First United (FUNC) AI Stock Analysis

• Market Cap: $254.81M
• Dividend Yield: 2.38%
• Average Volume (3M): 23.53K
• Price to Earnings (P/E): 10.4
• 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): 1.10
• 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: 0.56
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 1.72
• Enterprise Value/Ebitda: 3.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $44.00 ▲(19.66% Upside)

The score is driven mainly by steady financial quality (strong margins, improved leverage, solid cash conversion) and supportive technical momentum (price above key moving averages with positive MACD). Valuation and corporate actions (low P/E, dividend, sizable buyback) add support, while the key risk factor remains the significant TTM revenue decline.

Positive Factors

Strong Profitability and Operational Efficiency

Sustained high net (21%) and EBIT (27.9%) margins indicate durable operating leverage and pricing power in core lending and fee businesses. This supports internally funded growth, cushions against credit cost swings, and sustains return on equity over the medium term.

Reliable Cash Generation

Strong cash conversion (OCF/net income ~0.96) and positive FCF growth support recurring lending, reserve funding and shareholder distributions. Consistent cash generation improves capital flexibility and reduces reliance on external financing for 2–6 month strategic moves.

Record Core Earnings, Capital Return and Orderly Succession

Record core earnings, a declared cash dividend and board-authorized buyback signal disciplined capital allocation. Combined with a planned internal CEO succession described as orderly, this supports continuity in strategy execution and ongoing shareholder-focused policy.

Negative Factors

Material Recent Revenue Decline

A 22.8% TTM revenue drop materially reduces top-line scale and could indicate weaker loan origination or fee activity. Unless revenue recovery is sustained, margins and growth initiatives may face pressure, constraining long-term earnings momentum.

Historical Free Cash Flow Volatility

Although FCF improved recently, historical volatility in free cash flow can complicate capital planning and make dividends/buybacks less predictable. Variable cash generation increases vulnerability to funding stress during adverse economic periods.

Geographic Concentration Risk

Concentration in the Mid-Atlantic ties asset quality and loan demand to regional economic cycles. Limited geographic diversification raises sensitivity to local downturns, potentially amplifying credit and deposit volatility versus more diversified peers.

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 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

Solid profitability and operational efficiency (net margin 21.0%, EBIT margin 27.9%) and improved leverage (debt-to-equity 0.59), supported by good cash conversion (operating cash flow to net income 0.96). The main offset is the notable TTM revenue decline (-22.8%) and historical free-cash-flow volatility.

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: 36.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 36.77 is below the 20-day moving average (MA) of 38.16, below the 50-day MA of 38.41, and above the 200-day MA of 34.51, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 85.10 is Negative, 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	75 Outperform	$278.15M	11.51	12.29%	1.99%	5.50%	-5.19%
FUNC	73 Outperform	$254.81M	10.40	13.36%	2.38%	11.72%	55.87%
WNEB	72 Outperform	$289.76M	18.82	5.51%	2.18%	7.37%	27.35%
NWFL	70 Outperform	$345.74M	10.50	12.18%	4.21%	-4.66%	-58.94%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FVCB	64 Neutral	$284.86M	13.02	8.87%	0.87%	16.68%	322.32%

First United Corporate Events

First United Reports Record 2025 Earnings and Dividend

On February 4, 2026, First United Corporation reported its financial results for the three- and twelve-month periods ended December 31, 2025, highlighting record core earnings on a non-GAAP basis. Full-year GAAP net income rose to $24.5 million, or $3.77 per diluted share, from $20.6 million, or $3.15 per diluted share, in 2024, while non-GAAP net income increased to $25.8 million, or $3.97 per diluted share, reflecting strong net interest margin, robust commercial and residential loan production, and controlled funding costs. Fourth-quarter 2025 GAAP net income declined to $5.8 million from $6.2 million a year earlier and $6.9 million in the prior quarter, largely due to a $1.6 million write-down on a legacy other real estate owned property and higher operating expenses, though non-GAAP quarterly earnings improved to $7.2 million, or $1.10 per diluted share. The bank’s net interest margin on a fully tax-equivalent basis reached 3.75% in the fourth quarter, provision expense rose modestly on loan growth and increased commitments, and the board declared a cash dividend of $0.26 per share. Management framed 2025 as a milestone year marking the bank’s 125th anniversary and underscored continued confidence in its strategy and leadership transition, emphasizing an ongoing focus on expense discipline, balance sheet optimization and expanded client relationships.

The most recent analyst rating on (FUNC) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on First United stock, see the FUNC Stock Forecast page.

First United Board Approves Significant Common Stock Buyback

On January 26, 2026, First United Corporation’s board authorized a stock repurchase program allowing the company to buy back up to 1,000,000 shares of its common stock, representing about 15.4% of shares outstanding at that time, over an 18‑month period. The shares may be acquired through open-market or privately negotiated transactions at management’s discretion, subject to securities law and internal blackout policies, and actual repurchase activity will depend on share price, trading volumes, available opportunities, and the company’s capital needs, meaning the program may enhance shareholder value but may also result in no purchases if conditions are not favorable.

The most recent analyst rating on (FUNC) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on First United stock, see the FUNC Stock Forecast page.

First United appoints Jason Rush as new CEO

Effective January 1, 2026, longtime executive Carissa L. Rodeheaver moved from her role as Chairman, President and Chief Executive Officer of First United Corporation and First United Bank & Trust to become Executive Chairman, retaining board leadership responsibilities while overseeing regulatory examinations, year-end reporting, annual meeting planning and investor relations, and advising the new CEO on management succession. On the same date, industry veteran Jason B. Rush, a First United employee since 1993 who most recently served as Senior Vice President and Chief Operating Officer, was appointed President and Chief Executive Officer of both the Corporation and the Bank with an annual base salary of $450,000, marking a planned internal leadership transition with no related-party transactions requiring disclosure since the start of the 2024 fiscal year.

The most recent analyst rating on (FUNC) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on First United stock, see the FUNC Stock Forecast page.

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.

The most recent analyst rating on (FUNC) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on First United stock, see the FUNC Stock Forecast page.

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.

The most recent analyst rating on (FUNC) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on First United stock, see the FUNC Stock Forecast page.