First United (FUNC) AI Stock Analysis

• Market Cap: $175.04M
• Dividend Yield: 3.11%
• Average Volume (3M): 25.34K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.88
• Revenue Growth: 16.56%
• EPS Growth: 40.31%
• Country: US
• Employees: 291
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 3.15
• Shares Outstanding: 6,473,375
• 10 Day Avg. Volume: 39,529
• 30 Day Avg. Volume: 25,340
• PEG Ratio: 0.21
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.70
• Price to Cash Flow (P/CF): 21.90
• P/FCF Ratio: 6.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.00
• Price Target Upside: 55.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

First United's stock score reflects its mixed financial performance, where strong balance sheet stability and operational efficiency are offset by concerns about revenue sustainability. The technical analysis indicates a bearish trend, while the valuation metrics suggest the stock is undervalued. Recent corporate events highlight positive business momentum, supporting future growth prospects.

First United Business Overview & Revenue Model

Company Description

First United (FUNC) is a diversified financial services company primarily operating in the banking sector. It offers a comprehensive range of products and services, including personal and commercial banking, mortgage and insurance services, wealth management, and investment solutions. FUNC is committed to delivering personalized financial solutions to its clients across various regions, ensuring customer satisfaction and financial growth.

How the Company Makes Money

First United (FUNC) generates revenue through multiple streams within the financial services industry. Its primary revenue sources include interest income from loans and mortgages, fees from banking services like account maintenance and transactions, and commissions from insurance and investment products. Additionally, FUNC benefits from wealth management services, earning advisory and management fees. Strategic partnerships with other financial institutions enhance its offerings, while a focus on innovation and customer service helps maintain a competitive edge in the market.

First United Financial Statement Overview

Summary

First United shows a mixed financial performance. While profitability metrics indicate operational efficiency, the significant drop in revenue and gross profit is a concern. The balance sheet reflects strong financial stability with improved leverage ratios. Cash flow management is stable, but growth in free cash flow is limited, signaling potential constraints on future investments.

Income Statement

For the latest period, the company reported a significant loss in gross profit, indicating challenges in managing production costs or pricing. The net profit margin and EBIT margin showed improvements, suggesting better operational efficiency. However, the sharp decline in revenue growth and gross profit raises concerns about long-term revenue sustainability.

Balance Sheet

The debt-to-equity ratio improved significantly due to a decrease in total debt and an increase in equity, indicating reduced financial leverage and improved financial stability. Return on Equity (ROE) is strong, reflecting effective use of equity to generate profits. The equity ratio is also healthy, supporting a solid financial position.

Cash Flow

Operating cash flow remains stable, suggesting consistent cash generation from operations. However, free cash flow growth is stagnant, indicating limited cash available for expansion or debt reduction. The operating cash flow to net income ratio is favorable, highlighting effective cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.97M	69.72M	75.68M	73.66M	67.12M
	Gross Profit
-28.56M	31.15M	41.85M	40.97M	34.42M
	EBIT
19.82M	14.47M	34.33M	26.31M	18.36M
	EBITDA
0.00	0.00	36.83M	29.74M	21.34M
	Net Income Common Stockholders
20.57M	15.06M	25.05M	19.77M	13.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
171.51M	49.75M	200.20M	402.49M	376.32M
	Total Assets
1.97B	1.91B	1.85B	1.73B	1.73B
	Total Debt
65.41M	112.48M	97.87M	33.69M	103.89M
	Net Debt
-11.61M	62.73M	23.55M	-82.03M	-45.55M
	Total Liabilities
1.79B	1.74B	1.70B	1.59B	1.60B
	Stockholders Equity
179.29M	161.87M	151.79M	141.90M	131.69M
Cash Flow		Free Cash Flow
22.28M	22.12M	22.97M	18.89M	14.56M
	Operating Cash Flow
22.28M	22.47M	26.54M	20.02M	16.17M
	Investing Cash Flow
-38.44M	-81.71M	-172.40M	-28.43M	-191.28M
	Financing Cash Flow
44.73M	34.68M	104.46M	-25.31M	274.56M

First United Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUNC, the sentiment is Negative. The current price of 27.04 is below the 20-day moving average (MA) of 29.38, below the 50-day MA of 33.11, and below the 200-day MA of 30.69, indicating a bearish trend. The MACD of -1.21 indicates Negative momentum. The RSI at 36.36 is Neutral, neither overbought nor oversold. The STOCH value of 17.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FUNC.

First United Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRCE	75 Outperform	$1.32B	9.92	12.51%	2.64%	12.26%	7.48%
CAC	70 Neutral	$616.66M	10.09	10.33%	4.61%	14.18%	22.19%
CZNC	67 Neutral	$284.73M	10.91	9.58%	6.08%	3.55%	6.97%
FMBH	65 Neutral	$743.93M	9.39	9.62%	3.06%	17.70%	3.88%
Sector *	64 Neutral	$13.21B	9.26	9.39%	4.87%	16.14%	-8.87%
FUNC	58 Neutral	$175.04M	8.60	12.06%	3.11%	16.56%	40.31%
MSBI	54 Neutral	$336.00M	12.51	-1.83%	7.90%	3.95%	-135.44%

First United Corporate Events

First United Amends Executive Retirement Plan Agreements

On March 27, 2025, First United Bank & Trust and key executives Carissa L. Rodeheaver and Jason B. Rush amended their participation agreements under the Defined Benefit Supplemental Executive Retirement Plan. The amendments allow participants to alter the distribution method of their defined benefits, with specific conditions for changes involving lump sum payments, including interest accrual on postponed payments. This move provides flexibility in retirement planning for executives, potentially impacting the company’s executive compensation strategy.

First United Updates 2025 Executive Incentive Goals

On February 25, 2025, First United Corporation’s Compensation Committee revised the incentive goals for its Short-Term Incentive Plan (STIP) for 2025. The revised plan includes performance metrics such as return on average assets and efficiency ratio, with specific criteria for each executive officer. The updated incentive goals are intended to reward executives based on the corporation’s annual performance, with potential cash awards to be paid in 2026. The changes reflect the company’s commitment to aligning executive compensation with performance outcomes, potentially impacting its operational focus and stakeholder interests.

First United Reports Strong Q4 2024 Financial Results

First United Corporation reported strong financial results for the fourth quarter of 2024, with net income reaching $6.2 million, a significant increase from $1.8 million in the same period of 2023. The company attributed its success to robust loan growth, efficient expense management, and a strong contribution from its wealth management department. Net interest income saw a notable rise due to new loans at higher rates, and operating expenses decreased due to reduced occupancy and equipment costs. The company aims to further invest in growing its loan and deposit market share in 2025.