In This Article:
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Net Income: Reported at $15.1 million for the year ended December 31, 2023, compared to $25.0 million in the previous year.
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Earnings Per Share: $2.25 per basic share and $2.24 per diluted share for 2023, against $3.77 and $3.76 for 2022, respectively.
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Fourth Quarter Net Income: $1.8 million, including restructuring costs, compared to $7.0 million in Q4 2022.
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Net Interest Margin: Decreased to 3.13% in Q4 2023 from 3.63% in Q4 2022.
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Total Assets: Increased to $1.9 billion as of December 31, 2023, up from $1.85 billion the previous year.
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Loan Growth: Loans increased by $127.2 million, driven by commercial and residential mortgage portfolios.
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Asset Quality: Non-accrual loans totaled $4.0 million at the end of 2023, with the allowance for credit losses at 1.24% of gross loans.
On February 5, 2024, First United Corp (NASDAQ:FUNC) released its 8-K filing, detailing its financial performance for the fourth quarter and full year ended December 31, 2023. The company, which operates in the financial services sector offering a range of banking products and services, faced significant industry headwinds throughout the year.
Company Overview
First United Corp is a bank holding company that provides a variety of banking services such as checking, savings, and money market accounts, as well as business and personal loans. It also offers mortgage loans, trust services, and insurance products. The company's commitment to providing customized financial solutions is reflected in its strong loan growth and asset quality, despite a challenging economic environment.
Financial Performance and Challenges
The year 2023 was marked by industry turmoil, a rapidly increasing rate environment, and intense deposit competition. These factors led to a decrease in net income from $25.0 million in 2022 to $15.1 million in 2023. The company's net interest margin also compressed, contributing to the reduced earnings. Despite these challenges, First United Corp managed to achieve loan growth and maintain asset quality, which are critical for the bank's long-term financial health.
Strategic Initiatives and Their Impact
First United Corp undertook several strategic initiatives in 2023, including a balance sheet restructuring and the consolidation of its branch network. These measures, while impacting short-term earnings, are expected to enhance future efficiency and earnings. The bank's Chairman, President, and CEO, Carissa Rodeheaver, noted the importance of these strategies in positioning the company for future success.