First United Corporation (FUNC): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into First United Corporation's (FUNC) playbook to see if their strategy holds up as we near the end of 2025, and honestly, it's worth a close look. As an analyst who's seen a few market cycles, I've distilled their entire market approach-Product, Place, Promotion, and Price-into what really matters. We're talking about a bank supporting a $1.85 billion asset base, using its 25 physical locations as community anchors while driving promotion that's already delivered a YTD 2025 Net Income of $15.2 million. Let's cut through the noise and see exactly how these four pillars are set up for the near term.

First United Corporation (FUNC) - Marketing Mix: Product

First United Corporation (FUNC), through its subsidiary First United Bank & Trust, offers a range of financial products designed to serve individuals, businesses, and agricultural customers across its operating regions in Maryland, West Virginia, Pennsylvania, and Virginia. The overall scale of the product offering is supported by total assets reaching approximately $2.0 billion as of September 30, 2025.

The core product set centers on full-service commercial and retail banking. On the liability side, total deposits stood at $1.68 billion as of September 30, 2025. The asset side, comprising the net loan portfolio, was reported at $1.5 billion at March 31, 2025. The composition of the loan book reflects a focus across several key lending categories, with recent production figures showing activity in both commercial and residential sectors.

The company's lending products include significant exposure to real estate and commercial activities. For the third quarter of 2025, commercial loan originations totaled $29.8 million, while residential mortgage originations were $20.8 million. The forward-looking pipeline for commercial loans was robust, standing at $50.4 million as of September 30, 2025.

For clients requiring specialized asset stewardship, First United Corporation provides wealth management and trust services. This segment contributes to non-interest income, with wealth management income increasing by $0.1 million in the first quarter of 2025, driven by higher brokerage commissions. The bank also offers treasury management and cash management solutions to streamline business operations.

The digital product suite is a focus area, with the company actively working to enhance customer experience through technology. A concrete example of this product development is the launch of the company's trademarked financial education platform, Finture. Furthermore, the company supports small business clients through specific programs.

• The company offers trust, insurance, and investment services.
• The trademarked financial education platform is named Finture.
• Unfunded commitments related to residential construction loans totaled $12.1 million as of September 30, 2025.
• Year-to-date commercial loan production through September 30, 2025, was approximately $139.0 million.

First United Corporation (FUNC) - Marketing Mix: Place

The Place strategy for First United Corporation (FUNC) centers on a multi-channel approach, blending a physical community footprint with robust digital accessibility to serve its customer base across its operating regions.

The physical branch network is the core of the distribution strategy. As of mid-2025, First United Bank & Trust operates 22 community offices, which is slightly below the approximate target of 25 locations mentioned in planning, but represents a solid physical presence. This network is strategically concentrated to serve local communities in which First United Corporation is headquartered and actively involved.

Distribution is primarily executed through these First United Bank & Trust branches, which offer full-service commercial banking and retail services. The geographic footprint extends across specific counties in Maryland and West Virginia, and the institution also serves communities in Pennsylvania and Virginia. As of March 31, 2025, the corporation posted total assets of $2 billion.

The physical distribution points are detailed below:

To support the digital component of its Place strategy, First United Corporation maintains an extensive digital presence. The company has stated an intention to invest in enhanced technology, particularly around the electronic banking experience, throughout 2025. This is delivered via a secure, proprietary mobile app and website, allowing customers to conduct many transactions remotely.

Access to cash and deposits outside of physical branches is managed through an extensive ATM network. First United Bank & Trust facilitates surcharge-free access through participation in national networks. Customers gain access to approximately 40,000 surcharge-free MoneyPass ATMs nationwide, in addition to the SUM Network.

The strategy also includes targeted physical expansion points for lending activities. While a precise count of Loan Production Offices is not publicly itemized, the company is focused on growth in strategic areas. For instance, the executive team noted excitement about the growth potential in the Morgantown market following the expansion of the team there during the first half of 2025.

