FUNC

EX-99.1

2 tm2627814d1_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

FIRST UNITED CORPORATION ANNOUNCES

THIRD QUARTER 2026 FINANCIAL RESULTS

OAKLAND, MARYLAND— October 19, 2026: 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 nine-month periods ended September 30, 2026. Consolidated net income was $7.2 million on a Generally Accepted Accounting Principles (“GAAP”) basis for the third quarter of 2026, or $1.11 per diluted share, compared to $6.9 million, or $1.07 per diluted share, for the third quarter of 2025 and $5.7 million, or $0.88 per diluted share, for the second quarter of 2026. Net income for the first nine months of 2026 was $19.5 million, or $3.01 per diluted share, compared to $18.7 million, or $2.88 per diluted share, for the same period of 2025. Non-GAAP net income was $7.2 million and $21.1 million for the three- and nine-months ended September 30, 2026, respectively. Annualized Return on Average Assets and Return on Average Equity for the nine-month period ended September 30, 2026 were 1.26% and 12.37%, respectively.

According to Jason Rush, Chairman of the Board, President and CEO, “We delivered another solid quarter, benefiting from an improved net interest margin, continued growth in wealth management income, and steady loan growth. Our loan pipelines remain robust heading into the fourth quarter, providing positive momentum as we close out the year. Credit quality remains strong. However, given continued inflationary pressures and uncertainty surrounding interest rates, we believe it is prudent to maintain a disciplined approach to reserves. We also remain focused on expense management and are continuing to identify opportunities to improve efficiency across the organization.”

Third Quarter Financial Highlights:

·Net interest margin, on a non-GAAP, fully tax equivalent (“FTE”) basis, was 4.05% for the third quarter of 2026, reflecting increased loan yields and reduced funding costs.

·Strong loan production during the quarter, with $115.0 million in commercial loan originations and $34.7 million in residential mortgage originations.

·Provision expense was $1.9 million in the third quarter, primarily due to solid growth in loans and unfunded commitments, and the continued economic and political uncertainty.

·Operating expenses decreased by $2.0 million when compared to the linked quarter driven by a one-time, $1.7 million, net of tax, expense related to consulting fees incurred for contract negotiations with our core processor recorded in the second quarter of 2026.

·A cash dividend of $0.28 per share was declared in the third quarter.

Income Statement Overview

On a GAAP basis, net income for the third quarter of 2026 was $7.2 million, compared to $5.7 million for the second quarter of 2026, inclusive of a $1.7 million, net of tax, third-party consulting expense incurred for core contract negotiations, and $6.9 million for the third quarter of 2025.

Q3 2026

Q2 2026

Q3 2025

Net Income, GAAP (millions) $7.2 $5.7 $6.9

Net Income, non-GAAP (millions) $7.2 $7.3 $6.9

Diluted net income per share, GAAP $1.11 $0.88 $1.07

Diluted net income per share, non-GAAP $1.11 $1.14 $1.07

Third Quarter 2026 Compared to Third Quarter 2025

Consolidated net income increased by $0.2 million for the third quarter of 2026 when compared to the third quarter of 2025. The increase was driven by an increase of $2.2 million in net interest income, and an increase of $0.3 million in non-interest income, inclusive of gains, offset by a $1.4 million increase in provision for credit losses as a result of solid growth in loans and unfunded commitments and a $0.8 million increase in other operating expenses. Comparing the third quarter of 2026 to the same period of 2025, interest and fees on loans increased by $1.8 million driven by solid loan growth and the continued repricing of adjustable-rate loans. Interest expense decreased by $1.0 million when comparing year-over-year quarterly expenses. The decrease was attributable to the repayment of $50.0 million in brokered certificates of deposit in January and July 2026 at their maturities and $65.0 million in Federal Home Loan Bank (“FHLB”) borrowings in March 2026. Other operating income increased slightly by $0.3 million driven by an increase in trust and brokerage income of $0.3 million as a result of increased production and favorable market values on assets under management. Other operating expenses increased by $0.8 million, driven by a $0.5 million increase in salaries and benefits attributable to new hires to complete the build out of talent in our West and East regions, normal merit increases in April 2026 and increased life and health insurance costs due to increased claims. Equipment, occupancy and data processing expenses increased by $0.3 million as a result of the implementation

