First · NASDAQ:FUNC
First — First United — Shareholder Meeting (April 2007)
58 slides from First's shareholder meeting presentation, Apr 24, 2007
Slide 1: Shareholders' Meeting
Shareholders’ Meeting First United Corporation = Uncommon commitment to service and solutions. Our Mission ~ To enrich the lives of our customers, our employees and our shareholders through uncommon service and effective financial solutions. + Effective Communication ~ Employee Enablement = Kaizen (
Slide 2: Chairman of the Board & Chief Executive Officer
Chairman of the Board & Chief Executive Officer
Slide 3: President & Chief Risk Officer
President & jef Risk Officer
Slide 4: Non-Performing Loans / Assets
erforming Loans / Assets 2002 2003 2004 «=2005 = 2006
Slide 5: Net Charge-Offs / Loans
Net Charge-Offs / Loans 2002 2003 2004 2005 2006
Slide 6: Sub-Prime Lending = Higher Defaults & Foreclosures
_ Sub-Prime Lending = Higher Defaults & Foreclosures 1-4 Family Residential Delinquencies: 2006 National Average 4.95% First United as of 12/31/2008 0.85%
Slide 7: Risk Management
Risk Management Credit Financial Reputation Operation
Slide 8: Senior Vice President & Chief Financial Officer
Senior Vice President & Chief Financial Officer
Slide 9: Financial Performance
Financial Performance Net nome Deposit Growth * 100 ef on os mee me aes ae ena 2883 ng 2005 206 Loan Growth Asset Growth
Slide 10: Net Income
Net Income Millions $13.00 $12.00- $11.00. $10.00: $9.00.
Slide 11: Asset Growth
Asset Growth Millions $1,400: $1,300. $1,200: $1,100: $1,000: $900: $800: $700. $600: $500: $400:
Slide 12: Loan Growth
Loan Growth Millions $1,000. $900: $800. $700- $600 $500- $400. $300. 2002 200320042005 2006
Slide 13: Deposit Growth
Deposit Growth Millions $1,000. $900 $800- $700. $600. $500- $400. $300- 2002 20032004 = 2005 2006
Slide 14: Net Interest Income
Net Interest Income Interest Income: «Loans Trends in Net + Investments on Interest ipeome: Securities (in millions) Less scala Expense: 2006 $40.9 + Savings 2005 - $40.3 * Transaction Accounts 2004 $36.7 * Time Deposits 2003 $34.0 «FHLB Borrowings 2002 $31.8 Equals - Net Interest Income
Slide 15: Net Interest Margin
Net Interest Margin 20022003 20052006. ae
Slide 16: Non-interest Income (Fee Income)
[Non-interest Income (Fee Income) Millions $15.00 $14.00: $13.00. $12.00. $11.00. $10.00. $9.00: $8.00. 2002 2003-2004 2005-2006
Slide 17: Non-Interest Expense
Non-Interest Expense Millions $40.00: $35.00 $30.00: $25.00 $20.00
Slide 18: Efficiency Ratio
Efficiency Ratio 75.00% 70.00%. 65.00% 60.00%: 55.00%: 50.00%: 2002 2003 2004 eesuresnueE 2005 2006 i ay. |
Slide 19: Return on Average Equity
Return on Average Equity 15.00% 13.75% 12.50%: 11.25% 10.00%: 8.75% 7.50%
Slide 20: Earnings Per Share
Earnings Per Share $2.20. $2.00 $1.80 $1.60. $1.40 $1.20 $1.00 2002-2003. 2004 2005-2006
Slide 21: 2007 ?
2007 ?
Slide 22: Senior Vice President & Director of Retail Banking
Senior Vice President & Director of Retail Banking
Slide 23: New Offices
New Offices ( a) Star City ) Wesel Boulevard + Opened on December 4, 2006 + Opened on March 19, 2007
Slide 24: Retail Key Initiatives to Improve Performance
Retail Key Initiatives to Improve Performance « Aligning Goals + Developed Key Metrics to Measure Daily Activities at Branch Level + New Incentive Program to Encourage Relationship Growth + Consultative Sales and Service Training N
Slide 25: Mystery Shopping Scores 2006
Mystery Shopping Scores 2006 + First United: - Platform (Sales): 88% - Teller: 90% + Competitors: - Platform (Sales): 70% - Teller: 88% Outperformed our competitors in Relationship Sales & Service!
Slide 26: 1st Quarter Performance Results
1st Quarter Performance Results + Mystery Shopping Scores - Platform Score (Sales): 90% - Teller Score: 92% ~ Drive-up Score: 95% rial ) lmdrve up Her Total Overall Score - 92% Highest Score Achieved! rarer ars MdQ dQ Aha 1310
Slide 27: Addition of Market Presidents to Retail Staff
+ Addition of Market Presidents to Retail Staff!
