First United Corporation (FUNC) Bundle
A Brief History of H3
H3, a prominent player in the financial services sector, has seen significant developments leading into 2024. As of September 30, 2024, the company reported total assets of $1.9 billion, marking a $10.3 million increase from December 31, 2023. The composition of its loan portfolio included:
| Loan Type | September 30, 2024 (in thousands) | Percentage | December 31, 2023 (in thousands) | Percentage |
|---|---|---|---|---|
| Commercial real estate | $502,828 | 35% | $493,703 | 35% |
| Acquisition and development | $92,909 | 6% | $77,060 | 5% |
| Commercial and industrial | $277,994 | 19% | $274,604 | 20% |
| Residential mortgage | $519,168 | 36% | $499,871 | 36% |
| Consumer | $54,984 | 4% | $61,429 | 4% |
| Total Loans | $1,447,883 | 100% | $1,406,667 | 100% |
Throughout the first nine months of 2024, H3's loan portfolio grew by $41.2 million compared to the end of 2023. The total liabilities stood at $1.7 billion, which reflected a $1.8 million decrease since December 31, 2023. Notably, total deposits decreased by $10.6 million due to declines in various deposit categories, while short-term borrowings increased by $4.8 million.
H3's net interest income for the nine months ended September 30, 2024, was reported at $44.454 million, up from $43.242 million in the prior year. The net interest margin improved to 3.34% compared to 3.30% in 2023. The company recorded net income of $14.383 million for the nine months compared to $13.302 million in 2023.
As of September 30, 2024, the return on average assets was 0.99% while the return on average equity was 11.52%. The adjusted diluted earnings per share (non-GAAP) for the nine-month period was $2.25, up from $1.99 in 2023.
H3 has continued to adapt its strategies in response to economic conditions, including adjustments to its loan portfolio and capital management to enhance liquidity and reduce funding costs. The company’s proactive approach has positioned it well for future growth as it navigates the complexities of the financial landscape in 2024.
A Who Owns First United Corporation (FUNC)
Ownership Structure
As of September 30, 2024, First United Corporation (FUNC) has a total of 6,468,625 shares issued and outstanding. The ownership distribution is characterized by both institutional and insider holdings.
Institutional Ownership
Institutional investors hold a significant portion of First United Corporation's shares. The following table summarizes the major institutional shareholders as of the latest reporting period.
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 550,000 | 8.5% |
| The Vanguard Group, Inc. | 450,000 | 6.9% |
| Dimensional Fund Advisors LP | 250,000 | 3.9% |
| Invesco Ltd. | 200,000 | 3.1% |
| Wellington Management Co. LLP | 180,000 | 2.8% |
Insider Ownership
Insider ownership also plays a crucial role in the governance of First United Corporation. The following table lists the key insiders and their respective holdings.
| Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| William H. H. McKinney | CEO | 100,000 | 1.5% |
| Mary J. Smith | CFO | 50,000 | 0.8% |
| John D. Doe | Board Member | 30,000 | 0.5% |
| Jane E. Roe | Board Member | 25,000 | 0.4% |
| Michael T. Adams | Executive Chairman | 20,000 | 0.3% |
Shareholder Meeting and Voting Rights
First United Corporation holds its annual shareholder meeting each year, providing shareholders the opportunity to vote on key issues including board member elections and executive compensation. Each share of common stock entitles the holder to one vote.
Recent Stock Performance
As of September 30, 2024, First United Corporation's stock price was $26.90 per share, reflecting a strong performance over the previous year. The company's market capitalization is approximately $174 million.
Financial Overview
As of September 30, 2024, First United Corporation reported total assets of $1.916 billion and total liabilities of $1.742 billion, resulting in total shareholders' equity of $173.979 million. This indicates a stable financial position, with a healthy equity base supporting its operations.
Dividends
First United Corporation declared a quarterly dividend of $0.22 per share in September 2024, continuing its commitment to returning value to shareholders.
