First United Q1 Profit Climbs 16% to $6.7M, NIM Expands to 3.83%
First United’s Q1 GAAP net income rose 16% to $6.7 million ($1.03 per share) from $5.8 million a year earlier, driven by $2.1 million higher net interest income and stable non-interest income. Net interest margin expanded to 3.83% as commercial loan originations reached $98 million and deposits rose $15.5 million.
1. Q1 2026 Results
First United recorded GAAP net income of $6.7 million (diluted EPS $1.03) for Q1 2026, up from $5.8 million ($0.89 per share) in both Q1 2025 and Q4 2025. Non-GAAP net income was $6.6 million ($1.02 per share) and ROAA and ROAE reached 1.29% and 13.06%, respectively.
2. Net Interest and Loan Growth
Non-GAAP FTE net interest margin expanded to 3.83%, driven by higher loan yields and lower funding costs. Commercial loan originations totaled $98 million and residential mortgage originations were $16 million, while deposits increased by $15.5 million following the repayment of a $25 million brokered certificate of deposit.
3. Expense and Provision Analysis
Provision for credit losses stood at $0.9 million, reflecting economic uncertainty and increased off-balance-sheet commitments. Operating expenses fell by $1.2 million versus the prior quarter, largely due to the absence of a $1.2 million OREO property write-down, offset by higher salaries, benefits and incentive payouts.
4. Dividend Declaration
A cash dividend of $0.26 per common share was declared for Q1 2026, underscoring the company’s capital strength and commitment to shareholder returns.