First United Q2 net income falls on one-time expense
FUNC•Overview
- U.S. bank holding company's Q2 net income and EPS declined year over year due to a one-time expense.
- Adjusted Q2 net income and EPS rose year over year, excluding consulting expense.
- Net interest income and margin improved on higher loan yields and lower funding costs.
Outlook and result drivers
- First United says loan pipelines remain robust entering the third quarter.
- The company says expense control will continue to be a focus.
- Net interest income — Higher loan yields and reduced funding costs drove an increase in net interest income and margin.
- One-time consulting expense — Net income was reduced by a one-time consulting fee related to core contract negotiations.
- Loan growth — Steady loan growth, with strong commercial and residential mortgage originations, contributed to results.
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 EPS | $0.87 | ||
| Q2 Net Income | $5.70 mln | ||
| Q2 Net Interest Income | $18.59 mln | ||
