First United Q2 net income falls on one-time expense

First United Corporation

First United Corporation

FUNC

0.00


Overview

  • U.S. bank holding company's Q2 net income and EPS declined yr/yr due to one-time expense

  • Adjusted Q2 net income and EPS rose yr/yr, excluding consulting expense

  • Net interest income and margin improved on higher loan yields and lower funding costs


Outlook

  • First United says loan pipelines remain robust entering the third qtr

  • Company says expense control will continue to be a focus

  • Company cites continued economic and political uncertainty impacting provision expense


Result Drivers

  • NET INTEREST INCOME - Higher loan yields and reduced funding costs drove an increase in net interest income and margin

  • ONE-TIME CONSULTING EXPENSE - Net income was reduced by a one-time consulting fee related to core contract negotiations

  • LOAN GROWTH - Steady loan growth, with strong commercial and residential mortgage originations, contributed to results


Company press release: ID:nPn8xPFK4a


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 EPS

$0.87

Q2 Net Income

$5.70 mln

Q2 Net Interest Income

$18.59 mln

Q2 Pretax Profit

Miss

$7.40 mln

$9.05 mln (2 Analysts)

Q2 Net Interest Margin

3.87%

Q2 Provision for Credit Loan Losses

$781,000


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "hold."

  • Wall Street's median 12-month price target for First United Corp is $44.25, about 2.4% below its July 17 closing price of $45.35

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

  • July 20 - Peoples Bancorp of North Carolina Q2 net interest income rises

  • July 20 - MainStreet Bancshares Q2 profit rises on higher interest margin


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