First United Corp/Md/ (NASDAQ: FUNC)

First United Corp/MD/ (First United), a Maryland-based bank holding company, operates as the parent company of First United Bank & Trust, a Maryland trust company. The company's primary business revolves around providing a range of financial services to individuals and businesses in its market areas. With a focus on lending activities, deposit services, and wealth management services, First United generates revenue through various loan products, deposit offerings, and financial planning solutions (First United Corp/MD/).

First United's lending activities include commercial loans, residential mortgage loans, and consumer loans, which are primarily secured by real estate, commercial equipment, vehicles, or other assets of the borrower. The company's deposit services encompass checking and savings accounts, certificates of deposit, individual retirement accounts, Christmas Savings accounts, and College Savings accounts. Additionally, First United's wealth management services are provided through its Trust Department, offering a range of trust services, including personal trust, investment agency accounts, charitable trusts, retirement accounts, and estate planning (First United Corp/MD/).

In a highly competitive environment, First United competes with multiple banks, thrifts, and other financial institutions for deposits and loans. The primary factors in competing for deposits are interest rates, personalized services, the quality and range of financial services, convenience of office locations and office hours. The primary factors in competing for loans are interest rates, loan origination fees, the quality and range of lending services, and personalized services (First United Corp/MD/).

First United is subject to regulation by various federal and state agencies, including the Federal Reserve, the Federal Deposit Insurance Corporation, and the Maryland Department of Labor's Office of Financial Regulation. The company is also subject to capital requirements and risk-based capital regulations, which evaluate capital adequacy and require an analysis of an institution's asset risk profile and off-balance sheet exposures. First United's capital policy establishes guidelines for meeting these regulatory requirements and ensuring the company's financial stability (First United Corp/MD/).

As a well-capitalized institution, First United maintains a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, and a leverage ratio of 5.0% or greater. The company is also subject to liquidity requirements and various laws and regulations, such as the Bank Secrecy Act/Anti-Money Laundering regulations, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, the Dodd-Frank Act, and the Military Lending Act. First United's mortgage lending and servicing activities are subject to the Truth in Lending Act, the Real Estate Settlement Procedures Act, and various rules adopted thereunder, as well as the Military Lending Act (First United Corp/MD/).