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First United Corporation Reports Higher Q3 2026 Net Income as Net Interest Margin Reaches 4.05%

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FUNC$43.63 −1.38%

First United Corporation (NASDAQ:FUNC) reported GAAP net income of $7.2 million, or $1.11 per diluted share, for the third quarter of 2026. That is an increase from $6.9 million, or $1.07 per share, in the third quarter of 2025, and up from $5.7 million, or $0.88 per share, in the second quarter of 2026. For the first nine months of 2026, net income totaled $19.5 million, or $3.01 per share.

The bank holding company saw its fully tax equivalent net interest margin improve to 4.05% in the third quarter, compared to 3.98% in the previous quarter. The improved profitability was propelled by higher loan yields from expanding commercial and residential mortgage originations, alongside lower funding costs after paying off maturing higher-cost borrowings. Non-interest income also rose due to gains in trust and brokerage fees from new accounts and favorable market valuations on assets under management.

Moving into the fourth quarter, investors should monitor the bank's loan pipeline and credit reserve management. While loan growth remains steady, First United Corporation set aside $1.9 million for credit losses during the third quarter in response to loan volume growth and ongoing economic uncertainty. Shareholders will also receive a quarterly cash dividend of $0.28 per share.

Key points

  • GAAP net income for the third quarter of 2026 reached $7.2 million, or $1.11 per diluted share, up from $6.9 million in the third quarter of 2025.
  • Net interest margin rose to 4.05% on a fully tax equivalent basis, supported by higher loan yields and decreased funding expenses.
  • New commercial loan originations reached $115.0 million and residential mortgage originations totaled $34.7 million during the quarter.
  • Provision for credit losses was $1.9 million for the quarter, reflecting expansion in total loans and unfunded commitments.
  • The board declared a third-quarter cash dividend of $0.28 per share.

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Questions and answers

What were First United Corporation's Q3 2026 earnings?

First United Corporation reported GAAP net income of $7.2 million, or $1.11 per diluted share, for the third quarter of 2026, compared to $6.9 million, or $1.07 per diluted share, in the third quarter of 2025.

What was First United Corporation's net interest margin in Q3 2026?

The bank's net interest margin on a non-GAAP fully tax equivalent basis rose to 4.05% in the third quarter of 2026, up from 3.98% in the second quarter of 2026.

Did First United Corporation declare a dividend for Q3 2026?

Yes, First United Corporation declared a cash dividend of $0.28 per share for the third quarter of 2026.