About First United

First United Corporation operates as a bank holding company for First United Bank & Trust that provides a range of retail and commercial banking services to businesses and individuals. Banking Products and Services The bank operates banking offices, customer service center and automated teller machines (‘ATMs’) in Allegany County, Frederick County, Garrett County, and Washington County in Maryland, and in Mineral County, Berkeley County, Monongalia County and Harrison County in West Virginia. The bank is an independent community bank providing a complete range of retail and commercial banking services to businesses and individuals in its market areas. Services offered are essentially the same as those offered by the regional institutions that compete with the bank and include checking, savings, money market deposit accounts, and certificates of deposit, business loans, personal loans, mortgage loans, lines of credit, and consumer-oriented retirement accounts, including individual retirement accounts (‘IRAs’) and employee benefit accounts. In addition, the bank provides full brokerage services through a networking arrangement with Cetera Investment Services, LLC., a full-service broker-dealer. The bank also provides safe deposit and night depository facilities, insurance products and trust services. The bank’s deposits are insured by the Federal Deposit Insurance Corporation (the ‘FDIC’). Lending Activities The company’s lending activities are conducted through the bank. Since 2010, the bank has not originated any new loans through the OakFirst Loan Centers and their sole activity is servicing existing loans. The bank’s commercial loans are primarily secured by real estate, commercial equipment, vehicles or other assets of the borrower. Commercial real estate (‘CRE’) loans are primarily those secured by land for residential and commercial development, agricultural purpose properties, service industry buildings, such as restaurants and motels, retail buildings and general purpose business space. The bank’s residential mortgage portfolio is distributed between variable and fixed rate loans. Some loans are booked at fixed rates to meet the bank’s requirements under the federal Community Reinvestment Act (the ‘CRA’) or to complement the company’s asset liability mix. Other fixed rate residential mortgage loans are originated in a brokering capacity on behalf of other financial institutions, for which the bank receives a fee. As with any consumer loan, repayment is dependent on the borrower’s continuing financial stability, which can be adversely impacted by factors, such as job loss, divorce, illness, or personal bankruptcy. Residential mortgage loans exceeding an internal loan-to-value ratio require private mortgage insurance. Title insurance protecting the bank’s lien priority, as well as fire and casualty insurance, is also required. During 2021, the bank was an active participant in selling qualifying residential mortgage loans to the secondary market outlet due to the low fixed rate environment. During 2022, residential mortgage loans at higher rates were booked as in-house portfolio loans. Home equity lines of credit, included within the residential mortgage portfolio, are secured by the borrower’s home and can be drawn on at the discretion of the borrower. These lines of credit are at variable interest rates. The bank also provides residential real estate construction loans to builders and individuals for single family dwellings. Residential construction loans are usually granted based upon ‘as completed’ appraisals and are secured by the property under construction. Site inspections are performed to determine pre-specified stages of completion before loan proceeds are disbursed. These loans typically have maturities of six to 12 months and may have a fixed or variable rate. Permanent financing for individuals offered by the bank includes fixed and variable rate loans with five, seven or 10-year adjustable rate mortgages. A variety of other consumer loans are also offered to customers, including indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. An allowance for loan losses (‘ALL’) is maintained to provide for probable losses from the company’s lending activities. Deposit Activities The bank offers a full array of deposit products, including checking, savings and money market accounts, regular and IRA certificates of deposit, Christmas Savings accounts, College Savings accounts, and Health Savings accounts. The bank also offers the Certificate of Deposit Account Registry Service, or CDARS, program to municipalities, businesses, and consumers through which the bank provides access to multi-million-dollar certificates of deposit and the Insured Cash Sweep, or ICS, program to municipalities, businesses, and consumers through which the bank provides access to multi-million-dollar savings and demand deposits. Both programs are FDIC-insured. In addition, the company offers its commercial customers packages, which include Treasury Management, Cash Sweep and various checking opportunities. Wealth Management The bank’s Trust Department offers