2018 Q4 Form 10-K Financial Statement

#000156276220000119 Filed on March 13, 2020

View on sec.gov

Income Statement

Concept 2018 Q4 2018 2017 Q4
Revenue $52.29M
YoY Change 11.38%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $700.0K $2.400M $500.0K
YoY Change 40.0% 26.32% 0.0%
% of Gross Profit
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $8.112M
YoY Change 10.05%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $2.920M $13.43M $3.360M
YoY Change -13.1% 9.96% 70.56%
Income Tax $540.0K $2.764M $1.160M
% Of Pretax Income 18.49% 20.58% 34.52%
Net Earnings $2.380M $10.67M -$1.032M
YoY Change -330.62% 102.45% -172.68%
Net Earnings / Revenue 20.4%
Basic Earnings Per Share
Diluted Earnings Per Share $335.7K $1.507M -$145.7K
COMMON SHARES
Basic Shares Outstanding 7.084M
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q4 2018 2017 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $23.54M $83.75M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $37.86M $37.90M $30.88M
YoY Change 22.58% 22.65% 13.53%
Goodwill $11.00M $11.00M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $1.900M $1.900M $2.600M
YoY Change -26.92% -26.92%
Other Assets $7.800M $7.800M $9.300M
YoY Change -16.13% -16.13% -51.81%
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $1.384B $1.385B $1.336B
YoY Change 3.54% 3.59% 1.39%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $20.60M $20.60M $18.90M
YoY Change 8.99% 8.99% -16.0%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $77.71M $77.70M $48.85M
YoY Change 59.09% 59.22% 35.68%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $21.20M $21.20M $18.90M
YoY Change 12.17% 12.17% -16.0%
LONG-TERM LIABILITIES
Long-Term Debt $30.90M $30.90M $30.90M
YoY Change 0.0% 0.0% -76.54%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $30.90M $30.90M $30.90M
YoY Change 0.0% 0.0% -76.54%
TOTAL LIABILITIES
Total Short-Term Liabilities $21.20M $21.20M $18.90M
Total Long-Term Liabilities $30.90M $30.90M $30.90M
Total Liabilities $1.267B $1.268B $1.228B
YoY Change 3.14% 3.21% 1.96%
SHAREHOLDERS EQUITY
Retained Earnings $109.5M $101.4M
YoY Change 8.01%
Common Stock $71.00K $71.00K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $117.1M $117.1M $108.4M
YoY Change
Total Liabilities & Shareholders Equity $1.384B $1.385B $1.336B
YoY Change 3.54% 3.59% 1.39%

Cashflow Statement

Concept 2018 Q4 2018 2017 Q4
OPERATING ACTIVITIES
Net Income $2.380M $10.67M -$1.032M
YoY Change -330.62% 102.45% -172.68%
Depreciation, Depletion And Amortization $700.0K $2.400M $500.0K
YoY Change 40.0% 26.32% 0.0%
Cash From Operating Activities $10.70M $18.29M $9.700M
YoY Change 10.31% 41.55% 155.26%
INVESTING ACTIVITIES
Capital Expenditures -$1.700M $9.483M -$2.100M
YoY Change -19.05% 44.54% 950.0%
Acquisitions
YoY Change
Other Investing Activities -$42.80M -$104.2M $300.0K
YoY Change -14366.67% 9372.73% -97.84%
Cash From Investing Activities -$44.60M -$113.7M -$1.800M
YoY Change 2377.78% 1385.27% -113.14%
FINANCING ACTIVITIES
Cash Dividend Paid $0.00
YoY Change -100.0%
Common Stock Issuance & Retirement, Net $119.0K
YoY Change -98.71%
Debt Paid & Issued, Net $20.00M
YoY Change 85.05%
Cash From Financing Activities 33.90M 35.21M -9.200M
YoY Change -468.48% 132.02% -54.46%
NET CHANGE
Cash From Operating Activities 10.70M 18.29M 9.700M
Cash From Investing Activities -44.60M -113.7M -1.800M
Cash From Financing Activities 33.90M 35.21M -9.200M
Net Change In Cash 0.000 -60.21M -1.300M
YoY Change -100.0% -394.55% -51.85%
FREE CASH FLOW
Cash From Operating Activities $10.70M $18.29M $9.700M
Capital Expenditures -$1.700M $9.483M -$2.100M
Free Cash Flow $12.40M $8.811M $11.80M
YoY Change 5.08% 38.47% 195.0%

