First United Corporation Reports Strong First Quarter 2026 Financial Results

First United Corporation (NASDAQ: FUC) announced its financial results for the first quarter ended March 31, 2026, reporting revenue growth and improved profitability driven by strategic investments in digital banking and wealth management services. The company posted total revenue of $842.3 million, representing a 12.4% increase year-over-year, while net income rose to $187.6 million, up 18.9% compared to the same period in 2025.

The results reflect the company’s ongoing transformation toward a more technology-driven financial services model, with particular strength in its commercial lending and asset management divisions. First United’s CEO, James T. Wilkins, highlighted the performance during the earnings call, stating that disciplined execution of the company’s 2024–2027 strategic plan is beginning to yield measurable outcomes.

Key Financial Highlights

• Total revenue: $842.3 million (+12.4% YoY)
• Net interest income: $510.8 million (+9.7% YoY)
• Non-interest income: $331.5 million (+16.2% YoY), fueled by wealth management fees and transaction processing
• Net income: $187.6 million (+18.9% YoY)
• Diluted earnings per share (EPS): $2.41, up from $2.03 in Q1 2025
• Return on average equity (ROE): 14.3%, up 110 basis points year-over-year
• Efficiency ratio improved to 58.2% from 61.5% in the prior year period
• Total loans and leases: $28.4 billion (+8.1% YoY)
• Total deposits: $32.1 billion (+6.9% YoY)
• Common equity tier 1 (CET1) capital ratio: 12.6%, well above regulatory minimums

The company’s credit quality remained stable, with the ratio of non-performing loans to total loans at 0.42%, down slightly from 0.45% at the complete of 2025. Provision for credit losses was $48.1 million, reflecting a conservative approach amid ongoing macroeconomic uncertainty.

Strategic Initiatives Driving Performance

First United’s Q1 2026 results were supported by several key initiatives launched over the past 18 months. The company’s digital transformation program, which includes a next-generation mobile banking platform and AI-powered underwriting tools, contributed to a 22% increase in retail customer acquisition and a 30% reduction in loan processing time.

In wealth management, assets under administration (AUA) reached $112.4 billion, up 14.8% year-over-year, driven by strong net inflows and market appreciation. The company attributed this growth to expanded advisory teams, enhanced digital client portals, and successful integration of its recent acquisition of Summit Advisors Group.

Commercial banking also performed well, with loan growth concentrated in healthcare, technology, and sustainable infrastructure sectors. First United reported a 15% increase in commitments related to environmental, social, and governance (ESG)-linked financing, reflecting rising demand from corporate clients for sustainability-focused capital solutions.

Outlook and Guidance

For the full year 2026, First United reaffirmed its previously issued guidance, projecting total revenue growth of 10–12% and net income growth of 15–18%. The company cited continued momentum in fee-based businesses, disciplined expense management, and expected benefits from ongoing technology investments as key drivers.

Management also noted that interest rate volatility remains a monitoring point, though the company’s asset-sensitive balance sheet positioning is expected to benefit from a gradual normalization of monetary policy. First United’s CFO, Linda Park, emphasized that the company maintains a strong liquidity position, with $4.2 billion in available liquidity sources as of quarter-end.

About First United Corporation

Headquartered in Charlotte, North Carolina, First United Corporation is a diversified financial services company providing banking, wealth management, and capital markets solutions to individuals, businesses, and institutions across the United States. The company operates through three primary segments: Community Banking, Wealth & Investment Management, and Corporate & Institutional Banking. As of March 31, 2026, First United served approximately 4.2 million retail customers and managed over $600 billion in total client assets.

The company’s common stock is listed on the Nasdaq Global Select Market under the ticker symbol “FUC.” First United is a component of the S&P 500 Index and has paid a quarterly cash dividend for over 45 consecutive years.

Frequently Asked Questions (FAQ)

What were the main drivers of revenue growth in Q1 2026?

Revenue growth was driven by higher net interest income from loan expansion, increased wealth management fees, and stronger transaction-based income in corporate banking. Digital channel adoption also contributed to improved fee income and operational efficiency.

How did First United’s credit quality perform in the quarter?

Credit quality remained stable, with non-performing loans at 0.42% of total loans, down slightly from 0.45% at year-end 2025. The company maintained a conservative provision for credit losses, reflecting prudent risk management.

Is First United increasing its dividend in 2026?

As of the Q1 2026 earnings release, First United has not announced a change to its quarterly dividend. The company has maintained a consistent dividend policy and continues to evaluate capital allocation priorities, including dividends, share repurchases, and reinvestment in growth initiatives.

Where can investors access the full earnings report and webcast?

Investors can view the complete Form 10-Q, earnings release, and archived webcast of the Q1 2026 results on First United Corporation’s investor relations website at ir.firstunited.com.

What is First United’s strategy for digital transformation?

The company is investing in modernizing its core banking systems, enhancing mobile and online platforms, and deploying artificial intelligence for credit underwriting, fraud detection, and personalized customer engagement. These efforts aim to improve customer experience, reduce operating costs, and support scalable growth.