First United Corp. reported consolidated net income available was $10.7 million for the year ended Dec. 31, 2018, compared to $4.1 million for 2017. First United is a holding company and the parent company of First United Bank & Trust.
Basic and diluted net income per common share for the year ended Dec. 31, 2018 were $1.51, compared to $0.58 in 2017. The increase in earnings for 2018 was attributable to a $4.6 million increase in net-interest income, an increase of $0.7 million in other operating income, exclusive of gains, a $0.4 million decrease in provision expense, and a $4.2 million decrease in income-tax expense
"During 2018 we delivered improved core earnings, a higher net interest margin, and enhanced earnings per common share,” said Carissa Rodeheaver, chairman, president and CEO. “We were pleased to have positive loan growth, resulting in growth in our total assets. In 2019, we will continue our focus on growing our loan portfolio, growing core deposits, increasing fee income and becoming a more efficient organization."
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Comparing Dec. 31, 2018 to Dec. 31, 2017, loans outstanding increased by $115.2 million. Commercial real-estate loans increased by $23.7 million due to several new clients in 2018.
Residential mortgage loans increased $38.3 million due to the purchase of a $15 million mortgage pool in the first quarter of 2018 as well as production in the professional's program. Growth occurred in both fixed and adjustable products.
At Dec. 31, 2018 and 2017, 27% and 28%, respectively, of the commercial loan portfolio was collateralized by real estate.
Adjustable interest rate loans made up 52% of loans at Dec. 31, 2018 and 58% at Dec. 31, 2017, with the balance being fixed–interest rate loans as customer preference shifted to fixed-rate products in the rising-rate environment. Residential mortgage loans had a net charge-off ratio of 0.01% at Dec. 31, 2018, compared to a net recovery ratio of 0.01% as of Dec. 31, 2017, and the consumer loan charge-off ratios were 0.95% and 0.53% for Dec. 31, 2018 and Dec. 31, 2017, respectively.
