Profile: First United Corp Maryland (FUNC.O)

First United Corporation is a financial holding company that provides an array of financial products and services primarily to customers in four Western Maryland counties and four Northeastern West Virginia counties. First United is the parent company of First United Bank & Trust (the Bank); First United Insurance Group, LLC (the Insurance Group); OakFirst Loan Center, Inc., a finance company, and OakFirst Loan Center, LLC, a finance company, (together with OakFirst Loan Center, Inc. the OakFirst Loan Centers). As of December 31, 2008, the Bank operated 26 banking offices, one call center and 32 automated teller machines (ATM’s) in Allegany County, Frederick County, Garrett County and Washington County in Maryland, and in Berkeley County, Mineral County and Monongalia County in West Virginia.

The Bank provides a range of retail and commercial banking services to businesses and individuals in its market areas. Services offered include checking, savings, and money market deposit accounts, business loans, personal loans, mortgage loans, lines of credit, and consumer-oriented financial services, including individual retirement account (IRA) and employee benefit accounts. In addition, the Bank provides brokerage services through a networking arrangement with PrimeVest Financial Services, Inc., a full service broker-dealer. The Bank also provides safe deposit and night depository facilities, and a complete line of 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. The Bank’s commercial loans are primarily secured by real estate, commercial equipment, vehicles or other assets of the borrower. Commercial real estate 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 loans are primarily variable-rate 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 6 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 three, five or seven year adjustable rate mortgages. A variety of other consumer loans are also offered to customers, including indirect and direct auto loans, and other secured and unsecured lines of credit and term loans.

Deposit Activities

The Bank offers an 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 (CDARS) program to municipalities, providing them up to $50 million of FDIC insurance. In addition, it offers its commercial customers packages, which include Treasury Management, Cash Sweep and various checking opportunities.

Trust Services

The Bank’s Trust Department offers a 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. At December 31, 2008, the total market value of assets under the supervision of the Bank’s Trust Department was approximately $472 million.

Insurance Activities

The Bank offers a range of insurance products and services. First United Corporation offers these products to customers in its market areas through the Insurance Group and First United Insurance Agency, Inc.