Name: FIRST UNITED CORP/MD/ Segments Disclosure
Creator: FIRST UNITED CORP/MD/
License: https://creativecommons.org/publicdomain/mark/1.0/

20. Segment Reporting

The Corporation is managed under an organizational structure that conducts business in two primary operating segments: (i) Community Banking and (ii) Wealth Management. The Corporation is primarily managed based on the line of business structure. In that regard, the Corporation provides the same lines of business, which have the same product and service offerings, have similar types and classes of customers and utilize similar service delivery methods across our entire geographic footprint. Pricing guidelines for products and services are across all regions. Community Banking and Trust and Investment Services are delineated by the products and services that each segment offers.

Business activity for the operating segments are as follows:

Community Banking: The Community Banking segment is conducted through the Bank and involves delivering a broad range of financial products and services, including various loan and deposit products, to consumer, business, and not-for-profit customers. Parent company income and assets are included in the Community Banking segment, as the majority of parent company functions are related to this segment. Major revenue sources include net interest income, gains on sales of mortgage loans, and service charges on deposit accounts. Expenses include salaries and employee benefits, occupancy, data processing, FDIC premiums, marketing, equipment, and other expenses.

Wealth Management: The Wealth Management segment is conducted through the Bank and offers corporate trustee services, trust and estate administration, IRA administration and custody services. Revenues for this segment is generated from administration, service and custody fees, brokerage commissions, and management fees that are derived from Assets Under Management. Expenses include personnel, occupancy, data processing, marketing, equipment, and other expenses.

The accounting policies of each reportable segment are the same as those of our consolidated entity except that expenses for consolidated back-office operations and general overhead-type expenses such as executive administration, accounting, information technology and human resources are recorded in the Community Banking segment and reimbursed by the Wealth Management segment through a monthly management fee based on estimated uses of those services.

An internal team of the Corporation’s executive directors including the Chief Executive Officer, Chief Financial Officer, and Chief Wealth Officer serve as the Corporation’s CODM. The CODM reviews actual net income verses budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments.

Financial results by operating segment, including significant expense categories provided to the CODM are detailed below. Certain prior period amounts have been reclassified to conform to the current presentation. The Trust and Investment Services segment excludes off-balance-sheet assets under management with a total fair value of $1.8 billion and $1.7 billion at December 31, 2025 and 2024, respectively.

Information for the operating segments for the years ended December 31, 2025 and 2024 are presented in the following tables:




	December 31, 2025

	Community			Wealth
(in thousands)	Banking			Management			Total
Interest income	$	100,848		$	—		$	100,848
Interest expense		32,735			—			32,735
Net interest income		68,113			—			68,113
Credit loss expense		2,743			—			2,743
Net interest income after credit loss expense		65,370			—			65,370
Other operating income:
Net gains on investments, available for sale		97			—			97
Net gains on sales of residential mortgages		533			—			533
Net losses on disposal of fixed assets		(228)			—			(228)
Service charges on deposit accounts		2,255			—			2,255
Other service charges		845			—			845
Trust department income		—			9,824			9,824
Debit card income		4,057			—			4,057
Brokerage commissions		—			1,445			1,445
Other segment income (1)		1,740			—			1,740
Total other operating income		9,299			11,269			20,568
Other operating expenses:
Salaries and employee benefits		24,761			4,586			29,347
Equipment and occupancy		4,982			95			5,077
Data processing		5,890			353			6,243
FDIC premiums		1,051			—			1,051
Other segment expenses (2)		11,217			470			11,687
Total operating expenses		47,901			5,504			53,405
Income before income taxes and intercompany fees		26,768			5,765			32,533
Intercompany management fee income (expense)		12			(12)			—
Income before income taxes		26,780			5,753			32,533
Income tax expense		6,808			1,210			8,018
Net income	$	19,972		$	4,543		$	24,515
Significant noncash items
Credit loss expense	$	2,743		$	—		$	2,743
Depreciation		2,527			16			2,543
Amortization of intangible assets		119			210			329

Intangible assets	$	11,235		$	209		$	11,444

Total assets	$	2,086,898		$	555		$	2,087,453

(1)

Other segment income includes net gains/(losses) on disposals of fixed assets, bank owned life insurance income, and miscellaneous income.

(2)

Other segment expenses include professional services, contract labor, line rentals, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.


	December 31, 2024

	Community			Wealth
(in thousands)	Banking			Management			Total
Interest income	$	91,993		$	—		$	91,993
Interest expense		32,015			—			32,015
Net interest income		59,978			—			59,978
Credit loss expense		2,933			—			2,933
Net interest income after credit loss expense		57,045			—			57,045
Other operating income:
Net gains on sales of residential mortgages		414			—			414
Service charges on deposit accounts		2,220			—			2,220
Other service charges		887			—			887
Trust department income		—			9,094			9,094
Debit card income		4,065			—			4,065
Brokerage commissions		—			1,449			1,449
Other segment income (1)		1,696			—			1,696
Total other operating income		9,282			10,543			19,825
Other operating expenses:
Salaries and employee benefits		23,767			4,262			28,029
Equipment and occupancy		5,445			108			5,553
Data processing		5,418			343			5,761
FDIC premiums		1,070			—			1,070
Other segment expenses (2)		8,766			461			9,227
Total operating expenses		44,466			5,174			49,640
Income before income taxes and intercompany fees		21,861			5,369			27,230
Intercompany management fee income (expense)		12			(12)			—
Income before income taxes		21,873			5,357			27,230
Income tax expense		5,533			1,128			6,661
Net income	$	16,340		$	4,229		$	20,569
Significant noncash items
Credit loss expense	$	2,933		$	—		$	2,933
Depreciation		3,285			16			3,301
Amortization of intangible assets		120			210			330

Intangible assets	$	11,354		$	419		$	11,773

Total assets	$	1,972,513		$	509		$	1,973,022

(1)

Other segment income includes net gains/(losses) on disposals of fixed assets, bank owned life insurance income, and miscellaneous income.

(2)

Other segment expenses include professional services, contract labor, line rentals, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

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Historical Timeline

Fiscal Year	Filed
2025	Mar 10, 2026	Showing above
2024	Mar 20, 2025

2023	Mar 15, 2024

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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