First United Corporation

that an increasingly sophisticated customer base demands. We refer to this as our “tweener size,” and it represents a strategic advantage to First United throughout the diverse markets it services. It impels us to focus on establishing strong relationships with our customers with an uncommon commitment to service and solutions.

To leverage this advantage, we increasingly focus on delivering these services and solutions to community-oriented business owners throughout the market. As a provider of solutions, we want to serve not only the businesses, but also their owners and their employees. While our execution is good, we recognize it must become even better to assure our success in this competitive arena.

This year, we bid a fond farewell to Director Rex Burton as he retires from the Board in April. We will miss his insight and advice. We are also saddened by the recent passing of retired director, Frederick A. Thayer, III. Judge Thayer had both the distinction of being the youngest director ever elected to the Board, and also serving two separate terms on the Board – prior to and

following an eminent career on the bench. Those of you who attended last year’s meeting will recall that he chaired that meeting. His ongoing support and counsel will be sorely missed.

In closing, I want to again salute both our Board and the Associates, who make First United the strong and profitable institution it is today. On behalf of both of them, I pledge our best to continue to provide a strong return for your investment. Since 1996, our compounded annual return, including dividends, has been 8.01%. While we cannot directly affect our stock price, we are confident that the market will recognize and reward our strategic and financial performance. We thank you for your support.

William B. Grant
Chairman of the Board and
Chief Executive Officer