164,177		$	165,481

Capital ratios:
Tier 1 to risk weighted assets		15.22	%		14.87	%		14.70	%		14.61	%		14.51	%		14.58	%
Common Equity Tier 1 to risk weighted assets		13.32	%		12.97	%		12.79	%		12.66	%		12.54	%		12.60	%
Tier 1 Leverage		12.08	%		11.94	%		11.88	%		11.88	%		11.69	%		11.48	%
Total risk based capital		16.47	%		16.10	%		15.92	%		15.83	%		15.75	%		15.83	%

Asset quality:
Net (charge-offs)/recoveries for the quarter	$	(151	)	$	(360	)	$	(362	)	$	(109	)	$	(1,309	)	$	(459	)
Nonperforming assets: (Period End)
Nonaccrual loans	$	3,813		$	4,026		$	4,931		$	8,073		$	9,438		$	16,007
Loans 90 days past due and accruing		535			233			918			538			526			120
Total nonperforming loans and 90 day past due	$	4,348		$	4,259		$	5,849		$	8,611		$	9,964		$	16,127

Other real estate owned	$	3,035		$	3,062		$	3,062		$	2,860		$	2,978		$	4,402
Other repossessed assets	$	2,802		$	2,802		$	2,802		$	42		$	32		$	68
Modified/restructured loans	$	1,198		$	1,021		$	1,006		$	1,016		$	893		$	-

Allowance for credit losses to gross loans		1.27	%		1.25	%		1.23	%		1.24	%		1.26	%		1.27	%
Allowance for credit losses to non-accrual loans		499.45	%		458.69	%		368.49	%		223.09	%		189.90	%		112.34	%
Allowance for credit losses to non-performing assets		186.98	%		182.43	%		155.13	%		157.00	%		138.49	%		87.59	%
Non-performing and 90 day past due loans to total loans		0.29	%		0.29	%		0.39	%		0.59	%		0.70	%		1.14	%
Non-performing loans and 90 day past due loans to total assets		0.22	%		0.22	%		0.30	%		0.45	%		0.53	%		0.84	%
Non-accrual loans to total loans		0.25	%		0.27	%		0.33	%		0.56	%		0.66	%		1.13	%
Non-performing assets to total assets		0.51	%		0.51	%		0.59	%		0.60	%		0.69	%		1.07	%

Consolidated Statement of Condition

(Dollars in thousands - Unaudited)	June 30, 2025			March 31, 2025			December 31, 2024
Assets
Cash and due from banks	$	77,313		$	82,813		$	77,020
Interest bearing deposits in banks		1,800			1,618			1,307
Cash and cash equivalents		79,113			84,431			78,327
Investment securities – available for sale (at fair value)		103,582			99,998			94,494
Investment securities – held to maturity (at cost)		174,951			174,144			175,497
Equity investments with readily determinable fair market values		1,008			1,001			—
Restricted investment in bank stock, at cost		5,815			5,815			5,768
Loans held for sale		110			—			806
Loans		1,502,481			1,479,869			1,480,793
Unearned fees		(533	)		(457	)		(442	)
Allowance for credit losses		(19,044	)		(18,467	)		(18,170	)
Net loans		1,482,904			1,460,945			1,462,181
Premises and equipment, net		29,644			30,010			30,081
Goodwill and other intangible assets		11,609			11,691			11,773
Bank owned life insurance		49,642			49,293			48,952
Deferred tax assets		9,151			10,021			9,989
Other real estate owned, net		3,035			3,062			3,062
Operating lease asset		1,058			1,131			1,204
Pension asset		18,537			16,064			17,824
Accrued interest receivable and other assets		37,312			32,147			33,064
Total Assets	$	2,007,471		$	1,979,753		$	1,973,022
Liabilities and Shareholders’ Equity
Liabilities:
Non-interest bearing deposits	$	425,784		$	422,415		$	426,737
Interest bearing deposits		1,188,423			1,201,159			1,148,092
Total deposits		1,614,207			1,623,574			1,574,829
Short-term borrowings		50,954			20,342			65,409
Long-term borrowings		120,929			120,929			120,929
Operating lease liability		1,231			1,308			1,384
Allowance for credit loss on off balance sheet exposures		995			863			863
Accrued interest payable and other liabilities		26,579			27,617			28,889
Dividends payable		1,429			1,426			1,424
Total Liabilities		1,816,324			1,796,059			1,793,727
Shareholders’ Equity:
Common Stock – par value $0.01 per share; Authorized 25,000,000 shares; issued and outstanding 6,494,611 shares at June 30, 2025; 6,478,634 at March 31, 2025; and 6,471,096 at December 31, 2024		65			65			65
Surplus		21,121			20,606			20,476
Retained earnings		197,938			193,382			189,002
Accumulated other comprehensive loss		(27,977	)		(30,359	)		(30,248	)
Total Shareholders’ Equity		191,147			183,694			179,295
Total Liabilities and Shareholders’ Equity	$	2,007,471		$	1,979,753		$	1,973,022

Historical Income Statement

	2025					2024
	Q2		Q1			Q4		Q3		Q2			Q1
In thousands	(Unaudited)
Interest income
Interest and fees on loans	$	22,294	$	21,755		$	21,299	$	21,018	$	20,221		$	19,218
Interest on investment securities
Taxable		1,776		1,763			1,672		1,647		1,697			1,744
Exempt from federal income tax		57		45			47		56		53			53
Total investment income		1,833		1,808			1,719		1,703		1,750			1,797
Other		744		499			707		536		1,142			883
Total interest income		24,871		24,062			23,725		23,257		23,113			21,898
Interest expense
Interest on deposits		6,788		6,683			6,585		6,579		6,398			6,266
Interest on short-term borrowings		21		20			40		467		509			461
Interest on long-term borrowings		1,355		1,343			1,400		983		968			1,359
Total interest expense		8,164		8,046			8,025		8,029		7,875			8,086
Net interest income		16,707		16,016			15,700		15,228		15,238			13,812
Credit loss expense/(credit)
Loans		728		657			522		195		1,251			961
Debt securities held to maturity		—		—			—		14		—			—
Off balance sheet credit exposures		132		(1	)		7		55		(57	)		(15	)
Provision for credit losses		860		656			529		264		1,194			946
Net interest income after provision for credit losses		15,847		15,360			15,171		14,964		14,044			12,866
Other operating income
Gains on sale of residential mortgage loans		146		92			132		141		59			82
Net gains/(losses)		146		92			132		141		59			82
Other Income
Service charges on deposit accounts		577		547			553		555		556			556
Other service charges		214		206			211		236		225			215
Trust department		2,386		2,323			2,323		2,328		2,255			2,188
Debit card income		983		921			1,134		1,000		999			932
Bank owned life insurance		348		341			345		340		334			326
Brokerage commissions		370		421			295		297		362			495
Other		62		63			63		156		51			81
Total other income		4,940		4,822			4,924		4,912		4,782			4,793
Total other operating income		5,086		4,914			5,056		5,053		4,841			4,875
Other operating expenses
Salaries and employee benefits		7,319		7,331			6,456		7,160		7,256			7,157
FDIC premiums		267		245			260		256		285			269
Equipment		565		578			490		627		635			923
Occupancy		675		689			563		709		652			954
Data processing		1,600		1,503			1,688		1,333		1,422			1,318
Marketing		196		238			205		151		184			134
Professional services		589		476			536		477		449			486
Contract labor		166		163			181		149		84			183
Telephone		96		98			99		97		103			109
Other real estate owned		208		92			47		124		14			86
Investor relations		132		62			65		84		91			53
Contributions		78		56			53		65		66			50
Other		1,083		1,045			1,438		1,082		1,123			1,159
Total other operating expenses		12,974		12,576			12,081		12,314		12,364			12,881
Income before income tax expense		7,959		7,698			8,146		7,703		6,521			4,860
Provision for income tax expense		1,975		1,892			1,960		1,932		1,607			1,162
Net Income	$	5,984	$	5,806		$	6,186	$	5,771	$	4,914		$	3,698
Basic net income per common share	$	0.92	$	0.90		$	0.95	$	0.89	$	0.75		$	0.56
Diluted net income per common share	$	0.92	$	0.89		$	0.95	$	0.89	$	0.75		$	0.56
Weighted average number of basic shares outstanding		6,489		6,474			6,470		6,468		6,527			6,642
Weighted average number of diluted shares outstanding		6,506		6,490			6,484		6,482		6,537			6,655
Dividends declared per common share	$	0.22	$	0.22		$	0.22	$	0.22	$	0.20		$	0.20