a full range of trust services, including personal trust, investment agency accounts, charitable trusts, retirement accounts including IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration and estate planning. Investment Securities As of December 31, 2022, the company’s investment securities were U.S. government agencies; residential mortgage-backed agencies; commercial mortgage-backed agencies; collateralized mortgage obligations; obligations of states and political subdivisions; corporate bonds; and collateralized debt obligations. Supervision and Regulation The company is registered with the Federal Reserve as a financial holding company under the BHC Act and, as such, is subject to the supervision, examination and reporting requirements of the BHC Act and the regulations of the Federal Reserve. The bank is a Maryland trust company subject to the banking laws of Maryland and to regulation by the Office of the Maryland Commissioner of Financial Regulation (the ‘Maryland Commissioner’), who is required by statute to make at least one examination in each calendar year (or at 18-month intervals if the Maryland Commissioner determines that an examination is unnecessary in a particular calendar year). The bank also has offices in West Virginia, and the operations of these offices are subject to various West Virginia laws. As a member of the FDIC, the bank is also subject to certain provisions of federal laws and regulations regarding deposit insurance and activities of insured state-chartered banks, including those that require examination by the FDIC. All non-bank subsidiaries of the company are subject to examination by the FRB, and, as affiliates of the bank, are subject to examination by the FDIC and the Maryland Commissioner. In addition, OakFirst Loan Center, Inc. is subject to licensing and regulation by the West Virginia Division of Banking, and OakFirst Loan Center, LLC is subject to licensing and regulation by the Maryland Commissioner. The company and its affiliates are subject to the provisions of Section 23A and Section 23B of the Federal Reserve Act. Section 23A limits the amount of loans or extensions of credit to, and investments in, the company and its non-bank affiliates by the bank. Section 23B requires that transactions between the bank and the company and its non-bank affiliates be on terms and under circumstances that are substantially the same as with non-affiliates. As of December 31, 2022, the bank had a CRA rating of ‘Satisfactory’. The bank is also subject to a variety of other laws and regulations with respect to the operation of its business, including, but not limited to, the TILA/RESPA Integrated Disclosure rule (‘TRID’), Truth in Lending Act, the Real Estate Settlement Procedures Act, the Truth in Savings Act, the Equal Credit Opportunity Act, the Electronic Funds Transfer Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, Expedited Funds Availability (Regulation CC), Reserve Requirements (Regulation D), Privacy of Consumer Information (Regulation P), Margin Stock Loans (Regulation U), the Right To Financial Privacy Act, the Flood Disaster Protection Act, the Homeowners Protection Act, the Servicemembers Civil Relief Act, the Telephone Consumer Protection Act, the CAN-SPAM Act, the Children’s Online Privacy Protection Act, Bank Secrecy Act/Anti-Money Laundering (‘BSA/AML’) and Office of Foreign Assets Control (‘OFAC’). The bank is a member of the FDIC. In addition to complying with the BSA, the bank is subject to the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the ‘USA Patriot Act’). Although the Dodd-Frank Act’s provisions that have received the most public attention generally have been those applying to or more likely to affect larger institutions, such as banks and bank holding companies with total consolidated assets of $50 billion or more, it contains numerous other provisions that affect all financial institutions, including the bank. Federal bankruptcy and state debtor relief and collection laws, as well as the Servicemembers Civil Relief Act affect the ability of banks, including the bank, to collect outstanding balances. The bank’s mortgage lending and servicing activities are subject to various laws and regulations that are enforced by the federal banking regulators and the CFPB, such as the Truth in Lending Act, the Real Estate Settlement Procedures Act, and various rules adopted thereunder, including those relating to consumer disclosures, appraisal requirements, mortgage originator compensation, prohibitions on mandatory arbitration provisions under certain circumstances, and the obligation to credit payments and provide payoff statements within certain time periods and provide certain notices prior to interest rate and payment adjustments. The company is subject to information reporting requirements, proxy solicitation requirements, insider trading restrictions and other requirements of the Exchange Act, including the requirements imposed under the federal Sarbanes-Oxley Act of 2002, and rules adopted by NASDAQ. History First United Corporation was founded in 1900. The company was incorporated in 1984.