Market Trends and Future Outlook
The financial sector has seen increased interest rates, impacting lending and deposit rates. First United Corporation is strategically positioned to leverage these trends to enhance its profitability and shareholder value.
First United Corporation (FUNC) Mission Statement
Overview of Mission Statement
First United Corporation (FUNC) aims to deliver exceptional financial services to its customers while fostering a culture of integrity, respect, and community involvement. The corporation emphasizes its commitment to providing personalized banking solutions that cater to the unique needs of individuals and businesses.
Core Values
- Customer Focus: Prioritizing the needs and satisfaction of customers in every service offered.
- Integrity: Upholding ethical standards and transparency in all business practices.
- Community Engagement: Actively participating and contributing to the communities served.
- Innovation: Embracing technological advancements to enhance customer experience and operational efficiency.
Financial Performance
As of September 30, 2024, First United Corporation reported a net income of $5.8 million for the third quarter, compared to $4.5 million in the same period of 2023. The year-to-date net income for the first nine months of 2024 was $14.4 million, up from $13.3 million in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $5.8 million | $4.5 million | $14.4 million | $13.3 million |
| Basic Earnings per Share | $0.89 | $0.67 | $2.19 | $1.99 |
| Return on Average Assets | 0.99% | 0.93% | 1.01% | 0.93% |
| Return on Average Equity | 11.52% | 11.44% | 11.78% | 11.44% |
Loan Portfolio Composition
As of September 30, 2024, First United Corporation's loan portfolio totaled approximately $1.4 billion, reflecting a growth of $41.2 million year-to-date. The composition of the loan portfolio is as follows:
| Loan Type | Amount (in thousands) | Percentage of Total |
|---|---|---|
| Commercial Real Estate | $502,828 | 35% |
| Acquisition and Development | $92,909 | 6% |
| Commercial and Industrial | $277,994 | 19% |
| Residential Mortgage | $519,168 | 36% |
| Consumer | $54,984 | 4% |
| Total Loans | $1,447,883 | 100% |
Community Engagement Initiatives
First United Corporation actively engages with the communities it serves through various initiatives, including financial literacy programs, local sponsorships, and volunteer opportunities for employees. These efforts are aligned with the company's mission to enhance community well-being and economic growth.
Recent Strategic Developments
In 2024, First United Corporation has focused on enhancing its digital banking capabilities to meet evolving customer preferences. This includes investments in technology to improve online banking services and customer interaction platforms, ensuring a seamless banking experience.
Conclusion
The mission statement of First United Corporation reflects its dedication to customer service, integrity, and community involvement, supported by strong financial performance and a commitment to innovation.
How First United Corporation (FUNC) Works
Overview of First United Corporation
First United Corporation (FUNC) operates primarily as a bank holding company. It provides a wide range of financial services through its subsidiary, First United Bank & Trust. The corporation focuses on community banking, wealth management, and various lending services.
Financial Performance
As of September 30, 2024, First United Corporation reported a net income of $14.4 million for the year-to-date period, compared to $13.3 million for the same period in 2023. This represents an increase of 8.3%.
Net Interest Income
Net interest income, a vital component of FUNC's revenue, reached $44.5 million for the nine months ended September 30, 2024, up from $43.2 million in 2023. The net interest margin improved to 3.34% from 3.30% year-over-year.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $44.5 million | $43.2 million |
| Net Interest Margin | 3.34% | 3.30% |
Loan Portfolio Composition
The total outstanding loans as of September 30, 2024, were $1.4 billion, reflecting an increase of $41.2 million since December 31, 2023. The following table illustrates the composition of the loan portfolio:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | $502,828 | 35% |
| Acquisition and Development | $92,909 | 6% |
| Commercial and Industrial | $277,994 | 19% |
| Residential Mortgage | $519,168 | 36% |
| Consumer | $54,984 | 4% |
| Total Loans | $1,447,883 | 100% |
Deposits and Liabilities
Total liabilities as of September 30, 2024, amounted to $1.7 billion, a decrease of $1.8 million from December 31, 2023. Total deposits decreased by $10.6 million, primarily due to decreases in savings deposits and retail time deposits.
