First United (FUNC) AI Stock Analysis

• Market Cap: $258.51M
• Dividend Yield: 2.38%
• Average Volume (3M): 23.53K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.88
• Revenue Growth: 11.72%
• EPS Growth: 55.87%
• Country: US
• Employees: 291
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.07
• Shares Outstanding: 6,496,908
• 10 Day Avg. Volume: 39,325
• 30 Day Avg. Volume: 23,531
• PEG Ratio: 0.27
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 10.81
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 7.31
• 1Y Price Target: $42.00
• Price Target Upside: 5.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.83
• Revenue Forecast (FY): $88.22M

• Rating: 71 Outperform
• Price Target: $43.00 ▲(8.07% Upside)

First United's overall stock score reflects strong technical indicators and reasonable valuation, offset by challenges in revenue growth and cash flow stability. The company's solid profitability and recent positive corporate events support its market position, but the significant revenue decline remains a concern.

Positive Factors

Leadership Transition

The planned leadership transition to Jason B. Rush, who has extensive experience with the company, ensures continuity and strategic stability, potentially fostering sustained growth and innovation.

Profitability

Strong profitability metrics indicate efficient operations and the ability to generate significant earnings, which can support reinvestment and shareholder returns over the long term.

Cash Flow Generation

Positive cash flow growth underscores the company's ability to generate cash from operations, providing flexibility for investments, debt reduction, and dividends.

Negative Factors

Revenue Decline

The substantial revenue decline poses a challenge to growth prospects and may affect the company's ability to maintain its market position in the long term.

Debt Reliance

A relatively low equity ratio suggests dependence on debt, which could increase financial risk if market conditions deteriorate, impacting long-term financial stability.

Cash Flow Volatility

Volatility in cash flow management could affect the company's ability to consistently fund operations and strategic initiatives, posing a risk to long-term financial health.

First United Business Overview & Revenue Model

Company Description

First United Corporation (FUNC) is a financial holding company headquartered in Oakland, Maryland. The company operates through its wholly-owned subsidiary, First United Bank & Trust, which provides a range of banking services including personal and commercial banking, mortgage lending, and wealth management services. FUNC primarily serves customers in the Mid-Atlantic region, focusing on fostering long-term relationships and delivering personalized financial solutions to meet the diverse needs of individuals, businesses, and communities.

How the Company Makes Money

First United generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees associated with various banking services. Key revenue streams include interest earned on commercial and personal loans, mortgage lending, and income from investment securities. Additionally, the bank earns fees from wealth management services, service charges on deposit accounts, and transaction fees. Significant partnerships with local businesses and community organizations enhance its customer base and service offerings, contributing to customer loyalty and sustained revenue growth.

First United Financial Statement Overview

Summary

First United demonstrates solid profitability with a healthy net profit margin of 21.0% and an EBIT margin of 27.9%. However, the significant revenue decline of 22.8% and historical fluctuations in cash flow growth highlight potential challenges in revenue growth and cash management.

Income Statement

First United's income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 22.8%, which is concerning. However, the company maintains a healthy net profit margin of 21.0% and an EBIT margin of 27.9%, suggesting strong operational efficiency. Historical data shows fluctuating revenue growth, with a peak in 2022. Despite the recent downturn, profitability metrics remain robust.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.59 in the TTM period, indicating reduced leverage compared to previous years. Return on equity is stable at 13.2%, showing effective use of equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if market conditions worsen.

Cash Flow

Cash flow analysis reveals a positive trend with a 10.7% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is strong at 0.96, indicating good cash generation relative to profits. However, historical fluctuations in free cash flow growth highlight potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	118.77M	111.80M	95.61M	80.44M	78.61M	76.92M
Gross Profit	83.66M	76.87M	69.75M	76.28M	73.72M	61.86M
EBITDA	36.16M	31.02M	24.39M	36.83M	29.74M	21.34M
Net Income	24.92M	20.57M	15.06M	25.05M	19.77M	13.84M
Balance Sheet
Total Assets	2.02B	1.97B	1.91B	1.85B	1.73B	1.73B
Cash, Cash Equivalents and Short-Term Investments	112.23M	149.94M	146.92M	200.20M	402.49M	376.32M
Total Debt	117.29M	187.72M	157.90M	97.87M	91.39M	153.05M
Total Liabilities	1.82B	1.79B	1.74B	1.70B	1.59B	1.60B
Stockholders Equity	199.10M	179.29M	161.87M	151.79M	141.90M	131.05M
Cash Flow
Free Cash Flow	16.45M	20.36M	22.12M	22.97M	18.89M	14.56M
Operating Cash Flow	18.72M	22.28M	22.47M	26.54M	20.02M	16.17M
Investing Cash Flow	-64.05M	-38.44M	-81.71M	-172.40M	-28.43M	-191.28M
Financing Cash Flow	78.11M	44.73M	34.68M	104.46M	-25.31M	274.56M

First United Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUNC, the sentiment is Positive. The current price of 39.79 is above the 20-day moving average (MA) of 39.29, above the 50-day MA of 37.16, and above the 200-day MA of 33.29, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 50.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FUNC.

First United Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVCB	75 Outperform	$250.34M	11.82	8.87%	0.87%	16.68%	322.32%
NWFL	74 Outperform	$267.92M	43.78	3.56%	4.21%	-4.66%	-58.94%
OVLY	72 Outperform	$255.25M	10.57	12.29%	1.97%	5.50%	-5.19%
FUNC	71 Outperform	$258.51M	10.21	13.36%	2.38%	11.72%	55.87%
WNEB	69 Neutral	$265.58M	19.66	5.51%	2.16%	7.37%	27.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First United Corporate Events

First United Declares Cash Dividend for Shareholders

On December 4, 2025, First United Corporation announced a cash dividend of $.26 per share, payable on February 2, 2026, for shareholders on record as of January 16, 2026. This dividend declaration reflects the company’s ongoing commitment to providing shareholder value and may influence investor perceptions and market positioning.

First United Amends Bylaws for Leadership Transition

On November 12, 2025, First United Corporation’s Board amended its bylaws to allow someone other than the Chairman to be the CEO, paving the way for a management transition. Carissa L. Rodeheaver, the current Chairman, President, and CEO, announced her retirement effective at the conclusion of the 2026 annual meeting. Jason B. Rush, who has been with the company since 1993, will succeed her as President and CEO starting January 1, 2026. Rodeheaver will serve as Executive Chairman until her retirement and will remain in an advisory role to ensure a smooth transition. Under Rodeheaver’s leadership, the company has seen significant growth and innovation, enhancing shareholder value and maintaining a strong industry position.

First United Reports Strong Q3 2025 Financial Results

First United Corporation announced its financial results for the third quarter of 2025, reporting a net income of $6.9 million, an increase from both the previous quarter and the same period in 2024. The company’s performance was driven by increased net interest margin and effective expense control, allowing for a dividend increase. The quarter saw strong loan production despite high payoffs, and stable operating expenses, with a notable rise in net interest income due to higher loan yields.

First United Announces Cash Dividend for Shareholders

On September 24, 2025, First United Corporation announced a cash dividend of $0.26 per share, payable on November 3, 2025, to shareholders of record as of October 17, 2025. This decision reflects the company’s ongoing commitment to providing returns to its shareholders and may influence its market position and stakeholder confidence.