First United Corp/Md/ (NASDAQ: FUNC)

First United Corporation is a bank holding company that serves as the parent of First United Bank & Trust and several affiliated entities. The corporation’s primary business is to provide a full range of retail and commercial banking services through its bank subsidiary, which operates branches in Maryland and West Virginia. In addition to traditional banking, the firm offers wealth management services, including trust administration, investment agency accounts, and brokerage products. The company also holds interests in low income housing partnerships and manages real estate acquired through foreclosure.

First United Corporation generates revenue primarily from interest earned on its loan portfolio, which includes commercial real estate, residential mortgage, and consumer loans. Additional income comes from deposit service charges, fees for cash management services, and revenue from the sale of fee based products such as checks and money orders. The wealth management segment contributes revenue through trust fees, investment advisory charges, and brokerage commissions. Other sources of income include gains on the sale of securities, earnings from foreclosed real estate, and income from low income housing investments.

The company operates through the following segments.

• Banking: This segment delivers retail and commercial banking products such as checking and savings accounts, loans, mortgages, and lines of credit to individuals, businesses, and municipalities.

• Wealth Management: This segment provides trust services, investment agency accounts, retirement account administration, and brokerage services to personal and institutional clients.

First United Corporation holds a strong position in its regional markets, often ranking among the top three deposit holders in the counties where it operates. In Allegany County, Maryland, the bank commands a 33.20% share of deposits, placing it first among local competitors such as Manufacturers and Traders Trust Company and Truist Bank. In Garrett County, Maryland, it holds a 64.60% deposit share, the highest in the market, while in other counties it maintains competitive shares ranging from 2.45% to 4.95%. The bank’s competitive advantages stem from its deep community relationships, personalized service, and a broad suite of products that meet the needs of both retail and commercial clients.

The company serves a diverse customer base that includes individual consumers, small and medium sized businesses, local governments, and nonprofit organizations. Specific customer relationships encompass retail depositors seeking checking and savings services, commercial borrowers requiring loans for real estate or equipment, and municipalities utilizing cash management and deposit products. Wealth management clients range from high net worth individuals seeking trust and estate services to institutions needing investment advisory and brokerage support.