EX-99.1

2 tm2620844d1_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

FIRST UNITED CORPORATION ANNOUNCES

SECOND QUARTER 2026 FINANCIAL RESULTS

OAKLAND, MARYLAND— July 20, 2026: 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, 2026. Consolidated net income was $5.7 million on a Generally Accepted Accounting Principles (“GAAP”) basis for the second quarter of 2026, or $0.87 per diluted share, compared to $6.0 million, or $0.92 per diluted share, for the second quarter of 2025 and $6.7 million, or $1.03 per diluted share, for the first quarter of 2026. Net income for the first six months of 2026 was $12.3 million, or $1.90 per diluted share, compared to $11.8 million, or $1.81 per diluted share, for the same period of 2025. Non-GAAP net income was $7.3 million and $13.9 million for the three- and six-months ended June 30, 2026, respectively. Annualized Return on Average Assets and Return on Average Equity for the six-month period ended June 30, 2026 were 1.20% and 11.92%, respectively.

According to Jason Rush, President and CEO, “We delivered solid results this quarter. Earnings benefited from a stronger net interest margin and steady growth in income from our wealth franchise.  While we recorded a one-time consulting expense of approximately $2.2 million, we believe the investment in technology and pricing initiatives will position us for improved efficiency in future years to come.  Loan growth was steady in the second quarter and our loan pipelines remain robust going into the third quarter.  Expense control will continue to be a focus across the organization.”

Second Quarter Financial Highlights:

·Net interest margin, on a non-GAAP, fully tax equivalent (“FTE”) basis, was 3.98% for the second quarter of 2026, reflecting increased loan yields and reduced funding costs.

·Strong loan production during the quarter, with $66.0 million in commercial loan originations and $33.9 million in residential mortgage originations.

·Provision expense was $0.8 million in the second quarter, as a result of continued economic and political uncertainty and modest loan growth, slightly offset by improved qualitative factors.

·Operating expenses increased by $2.1 million when compared to the linked quarter driven by a one-time, non-GAAP $1.7 million, net of tax, expense related to consulting fees incurred for contract negotiations with our core processor in the second quarter of 2026.

·A cash dividend of $0.26 per share was declared in the second quarter.

Income Statement Overview

On a GAAP basis, net income for the second quarter of 2026 was $5.7 million, inclusive of a $1.7 million, net of tax, third party consulting expense incurred for core contract negotiations. This compares to $6.7 million in the first quarter of 2026 and $6.0 million for the second quarter of 2025. Excluding this expense item, net income was $7.3 million on a non-GAAP basis.

Q2 2026

Q1 2026

Q2 2025

Net Income, GAAP (millions) $5.7 $6.7 $6.0

Net Income, non-GAAP (millions) $7.3 $6.6 $6.0

Diluted net income per share, GAAP $0.87 $1.03 $0.92

Diluted net income per share, non-GAAP $1.13 $1.02 $0.92

Second Quarter 2026 Compared to Second Quarter 2025

Consolidated net income decreased by $0.3 million for the second quarter of 2026 when compared to the second quarter of 2025. The decrease was driven by an increase in other expense as a result of a one-time, non-GAAP $1.7 million, net of tax, consulting expense related to the core contract negotiations. This increase was partially offset by a $1.9 million increase in net interest income, an increase of $0.3 million in non-interest income, inclusive of gains, and a $0.1 million decrease in provision for credit losses. Comparing the second quarter of 2026 to the same period of 2025, interest and fees on loans increased by $1.5 million as a result of new loans booked at higher rates and the continued repricing of adjustable-rate loans. Interest expense decreased by $0.6 million when comparing year-over-year quarterly expense as a result of the repayment of a $25.0 million brokered certificate of deposit in January 2026 and $65.0 million in Federal Home Loan Bank (“FHLB”) borrowings in March 2026. Other operating income increased by $0.3 million driven by an increase in trust and brokerage income of $0.3 million as a result of increased production and favorable market values on assets under management. Other operating expenses increased by $2.8 million driven by the one-time, non-GAAP item discussed above, a $0.8 million increase in salaries and benefits as a result of filling open positions in late 2025 and 2026, normal merit increases in April 2026 and increased incentive payouts, partially offset by reduced life and health insurance expense due to reduced claims and an increase in the reduction of

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