First United Corporation (FUNC): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor or financial strategist, you defintely want to know: what's driving the performance of First United Corporation (FUNC) right now, especially as they celebrate their 125th anniversary in 2025? This regional bank holding company, operating First United Bank & Trust, is showing real momentum, reporting consolidated net income of $18.7 million for the first nine months of 2025, a significant jump from the prior year. With total assets holding steady at $2.0 billion and a market capitalization of roughly $230.5 million as of November 2025, how does a community-focused institution in Maryland, West Virginia, Pennsylvania, and Virginia consistently generate such strong results? We're going to break down the history, ownership, and precise mechanics of how First United Corporation works and makes its money, so you can map out your next move.

First United Corporation (FUNC) History

You're looking for the definitive origin story of First United Corporation, and honestly, it's a two-part narrative: the bank's deep community roots and the holding company's more recent corporate structure. The bottom line is that the operating entity, First United Bank & Trust, has been a pillar in its region for over a century, while the NASDAQ-listed parent company, First United Corporation, was established to manage its growth and financial subsidiaries.

This long-term focus on community banking is what allowed the company to reach total assets of nearly $2.0 billion as of June 2025, a significant number for a regional player.

Given Company's Founding Timeline

Year established

The operating entity, First United Bank & Trust, was originally established in November 1900 as the First National Bank of Oakland.

Original location

The bank began operations in Oakland, Maryland, with its first location on Main Street.

Founding team members

Specific names of the 1900 founding team are not publicly detailed in recent corporate filings, but the bank's longevity is attributed to generations of dedicated local leadership. The current leadership, which drove the company's strong $18.7 million net income for the first nine months of 2025, is led by Chairman, President, and CEO Carissa L. Rodeheaver.

Initial capital/funding

The initial capital for the 1900 founding of the First National Bank of Oakland is not publicly disclosed. However, the modern holding company, First United Corporation, was chartered in 1985 to create the structure for the financial services firm you see today. [cite: 7 in previous step]

Given Company's Evolution Milestones

The company's evolution shows a steady, disciplined expansion from a single-office national bank into a multi-state financial services provider, blending tradition with modern services like mobile deposits. You can see the constant push for growth in the $104.1 million increase in total deposits between December 31, 2024, and September 30, 2025.

Given Company's Transformative Moments

The most transformative decisions for First United Corporation have centered on strategic structure, geographic expansion, and adapting to technology while maintaining a community focus.

• The 1985 Holding Company Charter: Creating First United Corporation (FUNC) was a pivotal move, separating the bank's operations from the financial holding company (FHC) for greater flexibility in capital markets and regulatory compliance. This structure allowed the company to elect financial holding company status in 2021. [cite: 7 in previous step]
• The 2025 Leadership Transition: The planned retirement of CEO Carissa L. Rodeheaver, announced on November 14, 2025, is a major near-term transition. This change comes after a strong period, with the bank reporting a 1.24% Annualized Return on Average Assets for the first nine months of 2025.
• Strategic Deposit Growth in 2025: The January 2025 move to obtain $50.0 million in brokered time deposits at an average interest rate of 4.24% to repay overnight borrowings was a clear, tactical decision to manage funding costs and liquidity in a high-rate environment. This is defintely a classic balance sheet management move.
• Modernization and Expansion: The 1995 consolidation with Myersville bank and the subsequent adoption of the 'My Bank!' slogan, plus the 2013 launch of mobile deposits, show a consistent effort to grow and modernize without losing the personal touch. This continuous evolution is crucial for maintaining a competitive edge. Breaking Down First United Corporation (FUNC) Financial Health: Key Insights for Investors, you can see how these strategic decisions impact the company's core metrics. [cite: 7 in previous step]

What this estimate hides is the challenge of maintaining a small-bank feel while managing a $2.0 billion asset base and competing with larger regional banks.

First United Corporation (FUNC) Ownership Structure

First United Corporation (FUNC) is a publicly traded financial holding company, which means its ownership is distributed among a mix of institutional investors, company insiders, and the general public. This structure ensures broad market governance, but with a significant concentration of shares held by professional money managers.