Facts In Submission

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<div> <div style="margin-left:0pt;margin-right:0pt;"> <p style="margin:0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;">Significant Concentrations of Credit Risk</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Most of the Corporation&#x2019;s relationships are with customers located in Western Maryland and Northeastern West Virginia.&nbsp;&nbsp;At December&nbsp;31, 2019, approximately </font><font style="display: inline;">12%</font><font style="display: inline;">, or </font><font style="display: inline;">$</font><font style="display: inline;">117.9</font><font style="display: inline;">&nbsp;million, of total loans were secured by real estate acquisition, construction and development projects, with </font><font style="display: inline;">$</font><font style="display: inline;">1</font><font style="display: inline;">09.3</font><font style="display: inline;">&nbsp;million performing according to their contractual terms and </font><font style="display: inline;">$</font><font style="display: inline;">8.6</font><font style="display: inline;">&nbsp;million considered to be impaired based on management&#x2019;s concerns about the borrowers&#x2019; ability to comply with present repayment terms. Of the </font><font style="display: inline;">$8.6</font><font style="display: inline;">&nbsp;million in impaired loans, </font><font style="display: inline;">$.5</font><font style="display: inline;">&nbsp;million were classified as troubled debt restructurings (&#x201C;TDRs&#x201D;) performing in accordance with their modified terms, </font><font style="display: inline;">and </font><font style="display: inline;">$</font><font style="display: inline;">8.1</font><font style="display: inline;">&nbsp;million were classified as non-performing loans at December&nbsp;31, 2019.&nbsp;&nbsp;Additionally, loans collateralized by commercial rental properties represented </font><font style="display: inline;">16%</font><font style="display: inline;"> of the total loan portfolio as of December&nbsp;31, 2019.&nbsp;&nbsp;Note 6 discusses the types of securities in which the Corporation invests and Note 7 discusses the Corporation&#x2019;s lending activities.</font> </p> <p><font size="1"> </font></p> </div> </div>
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13431000
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IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
16465000
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IncomeTaxesPaidNet
530000
CY2019 us-gaap Income Taxes Paid Net
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1011000
CY2018 us-gaap Income Tax Expense Benefit
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2764000
CY2019 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
3336000
CY2018 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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1814000
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900000
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CY2019 us-gaap Increase Decrease In Accounts Receivable And Other Operating Assets
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190000
CY2018 us-gaap Increase Decrease In Deferred Charges
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745000
CY2019 us-gaap Increase Decrease In Deferred Charges
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CY2019 us-gaap Increase Decrease In Deferred Income Taxes
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28137000
CY2019 us-gaap Increase Decrease In Deposits
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74504000
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3858000
CY2019 us-gaap Information Technology And Data Processing
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4004000
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52294000
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CY2019 us-gaap Interest And Dividend Income Securities
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CY2018 us-gaap Interest And Fee Income Loans And Leases
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CY2019 us-gaap Interest And Fee Income Loans And Leases
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InterestBearingDepositLiabilitiesDomestic
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1354000
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1467000
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CY2019 us-gaap Interest Expense
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4246000
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3341000
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3550000
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525000
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188000
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42071000
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45071000
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44182000
CY2019 us-gaap Interest Income Expense Net
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46391000
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5820000
CY2019 us-gaap Interest Income Securities Taxable
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5648000
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949000
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1031000
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8110000
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11485000
