In the centennial year of our lead bank, First United Corporation again achieved record earnings. Earnings per share rose from $1.30 to $1.37 on the strength of $8,311,125 in income. Contributing to the success this year was an 11.95% increase in fee income, coupled with continuing vigilance in containing costs. This progress was made in the face of continuing pressure on the Company’s interest margin.

     The quality of the Company’s loan portfolio re-mained strong throughout the year. Though several asset quality ratios did rise during 2000, First United still compares very favorably with industry standards. Ratios were adversely affected by non-performing or delinquent loans in the Bank’s indirect loan portfolio. This type of lending is, by its nature, slightly more risky. Still, close scrutiny of this indirect portfolio made it possible for us to outperform our peers, with ratios substantially below those of other lenders of our size. Figures in this report will reflect a decrease in the size of the indirect portfolio, which