First United Corporation's Current Status

First United Corporation is a bank holding company, trading on the NASDAQ stock exchange under the ticker symbol FUNC. This public status subjects the company to rigorous regulatory oversight from both the Securities and Exchange Commission (SEC) and the Federal Reserve System, as it is a registered financial holding company. As of September 30, 2025, the corporation reported total assets of $2 billion, reflecting its solid, community-focused banking footprint across Maryland, West Virginia, and other mid-Atlantic states. The book value per share was $28.35 as of March 31, 2025.

First United Corporation's Ownership Breakdown

The company's ownership is fairly balanced between institutional funds and individual investors, which often leads to a more stable, long-term-focused shareholder base. Institutional ownership is substantial, yet the retail float remains large enough to influence shareholder votes. Here's the breakdown of who controls the shares as of late 2025:

First United Corporation's Leadership

The company is currently undergoing a planned executive transition, a key event for any publicly traded entity. The leadership team is seasoned, boasting an average tenure of 8.8 years in management. You defintely want to pay attention to how this succession is executed.

As of November 2025, the organization is steered by:

• Carissa L. Rodeheaver: Chairman of the Board, President, and Chief Executive Officer. She has served as CEO since 2016 and will transition to Executive Chairman on January 1, 2026, before retiring in May 2026.
• Jason B. Rush: Senior Vice President & Chief Operating Officer. He is slated to succeed Ms. Rodeheaver as President and CEO effective January 1, 2026, ensuring operational continuity.
• Robert Fisher: Senior VP & Chief Revenue Officer.
• Keith Sanders: Senior VP & Chief Wealth Officer.
• Julie Peterson: Senior VP & Chief Credit Officer.

The board's decision to appoint a long-tenured insider like Jason Rush as the next CEO signals a commitment to the existing strategic path, which has delivered net income of $18.7 million for the first nine months of 2025. This focus on continuity is critical for maintaining the company's strong annualized Return on Average Equity of 13.23% for the same period. For an in-depth look at the guiding principles behind this leadership, see Mission Statement, Vision, & Core Values of First United Corporation (FUNC).

First United Corporation (FUNC) Mission and Values

First United Corporation (FUNC) defines its success beyond the balance sheet, centering its entire operation on the core purpose of inspiring and empowering people to Spend Life Wisely. This commitment translates into a holistic approach that guides everything from lending decisions to community engagement, making its cultural DNA as important as its $2 billion in assets as of September 30, 2025.

First United Corporation's Core Purpose

Honestly, understanding a company's purpose is a better long-term indicator than any single quarter's earnings report. For First United Corporation, this purpose is a framework for life, not just for banking, encompassing four pillars: faith, financial well-being, health and wellness, and personal growth.

Official Mission Statement

The company's mission is to inspire and empower others to Spend Life Wisely. This isn't just a marketing line; it's the operational philosophy (or 'Humanology,' as they call it) that drives their customer interactions. They are focused on building lifelong relationships and healthy communities through a core set of values.

• Extend LOVE by putting God first, family second, and work third.
• Show INTEGRITY by consistently doing what is right.
• Be LEARNERS, dedicated to continuous improvement.
• Deliver HIGH PERFORMANCE, combining individual talents to succeed together.
• Provide SERVICE to build lifelong relationships and healthy communities.

Vision Statement

First United Corporation's vision is ambitious and quantifiable, putting a concrete number on their societal impact by the end of the decade. They are looking past the near-term volatility-like the $6.0 million in consolidated net income for Q2 2025-to a much larger, values-driven goal.

• Elevate 10 million lives through Love and Impact by 2030.
• Deliver the very best customer and employee experience.
• Create communities that flourish through continued mentorship.

This vision is a clear mandate for every employee, making it easy to measure non-financial progress. To be fair, this is a strong commitment for a bank that is celebrating its 125th anniversary in 2025.

First United Corporation Slogan/Tagline

The company's trademarked phrase, 'Spend Life Wisely,' is the defintely most recognizable external expression of its core purpose. They view it as a promise to their stakeholders-employees, customers, shareholders, and communities-not just a catchy slogan.

Here's the quick math on why this matters: a company focused on financial well-being, like First United Corporation, is likely to have stronger credit quality and more stable deposit relationships, which helps explain the Q4 2025 dividend of $0.26 per share declared in September 2025. The slogan is the anchor for their financial education platform, Finture, which is another commitment to this promise.