Slide 28: Retail Strategies
Retail trategies Beyond * Strong Relationship Building Initiatives + Effective Attraction of New Customers « Exceptional Customer Retention * Strong Multi-product Utilization
Slide 29: Senior Vice President & Senior Lending Officer
Senior Vice President & Senior Lending Officer
Slide 30: Loans Outstanding as of December
Loans Outstanding as of December 31 (Dollars in Thousands) 2006 2005 2004 2003 Commercial | $408,361 | $404,681 | $373,893) $307,523 Residential Reltante |$359,601 | $337,559 | $319,033 | $264,730 ce Katalimene |$181,574| $193,275) $199,862 $201,419
Slide 31: Senior Vice President & Director of Marketing & Strategic Planning
Senior Vice President & Director of Marketing & Strategic Planning
Slide 32: Strategic Planning
Strategic Planning « Partnered with Decision Processes International « Evaluated market opportunities and bank-specific skills « Selected Community Oriented Business Owners as our target user group
Slide 33: Mission Statement
Mission Statement We will become the preferred provider of customized solutions for the personal and business-related financial management needs of community-oriented business owners in the Mid-Atlantic region. We will grow by proactively building relationships that leverage our unique team sales ap
Slide 34: Marketing
Marketing + Predictive Modeling + Business Owner Survey + Product Development + Marketing Campaign Effectiveness
Slide 35: First United Insurance Group
First United Insurance Group CEO
Slide 36: 2006 Update
2006 Update «Accomplishments - Increased Revenue Stream - United the Insurance Brand «Acquisition Opportunities -Gates Insurance Agency
Slide 37: Commissions & Contingency
Commissions & Contingency $1,550,500 $1,610,617 $1,241,450 i | ] | | 2004 2002 2003
Slide 38: Return on Revenue
Return on Revenue $1,610,617 $1,550,500 Revenue $1,241,450 $1,169,756 $1,043,000 $1,377,341 $1,930,264 secon $1485.00 $799,219 2002 2003 2004 2005 2006
Slide 39: Return on Investment
Return on Investment 15.18% 15.20% 14.68% 13.01% fam? 0.92% 2001 2002,» 2003» 2004. «2005-200
Slide 40: Senior Vice President & Senior Trust Officer
Senior Vice President & Senior Trust Officer
Slide 41: Trust Department Market Value
Trust Department Market Value sian 6.966 600,000,000 500,000,000. 400,000,000} + 300,000,000. 200,000,000 100,000,000. Value in Dollars 0,000,000;
Slide 42: Trust Department Income
Trust Department Income saseraoe ‘suejjog uy awosul
Slide 43: Managed Asset Portfolio Results
Managed Asset Portfolio Results 10 Year 2006 2005 2004 Average Investment Annual Annual Annual Annual Objective Return Return Return Return Bond income 5.24% 2.86% 4.69% 4.77% Fixed income 7.76% 3.15% 5.54% 6.27% Growthiincome 9.46% 4.39% 9.45% 7.37% Balanced 11.44% 6.39% 11.97% 7.89% “Agsressive 14
Slide 44: Contribution of Trust & PrimeVest to Corporate Income
Contribution of Trust & PrimeVest to Corporate Income Growth of Trust & Contribution to Investments Net Income | Corporate Income 2001 +28% 16.08% 2002 -23% 11.64% 2003 +32% 13.79% 2004 +34% 26.24% 2005 -.05% 15.56% 2006 +19% 17.90%
Slide 45: Director of Operations & Treasury Management Services
Director of Operations & Treasury Management Services
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Slide 48: Senior Vice President & Director of Human Resources
Senior Vice President & ctor of Human Resources
Slide 49: Attracting & Retaining Top Talent
Attracting & Retaining Top Talent awe
Slide 50: Associate Engagement
Associate Engagement 2006 Associate Survey Results ° 93% Fully Engaged ¢ 5% Neutral « 2% Disengaged
Slide 51: Helping People Through Teamwork
“Helping People © Through E Teamwork” « Identifying associates who value this brand.
Slide 52: Attraction
Attraction Key hires in 2007 + 4 Market Presidents + Commercial Lender for Frederick + Commercial Lines Account Executive for Hagerstown + Trust Officer for Hagerstown
Slide 53: Retention
Retention Overall Turnover Rates 2006. 14.8% 2007. 12.9% (projected) Almost a two percentage point Increase in retention levels!
Slide 54: 2006 Retail Turnover Comparison
2006 Retail Turnover Comparison FT Tellers PT Tellers Significantly better than our peers!
Slide 55: Retention
Retention Results of Better Retention * Greater Customer Satisfaction + More Satisfied Associates « Less Expense for Shareholders |
Slide 56: 2007 Focus
2007 Focus «Attract and Retain Top Talent at First United “Helping People Through Teamwork”
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