First United (FUNC) AI Stock Analysis

• Market Cap: $232.33M
• Dividend Yield: 2.54%
• Average Volume (3M): 22.07K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.91
• 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: 22,692
• 30 Day Avg. Volume: 22,068
• 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: 1.14
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 7.36
• 1Y Price Target: $42.00
• Price Target Upside: 15.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.65
• Revenue Forecast (FY): $87.59M

• Rating: 67 Neutral
• Price Target: $39.00 ▲(7.71% Upside)

First United's stock score is primarily driven by its solid financial performance and attractive valuation. Despite challenges in revenue growth and cash flow stability, the company's strong profitability metrics and undervaluation provide a positive outlook. Technical indicators suggest a neutral market sentiment, with no strong momentum in either direction.

First United Business Overview & Revenue Model

Company Description

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. The company offers various deposit products, including checking accounts, savings and money market accounts, regular and individual retirement accounts (IRA) certificates of deposit, Christmas savings accounts, college savings accounts, and health savings accounts; Certificate of Deposit Account Registry Service program and Insured Cash Sweep program to municipalities, businesses, and consumers; and commercial customers packages, which include treasury management, cash sweep, and various checking opportunities. It also provides loans, such as commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, term loans, and other secured and unsecured lines of credit and term loans. In addition, the company offers various trust services, including personal trust, investment agency accounts, charitable trusts, retirement accounts that consist of IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning services; insurance products; brokerage services; and safe deposit and night depository facilities. It operates 26 banking offices, one customer care center, and 34 automated teller machines in Allegany, Frederick, Garrett, and Washington counties in Maryland; and in Mineral, Berkeley, Monongalia, and Harrison counties in West Virginia. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.

How the Company Makes Money

First United generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the interest earned on loans and investments, minus the interest paid on deposits and borrowings. The bank offers various loan products, including personal, commercial, and mortgage loans, which contribute significantly to this revenue stream. Non-interest income is generated from service fees, investment management fees, and other financial services. Additionally, strategic partnerships with local businesses enhance cross-selling opportunities and contribute to overall earnings. The company's focus on community banking helps build strong customer relationships, ultimately driving deposits and loan 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	89.36M	111.80M	95.61M	80.44M	78.61M	76.92M
Gross Profit	55.09M	76.87M	69.75M	76.28M	73.72M	61.86M
EBITDA	35.94M	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	197.33M	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	131.69M
Cash Flow
Free Cash Flow	18.68M	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: 36.21
• 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 36.21 is above the 20-day moving average (MA) of 35.60, above the 50-day MA of 36.13, and above the 200-day MA of 32.89, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.56 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
OVLY	72 Outperform	$230.09M	9.63	12.29%	2.07%	1.80%	-5.19%
NWFL	71 Outperform	$247.82M	40.86	3.56%	4.59%	-4.66%	-58.94%
WNEB	68 Neutral	$242.22M	18.09	5.51%	2.36%	7.37%	27.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUNC	67 Neutral	$232.33M	9.32	13.36%	2.54%	11.72%	55.87%
FVCB	65 Neutral	$217.88M	10.39	8.87%	0.97%	16.68%	322.32%

First United Corporate Events

First United Corporation Reports Strong Q3 2025 Results

First United Corporation, a bank holding company based in Oakland, Maryland, operates primarily through its subsidiary, First United Bank & Trust, offering a range of financial services. The company is involved in commercial banking, mortgage lending, and wealth management, with a focus on controlling expenses and maintaining strong production in its core areas.

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.

The most recent analyst rating on (FUNC) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on First United stock, see the FUNC Stock Forecast page.

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.

The most recent analyst rating on (FUNC) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on First United stock, see the FUNC Stock Forecast page.