Non-GAAP Financial Measures (unaudited)

Reconciliation of as reported (GAAP) and non-GAAP financial measures

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude accelerated depreciation expenses related to the branch closures.

	Three months ended June 30,						Six months ended June 30,
(in thousands, except for per share amount)	2025			2024			2025		2024
Net income - as reported	$	5,984		$	4,914		$	11,790	$	8,612
Adjustments:
Accelerated depreciation expenses		—			—			—		562
Income tax effect of adjustments		—			—			—		(137	)
Adjusted net income (non-GAAP)	$	5,984		$	4,914		$	11,790	$	9,037

Diluted earnings per share - as reported	$	0.92		$	0.75		$	1.81	$	1.31
Adjustments:
Accelerated depreciation expenses		—			—			—		0.08
Income tax effect of adjustments		—			—			—		(0.02	)
Adjusted basic and diluted earnings per share (non-GAAP)	$	0.92		$	0.75		$	1.81	$	1.37

	As of or for the three months ended						As of or for the six months ended
	June 30,						June 30,
(in thousands, except per share data)	2025			2024			2025		2024
Per Share Data
Basic net income per share - as reported	$	0.92		$	0.75		$	1.82	$	1.31
Basic net income per share - non-GAAP		0.92			0.75			1.82		1.37
Diluted net income per share - as reported	$	0.92		$	0.75		$	1.81	$	1.31
Diluted net income per share - non-GAAP		0.92			0.75			1.81		1.37
Basic book value per share	$	29.43		$	25.39
Diluted book value per share	$	29.38		$	25.34

Significant Ratios:	As of or for the six months ended
	June 30,
Return on Average Assets - as reported		1.20	%		0.89	%
Accelerated depreciation expenses		-			0.12	%
Income tax effect of adjustments		-			(0.03	%)
Adjusted Return on Average Assets (non-GAAP)		1.20	%		0.98	%

Return on Average Equity - as reported		12.78	%		10.48	%
Accelerated depreciation expenses		-			1.38	%
Income tax effect of adjustments		-			(0.34	%)
Adjusted Return on Average Equity (non-GAAP)		12.78	%		11.52	%

(1) See reconcilation of this non-GAAP financial measure provided elsewhere herein.

	Three Months Ended
	June 30
	2025								2024
(dollars in thousands)	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
Assets
Loans	$	1,489,485			22,304		6.01	%	$	1,415,353		$	20,237		5.75	%
Investment Securities:
Taxable		283,914			1,776		2.51	%		268,522			1,697		2.54	%
Non taxable		7,424			101		5.46	%		7,800			95		4.90	%
Total		291,338			1,877		2.58	%		276,322			1,792		2.61	%
Federal funds sold		50,675			628		4.97	%		66,658			1,037		6.26	%
Interest-bearing deposits with other banks		3,799			20		2.11	%		2,194			18		3.30	%
Other interest earning assets		5,815			96		6.62	%		3,390			87		10.32	%
Total earning assets		1,841,112			24,925		5.43	%		1,763,917			23,171		5.28	%
Allowance for credit losses		(18,685	)							(18,184	)
Non-earning assets		175,323								198,749
Total Assets	$	1,997,750							$	1,944,482
Liabilities and Shareholders’ Equity
Deposits
Interest-bearing demand deposits	$	357,725		$	1,520		1.70	%	$	369,835		$	1,495		1.63	%
Interest-bearing money markets- retail		473,262			3,578		3.03	%		400,747			3,515		3.53	%
Interest-bearing money markets- brokered		496			5		4.04	%		111			1		3.62	%
Savings deposits		168,854			45		0.11	%		182,988			46		0.10	%
Time deposits - retail		147,433			1,122		3.05	%		146,420			1,016		2.79	%
Time deposits - brokered		50,000			518		4.16	%		24,396			325		5.36	%
Total deposits		1,197,770			6,788		2.27	%		1,124,497			6,398		2.29	%
Short-term borrowings		19,811			21		0.43	%		71,900			509		2.85	%
Long-term borrowings		120,929			1,355		4.49	%		70,929			968		5.49	%
Total interest-bearing liabilities		1,338,510			8,164		2.45	%		1,267,326			7,875		2.50	%
Non-interest-bearing deposits		440,779								479,232
Other liabilities		29,889								32,884
Shareholders’ Equity		188,572								165,040
Total Liabilities and Shareholders’ Equity	$	1,997,750							$	1,944,482
Net interest income and spread				$	16,761		2.98	%				$	15,296		2.78	%
Net interest margin							3.65	%							3.49	%

