FIRST UNITED CORPORATION
Oakland, MD
Stock Symbol :  FUNC
(Dollars in thousands, except per share data)
			Three Months Ended									Nine Months Ended
			unaudited									unaudited
			30-Sep		30-Sep		30-Jun		31-Mar			30-Sep	30-Sep
			2008		2007		2008		2008			2008	2007
EARNINGS SUMMARY
Interest income			$      23,777		$      24,262		$      23,851		$     23,858			$    71,486	$      68,521
Interest expense			$      10,576		$      13,021		$      10,627		$     11,829			$    33,032	$      36,321
Net interest income			$      13,201		$      11,241		$      13,224		$     12,029			$    38,454	$      32,200
Provision for loan and lease losses			$        4,217		$           790		$           966		$       1,387			$      6,570	$        1,320
Noninterest income			$        3,778		$        4,063		$        4,570		$       4,340			$    12,688	$      10,442
Noninterest expense			$        9,976		$        9,626		$      10,651		$     10,354			$    30,981	$      28,705
Income taxes			$           921		$        1,333		$        2,063		$       1,493			$      4,477	$        3,796
Net income			$        1,865		$        3,555		$        4,114		$       3,135			$      9,114	$        8,821
Cash dividends paid			$        1,220		$        1,199		$        1,224		$       1,226			$      3,670	$        3,596
PER COMMON SHARE
Earnings per share
	Basic/Diluted		$          0.30		$          0.58		$          0.68		$         0.51			$        1.49	$          1.43
Book value			$        14.70		$        16.40		$        15.50		$       16.69
Closing market value			$        19.90		$        21.16		$        18.17		$       19.66
Common shares
	outstanding at period end		6,113,886		6,157,579		6,105,008		6,121,374
PERFORMANCE RATIOS (Period End, annualized)
Return on average assets			0.77%		0.84%		0.93%		0.82%
Return on average shareholders'
	equity		12.31%		11.84%		14.16%		11.92%
Net interest margin			3.67%		3.48%		3.67%		3.56%
Efficiency ratio			58.99%		65.39%		59.87%		61.52%
PERIOD END BALANCES			30-Sep		31-Dec		30-Sep
			2008		2007		2007
Assets			$ 1,629,546		$ 1,478,909		$ 1,458,646
Earning assets			$ 1,490,024		$ 1,352,219		$ 1,334,816
Gross loans			$ 1,101,492		$ 1,043,266		$ 1,031,864
	Consumer Real Estate		$    412,160		$    397,371		$    394,179
	Commercial		$    548,110		$    492,302		$    473,343
	Consumer		$    141,222		$    153,593		$    164,342
Investment securities			$    383,994		$    304,908		$    299,105
Total deposits			$ 1,143,102		$ 1,092,740		$ 1,056,901
	Noninterest bearing		$    104,896		$      97,976		$    104,318
	Interest bearing		$ 1,038,206		$    994,764		$    952,583
Shareholders' equity			$      89,872		$    104,665		$    100,978
CAPITAL RATIOS			30-Sep		31-Dec		30-Sep
Period end capital to risk-			2008		2007		2007
	weighted assets:
	Tier 1		11.22%		11.40%		11.30%
	Total		12.63%		12.51%		12.38%
ASSET QUALITY
Net charge-offs for the quarter			$        1,577		$           559		$           368
Nonperforming assets: (Period End)
	Nonaccrual loans		$      29,098		$        5,443		$        7,160
	Restructured loans		$                -		$                -		$           519
	Loans 90 days past due
	and accruing		$        2,754		$        3,260		$        2,260
	Other real estate owned		$           714		$           825		$           462
	Total nonperforming assets
	and past due loans		$      40,200		$      16,896		$      16,549
Allowance for credit losses
	to gross loans, at period end		1.05%		0.70%		0.67%
Nonperforming and 90 day past-due loans
	to total loans, at period end		2.89%		0.83%		0.91%
Nonperforming loans and 90 day past-due
	loans to total assets, at period end		1.95%		0.59%		0.65%