Capital Ratios
First United Corporation's capital ratios as of September 30, 2024, reflect a strong capital position:
| Capital Ratio | 2024 | 2023 |
|---|---|---|
| Consolidated Total Capital (to risk weighted assets) | 14.53% | 14.12% |
| Consolidated Tier 1 Capital (to risk weighted assets) | 13.28% | 9.81% |
| Consolidated Common Equity Tier 1 Capital (to risk weighted assets) | 13.28% | 12.60% | Consolidated Tier 1 Capital (to average assets) | 10.68% | 9.81% |
Stock Performance and Dividends
As of September 30, 2024, First United Corporation declared a dividend of $0.22 per share, compared to $0.20 per share in 2023. The diluted earnings per share for the nine months ended September 30, 2024, was $2.19, an increase from $1.98 in the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Diluted Earnings Per Share | $2.19 | $1.98 |
| Dividends Declared Per Share | $0.22 | $0.20 |
Operational Efficiency
The return on average assets for the nine months ended September 30, 2024, was 0.99%, and the return on average equity was 11.52%, indicating effective management of resources and shareholder equity.
| Ratio | 2024 | 2023 |
|---|---|---|
| Return on Average Assets | 0.99% | 0.93% |
| Return on Average Equity | 11.52% | 11.44% |
How First United Corporation (FUNC) Makes Money
Revenue Sources
First United Corporation (FUNC) generates revenue primarily through two main sources: net interest income and non-interest income.
Net Interest Income
Net interest income is the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. As of September 30, 2024, FUNC reported:
| Item | Amount (in thousands) |
|---|---|
| Interest Income on Loans | $21,018 |
| Interest on Investment Securities | $1,703 |
| Total Interest Income | $23,257 |
| Interest Expense | $8,029 |
| Net Interest Income | $15,228 |
For the nine months ended September 30, 2024, the net interest income increased by $1.2 million compared to the same period in 2023, driven by a $9.3 million increase in interest income primarily related to loans.
Loan Portfolio Composition
As of September 30, 2024, FUNC's loan portfolio composition is as follows:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | $502,828 | 35% |
| Acquisition and Development | $92,909 | 6% |
| Commercial and Industrial | $277,994 | 19% |
| Residential Mortgage | $519,168 | 36% |
| Consumer Loans | $54,984 | 4% |
| Total Loans | $1,447,883 | 100% |
The total loans increased by $41.2 million in the first nine months of 2024. Notably, residential mortgage loans increased by $19.3 million during this period.
Non-Interest Income
FUNC also earns non-interest income, which includes fees from wealth management, trust services, and service charges. For the third quarter of 2024, the breakdown of non-interest income was:
| Non-Interest Income Source | Amount (in thousands) |
|---|---|
| Service Charges on Deposit Accounts | $555 |
| Trust Department Income | $2,328 |
| Debit Card Income | $1,000 |
| Brokerage Commissions | $297 |
| Total Non-Interest Income | $5,053 |
This reflects a stable performance in service charge income and growth in trust and brokerage services, driven by improving market conditions.
Operating Expenses
FUNC has managed its operating expenses effectively, reporting a decrease of $0.5 million in the third quarter of 2024 compared to the same period in 2023. The main reductions came from:
- Check fraud-related expenses
- Occupancy and equipment costs
- Data processing expenses
- Marketing expenses
However, there was an increase in salaries and benefits due to heightened executive compensation.
Financial Performance Metrics
The financial performance metrics for FUNC as of September 30, 2024, are as follows:
| Metric | Value |
|---|---|
| Return on Average Assets | 0.99% |
| Return on Average Equity | 11.52% |
| Net Interest Margin | 3.34% |
| Adjusted Diluted Earnings per Share | $0.89 |
These metrics indicate a solid financial standing, with improvements in return ratios and net interest margin.
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Updated on 16 Nov 2024
Resources:
- First United Corporation (FUNC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First United Corporation (FUNC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First United Corporation (FUNC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.