	Six Months Ended
	June 30,
	2025								2024
(dollars in thousands)	Average Balance			Interest		Average Yield/ Rate			Average Balance			Interest		Average Yield/ Rate
Assets
Loans	$	1,486,334		$	44,072		5.98	%	$	1,411,619		$	39,471		5.62	%
Investment Securities:
Taxable		284,612			3,539		2.51	%		281,524			3,441		2.46	%
Non taxable		6,977			182		5.26	%		7,803			189		4.87	%
Total		291,589			3,721		2.57	%		289,327			3,630		2.52	%
Federal funds sold		46,213			1,012		4.42	%		65,251			1,795		5.53	%
Interest-bearing deposits with other banks		3,174			35		2.22	%		1,352			49		7.29	%
Other interest earning assets		5,795			196		6.82	%		4,248			181		8.57	%
Total earning assets		1,833,105			49,036		5.39	%		1,771,797			45,126		5.12	%
Allowance for loan losses		(18,550	)							(17,940	)
Non-earning assets		174,298								201,873
Total Assets	$	1,988,853							$	1,955,730
Liabilities and Shareholders’ Equity
Deposits
Interest-bearing demand deposits	$	366,170		$	3,173		1.75	%	$	361,358		$	2,936		1.63	%
Interest-bearing money markets- retail		468,732			7,125		3.07	%		392,164			6,774		3.47	%
Interest-bearing money markets- brokered		316			6		3.83	%		55			1		3.66	%
Savings deposits		170,178			88		0.10	%		186,280			94		0.10	%
Time deposits - retail		145,984			2,176		3.01	%		152,049			2,134		2.82	%
Time deposits - brokered		43,059			903		4.23	%		27,198			724		5.35	%
Total deposits		1,194,439			13,471		2.27	%		1,119,104			12,663		2.28	%
Short-term borrowings		21,423			41		0.39	%		72,626			970		2.69	%
Long-term borrowings		120,929			2,698		4.50	%		86,973			2,327		5.38	%
Total interest-bearing liabilities		1,336,791			16,210		2.45	%		1,278,703			15,960		2.51	%
Non-interest-bearing deposits		435,362								478,655
Other liabilities		30,682								33,624
Shareholders’ Equity		186,018								164,748
Total Liabilities and Shareholders’ Equity	$	1,988,853							$	1,955,730
Net interest income and spread				$	32,826		2.94	%				$	29,166		2.61	%
Net interest margin							3.61	%							3.31	%

EX-99.2 3 tm2521255d1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

INVESTOR PRESENTATION Second Quarter 2025 MyBank.com 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 future, as well as its assumptions and judgments concerning such beliefs, plans and objectives . These statements are evidenced by terms such as "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions . Although these statements reflect management's good faith beliefs and projections, they are not guarantees of future performance and they may not prove true . The beliefs, plans and objectives on which forward - looking statements are based involve risks and uncertainties that could cause actual results to differ materially from those addressed in the forward - looking statements . For a discussion of these risks and uncertainties, see the section of the periodic reports that First United Corporation files with the Securities and Exchange Commission entitled "Risk Factors . Whether actual results will conform to expectations and predictions is subject to known and unknown risks and uncertainties . Actual results could be materially different from management’s expectations . This presentation should be read in conjunction with our Annual Report on Form 10 - K , for the year ended December 31 , 2024 , including the sections of the report entitled “Risk Factors”, as well as the reports and other documents that we subsequently file with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www . sec . gov or at our website at www . mybank . com . Except as required by law, we do not intend to publish updates or revisions of any forward - looking statements we make to reflect new information, future events or otherwise .

Table of Contents I. II. III. Corporate Overview Financial Performance Appendices Pg. 4 Pg. 10 Pg. 32 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 ▪ Trust Services ▪ Wealth Management Ticker: FUNC (Nasdaq) Website: www.MyBank.com Overview West Virginia Maryland • Pittsburgh, PA • Washington, DC • Columbus, OH • Baltimore, MD • Richmond, VA Morgantown, WV භ • Harrisburg, PA Winchester, VA භ Star denotes Oakland, Maryland Headquarters 4 East Region Central Region West Region $595,634 $451,096 $328,514 Loans (000s) $519,345 $746,858 $125,005 Deposits (000s) 4% 45% 3% Deposit Market Share (1) (at June 30, 2024) 10 9 3 Branches Note: Out of market loans representing $128 million and $50 million in brokered CDs are not reflected in this table (1) 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 Core Markets 5 6 Core Strengths ▪ Diversified revenue stream driven by trust and brokerage fee income supplements margin Diversified Revenue Stream ▪ Stable legacy markets produce steady low - cost funding ▪ Technology and business relationships drive growth Core Deposit Franchise ▪ Diverse and experienced Board with skills to oversee risks, strategic initiatives and governance best practices ▪ Ongoing Board and management succession strategy Engaged & Diverse Leadership ▪ Supporting local causes with financial education, consultation and robust products and services ▪ Knowledgeable associates committed to helping clients & the communities we serve Culture of Engagement ▪ Well - established operational infrastructure will support future growth ▪ Expense management focus, hybrid work environment and technology drive cost savings Expense Structure ▪ Strong underwriting guidelines and risk management framework ▪ Focus on risk mitigation, loan concentration management and information security Robust Enterprise Risk Management ▪ Innovative, dynamic approach to attract and retain clients through customized solutions ▪ Investment in FinTech funds provides early exposure to new technology Forward - Thinking Approach ▪ Regulatory capital ratios significantly above regulatory requirements ▪ Significant access to liquidity sources Financial Strength Total Shareholder Return* 7 *As of June 30, 2025 5 - Year 3 - Year 1 - Year % 181.3 % 94.4 % 56.5 First United % 67.3 % 24.5 % 25.2 S&P US Small Cap Banks % 100.9 % 21.7 % 24.2 2025 Proxy Peers

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 1.27%; 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 - defined loan 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 to a neutral position ▪ 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 93% ▪ 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 $447 million through tested correspondent lines of credit, FHLB and Federal Reserve ▪ Strong, stable low - cost core deposit franchise of 88% of total deposit portfolio Cyber - Security & Fraud Monitoring Asset Quality Capital Liquidity Management Interest Rate Sensitivity 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 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 - interest income 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.

10 $6.0 Million Net Income (1) $0.92 Diluted EPS (1) 1.20% * ROAA (1) 13.57 * ROATCE (1) 3.65% NIM Second Quarter Financial Highlights ▪ Total assets increased $27.7 million compared to March 31, 2025 ▪ Consolidated net income (1) of $6.08 million in 2Q25 compared to $4.9 million in 2Q24 and $5.8 million in linked quarter; pre - provision net revenue of $8.8 million compared to $7.7 million and $8.4, respectively ▪ Net interest income, on a non - GAAP, FTE basis* increased by $0.7 million in 2Q25 compared to 1Q25 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 1.27% in 2Q25 and 1.25% in the linked quarter ▪ Efficiency ratio of 59.39% (1) for the second quarter of 2025 compared to 59.95% for the linked quarter; decrease primarily attributable to decreased non - interest expense related to reduced salaries and benefits, increased net interest income and stable non - interest income (1) See Appendix for a reconciliation of these non - GAAP financial measures * 2Q2025 Annualized 11 $11.8 Million Net Income (1) $1.81 Diluted EPS (1) 1.20% * ROAA (1) 13.64 * ROATCE (1) 3.61% NIM Year to Date Financial Highlights ▪ Total assets increased $34.4 million compared to December 31, 2024 ▪ Consolidated net income (1) of $11.8 million in first six month of 2025 compared to $8.6 million in first six months of 2024; pre - provision net revenue of $17.2 million compared to $14.1 million, respectively ▪ Net interest income, on a non - GAAP, FTE basis* increased by $3.7 million in first six months of 2025 compared to the first six months of 2024 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 1.27% at June 30, 2025 and 1.25% at March 31, 2025 ▪ Efficiency ratio of 59.66% (1) for the first six months of 2025 compared to 63.47% for the first six months of 2024; improvement in ratio is primarily attributable to increased non - interest expense related to reduced salaries and benefits, increased net interest income and stable non - interest income (1) See Appendix for a reconciliation of these non - GAAP financial measures * 2Q2025 Annualized

