OAKLAND, Md. - First United Corporation (NASDAQ: FUNC), the parent company of First United Bank & Trust, has announced a cash dividend for the first quarter of 2025. The Board of Directors declared a dividend of $.22 per share, which is set to be paid on February 3, 2025, to shareholders who are on record as of January 17, 2025.
The Maryland-based company operates through First United Bank & Trust and has several subsidiaries, including OakFirst Loan Center, Inc., OakFirst Loan Center, LLC, First OREO Trust, and FUBT OREO I, LLC. These subsidiaries are primarily involved in finance and real estate management, including the acquisition and operation of low-income housing units in Maryland.
First United Corporation has a diverse portfolio, owning 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, which is focused on low-income housing in Garrett County, Maryland. Additionally, the company holds a 99.9% non-voting membership interest in MCC FUBT Fund, LC, for similar housing efforts in Allegany County, Maryland.
The announcement of the dividend follows the corporation's established pattern of returning value to its shareholders. As a commercial bank with trust powers, First United Bank & Trust provides a range of banking and financial services to its customers.
This dividend declaration is based on a press release statement from First United Corporation. The information provided is intended for shareholders and investors, reflecting the company's financial distributions for the upcoming quarter. The corporation's website offers additional details about its services and subsidiaries.
In other recent news, First United Corporation has unveiled a series of notable developments. Firstly, the company announced its earnings with a newly authorized stock repurchase program, which is set to kick off on August 30, 2024. This program enables the repurchase of up to 600,000 shares of its common stock, accounting for approximately 9.3% of its issued and outstanding shares. The timing and volume of the repurchases will be at the discretion of the company's Chairman, President, and Chief Executive Officer.
Secondly, the company declared a quarterly cash dividend of $.22 per share, scheduled for payment on November 1, 2024, to stockholders of record as of October 18, 2024. This move is a continuation of First United's commitment to providing returns to its shareholders.
On the personnel front, the company disclosed the retirement of Marisa Shockley from its Board of Directors, effective December 1, 2024. Ms. Shockley's decision to retire is not based on any disagreements with the Corporation's operations, policies, or practices, but rather a desire to focus on personal interests. The company has yet to reveal any plans for a successor on the board following Ms. Shockley's retirement. These are the recent developments from First United Corporation.
InvestingPro Insights
First United Corporation's recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 2.56% and has impressively raised its dividend for 7 consecutive years. This consistency in dividend growth, with a 10% increase over the last twelve months, underscores the company's commitment to rewarding its shareholders.
The company's financial health appears robust, with a P/E ratio of 13.92, suggesting a reasonable valuation relative to its earnings. First United's profitability is evident from its operating income margin of 31.1% for the last twelve months as of Q3 2024, indicating efficient operations and cost management.
Investors should note that First United's stock has shown remarkable performance, with a 93.83% total return over the past year and a 58.56% return in the last six months. The stock is currently trading near its 52-week high, with the price at 97.83% of its peak. This strong momentum is reflected in an InvestingPro Tip, which indicates that the stock's RSI suggests it may be in overbought territory.
For those seeking more comprehensive analysis, InvestingPro offers additional insights with 10 more tips available for First United Corporation. These tips could provide valuable context for understanding the company's financial position and future prospects in light of its recent dividend declaration.
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