For a deeper dive into how these values translate into financial stability, you should read Breaking Down First United Corporation (FUNC) Financial Health: Key Insights for Investors.

First United Corporation (FUNC) How It Works

First United Corporation (FUNC) primarily operates as a community-focused bank holding company, generating its income by taking in customer deposits and then lending those funds out at higher interest rates, a core function known as net interest income. It also diversifies its revenue through fee-based services like wealth management, which contributed to a net income of $18.7 million for the first nine months of 2025.

First United Corporation's Product/Service Portfolio

First United Corporation's Operational Framework

The operational framework is centered on traditional community banking principles, plus a targeted expansion strategy in high-potential regional markets like Morgantown, West Virginia. The company's primary value driver is its Net Interest Margin (NIM), which reached 3.69% on a fully tax equivalent basis for the third quarter of 2025, driven by higher loan yields and stable funding costs.

Here's the quick math on how they operate:

• Funding the Balance Sheet: The company relies on a mix of retail deposits, which saw a significant increase in savings and money market accounts, and strategic wholesale funding, such as the $50.0 million in brokered time deposits obtained in January 2025 to manage overnight borrowings.
• Loan Origination and Risk Management: Relationship managers actively originate commercial and residential loans, with Q3 2025 showing $20.8 million in residential mortgage originations. The provision for credit losses is managed based on loan growth and specific charge-offs, reflecting a balanced approach to risk.
• Efficiency and Technology: Management is focused on controlling non-interest expenses and investing in technologies to improve long-term efficiencies and enhance the customer experience. This allows for a better cost-to-income ratio, which is crucial in a competitive regional banking environment.

The entire operation is geared toward maximizing the spread between the interest earned on assets and the interest paid on liabilities. That's the engine of any bank. To be fair, the planned CEO transition announced in November 2025 will defintely be a key area to watch for operational continuity.

First United Corporation's Strategic Advantages

First United Corporation's success, which includes achieving an annualized Return on Average Equity of 13.23% for the first nine months of 2025, rests on a few distinct strategic pillars. You can learn more about the stakeholders driving this performance in Exploring First United Corporation (FUNC) Investor Profile: Who's Buying and Why?

• Deep Community Roots and Longevity: Celebrating its 125th anniversary in 2025, the company has a long-standing reputation as a trusted industry leader in its specific regional markets of Maryland and West Virginia. This longevity builds a sticky, loyal deposit base.
• Balanced Revenue Mix: While net interest income is the primary driver, the growth in wealth management income provides a crucial, less interest-rate-sensitive revenue stream, helping to stabilize overall earnings.
• Strategic Growth Initiatives: The company actively expands its market share by adding talent and resources in high-growth areas, such as the Morgantown market expansion during the first half of 2025, which provides a clear path for future loan and deposit growth.
• Proprietary Financial Education Platform: The launch of Finture, a trademarked financial education platform, enhances customer engagement and fosters a culture of community support, which translates into stronger long-term customer relationships.

Their competitive edge isn't just a low-cost structure; it's the ability to offer customized financial solutions-small enough to know you, large enough to help.

First United Corporation (FUNC) How It Makes Money

First United Corporation (FUNC) primarily generates revenue through its core function as a bank holding company: lending money and earning interest on those loans, which is known as Net Interest Income (NII). This is the classic banking model, where the company profits from the spread between the interest it earns on assets (like loans and securities) and the interest it pays on liabilities (like customer deposits), plus a growing stream of fee-based income from its wealth management and banking services.

First United Corporation's Revenue Breakdown

The company's financial engine is heavily weighted toward traditional banking activities, a trend that has been amplified by the higher interest rate environment of 2025. For the third quarter of 2025, Net Interest Income accounted for the vast majority of the company's revenue, a clear indicator of its reliance on loan and deposit pricing. Here's the quick math for the Q3 2025 revenue components, based on the reported total revenue of approximately $22.80 million.

Net Interest Income saw a strong increase of approximately $2.2 million in Q3 2025 compared to the same period in 2024, driven by higher loan yields. Non-Interest Income, which includes fee-based revenue from wealth management and service charges, also grew by about $0.3 million, reflecting expanded client relationships.