12 Long - Term Growth Pre - Provision Net Revenue ($ in millions) (1) $30.8 $32.5 $25.9 $30.7 $17.2 2021 2022 2023 2024 2Q2025 (1) See Appendix for a reconciliation of these non - GAAP financial measures $3.54 $3.76 $2.80 $3.21 $1.81 2021 2022 2023 2024 2Q2025 Diluted Earnings per Share (1) Total Deposits ($ in millions) $1,469 $1,571 $1,551 $1,575 $1,614 2021 2022 2023 2024 2Q2025 Total Gross Loans, including PPP ($ in millions) $1,154 $1,279 $1,407 $1,481 $1,502 2021 2022 2023 2024 2Q2025 $114 PPP $8 PPP 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) ) 1.35% 1.39% 0.97% 1.08% 1.20% 2021 2022 2023 2024 2Q2025 19.78% 19.94% 12.92% 13.35% 13.64% 2021 2022 2023 2024 2Q2025

14 Total 1 - 4 Family 35% CRE - NOO 21% C&I 19% CRE - OO 13% C&D 6% Consumer 3% Multi - family 3% Loan Diversification Loan Portfolio Mix (06/30/2025) RE/Rental/Leasing NOO 23% RE/Rental/ Leasing OO, C&I 18% All Other 17% Accommodations 12% Services 8% RE/Rental/Leasing Multifamily 4% Trade 5% Construction - Developers 2% Health Care / Social Assistance 5% RE/Rental/Leasing - Developers 3% Construction - All Other 3% Commercial Loan Mix (06/30/2025)

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 - 208,361 126,979 6,064,820 72,091,024 152,871,325 231,362,509$ RE / Rental / Leasing - OO, C&I 1,061 14,487 635,652 8,805,238 43,896,065 127,739,089 181,091,592 RE / Rental / Leasing - Multifamily - - 1,656,821 8,388,570 11,268,372 22,181,296 43,495,059 RE / Rental / Leasing - Developers - 9,073 72,196 - 1,796,952 28,173,748 30,051,969 Construction - All Other 32,717 10,000 61,837 1,698,794 7,191,383 18,044,699 27,039,430 Construction - Developers - - 2,073,673 66,989 374,135 18,265,863 20,780,660 Accommodations - 1,387,090 3,334,118 9,672,577 40,931,150 26,109,350 81,434,285 Services - 1,907,938 328,400 8,700,087 11,127,466 54,822,059 76,885,950 Health Care / Social Assistance - - 749,809 1,620,339 7,061,135 42,527,015 51,958,298 Trade - 118,914 86,355 1,102,765 8,792,712 37,384,448 47,485,194 All Other 83,145 269,979 735,983 642,247 21,136,724 146,223,465 169,091,543 Totals 116,923$ 3,925,842$ 9,861,823$ 46,762,426$ 225,667,118$ 674,342,357$ 960,676,489$ 16 Commercial Real Estate Focus on risk mitigation and managing of concentrations ▪ CRE / Total Capital: 237% ▪ ADC / Total Capital: 42% * 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 Balance Number of loans Avg Loan Balance Note Book Balance Number of loans Avg Loan Balance Note Book Balance Number of loans Avg Loan Balance Central 12,801,955$ 33 387,938$ 6,200,524$ 6 1,033,421$ 19,002,479$ 39 487,243$ East 4,247,825$ 12 353,985$ 28,111,965$ 13 2,162,459$ 32,359,789$ 25 1,294,392$ OOM 980,000$ 1 980,000$ 68,929$ 1 68,929$ 1,048,929$ 2 524,465$ West 7,416,379$ 18 412,021$ 36,792,984$ 14 2,628,070$ 44,209,363$ 32 1,381,543$ Grand Total 25,446,158$ 64 397,596$ 71,174,402$ 34 2,093,365$ 96,620,560$ 98 985,924$ % of Gross Loans 1.69% 4.74% 6.43% % of CRE 4.62% 12.92% 17.54% RETAIL** Geography Note Book Balance Number of loans Avg Loan Balance Note Book Balance Number of loans Avg Loan Balance Note Book Balance Number of loans 1.71 Central 8,599,225$ 19 452,591$ 403,773$ 4 100,943$ 9,002,998$ 23 391,435$ East 8,535,436$ 11 775,949$ 39,768,893$ 7 5,681,270$ 48,304,329$ 18 2,683,574$ OOM 2,676,802$ 2 1,338,401$ 11,194,302$ 3 3,731,434$ 13,871,105$ 5 2,774,221$ West 2,283,298$ 3 761,099$ 16,860,401$ 13 1,296,954$ 19,143,699$ 16 1,196,481$ Grand Total 22,094,761$ 35 631,279$ 68,227,369$ 27 2,526,940$ 90,322,130$ 62 1,456,809$ % of Gross Loans 1.47% 4.54% 6.01% % of CRE 4.01% 12.39% 16.40% CRE - Owner Occupied CRE - Non-Owner Occupied Total CRE - Owner Occupied CRE - Non-Owner Occupied Total 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 Loans 39,866,190$ 18.7% 22,377,981$ 49.6% 24,099,303$ 56.9% 84,856,389$ 25.0% 171,199,863$ Commercial Lines of Credit 81,230,552 38.0% - 0.0% - 0.0% 385,614 0.1% 81,616,166 Commercial Floor Plans 30,257,214 14.2% - 0.0% - 0.0% - 0.0% 30,257,214 Mortgage - 0.0% 22,748,006 50.4% 18,220,827 43.1% 254,063,910 74.9% 295,032,742 Home Equity Lines (no Locks) 10,160,665 4.8% - 0.0% - 0.0% - 0.0% 10,160,665 Other Consumer Lines* 52,179,029 24.4% - 0.0% - 0.0% - 0.0% 52,179,029 Totals 213,693,649$ 100.0% 45,125,987$ 100.0% 42,320,130$ 100.0% 339,305,913$ 100.0% 640,445,679$

18 Credit Quality ALL / ACL Trends (Net Charge - Offs)/Average Loans Nonaccrual Loans / Total Loans NPAs / Total Assets 0.21% 0.27% 0.28% 0.33% 0.25% 2021 2022 2023 2024 2Q2025 0.60% 0.46% 0.48% 0.59% 0.51% 2021 2022 2023 2024 2Q2025 1.38% 1.14% 1.24% 1.23% 1.27% 2021 2022 2023 2024 2Q2025 - 0.02% --- - 0.06% - 0.07% - 0.16% - 0.07% 2021 2022 2023 2024 2Q2025 19 Investment Portfolio Duration Book Yield Portfolio % Par (000s) Sector 6.10 2.40% 29% 82,388 Treasury/Agency 5.54 2.21 2.75% 5.19% 19% 1% 53,661 3,334 Fixed MBS Floating MBS 6.86 1.98% 25% 70,801 CMO 7.24 4.46% 5% 13,263 Municipal 1.55 5.55% 0% 1,000 Corporate 4.18 2.22% 21% 60,242 Other 5.78 2.47% 100.0 $284,688 TOTAL Ratings: 100% of municipal holdings are rated A or better* $284.7 Million Thereafter 2029 2028 2027 2026 2025 Year $169,092 $14,231 $16,108 $30,622 $25,695 $11,682 Annual Cashflow ($000’s) Base Case Portfolio Total Cashflow Treasury/ Agency CMO Fixed MBS Other Municipal Corporate The Other category above of $59.0 million includes agency backed multi - family, commercial mortgage - backed securities. Trust Preferred securities are not included in total above.

