First United Corporation
First United Corp. is a Maryland-based bank holding company whose main operating business is First United Bank & Trust, a community bank serving western Maryland and nearby West Virginia markets. It earns most of its revenue from net interest income on loans and securities, supplemented by fee income from wealth management, trust, brokerage, and other financial services.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueCore lending, deposit gathering, and investment securities activities that generate most revenue.
Trust department income, brokerage commissions, and related advisory services.
OakFirst Loan Centers provide consumer lending products outside the core branch bank.
Service charges, card-related fees, and other operating income from banking customers.
OREO holdings and low-income housing partnership interests managed through subsidiaries.
Products
Reported · share of revenue- Trust Department53.3 %
- Debit Card Income22.0 %
- Service Charges12.2 %
- Brokerage Commissions7.8 %
- Other Service Charges4.6 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
The company serves retail households, small businesses, and commercial borrowers in its local market areas, with a strong community-banking orientation. It also serves wealth management clients, trust customers, and brokerage users who need investment and fiduciary services. Deposit customers are attracted by local relationships and convenience, while loan customers value personalized underwriting and local decision-making.
Households that buy deposit accounts, consumer loans, and mortgage products for everyday banking needs.
Local businesses that use the bank for operating deposits, credit lines, and relationship-based lending.
Larger local and regional businesses that need tailored credit solutions and local underwriting.
Individuals and families using trust, brokerage, and asset supervision services for investment administration.
Borrowers served through OakFirst Loan Centers for non-core consumer lending products.
Strategy
Management’s strategy is centered on organic growth in its existing market areas, using local reputation, personal relationships, and community banking service to win deposits and loans. The company also supplements core banking with wealth management, trust, brokerage, and consumer finance to broaden fee income and deepen customer relationships. It may consider acquisitions or expansion opportunities, but the disclosed emphasis remains on disciplined local growth and maintaining strong capital and liquidity.
The bank relies on local reputation and community relationships to expand deposits and loans.
Wealth management and trust services reduce reliance on spread income and deepen relationships.
A strong balance sheet supports lending capacity, regulatory compliance, and depositor confidence.
Geography
Business is concentrated in four Western Maryland counties and three Northeastern West Virginia counties, where the bank operates 23 branch offices. This local footprint makes the company highly dependent on regional economic conditions, deposit competition, and borrower credit quality in a relatively narrow market. Wealth management assets under supervision were about $1.8 billion at year-end 2025, showing that fee-based activity extends beyond the branch footprint even though the business remains locally anchored.
Risks
The company is exposed to classic community-bank risks: competition for deposits and loans, concentration in a limited geographic footprint, and sensitivity to local credit conditions. It also faces funding, interest-rate, and regulatory risks because its earnings depend heavily on spread income and its balance sheet is funded largely by deposits. Non-core risks include OREO write-downs, goodwill impairment, and execution risk if management pursues acquisitions or branch changes.
- Competitive pressure in local banking marketsImpact: HighLikelihood: Medium
Deposits and loans are contested by larger banks, credit unions, and internet providers.
Exposure - Funding and liquidity constraintsImpact: HighLikelihood: Medium
Future growth depends on replacing deposits and maintaining access to wholesale funding sources.
Exposure - Credit losses and collateral deteriorationImpact: HighLikelihood: Medium
Community banks are exposed to borrower defaults and collateral value declines in local markets.
Exposure: Loan portfolio and OREO
- Interest-rate sensitivityImpact: HighLikelihood: Medium
Net interest income is the largest revenue source and depends on funding and asset repricing.
Exposure: Net interest margin
- Geographic concentrationImpact: MediumLikelihood: Medium
Operations are concentrated in a small set of counties in Maryland and West Virginia.
Exposure: Credit quality and deposit gathering
Accounting
Judgemental itemsManagement estimates lifetime expected losses using portfolio risk, forecasts, and historical experience.
Impact: Directly affects provision expense, earnings, and loan carrying values
Foreclosed real estate must be carried at realizable value, creating impairment risk.
Impact: Can reduce noninterest income and increase noninterest expense
The company carries goodwill and other intangibles that require periodic impairment testing.
Impact: Could create non-cash charges to earnings
Market value changes can affect accumulated other comprehensive income and realized gains/losses.
Impact: Impacts equity and other operating income
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Last updated: 24/09/2026