First United Corporation (FUNC) AI Stock Analysis

First United Corporation functions as the holding entity for First United Bank & Trust, offering retail and commercial banking services. Its retail offerings encompass checking and savings accounts, IRAs, CDs, and specialized deposit accounts, as well as Insured Cash Sweep and CDARS programs. Lending services include commercial real estate, equipment, vehicle financing, residential mortgages, and home equity loans. The company also provides personal trust management, investment agency accounts, charitable trusts, estate administration, insurance products, brokerage services, and safe deposit facilities. It operates a network of 26 banking offices, a customer care center, and 34 ATMs across Maryland and West Virginia.

Annual revenue grew from $78.6M in FY2021 to $119.2M in FY2025, reflecting a 5-year revenue CAGR of 9.2%. Net income fluctuated over this span, recording $19.8M in FY2021, $25.0M in FY2022, $15.1M in FY2023, $20.6M in FY2024, and $24.5M in FY2025. Operating margin stood at 27.3% in FY2025, down from 33.5% in FY2021 and 41.2% in FY2022. For the trailing twelve months ended June 30, 2026, revenue was $90.4M with an operating margin of 33.4% and EPS of $3.86. In the latest quarter, quarterly revenue rose 10.7% year-over-year, while quarterly earnings declined 4.5%.

As of June 30, 2026, First United Corporation held $363.5M in cash and short-term investments against total debt of $101.2M, resulting in net cash of $262.3M. Total assets stood at $2.08B and shareholders' equity was $212.4M, with a debt-to-equity ratio of 0.48 and a current ratio of 0.22. In FY2025, the company generated $19.4M in operating cash flow and $15.4M in free cash flow. Capital expenditures totaled $4.0M, dividends paid were $6.0M, and share count changed by -2.5% over five years.

First United Corporation trades at a trailing P/E of 11.5x and a forward P/E of 5.3x, compared to the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. Its price-to-sales ratio of 3.2x matches the peer group median of 3.2x, while price-to-book stands at 1.3x and PEG is 0.33. The company has a market cap of $285.5M and an enterprise value of $301.5M. Over the past year, the stock returned 33.2%, compared to 16.8% for the S&P 500. Over five years, the stock returned 184.4% versus 83.0% for the index.

First United Corporation pays an annual forward dividend of $1.12 per share, offering a dividend yield of 2.54% and a payout ratio of 24.5%. The dividend is paid quarterly and has been distributed for 9 consecutive years. The 5-year annualized dividend growth rate is 12.1%. The last ex-dividend date is October 19, 2026.

Analyst coverage consists of 1 Strong Buy and 1 Buy rating, with no Hold, Sell, or Strong Sell ratings. The mean price target is $50.00, representing an upside of 13.0% over the last close of $44.24. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $3.33 on revenue of $97.2M. For the next fiscal year, projected EPS is $4.80 on revenue of $103.1M. The company beat EPS estimates in all 4 of its last four quarters, with its next earnings date on October 19, 2026.

This page is an AI-written research summary of First United Corporation (FUNC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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