Floating MBS 20 Shocked Investment Portfolio Unrealized Gains / Losses Capital Impact Up300 Up200 Up100 BaseCase Dn100 Dn200 Dn300 Intent - 27,973 - 24,009 - 19,776 - 15,384 - 11,016 - 6,744 - 2,475 AFS - 52,579 - 44,402 - 35,618 - 26,514 - 16,982 - 7,399 2,142 HTM - 80,552 - 68,411 - 55,395 - 41,898 - 27,998 - 14,144 - 333 Total Corp Excess Above Well - Capitalized (After Proforma Sale) Regulatory Well - Capitalized Thresholds Federal Reserve Minimum RBC Thresholds Bank Difference Bank Pro - Forma AFS + HTM Sale Bank As Reported Corp Difference Corp Pro - Forma AFS + HTM Sale Corp As Reported (36,662) 176,832 213,494 (36,662) 203,639 240,300 Tier 1 Capital (37,015) 195,822 232,837 (37,016) 223,024 260,040 Total Risk Based Capital (RBC) 4.70% 6.50% 4.50% (2.15%) 11.65% 13.80% (2.12%) 11.20% 13.32% CET 1 Ratio 5.14% 8.00% 6.00% (2.15%) 11.65% 13.80% (2.08%) 13.14% 15.22% Tier 1 Ratio 4.39% 10.00% 8.00% (2.15%) 12.90% 15.05% (2.08%) 14.39% 16.47% Total RBC Ratio 5.24% 5.00% 4.00% (1.87%) 9.01% 10.87% (1.84%) 10.24% 12.08% Leverage Ratio Locally held TIF bonds of $1.6 million and Trust Preferred securities of $18.7 million have been excluded from the sale impac t 21 Deposits 34% 32% 28% 27% 26% 16% 23% 23% 25% 22% 39% 36% 37% 39% 40% 11% 8% 10% 9% 9% 0% 0% 2% 0% 3% 2021 2022 2023 2024 2Q2025 NIB Demand IB Demand MMA & Savings CDs - Retail CDs - Brokered $1.57 $1.42 $1.61 $1.57 $1.58 Deposit Composition ($ in billions as of 06/30/2025) 79% 81% 9 1% 94% 93% Loan to Deposit Ratio 2021 2022 2023 2024 2Q2025 Deposit levels relatively flat due to fierce competition for deposits and recent inflationary spending by consumers, businesses and municipalities.

% Balance Deposit Type 76% $1,232,328,305 Insured Deposits 19% $304,560,715 Uninsured – Uncollateralized Deposits 5% $77,317,491 Uninsured - Collateralized Deposits % Balance (MMs) Deposit Type 49% $796,108,147 Retail Deposits 51% $818,098,364 Business Deposits 22 Funding 45% 46% 3% 6% Brokered Deposits Commercial Deposits Retail Deposits Borrowings Funding Mix Brokered/FHLB Maturities $25.0 $40.0 $25.0 $25.0 $25.0 July 2026 March 2026 March 2026 January 2026 September 2025 Dollars (in millions) FHLB Advance Federal Home Loan Bank Federal Home Loan Bank Brokered CD 4.23% Brokered CD 4.22% 4.04% 3.83% Brokered CD Federal Home Loan Bank 3.83%

23 Net Interest Margin (1) See Appendix for a reconciliation of these non - GAAP financial measures 3.63% 3.85% 4.63% 5.17% 5.39% 0.51% 0.44% 1.92% 2.51% 2.45% 3.28% 3.56% 3.26% 3.38% 3.61% 0.24% 0.21% 1.16% 1.68% 1.67% 0.1% 1.1% 2.1% 3.1% 4.1% 5.1% 2021 2022 2023 2024 2Q2025 Yield on Earning Assets Cost of Interest-bearing Liabilities Net Interest Margin Cost of Deposits 24 Diversified Fee Income (1) See Appendix for a reconciliation of these non - GAAP financial measures Composition 55% Trust and Brokerage 16% Service Charges 2% Net Gain on Loan Sales 19% Debit Card Income 7% Bank - owned Life Insurance 1% Other Noninterest Income Non - Interest Income Mix 2Q2025 Trust & Brokerage Assets Under Management (MMs) ▪ First United’s non - interest income (1) comprised 23% of operating revenue as of June 30, 2025 ▪ Fee - based business provides stable growth, and a diversified revenue stream not directly tied to interest rates, as well as opportunities to build client relationships ▪ First United’s diverse array of products provides opportunities to fully engage with customers and produce stable increases to earnings $1,482 $1,359 $1,532 $1,677 $1,740 2021 2022 2023 2024 2Q2025 25 Committed to Efficiency & Innovation (1) See Appendix for a reconciliation of these non - GAAP financial measures Efficient operational platforms and fraud protection ▪ CardSuite Pro Premium Debit Card Fraud ▪ Better Customer Segmentation with complete picture of customer data ▪ ProfitStars forecasting model ▪ Automated Loan Booking ▪ Vericast Consumer Loan Lead Generator ▪ Project Management Enhancements ▪ AI Innovation Initiative ▪ U1 - Connect Customer Relationship Management Software Efficiency Ratio (1) Strategic Target 53% - 58% FinTech Investments ▪ Identity and Access Management ▪ FinTech Funds Solutions for a seamless and secure client experience: ▪ Zelle for Your Business ▪ Improved Customer Journey through Data Analytics ▪ New commercial loan software ▪ Consumer Online and Mobile Banking Digital Platform Upgrade ▪ Business Online and Mobile Banking Digital Platform Upgrade ▪ Check Fraud Prevention Solution Decrease in 2Q2025 due primarily to increased net interest income, stable non - interest income and controlled expenses.

57.5% 56.4% 65.1% 61.3% 59.7% 2021 2022 2023 2024 2Q2025

26 Liquidity Position Net Availability ($ in thousands) Amount Used ($ in thousands) Amount Available ($ in thousands) Liquidity Sources (06/30/2025) Internal Sources $51,753 $51,753 Excess Cash $30,804 $30,804 Unpledged Securities (BV) External Sources $88,378 $88,378 Federal Reserve (Discount Window) $110,858 $245,460 $29,142 $96,921 $140,000 $342,381 Correspondent Unsecured Lines of Credit FHLB $527,253 $126,064 $653,316 Total Funding Sources 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 conditions.