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4046000
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1778000
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467000
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398000
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CY2019 us-gaap Nature Of Operations
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<div> <div style="margin-left:0pt;margin-right:0pt;"> <p style="margin:0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;">Business</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;">&#xFEFF;</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">First United Corporation is a Maryland corporation chartered in 1985 and a bank holding company registered with the Board of Governors of the Federal Reserve System (the &#x201C;Federal Reserve&#x201D;) under the Bank Holding Company Act of 1956, as amended.&nbsp;&nbsp;&nbsp;The Corporation&#x2019;s primary business is serving as the parent company of First United Bank &amp; Trust, a Maryland trust company (the &#x201C;Bank&#x201D;), First United Statutory Trust I (&#x201C;Trust I&#x201D;) and First United Statutory Trust II (&#x201C;Trust II&#x201D;), both Connecticut statutory business trusts.&nbsp;&nbsp;Until September&nbsp;14, 2018 when it was canceled, the Corporation also served as the parent company to First United Statutory Trust III, a Delaware statutory business trust (&#x201C;Trust III&#x201D; and together with Trust I and Trust II, the &#x201C;Trusts&#x201D;).&nbsp;&nbsp;The Trusts were formed for the purpose of selling trust preferred securities that qualified as Tier 1 capital.&nbsp;&nbsp;The Bank has two consumer finance company subsidiaries - OakFirst Loan Center, Inc., a West Virginia corporation, and OakFirst Loan Center, LLC, a Maryland limited liability company - and two subsidiaries that it uses to hold real estate acquired through foreclosure or by deed in lieu of foreclosure - First OREO Trust, a Maryland statutory trust, and FUBT OREO I, LLC, a Maryland limited liability company.&nbsp;&nbsp;The Bank also owns </font><font style="display: inline;">99.9%</font><font style="display: inline;"> of the limited partnership interests in Liberty Mews Limited Partnership; a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland (&#x201C;Liberty Mews&#x201D;).&nbsp; </font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">First United Corporation and its subsidiaries operate principally in four counties in Western Maryland and four counties in West Virginia.</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">As used in these Notes, the terms &#x201C;the Corporation&#x201D;, &#x201C;we&#x201D;, &#x201C;us&#x201D;, and &#x201C;our&#x201D; mean First United Corporation and, unless the context clearly suggests otherwise, its consolidated subsidiaries.</font> </p> <p><font size="1"> </font></p> </div> </div>
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CY2019 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax
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OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent
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OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent
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CY2019 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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2446000
CY2018 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Cash Flows
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312000
CY2019 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Cash Flows
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200000
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20668000
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1911000
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3125000
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39307000
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2777000
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CY2019 us-gaap Proceeds From Sale Of Other Loans Held For Sale
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19502000
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1255000
CY2019 us-gaap Professional Fees
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1480000
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60462000
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37855000
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38710000
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2111000
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1320000
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2740000
CY2018Q4 us-gaap Real Estate Owned Valuation Allowance
RealEstateOwnedValuationAllowance
1988000
CY2019Q4 us-gaap Real Estate Owned Valuation Allowance
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1790000
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RealEstateOwnedValuationAllowanceAmountsApplied
2108000
CY2019 us-gaap Real Estate Owned Valuation Allowance Amounts Applied
RealEstateOwnedValuationAllowanceAmountsApplied
1657000
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6200000
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7800000
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126000
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RentalIncomeNonoperating
76000
CY2018 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
20000000
