▸ Our inability to access sources of financing at terms that are favorable to us may result in an adverse effect on our business, financial condition, and results of operations.· · · ● ● ● 3 ▸ Our inability to generate liquidity in a timely manner may adversely impact our ability to satisfy obligations associated with our financing, our operations and other components of our business.· · · ● ● ● 3 ▸ Our investment securities are subject to market risk and credit risk that may have an adverse impact on our financial condition and results of operation.· · · ● ● ● 3 ▸ The Corporation is subject to lending risk, and the impacts of interest rate changes could adversely impact the Corporation.· · · ● ● ● 3 ▸ The value of real estate collateral may fluctuate significantly resulting in an under-collateralized loan portfolio.· · · ● ● ● 3 ▸ We may need to raise capital in the future, and such capital may not be available when needed or at all.· · · ● ● ● 3 ▸ Increases in FDIC insurance premiums may have a material adverse effect on our results of operations.· · ● ● ● ● 4 ▸ Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our sustainability practices may impose additional costs on us or expose us to new or additional risks.· · ● ● ● ● 4 rw ▸ New lines of business, products or services may subject us to additional risks.· · ● ● ● ● 4 ▸ Our accounting estimates and risk management processes rely on analytical and forecasting models, the inadequacy of which could have a material adverse effect on our financial condition and/or results of operations.· · ● ● ● ● 4 ▸ We depend on the accuracy and completeness of information about customers and counterparties, and inaccurate, incomplete or misleading information provided to us by these persons could cause us to suffer losses.· · ● ● ● ● 4 ▸ Climate change could have a material adverse impact on us and our customers.· · ● ● · · 2 ▸ We are a community banking organization, and our reputation is one of the most valuable components of our business. A key component of our business strategy is to rely on our reputation for customer service and knowledge of· · ● · · · 1 ▸ We have certain loans, investment securities, interest rate swaps and long-term debt indexed to LIBOR to calculate the loan interest rate. On July 27, 2017, the United Kingdom Financial Conduct Authority, which regulates· ● · · · · 1 ▸ A new accounting standard will likely require us to increase our allowance for loan losses and may have a material adverse effect on our financial condition and results of operations.● ● ● · · · 3 ▸ Changes to LIBOR may adversely impact the value of, and the return on, our loans, investment securities and derivatives which are indexed to LIBOR.● ● ● · · · 3 ▸ First United Corporation will likely incur significant expenses and faces the possibility of damages in connection with recent litigation.● · · · · · 1 ▸ group Risks Relating to First United Corporation and its Affiliates● · · · · · 1 ▸ group Risks Relating to Proxy Contests● · · · · · 1 ▸ group Risks Relating to the COVID-19 Global Pandemic● ● · · · · 2 ▸ The market value of our investments could decline.● ● ● · · · 3 ▸ The outbreak of other pandemics in the future could have similar or worse impacts on our financial condition and/ or results of operations.● · · · · · 1 ▸ The shares of Common Stock are not deposits and are not insured against loss by the FDIC or any other governmental or private agency.● · · · · · 1 ▸ The shares of Common Stock are not insured.● · · · · · 1 ▸ We are subject to risks associated with proxy contests and other actions of activist shareholders.● · · · · · 1 ▸ The impact of each of these impairment matters could have a material adverse effect on our business, results of operations, and financial condition.● · ● ● ● ● 5 ▸ A disruption, breach, or failure in the operational systems or infrastructure of our third-party vendors or other service providers, including as a result of cyber-attacks, could adversely affect our business.● ● ● ● ● ● 6 rw ▸ A material weakness in our disclosure or internal controls could have an adverse effect on us.● ● ● ● ● ● 6 rw ▸ Bank regulators and other regulations, including the Basel III Capital Rules, may require higher capital levels, impacting our ability to pay dividends or repurchase our stock.● ● ● ● ● ● 6 ▸ First United Corporation’s future success depends on the successful growth of its subsidiaries.● ● ● ● ● ● 6 ▸ Impairment of goodwill and other intangible assets or deferred tax assets could require charges to earnings, which could result in a negative impact on our results of operations.● ● ● ● ● ● 6 rw ▸ Interest rates and other economic conditions will impact our results of operations.● ● ● ● ● ● 6 ▸ Our operational or communications systems or infrastructure may fail or may be the subject of a breach or cyber-attack that, if successful, could adversely affect our business or disrupt business continuity.● ● ● ● ● ● 6 ▸ Significant sales of shares of Common Stock, or the perception that significant sales may occur in the future, could adversely affect the market price of shares of Common Stock.● ● ● ● ● ● 6 ▸ The Bank may experience loan losses in excess of its allowance for credit losses, which would reduce our earnings.● ● ● ● ● ● 6 rw ▸ The Bank’s concentrations of commercial real estate loans could subject it to increased regulatory scrutiny and directives, which could force us to preserve or raise capital and/or limit future commercial lending activities.● ● ● ● ● ● 6 ▸ The Bank’s funding sources may prove insufficient to replace deposits and support our future growth.● ● ● ● ● ● 6 ▸ The Bank’s lending activities subject the Bank to the risk of environmental liabilities.● ● ● ● ● ● 6 ▸ The Corporation’s ability to pay dividends on the common stock is subject to the terms of the outstanding TPS Debentures, which prohibit the Corporation from paying dividends during an interest deferral period.● ● ● ● ● ● 6 ▸ The Corporation’s charter and bylaws and Maryland law may discourage a corporate takeover.● ● ● ● ● ● 6 rw ▸ The banking industry is heavily regulated; significant regulatory changes could adversely affect our operations.● ● ● ● ● ● 6 ▸ The loss of key personnel could disrupt our operations and result in reduced earnings.● ● ● ● ● ● 6 ▸ The shares of Common Stock are not heavily traded.● ● ● ● ● ● 6 ▸ We are a community banking organization and our ability to maintain our reputation is critical to the success of our business.● ● ● ● ● ● 6 ▸ We could be adversely affected by risks associated with future acquisitions and expansions.● ● ● ● ● ● 6 ▸ We may be subject to claims and the costs of defensive actions, and such claims and costs could materially and adversely impact our financial condition and results of operations.● ● ● ● ● ● 6 ▸ We may not be able to keep pace with developments in technology.● ● ● ● ● ● 6 ▸ We operate in a competitive environment, and our inability to effectively compete could adversely and materially impact our financial condition and results of operations.● ● ● ● ● ● 6 