▪ The Bank’s net interest income position is in a slightly asset sensitive position. ▪ The Bank’s largest risk from an interest rate risk perspective is falling rate scenarios but positioning towards neutral. ▪ Assumptions regarding offering rates, loan and investment prepayment speeds, beta and decay rates are reviewed and adjusted on a quarterly basis. Management Outlook & Strategy ▪ Disciplined loan pricing ▪ Manage deposit pricing on relationship and exception basis ▪ Deposit acquisition through short - term CD promotions and adjustable - rate money market products for businesses, municipalities and consumers ▪ Actively reducing deposit rates concurrent with market adjustments ▪ Alternative funding maturities o $25 million FHLB advance maturing September 2025 o $25 million Brokered CDs maturing January 2026 o $25 million FHLB advance maturing March 2026 o $40 million FHLB advance maturing March 2026 o $25 million Brokered CDs maturing July 2026 +400 +300 +200 +100 Flat - 100 - 200 - 300 - 400 9.0% 8.3% 6.7% 3.7% (4.5%) (8.3%) (12.6%) (17.8%) Net Interest Income (06/30/25) 14.6% 12.0% 8.7% 4.7% (5.2%) (9.8%) (14.8%) (20.4%) Net Interest Income (03/31/25) (18.1%) (12.3%) (7.0%) (2.6%) 0.6%) (1.5%) (6.3%) (14.4%) EVE (03/31/25) 12 Month Sensitivity Shock 28 Capital Management CET1 Ratio Leverage Ratio Tier 1 Ratio Total Risk - Based Capital Ratio Regulatory Well - Capitalized 10% 5% 8% 6.5% 14.64% 15.06% 14.42% 14.70% 15.22% 2021 2022 2023 2024 2Q2025 15.89% 16.12% 15.64% 15.92% 16.47% 2021 2022 2023 2024 2Q2025 10.80% 11.46% 11.30% 11.88% 12.08% 2021 2022 2023 2024 2Q2025 12.50% 12.96% 12.44% 12.79% 13.32% 2021 2022 2023 2024 2Q2025 Strong capital levels allowing for continued growth.

29 Capital Management Tangible Book Value / Share TCE Ratio $19.61 $20.90 $22.56 $25.89 $27.64 2021 2022 2023 2024 2Q2025 7.56% 7.59% 7.91% 8.54% 9.00% 2021 2022 2023 2024 2Q2025 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% 1.06% 0.97% (1) 0.78% ROAA 13% - 15% 13.35% 13.08% 12.92% (1) 10.51% ROATCE 8% - 10% 8.54% 8.54% 7.91% 7.91% TCE Ratio 6% - 8% 12% 12% 0.0% 0.0% Revenue Growth (YoY) High Quality, Diversified Revenue Stream 21% - 23% 24.8% 24.8% 24.8% 24.8% Non - Int Inc / Revenue 3.5% - 3.8% 3.38% 3.38% 3.26% 3.26% N IM 7% - 10% 5.3% 5.3% 9.9% 9.9% % Loan Growth Balance Sheet Growth 70% - 76% 75% 75% 74% 74% Loans / Assets 85% - 90% 94% 94% 91% 91% Loans / Deposits 53% - 58% 61.31% 61.31% 65.1% (1) 65.1% (1) Efficiency Ratio (adjusted for non - core items) Highly Efficient Operations 0.50% - 1.00% 0.33% 0.33% 0.32% 0.32% NPLs / Loans Robust Risk Enterprise Management 0.10% - 0.50% - 0.16% - 0.16% - 0.07% - 0.07% Net Charge Offs / Avg. Total Loans (*) Targets reviewed on an annual basis – Revised July 2024 (1) See Appendix for a reconciliation of these non - GAAP financial measures 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 gather feedback on a variety of topics, including strategic and financial performance, executive compensation, Board composition, and leadership structure. 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 How to contact your Board: Shareholders and interested parties wishing to contact our Board may send a letter to First United Corporation Board of Direc tor s, c/o Tonya K. Sturm, Secretary, First United Corporation, 19 South Second Street, Oakland, Maryland, 21550 - 0009 or by e - mail at tsturm@mybank.com. The Secretary will deliver all shareholder communications directly to the Board for consideration. 31 32 32 I. II. III. Management Team Board of Directors Non - GAAP Reconciliation Pg. 32 Pg. 33 Pg. 37 Appendices

33 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 compliance and operations experience Tonya K. Sturm SVP & Chief Financial Officer, Corp. Secretary & Treasurer 35+ years of banking, audit, credit, retail, risk and compliance and financial and operational experience R.L. Fisher SVP & Chief Revenue Officer 25+years with in - depth industry, retail, commercial and mortgage banking experience Keith R. Sanders SVP & Chief Wealth Officer 30+ years specializing in wealth management, estate planning, trust administration and financial planning Our leadership team reflects the diversity of thought from the communities we serve, executes on our strategy and drives shareholder returns. Julie W.

Peterson SVP & Chief Credit Officer 30+ years with in - depth industry, commercial banking, and credit experience 34 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, Milford Advisory Group, LLC I. Robert Rudy Independent Director President, I.R. Rudy’s, Inc. H. Andrew Walls, III Independent Director President, MPB Print & Sign Superstore Member, MEGBA, LLC Beth E. Moran Independent Director, The Law Offices of Beth E. Moran Brian Boal Lead Independent Director, Nomination & Governance Chair Boal & Associates, PC Carissa L. Rodeheaver Chairman of the Board, President & CEO First United Corporation and First United Bank & Trust Board of Directors Kevin Hessler Independent Director , Principal, LSWG, Inc. First United's Board of Directors represents individuals with varied backgrounds and viewpoints, contributing to its well - rounded leadership and governance structure.

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. Board Composition 90% of our directors are independent Our Nominating and Governance Committee is responsible for determining directorship criteria, identifying and evaluating candidates for the Board, and regularly assessing the Board’s governance practices. x 100% Independent Board Committees x Majority Voting Standard for Director Elections x Annual Committee and Self - Evaluations x Balanced Tenure, with four directors added in the past four years x Retirement policy, at the age of 75 x Routine shareholder & stakeholder engagement 0 - 5 5 - 10 10+ TENURE 45 - 53 54 - 62 62+ AGE 35 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 entrepreneuri al businesses, they apply these diverse backgrounds to their work on behalf of our shareholders. Director Skills Matrix Walls Rudy Rodeheaver Moran Milon Hessler 1 DiPietro 1 Chadha Boal 1 Barr x x x x x x x Executive Leadership x x x Public Company Board Experience x x Information Technology x x x x x x Financial Services/ Banking x x x x Asset Management x x x Brokerage/ Investment Banking x x x x x x x x x x Strategic Planning x x x x Accounting/Finance x x x x Regulatory x x x x x x x x Risk Management x x Legal Expertise x x x x x x Governance Board Tenure and Age 19 32 12 2 5 1 4 4 11 11 Tenure 64 72 59 61 62 68 63 48 52 71 Age 1 Qualifies as a Financial Expert for proxy purposes. Brokered CD 37 Continuous Progress We continue to advance our Governance profile over time, recognizing the importance of our key stakeholders – including our customers and our communities – to our business.

