SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) October 22, 1998
FIRST UNITED CORPORATION
(Exact name of Registrant as specified in Charter)
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<S> <C> <C>
Maryland 0-14237 52-1380770
(State or other Jurisdiction (Commission File Number) (IRS Employer Identification
of incorporation) No.)
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19 South Second Street, Oakland, MD 21550
(Address of Principal Executive Offices/Zip Code)
Registrant's telephone number, including area code: (301) 334-9471
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
On October 21, 1998, First United Corporation announced its intention
to acquire the Gonder Insurance Agency, a full line independent insurance agency
with principal offices in Oakland, Maryland. A copy of the press release is
attached to this Current Report on Form 8-K as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST UNITED CORPORATION
Date: October 22, 1998 By: /s/ William B. Grant
William B. Grant
Chairman of the Board and CEO
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EXHIBIT INDEX
Exhibit
Number Description of Exhibit
99.1 Press Release
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Exhibit 99.1
PRESS RELEASE
First United Corporation To Acquire Regional Insurance Agency
OAKLAND, MD -- First United Corporation, headquartered in Oakland, Maryland,
announced that it has signed a letter of intent to acquire the Gonder Insurance
Agency, an Oakland, Maryland based full line independent insurance agency.
Founded in 1921, the Gonder Agency is one of the premier independent agency
writers of personal lines and small commercial package insurance in Western
Maryland. The transaction is subject to regulatory approval. If approved, the
transaction is anticipated to close in the first quarter of 1999.
"The Gonder Agency has a long-standing tradition of providing quality service to
its customers," stated William B. Grant, Chairman and CEO of First United. "We
are excited about the opportunities that this affiliation presents for First
United's customers and shareholders. The Gonder Agency will allow us to enhance
the array of quality financial products and services we offer to our customers
and serve to increase First United's non-interest income base."
Upon completion of the transaction, Mr. Terry Helbig, Gonder's principal owner,
will assume the role of President and CEO of the Agency and will continue to be
responsible for its day-to-day operations. The Agency will continue to operate
under the Gonder name. All employees of the Gonder Agency are expected to
continue under First United ownership.
"The Gonder acquisition represents a key element in First United's strategy to
grow not only its traditional financial services business but also expand its
base in nontraditional financial services markets," said Mr. Grant.
"Gonder Insurance it looking forward to its affiliation with First United. We
will continue to focus on customer service for our clients at our same location
with our trained staff," said Mr.
Helbig.
First United Corporation (NASDAQ:FUNC) offers full-service banking through its
banking subsidiary, First United Bank & Trust. The bank operates a traditional
network of offices through Garrett, Allegany, Washington, and Frederick Counties
in Maryland, as well as Mineral, Hardy, Hampshire, and Berkeley Counties in West
Virginia. As of September 30, 1998, the Corporation posted assets of $617.03
million.
This press release contains forward-looking statements within the meaning of The
Private Securities Litigation Reform Act of 1995. Such statements are not
historical facts and include expressions about First United's confidence and
strategies, and expectations about the projected closing date, and continued
operations of Gonder Insurance Agency. These statements may be identified by
such forward-looking terminology as "expect", "believe", "anticipate", or by
expressions of confidence such as "continuing" or "strong" or similar statements
or variations of such terms. Such forward-looking statements involve certain
risks and uncertainties. These include, but are not limited to, general economic
conditions and competition in the geographic and business areas in which First
United and its subsidiaries operate, inflation, fluctuations in
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interest rates, legislation, and governmental regulation. Actual results may
differ materially from such forward-looking statements. First United assumes no
obligation for updating any such forward-looking statements at any time.
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