months of operation. Future expansion of OakFirst is planned for 2001 and beyond.

     First United also has employed alternative funding sources, with the goal of managing interest costs and providing funding for our continuing strong demand for loans (our Bank historically has enjoyed this strong demand for loans). On occasions, the Bank has sold loans to free up funds for new loans. Of course, the Bank retains servicing of these loans, so the sale is transparent to the customer. Over the past year, the Bank has moved into cash management services for its business and municipal customers. This strategic move enables us to provide a needed service for clientele and has the added benefit of decreasing the Bank’s dependence on higher cost certificates of deposit as a funding source for loans.

     Against this backdrop of challenges and responses, First United continues to focus on fulfilling its vision of