Over the past few years, we have implemented several important enhancements to align our Governance profile with our long - term investors’ expectations for best - in - class corporate governance. x Enhanced structure to more strongly align pay and performance Compensation Governance x Revised stock ownership guidelines for Directors and Executives x Declassified the Board of Directors Adopted Proxy Access x Shareholder access to change By - laws x Management majority vote proposal received strong shareholder support (albeit short of super - majority threshold needed) x Ongoing Board refreshment x Adopted right to call a special meeting.

x Adopted mandatory director retirement policy x Adopted plurality voting standard for contested director elections x Enhanced shareholder engagement program x Modernized NGC Charter x Formalized LID role & responsibilities 38 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 equity to tangible assets, tangible book value per share, net interest margin, and efficiency ratio . These non - GAAP financial measures and any other non - GAAP financial measures that are discussed in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP . There are a number of limitations related to the use of these non - GAAP financial measures versus their nearest GAAP equivalents . For example, other companies may calculate non - GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the Company’s non - GAAP financial measures as tools for comparison . The following is a reconciliation of the non - GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures . Non - GAAP Reconciliation ($000s, except where otherwise noted) YTD 2021 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 6/30/2025 Pre-Provision Net Revenue ("PPNR") Pre-tax income, as reported 26,309$ 33,181$ 19,476$ 27,229$ 4,860$ 6,521$ 7,703$ 8,145$ 7,698$ 7,958$ 15,656$ Add back: Provision expense (817) (643) 1,619 2,933 946 1,192 266 529 656 860 1,516 Add back: FHLB penalty, gross 2,368 - - - - - - - - - - Add back: Contribution 1,000 - - - - - - - - - - Add back: Insurance reimbursement (1,375) - - - - - - - - - - Add back: Settlement expense, gross 3,300 - - - - - - - - - - Add back: Securities loss 4,214 - - - - - - - - Add back: Branch closure expenses 623 562 562 - - - - - - Pre-Provision Net Revenue, as adjusted 30,785$ 32,538$ 25,932$ 30,724$ 6,368$ 7,713$ 7,969$ 8,674$ 8,354$ 8,818$ 17,172$ Net Income Net income, as reported 19,770$ 25,048$ 15,060$ 20,568$ 3,698$ 4,914$ 5,770$ 6,186$ 5,806$ 5,984$ 11,790$ Net income, available to common shareholders,as reported (a) 19,770$ 25,048$ 15,060$ 20,568$ 3,698$ 4,914$ 5,770$ 6,186$ 5,806$ 5,984$ 11,790$ Add back: FHLB penalty, net of tax 1,790 - - - - - - - - - - Add back: Contribution, net of tax 770 - - - - - - - - - - Add back: Insurance reimbursement, net of tax (1,059) - - - - - - - - - - Add back: Settlement expense, net of tax 2,565 - - - - - - - - - - Add back: Securities loss 3,259 - - - - - - - - Add back: Branch closure expenses 482 425 425 - - - - - - Net income, as adjusted (b) 23,836$ 25,048$ 18,801$ 20,993$ 4,123$ 4,914$ 5,770$ 6,186$ 5,806$ 5,984$ 11,790$ 39 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2021 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 6/30/2025 Weighted Average Common shares - basic (actual) (d) 6,710,463 6,649,740 6,685,676 6,527,077 6,643,898 6,526,553 6,467,597 6,470,259 6,474,368 6,489,245 6,481,807 Weighted Average Common shares - diluted (actual) (e) 6,716,587 6,661,055 6,701,243 6,539,521 6,655,637 6,536,546 6,481,620 6,484,282 6,489,990 6,505,753 6,497,872 Earnings Per Share - Basic Earnings Per Share - Basic, as reported (a)/(d) 2.95$ 3.77$ 2.25$ 3.15$ 0.56$ 0.75$ 0.89$ 0.95$ 0.90$ 0.92$ 1.82$ Add back: FHLB penalty, net of tax 0.27 - - - - - - - - - - Add back: Contribution, net of tax 0.12 - - - - - - - - - - Add back: Insurance reimbursement, net of tax (0.16) - - - - - - - - - - Add back: Settlement expense, net of tax 0.37 - - - - - - - - - - Add back: Securities loss 0.49 - - - - - - - - Add back: Branch closure expenses 0.07 0.06 0.06 - - - - - - Earnings Per Share - Basic, as adjusted (b)/(d) 3.54$ 3.77$ 2.81$ 3.21$ 0.62$ 0.75$ 0.89$ 0.95$ 0.90$ 0.92$ 1.82$ Earnings Per Share - Diluted Earnings Per Share - Diluted, as reported (a)/(e) 2.95$ 3.76$ 2.24$ 3.15$ 0.56$ 0.75$ 0.89$ 0.95$ 0.89$ 0.92$ 1.81$ Add back: FHLB penalty, net of tax 0.27 - - - - - - - - - - Add back: Contribution, net of tax 0.12 - - - - - - - - - - Add back: Insurance reimbursement, net of tax (0.16) - - - - - - - - - - Add back: Settlement expense, net of tax 0.37 - - - - - - - - - - Add back: Securities loss 0.49 - - - - - - - - Add back: Branch closure expenses 0.07 0.06 0.06 - - - - - - Earnings Per Share - Diluted, as adjusted (b)/(e) 3.54$ 3.76$ 2.80$ 3.21$ 0.62$ 0.75$ 0.89$ 0.95$ 0.89$ 0.92$ 1.81$

