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Get filing alertsFirst United reports Q2 2026 net income of $7.3M, up 22% YoY, with margin expansion to 3.98%
Filed July 20, 2026 · Period ending July 20, 2026 · ~1 min read
Key Changes
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Q2 2026 net income rose 22% YoY to $7.3M ($1.13 diluted EPS) on a non-GAAP basis, or $5.7M ($0.87/share) GAAP after a $1.7M after-tax consulting expense for core processor contract negotiations.
Exhibit 99.1 view on EDGAR → -
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Net interest margin expanded to 3.98% in Q2 from 3.83% in Q1 and 3.65% in Q2 2025, driven by higher loan yields and stable funding costs following $65M FHLB advance repayment in March.
Exhibit 99.1 view on EDGAR → -
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Efficiency ratio improved to 56.55% from 58.45% in Q1 2026 as higher net interest income flowed through with stable non-interest income and expenses, demonstrating improved operational leverage.
Exhibit 99.2 view on EDGAR → -
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Asset quality remained stable with ACL-to-loans at 1.31%, nonperforming loans at 0.37% of total loans, and net charge-offs of 0.04% of average loans (annualized).
Exhibit 99.2 view on EDGAR → -
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Quarterly dividend increased 18% YoY to $0.26 per share, declared in Q2 2026.
Exhibit 99.1 view on EDGAR →
Summary
First United delivered a strong second quarter with net income of $7.3 million (non-GAAP), up 22% from $6.0 million in Q2 2025. The GAAP figure of $5.7 million reflects a one-time $1.7 million after-tax consulting expense related to core processor contract negotiations.
The quarter's standout metric was net interest margin expansion to 3.98%, up 15 basis points sequentially and 33 basis points year-over-year, driven by higher loan yields as new originations and adjustable-rate repricing took effect while funding costs stabilized following the March repayment of $65 million in FHLB borrowings.
Operational efficiency improved meaningfully, with the efficiency ratio falling to 56.55% from 58.45% in the prior quarter as revenue growth outpaced expense growth. The bank originated $66 million in commercial loans and $33.9 million in residential mortgages during the quarter, contributing to $50.4 million in loan growth since year-end. Asset quality metrics remained healthy with minimal charge-offs and stable reserve coverage. The company also raised its quarterly dividend 18% year-over-year to $0.26 per share, reflecting confidence in earnings momentum and capital generation.
Section-by-Section Diff
Event · Exhibit 99.2
First United Corp disclosed Q2 2026 earnings of $7.3M ($1.13 diluted EPS), up from $6.0M in Q2 2025, with stable asset quality and improved efficiency.
Added in current filing · view on EDGAR →
Consolidated net income (1) of $ 7.3 million in 2Q26 compared to $ 6.0 million in 2Q25 and $6.6 million in linked quarter
First United reported net income of $7.3 million for Q2 2026, a 22% increase from $6.0 million in Q2 2025 and up from $6.6 million in Q1 2026. Diluted earnings per share were $1.13 for the quarter. The improvement was driven by higher net interest income and stable non-interest income.
Added in current filing · view on EDGAR →
Net interest income, on a non - GAAP, FTE basis* increased $0.5 million in 2Q26 compared to 1Q26; increasing yield on earning assets and stable funding costs
Net interest income on a tax-equivalent basis increased $0.5 million quarter-over-quarter, driven by rising yields on earning assets while funding costs remained stable. The net interest margin reached 3.98% in Q2 2026, up from 3.83% in Q1 2026, reflecting improved asset pricing discipline.
Added in current filing · view on EDGAR →
Fully repaid $25.0 million Brokered CD at maturity in January and $65.0 million in FHLB advances at maturity in March. $50.0 million of overnight borrowings were subsequently fully repaid in July.
First United reduced wholesale funding by repaying $25 million in brokered CDs in January, $65 million in FHLB advances in March, and $50 million in overnight borrowings in July 2026. This deleveraging reduces funding costs and reliance on non-core deposits.
Event · Item 2.02 — Results of Operations and Financial Condition
First United Corporation disclosed Q2 2026 financial results via press release.
Added in current filing · verify on EDGAR →
On July 20, 2026, First United Corporation (the “Corporation”) issued a press release describing its financial results for the three- and six- months ended June 30, 2026.
The company announced its financial results for the second quarter and first half of 2026. The 8-K itself does not contain the actual financial figures; those are in the attached press release (Exhibit 99.1).
Event · Item 7.01 — Regulation FD Disclosure
First United published an investor presentation discussing Q2 2026 financial results.
Added in current filing · verify on EDGAR →
On July 20, 2026, the Corporation published an investor presentation that discusses certain aspects of its financial results for the three- and six- months ended June 30, 2026.
First United released an investor presentation covering its financial performance for the second quarter and first half of 2026.2.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Consolidated net income was $5.7 million on a Generally Accepted Accounting Principles (“GAAP”) basis for the second quarter of 2026, or $0.87 per diluted share, compared to $6.0 million, or $0.92 per diluted share, for the second quarter of 2025 and $6.7 million, or $1.03 per diluted share, for the first quarter of 2026. Net income for the first six months of 2026 was $12.3 million, or $1.90 per diluted share, compared to $11.8 million, or $1.81 per diluted share, for the same period of 2025. Non-GAAP net income was $7.3 million and $13.9 million for the three- and six-months ended June 30, 2026, respectively.
First United reported Q2 2026 GAAP net income of $5.7 million ($0.87 per diluted share), down from $6.7 million in Q1 2026 and $6.0 million in Q2 2025. The quarter included a one-time $1.7 million after-tax consulting expense for core processor contract negotiations. Excluding this item, non-GAAP net income was $7.3 million. Year-to-date net income rose to $12.3 million from $11.8 million in the prior year.
Added in current filing · view on EDGAR →
Strong loan production during the quarter, with $66.0 million in commercial loan originations and $33.9 million in residential mortgage originations.
First United originated $66.0 million in commercial loans and $33.9 million in residential mortgages during Q2 2026. Total gross loans increased by $50.4 million since year-end 2025 to $1.6 billion, driven by commercial real estate growth of $55.0 million and residential mortgage growth of $10.2 million, partially offset by a $35.0 million decline in commercial and industrial loans due to payoffs.
Added in current filing · view on EDGAR →
Provision expense was $0.8 million in the second quarter, as a result of continued economic and political uncertainty and modest loan growth, slightly offset by improved qualitative factors.
The bank recorded a $0.8 million provision for credit losses in Q2 2026, down from $0.9 million in Q1 2026 and Q2 2025. The provision reflected ongoing economic and political uncertainty and modest loan growth, partially offset by improved qualitative factors. Asset quality remained strong with net charge-offs of only $0.1 million for the quarter.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 28, 2026 · How we verify