The accessibility channels utilized by First United Corporation include:

• First United Bank & Trust branches for full-service needs.
• Proprietary mobile app for electronic banking transactions.
• Website access for online banking services.
• Access to approximately 40,000 surcharge-free ATMs via MoneyPass Network.
• Participation in the SUM Network for additional ATM access.
• Loan Production Offices targeting high-growth markets.

First United Corporation (FUNC) - Marketing mix: Promotion

First United Corporation (FUNC) promotion centers on reinforcing its community bank identity across its core markets in southwestern Pennsylvania, northern West Virginia, and Virginia. This approach is designed to build trust and drive product adoption through direct engagement and targeted messaging.

• Community-focused sponsorships and local event participation in core markets, underscored by the celebration of its 125th anniversary in 2025.
• Digital marketing campaigns targeting specific loan and deposit products, aiming to capture market share in the current interest rate environment.
• Relationship-based selling model emphasized by branch staff and commercial lenders, leveraging the team approach to customize financial solutions.
• Low-rate introductory offers on select home equity lines of credit (HELOCs), positioning these products as attractive alternatives given prevailing first mortgage rates.
• Investor relations communications highlighting YTD 2025 Net Income of $15.2 million.

The promotional efforts are directly tied to the financial performance and strategic focus areas. For instance, the relationship-based model supports loan production, which saw $65.1 million in originations during the second quarter of 2025.

Advertising spend, while not detailed, is managed alongside other operating expenses, which totaled an increase of $0.7 million in the third quarter of 2025 compared to the linked quarter, partially driven by increased professional services and data processing costs.

The relationship focus is also evident in the personnel strategy; for example, First United Corporation expanded its Morgantown team during the first half of 2025 to grow market share in that area. The dividend policy remains a key communication point, with the third quarter dividend of $0.26 per share payable on November 3, 2025, to shareholders of record as of October 17, 2025.

• Total basic outstanding shares at September 30, 2025: 6,496,908.
• Net income for the first nine months of 2025 was $18.7 million.
• Salaries and benefit expenses increased by $0.4 million in Q3 2025 versus Q3 2024.

First United Corporation (FUNC) - Marketing Mix: Price

The pricing element for First United Corporation (FUNC) reflects strategies aimed at competitive positioning within its markets, directly tied to the cost of funds and the perceived value of its banking and wealth management solutions. This approach is designed to support the overall balance sheet structure, which, as of March 31, 2025, reported total assets of $2.0 billion, with total liabilities at September 30, 2025, at $1.8 billion.

The overall pricing strategy supports a Total Asset base of approximately $1.85 billion.

Interest rate strategies for attracting and deploying funds are dynamic, as evidenced by the following:

• Brokered time deposits obtained in January 2025 carried an average interest rate of 4.24%.
• Interest expense paid on deposits increased due to a $141.1 million increase in average balances in Q1 2025 versus Q4 2024, partially offset by a 12 basis points decrease in the rate paid during that period.
• The Net Interest Margin (NIM) on a non-GAAP, fully tax equivalent (FTE) basis was reported at 3.69% for the third quarter of 2025, reflecting increased loan yields.
• The NIM was 3.56% for the first quarter of 2025.

Loan pricing is intrinsically linked to market benchmarks, with yields moving in line with the Federal Reserve's environment. The resulting Net Interest Margin (NIM) for the first nine months of 2025 was 3.69% (FTE basis) as of September 30, 2025.

Fee structures for non-interest income services are published and effective as of March 1, 2025, providing clear costs for transactional services:

For wealth management services, which include trust services and investment agency accounts, pricing is asset-based. While the specific tiered percentage structure is not detailed, the segment's contribution to non-interest income showed growth, with wealth management income increasing by $0.2 million in the fourth quarter of 2024 compared to the fourth quarter of 2023.

Additional fee data points from a schedule effective March 1, 2025, include:

• Account Closing Fee (Within 90 days): $20.00.
• Account Inactivity Fee (After 180 days, up to 1 year): $10.00/month.
• Copy of Cancelled Check/Item: $2.00.
• Safe Deposit Box Annual Rental (10 x 10 size): $100.00.