40 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2021 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 6/30/2025 Return on Average Assets (quarter and YTD annualized) Average Assets ( c) 1,765,148$ 1,801,711$ 1,924,119$ 1,946,724$ 1,958,684$ 1,933,390$ 1,912,887$ 1,944,571$ 1,976,702$ 1,997,750$ 1,988,853$ Return on Average Assets, as reported (a)/(c) 1.12% 1.39% 0.78% 1.06% 0.76% 1.02% 1.20% 1.27% 1.19% 1.20% 1.20% Add back: FHLB penalty, net of tax 0.10% 0.00% 0.00% 0.00% - - - - - - - Add back: Contribution, net of tax 0.04% 0.00% 0.00% 0.00% - - - - - - - Add back: Insurance reimbursement, net of tax -0.06% 0.00% 0.00% 0.00% - - - - - - - Add back: Settlement expense, net of tax 0.15% 0.00% 0.00% 0.00% - - - - - - - Add back: Securities loss 0.17% 0.00% - - - - - - - Add back: Branch closure expenses 0.02% 0.02% 0.09% - - - - - - Return on Average Assets, as adjusted (b)/(c) 1.35% 1.39% 0.97% 1.09% 0.85% 1.02% 1.20% 1.27% 1.19% 1.20% 1.20% Return on Average Common Stockholders' Equity Return on Average Tangible Common Stockholders' Equity Average common stockholders' equity (f) 132,550$ 137,685$ 155,631$ 169,189$ 163,944$ 165,040$ 170,778$ 176,507$ 183,463$ 188,572$ 186,018$ Average common stockholders' equity, as adjusted 132,550 137,685 155,631 169,189 163,944 165,040 170,778 176,507 183,463 188,572 186,018 Less: Average goodwill and intangibles 11,004 12,043 12,279 11,949 12,071 11,991 11,907 11,827 11,745 11,662 11,703 Average tangible common equity (g) 121,546$ 125,642$ 143,352$ 157,240$ 151,873$ 153,049$ 158,871$ 164,680$ 171,718$ 176,910$ 174,315$ Return on average common stockholders' equity, as reported (a)/(f) 14.92% 18.19% 9.68% 12.16% 9.07% 11.98% 13.44% 13.94% 12.83% 12.73% 12.78% Add back: FHLB penalty, net of tax 1.47% 0.00% 0.00% 0.00% - - - - - - - Add back: Contribution 0.63% 0.00% 0.00% 0.00% - - - - - - - Add back: Insurance reimbursement -1.15% 0.00% 0.00% 0.00% - - - - - - - Add back: Settlement expense, net of tax 2.11% 0.00% 0.00% 0.00% - - - - - - - Add back: Securities loss 2.10% 0.00% - - - - - - - Add back: Branch closure expenses 0.31% 0.25% 1.04% - - - - - - Return on average common stockholders' equity, as adjusted (b)/(f) 17.98% 18.19% 12.09% 12.41% 10.11% 11.98% 13.44% 13.94% 12.83% 12.73% 12.78% Return on average tangible common equity, as reported (a)/(g) 16.27% 19.94% 10.51% 13.08% 9.79% 12.91% 14.45% 14.94% 13.71% 13.57% 13.64% Add back: FHLB penalty, net of tax 1.47% 0.00% 0.00% 0.00% - - - - - - - Add back: Contribution 0.63% 0.00% 0.00% 0.00% - - - - - - - Add back: Insurance reimbursement -0.87% 0.00% 0.00% 0.00% - - - - - - - Add back: Settlement expense, net of tax 2.11% 0.00% 0.00% 0.00% - - - - - - - Add back: Securities loss 2.10% 0.00% - - - - - - - Add back: Branch closure expenses 0.31% 0.27% 1.04% - - - - - - Return on average tangible common equity, as adj (b)/(g) 19.61% 19.94% 12.92% 13.35% 10.83% 12.91% 14.45% 14.94% 13.71% 13.57% 13.64% 41 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2021 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 6/30/2025 Tangible Book Value per Common Share Total common equity, as reported (h) 141,900$ 151,793$ 161,873$ 179,295$ 165,481$ 164,177$ 173,979$ 179,295$ 183,694$ 191,147$ 191,147$ Less: Goodwill and intangibles 12,052 12,433 12,103 11,773 12,021 11,938 11,856 11,773 11,691 11,609 11,609 Total tangible common equity (i) 129,848$ 139,360$ 149,770$ 167,522$ 153,460$ 152,239$ 162,123$ 167,522$ 172,003$ 179,538$ 179,538$ Common shares outstanding - basic (actual) (j) 6,620,955 6,666,428 6,639,888 6,471,096 6,648,645 6,465,601 6,468,625 6,471,096 6,478,634 6,494,611 6,494,611 Tangible book value per basic common share (i)/(j) 19.61$ 20.90$ 22.56$ 25.89$ 23.08$ 23.55$ 25.06$ 25.89$ 26.55$ 27.64$ 27.64$ Tangible common equity to tangible assets ("TCE Ratio") Total assets, as reported (k) 1,729,838 1,848,169 1,905,860 1,973,022 1,912,953 1,868,599 1,916,126 1,973,022 1,979,753 2,007,471 2,007,471 Less: Goodwill 12,052 12,433 12,103 11,773 12,021 11,938 11,856 11,773 11,691 11,609 11,609 Total tangible assets (l) 1,717,786$ 1,835,736$ 1,893,757$ 1,961,249$ 1,900,932$ 1,856,661$ 1,904,270$ 1,961,249$ 1,968,062$ 1,995,862$ 1,995,862$ Tangible common equity to tangible assets (k)/(l) 7.56% 7.59% 7.91% 8.54% 8.07% 8.20% 8.51% 8.54% 8.74% 9.00% 9.00% Net interest margin (tax equivalent) Net interest income 52,542$ 57,631$ 56,869$ 59,981$ 13,812$ 15,239$ 15,229$ 15,701$ 16,017$ 16,707$ 32,724$ Tax equivalent adjustment 939 940 629 227 57 57 59 54 49 54 103$ Tax equivalent net interest income (m) 53,481$ 58,571$ 57,498$ 60,208$ 13,869$ 15,296$ 15,288$ 15,755$ 16,066$ 16,761$ 32,827$ Average earning assets (n) 1,629,299$ 1,647,151$ 1,766,240$ 1,782,241$ 1,787,955$ 1,763,917$ 1,757,184$ 1,800,332$ 1,829,989$ 1,841,112$ 1,833,105$ Net interest margin (tax equivalent) (m)/(n) 3.28% 3.56% 3.26% 3.38% 3.12% 3.49% 3.46% 3.48% 3.56% 3.65% 3.61% Efficiency Ratio Noninterest expense, as reported 47,764$ 43,145$ 50,244$ 49,642$ 12,881$ 12,364$ 12,313$ 12,084$ 12,577$ 12,976$ 25,553$ Less: FHLB penalty, gross (2,368) - - - - - - - - - - Less: Contribution (1,000) - - - - - - - - - - Less: Settlement expense (3,300) - - - - - - - - - - Less: Branch closure expenses 623 562 562 - - - - - - Noninterest expense, adjusted (o) 41,096$ 43,145$ 49,621$ 49,080$ 12,319$ 12,364$ 12,313$ 12,084$ 12,577$ 12,976$ 25,553$ Net interest income 52,542$ 57,631$ 56,868$ 59,981$ 13,812$ 15,239$ 15,229$ 15,701$ 16,017$ 16,707$ 32,724$ Noninterest income 20,714 17,906 14,471 19,827 4,875 4,841 5,053 5,058 4,914 5,087 10,001 Less: Insurance reimbursement (1,375) - - - - - - - - - Less: Securities loss (4,214) - - - - - - - Tax equivalent adjustment 939 940 629 227 57 57 59 54 49 54 103 Total tax equivalent revenue (p) 72,820$ 76,477$ 76,182$ 80,035$ 18,744$ 20,137$ 20,341$ 20,813$ 20,980$ 21,848$ 42,828$ Efficiency ratio, as adjusted (o)/(p) 56.44% 56.41% 65.12% 61.31% 65.71% 61.39% 60.52% 58.05% 59.95% 59.39% 59.66%