First United Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>First United Corp. has submitted its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

FIRST UNITED CORP/MD/ (FUNC) filed a Annual Report (10-K) with the SEC on March 15, 2024. First United Corp. filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Maryland (MD). Its principal business address is 19 S Second St, Oakland, MD 21550. The SIC code for First United Corp. is 6021 (National Commercial Banks).

Why It Matters

For investors and stakeholders tracking FIRST UNITED CORP/MD/, this filing contains several important signals. This 10-K filing provides a comprehensive overview of First United Corp.'s financial health, operational performance, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. As a national commercial bank, the details within this filing are essential for understanding regulatory compliance, market positioning, and the company's ability to navigate the economic landscape.

Risk Assessment

Risk Level: medium — FIRST UNITED CORP/MD/ shows moderate risk based on this filing. The filing is a standard 10-K for a commercial bank, which inherently carries medium risk due to regulatory oversight and market sensitivity, but no specific immediate red flags are apparent from the header information alone.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand First United Corp.'s performance and strategic outlook.

Key Numbers

• 20231231 — Fiscal Year End (Conformed Period of Report)
• 20240315 — Filed As Of Date (Conformed Period of Report)
• 145 — Public Document Count (Conformed Submission Type)
• 000-14237 — SEC File Number (Filing Values)

Key Players & Entities

• FIRST UNITED CORP/MD/ (company) — Filer name
• 0000763907 (company) — Central Index Key
• 6021 (company) — Standard Industrial Classification
• MD (company) — State of Incorporation
• 19 S SECOND ST (company) — Business Address Street 1
• OAKLAND (company) — Business Address City
• MD (company) — Business Address State
• 21550 (company) — Business Address ZIP

FAQ

Industry Context

First United Corp. operates within the National Commercial Banks industry (SIC 6021). This sector is characterized by its role in financial intermediation, lending, and deposit-taking services.

Regulatory Implications

As a national commercial bank, First United Corp. is subject to extensive regulation by federal and state authorities, including but not limited to the Federal Reserve, OCC, and FDIC, ensuring compliance with banking laws and capital requirements.

What Investors Should Do

1. Analyze the full 10-K document for detailed financial statements, including balance sheets, income statements, and cash flow statements.
2. Examine the Management's Discussion and Analysis (MD&A) section for insights into the company's performance drivers and outlook.
3. Review the Risk Factors section for potential challenges and uncertainties facing First United Corp.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing information for the 2023 10-K; a comparison to the previous year's filing would require access to the prior period's report.

Key Financial Figures

• $1.9 b — cember 31, 2023, we had total assets of $1.9 billion, net loans of $1.4 billion and de
• $1.4 billion — al assets of $1.9 billion, net loans of $1.4 billion and deposits of $1.6 billion. Sharehold
• $1.6 billion — t loans of $1.4 billion and deposits of $1.6 billion. Shareholders' equity at December 31, 2
• $161.9 million — olders' equity at December 31, 2023 was $161.9 million. The Corporation maintains an Internet
• $1.5 billion — nk's Trust Department was approximately $1.5 billion and $1.0 billion, respectively. Trust D
• $1.0 b — ment was approximately $1.5 billion and $1.0 billion, respectively. Trust Department r
• $0.01 — d company whose common stock, par value $0.01 per share (the "Common Stock"), is regi

Filing Documents

• func-20231231x10k.htm (10-K) — 7899KB
• func-20231231xex19d1.htm (EX-19.1) — 37KB
• func-20231231xex21.htm (EX-21) — 3KB
• func-20231231xex23d1.htm (EX-23.1) — 3KB
• func-20231231xex31d1.htm (EX-31.1) — 14KB
• func-20231231xex31d2.htm (EX-31.2) — 18KB
• func-20231231xex32d1.htm (EX-32.1) — 9KB
• func-20231231xex97.htm (EX-97) — 25KB
• 0001558370-24-003390.txt (&nbsp;) — 34856KB
• func-20231231.xsd (EX-101.SCH) — 108KB
• func-20231231_cal.xml (EX-101.CAL) — 147KB
• func-20231231_def.xml (EX-101.DEF) — 553KB
• func-20231231_lab.xml (EX-101.LAB) — 946KB
• func-20231231_pre.xml (EX-101.PRE) — 846KB
• func-20231231x10k_htm.xml (XML) — 10386KB

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS 3 PART I ITEM 1.