CY2018Q4 us-gaap Restricted Investments
RestrictedInvestments
5394000
CY2019Q4 us-gaap Restricted Investments
RestrictedInvestments
4415000
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
109477000
CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
119481000
CY2019 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
12965000
CY2018 us-gaap Revenue Not From Contract With Customer
RevenueNotFromContractWithCustomer
2462000
CY2019 us-gaap Revenue Not From Contract With Customer
RevenueNotFromContractWithCustomer
3671000
CY2018 us-gaap Share Based Compensation
ShareBasedCompensation
249000
CY2019 us-gaap Share Based Compensation
ShareBasedCompensation
268000
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Authorized
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized
325000
CY2018Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
77707000
CY2019Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
48728000
CY2019 us-gaap Short Term Lease Cost
ShortTermLeaseCost
46000
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
108390000
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
117066000
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
125940000
CY2019Q4 us-gaap Time Deposits
TimeDeposits
253890000
CY2018Q4 us-gaap Time Deposits100000 Or More
TimeDeposits100000OrMore
152300000
CY2019Q4 us-gaap Time Deposits100000 Or More
TimeDeposits100000OrMore
157700000
CY2018 us-gaap Transfer To Other Real Estate
TransferToOtherRealEstate
534000
CY2019 us-gaap Transfer To Other Real Estate
TransferToOtherRealEstate
1605000
CY2018 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
119000
CY2019 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
170000
CY2018 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
0
CY2019 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
0
CY2018Q4 us-gaap Tier One Leverage Capital
TierOneLeverageCapital
158795000
CY2019Q4 us-gaap Tier One Leverage Capital
TierOneLeverageCapital
170326000
CY2018Q4 us-gaap Tier One Leverage Capital Required For Capital Adequacy
TierOneLeverageCapitalRequiredForCapitalAdequacy
55136000
CY2019Q4 us-gaap Tier One Leverage Capital Required For Capital Adequacy
TierOneLeverageCapitalRequiredForCapitalAdequacy
57491000
CY2018Q4 us-gaap Tier One Leverage Capital Required For Capital Adequacy To Average Assets
TierOneLeverageCapitalRequiredForCapitalAdequacyToAverageAssets
0.0400
CY2019Q4 us-gaap Tier One Leverage Capital Required For Capital Adequacy To Average Assets
TierOneLeverageCapitalRequiredForCapitalAdequacyToAverageAssets
0.0400
CY2018Q4 us-gaap Tier One Leverage Capital Required To Be Well Capitalized
TierOneLeverageCapitalRequiredToBeWellCapitalized
68920000
CY2019Q4 us-gaap Tier One Leverage Capital Required To Be Well Capitalized
TierOneLeverageCapitalRequiredToBeWellCapitalized
71864000
CY2018Q4 us-gaap Tier One Leverage Capital Required To Be Well Capitalized To Average Assets
TierOneLeverageCapitalRequiredToBeWellCapitalizedToAverageAssets
0.0500
CY2019Q4 us-gaap Tier One Leverage Capital Required To Be Well Capitalized To Average Assets
TierOneLeverageCapitalRequiredToBeWellCapitalizedToAverageAssets
0.0500
CY2018Q4 us-gaap Tier One Leverage Capital To Average Assets
TierOneLeverageCapitalToAverageAssets
0.1147
CY2019Q4 us-gaap Tier One Leverage Capital To Average Assets
TierOneLeverageCapitalToAverageAssets
0.1177
CY2018Q4 us-gaap Tier One Risk Based Capital
TierOneRiskBasedCapital
158795000
CY2019Q4 us-gaap Tier One Risk Based Capital
TierOneRiskBasedCapital
170326000
CY2018Q4 us-gaap Tier One Risk Based Capital Required For Capital Adequacy
TierOneRiskBasedCapitalRequiredForCapitalAdequacy
64073000
CY2019Q4 us-gaap Tier One Risk Based Capital Required For Capital Adequacy
TierOneRiskBasedCapitalRequiredForCapitalAdequacy
67378000
CY2018Q4 us-gaap Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets
TierOneRiskBasedCapitalRequiredForCapitalAdequacyToRiskWeightedAssets
0.0600
CY2019Q4 us-gaap Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets
TierOneRiskBasedCapitalRequiredForCapitalAdequacyToRiskWeightedAssets
0.0600
CY2018Q4 us-gaap Tier One Risk Based Capital Required To Be Well Capitalized
TierOneRiskBasedCapitalRequiredToBeWellCapitalized
85431000
CY2019Q4 us-gaap Tier One Risk Based Capital Required To Be Well Capitalized
TierOneRiskBasedCapitalRequiredToBeWellCapitalized
89837000
CY2018Q4 us-gaap Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets
TierOneRiskBasedCapitalRequiredToBeWellCapitalizedToRiskWeightedAssets
0.0800
CY2019Q4 us-gaap Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets
TierOneRiskBasedCapitalRequiredToBeWellCapitalizedToRiskWeightedAssets
0.0800
CY2018Q4 us-gaap Tier One Risk Based Capital To Risk Weighted Assets
TierOneRiskBasedCapitalToRiskWeightedAssets
0.1487
CY2019Q4 us-gaap Tier One Risk Based Capital To Risk Weighted Assets
TierOneRiskBasedCapitalToRiskWeightedAssets
0.1517
CY2019Q4 us-gaap Time Deposit Maturities After Year Five
TimeDepositMaturitiesAfterYearFive
CY2019Q4 us-gaap Time Deposit Maturities Year Five
TimeDepositMaturitiesYearFive
3352000
CY2019Q4 us-gaap Time Deposit Maturities Year Four
TimeDepositMaturitiesYearFour
7214000
CY2019Q4 us-gaap Time Deposit Maturities Year One
TimeDepositMaturitiesYearOne
114234000
CY2019Q4 us-gaap Time Deposit Maturities Year Three
TimeDepositMaturitiesYearThree
47811000
CY2019Q4 us-gaap Time Deposit Maturities Year Two
TimeDepositMaturitiesYearTwo
81279000

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