Business Economics

The core economic fundamental for First United Corporation is the Net Interest Margin (NIM), which measures the efficiency of its interest-earning assets. This is the single most important metric for a regional bank like this, and its performance here is defintely strong. The company's strategy is centered on maintaining a disciplined spread in a competitive market.

• Net Interest Margin (NIM): For the nine months ended September 30, 2025, the NIM stood at 3.64%, a significant improvement from 3.34% in the same period of 2024. This expansion is a direct result of their ability to reprice loans at higher rates faster than the cost of funding (interest paid on deposits) increased.
• Asset Pricing: The company benefits from the current high-rate environment, with interest and fees on loans increasing due to the upward repricing of adjustable-rate loans and new production being booked at higher rates. In Q3 2025 alone, the company originated $29.8 million in commercial loans and $20.8 million in residential mortgages, fueling future interest income.
• Liability Pricing: Their pricing strategy is to carefully balance competitive deposit rates with profitable spreads, managing interest expense by successfully controlling funding costs. This control over the cost of funds is what allows the NIM to expand.
• Fee-Based Growth: The secondary, but increasingly important, economic driver is the Wealth Management segment. This income stream is less sensitive to interest rate fluctuations and provides a stable, growing source of revenue, increasing by $0.2 million in Q3 2025 alone due to higher market valuations and expanded client relationships.

First United Corporation's Financial Performance

First United Corporation's financial health as of November 2025 shows a strong trajectory, largely driven by margin expansion and expense control. The company is demonstrating solid operational leverage, meaning revenue growth is outpacing cost growth, which is a bullish signal for investors. Exploring First United Corporation (FUNC) Investor Profile: Who's Buying and Why?

• Year-to-Date Net Income: For the first nine months of 2025, net income reached $18.7 million, a notable increase from $14.4 million in the same period of 2024.
• Earnings Per Share (EPS): Diluted EPS for the nine months ended September 30, 2025, was $2.88, a significant jump from $2.19 a year prior. The Q3 2025 EPS of $1.07 beat the consensus estimate of $0.89.
• Profitability Ratios: The annualized Return on Average Assets (ROAA) for the nine months of 2025 was 1.24%, and the Return on Average Equity (ROAE) was 13.23%. These figures reflect efficient use of capital and assets.
• Net Profit Margin: Recent performance shows net profit margins surging to 29.8%, up from 22.7% in the prior year, indicating that cost management and operational efficiency are delivering real bottom-line results.
• Balance Sheet Strength: Total assets stood at $2.0 billion as of September 30, 2025, with total deposits increasing by $104.1 million since the end of 2024, demonstrating continued customer confidence and funding stability.

First United Corporation (FUNC) Market Position & Future Outlook

First United Corporation is positioned as a resilient, high-margin regional bank, successfully navigating a challenging rate environment by focusing on core profitability and local market dominance. The company's future outlook hinges on its ability to execute its digital transformation and management succession plan while leveraging its strong capital base to capture growth in key expansion markets.

Competitive Landscape

In the regional banking space, First United Corporation's strategy of deep local penetration gives it a significant advantage over larger, more dispersed institutions. You can see this clearly in its core markets.

Opportunities & Challenges

The near-term trajectory for First United Corporation is a clear trade-off between strategic growth opportunities and persistent macroeconomic and operational risks. Honestly, every regional bank is facing these funding pressures right now, but FUNC's strong Q3 2025 net income of $6.9 million gives it some breathing room.

Industry Position

First United Corporation holds a strong industry position for a bank of its size (Total Assets of $2.0 billion as of September 30, 2025), particularly in terms of profitability metrics.

• Profitability stands out: The annualized Return on Average Equity (ROAE) for the first nine months of 2025 was a solid 13.23%.
• Valuation remains attractive: The stock trades at a Price-to-Earnings (P/E) ratio of approximately 9.6x, which is a defintely a discount compared to the US Banks industry average of 11.3x.
• Asset Quality is stable: The Allowance for Credit Losses (ACL) to loans outstanding was 1.25% at March 31, 2025, showing prudent credit handling.

The company is effectively using its community bank model to drive a high net interest margin (NIM), which hit 3.69% in the third quarter of 2025. This focus on margin and expense control is what separates the winners in this environment. If you want a deeper dive into the financials, you can check out Breaking Down First United Corporation (FUNC) Financial Health: Key Insights for Investors.