Business

Business 4 ITEM 1A.

Risk Factors

Risk Factors 16 ITEM 1B. Unresolved Staff Comments 31 ITEM 1C Cybersecurity 31 ITEM 2.

Properties

Properties 33 ITEM 3.

Legal Proceedings

Legal Proceedings 33 ITEM 4. Mine Safety Disclosures 33 PART II ITEM 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 ITEM 6. Reserved 34 ITEM 7.

Management's Discussion and Analysis of Financial Condition & Results of Operations

Management's Discussion and Analysis of Financial Condition & Results of Operations 35 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 62 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 126 ITEM 9A.

Controls and Procedures

Controls and Procedures 126 ITEM 9B. Other Information 128 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection s 128 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 128 ITEM 11.

Executive Compensation

Executive Compensation 128 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 128 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 129 ITEM 14. Principal Accountant Fees and Services 129 PART IV ITEM 15. Exhibits and Financial Statement Schedules 130 ITEM 16. Form 10-K Summary 132

SIGNATURES

SIGNATURES 133 2 Table of Contents As used in this annual report, the terms "the Corporation", "we", "us", and "our" mean First United Corporation and unless the context clearly suggests otherwise, its consolidated subsidiaries.

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS This annual report contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Such statements include projections, predictions, expectations or statements as to beliefs or future events or results or refer to other matters that are not historical facts. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking statements contained in this annual report are based on various factors and were derived using numerous assumptions. In some cases, you can identify these forward-looking statements by words like "may", "will", "should", "expect", "plan", "anticipate", "intend", "believe", "estimate", "predict", "potential", or "continue" or the negative of those words and other comparable words. You should be aware that those statements reflect only our predictions. If known or unknown risks or uncertainties should materialize, or if underlying assumptions should prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind when reading this annual report and not place undue reliance on these forward-looking statements. Factors that might cause such differences include, but are not limited to: market, economic, operational, liquidity, credit, and interest rate risks associated with our business; changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our balance sheet; our liquidity requirements could be adversely affected by changes in our assets and liabilities; the effect of legislative or regulatory developments, including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial services indus

BUSINESS

ITEM 1. BUSINESS General First United Corporation is a Maryland corporation chartered in 1985 and a bank holding company registered with the Board of Governors of the Federal Reserve System (the "FRB") under the Bank Holding Company Act of 1956, as amended, that elected financial holding company status in 2021. The Corporation's primary business is serving as the parent company of First United Bank & Trust, a Maryland trust company (the "Bank"), First United Statutory Trust I ("Trust I") and First United Statutory Trust II ("Trust II" and together with Trust I, the "Trusts"), both Connecticut statutory business trusts. The Trusts were formed for the purpose of selling trust preferred securities that qualified as Tier 1 capital. The Bank has two consumer finance company subsidiaries - OakFirst Loan Center, Inc., a West Virginia corporation, and OakFirst Loan Center, LLC, a Maryland limited liability company - and two subsidiaries that it uses to hold real estate acquired through foreclosure or by deed in lieu of foreclosure - First OREO Trust, a Maryland statutory trust, and FUBT OREO I, LLC, a Maryland limited liability company. In addition, the Bank owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland, and a 99.9% non-voting membership interest in MCC FUBT Fund, LLC, an Ohio limited liability company formed for the purpose of acquiring, developing and operating low-income housing units in Allegany County, Maryland. At December 31, 2023, we had total assets of $1.9 billion, net loans of $1.4 billion and deposits of $1.6 billion. Shareholders' equity at December 31, 2023 was $161.9 million. The Corporation maintains an Internet website at www.mybank.com on which it makes available, free of charge, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K,

View Full Filing

View this 10-K filing on SEC EDGAR