FIRST UNITED CORPORATION
Oakland, MD
Stock Symbol :  FUNC
(Dollars in thousands, except per share data)
			Three Months Ended									Twelve Months Ended
			unaudited									unaudited
			31-Dec		31-Dec		30-Sep		30-Jun	31-Mar		31-Dec	31-Dec
			2008		2007		2008		2008	2008		2008	2007
EARNINGS SUMMARY
Interest income			$      23,730		$      25,044		$      23,777		$     23,851	$         23,858		$    95,216	$      93,565
Interest expense			$      10,011		$      13,010		$      10,576		$     10,627	$         11,829		$    43,043	$      49,331
Net interest income			$      13,719		$      12,034		$      13,201		$     13,224	$         12,029		$    52,173	$      44,234
Provision for loan and lease losses			$        6,355		$           992		$        4,217		$          966	$           1,387		$    12,925	$        2,312
Noninterest income			$        1,081		$        4,650		$        3,778		$       4,570	$           4,340		$    13,769	$      15,092
Noninterest expense			$        9,592		$        9,770		$        9,976		$     10,651	$         10,354		$    40,573	$      38,475
Income taxes			$         (904)		$        1,950		$           921		$       2,063	$           1,493		$      3,573	$        5,746
Net income			$         (243)		$        3,972		$        1,865		$       4,114	$           3,135		$      8,871	$      12,793
Cash dividends paid			$        1,104		$        1,200		$        1,220		$       1,224	$           1,226		$      4,774	$        4,796
PER COMMON SHARE
Earnings per share
	Basic/Diluted		$        (0.04)		$          0.64		$          0.30		$         0.68	$             0.51		$        1.45	$          2.08
Book value			$        11.89		$        17.05		$        14.70		$       15.50	$           16.69
Closing market value			$        13.48		$        20.02		$        19.90		$       18.17	$           19.66
Common shares
	outstanding at period end		6,112,940		6,138,268		6,113,886		6,105,008	6,121,374
PERFORMANCE RATIOS (Period End, annualized)
Return on average assets			0.55%		0.90%		0.77%		0.93%	0.82%
Return on average shareholders'
	equity		9.31%		12.70%		12.31%		14.16%	11.92%
Net interest margin			3.68%		3.51%		3.67%		3.67%	3.56%
Efficiency ratio			59.85%		63.02%		58.99%		59.87%	61.52%
PERIOD END BALANCES			31-Dec		31-Dec
			2008		2007
Assets			$ 1,639,104		$ 1,478,909
Earning assets			$ 1,489,609		$ 1,352,219
Gross loans			$ 1,134,546		$ 1,043,266
	Consumer Real Estate		$    418,350		$    397,371
	Commercial		$    575,991		$    492,302
	Consumer		$    140,205		$    153,593
Investment securities			$    354,595		$    304,908
Total deposits			$ 1,222,889		$ 1,126,552
	Noninterest bearing		$    107,749		$      97,976
	Interest bearing		$ 1,115,140		$ 1,028,576
Shareholders' equity			$      72,690		$    104,665
CAPITAL RATIOS			31-Dec		31-Dec
Period end capital to risk-			2008		2007
	weighted assets:
	Tier 1		10.59%		11.40%
	Total		12.18%		12.51%
ASSET QUALITY
Net charge-offs for the quarter			$        3,526		$           559
Nonperforming assets: (Period End)
	Nonaccrual loans		$      24,553		$        5,443
	Restructured loans		$           468		$                -
	Loans 90 days past due
	and accruing		$        3,476		$        3,260
	Other real estate owned		$        2,424		$           825
	Total nonperforming assets
	and past due loans		$      50,774		$      16,896
Allowance for credit losses
	to gross loans, at period end		1.26%		0.70%
Nonperforming and 90 day past-due loans
	to total loans, at period end		2.47%		0.83%
Nonperforming loans and 90 day past-due
	loans to total assets, at period end		1.71%		0.59%