How did FUNC's Q4 earnings surprise impact investor confidence?

**First United Corp.'s (FUNC) Q4 earnings did not provide a positive surprise to investors**, as evidenced by the absence of any reported earnings surprises in the fourth quarter. This lack of positive surprise likely contributed to investor sentiment, reflecting expectations that were not exceeded.

1. **Financial Performance Context**: To understand the impact of the Q4 earnings on investor confidence, it's crucial to consider the overall financial performance of First United Corp. The bank demonstrated a notable increase in net interest income, which rose by approximately $1.25 million compared to the same quarter a year ago. Additionally, the trust department's attributable revenue grew by about 10%, resulting in a pre-tax income of approximately $8 million. These improvements indicate a strong financial performance, which might have bolstered investor confidence despite the lack of an earnings surprise.

2. **Investor Sentiment Influence**: Investor confidence is influenced by a variety of factors, including financial performance, industry trends, market conditions, and corporate governance. The absence of an earnings surprise in Q4 might have been overshadowed by the following:
- **Strategic Expansion**: First United Bank's acquisition of seven new locations in West Texas reflects a strategic expansion into new markets, which could positively influence investor confidence in the long term.
- **Community Banking Focus**: The bank's commitment to community banking and its extensive branch network in Oklahoma and Texas suggests a stable and resilient business model, which might sustain investor confidence despite the lack of an earnings surprise.
- **Non-Interest Income Growth**: The growth in non-interest income, despite higher non-interest operating expenses, indicates a diversified revenue stream. This diversification can be a positive sign for investors, as it reduces reliance on interest income and spreads risk.
3. **Market Reaction**: The market's reaction to the earnings report is crucial in understanding the impact on investor confidence. Without specific data on market reaction, we can only infer that the market likely valued the overall financial performance and strategic initiatives over the lack of an earnings surprise.

In conclusion, while the absence of an earnings surprise in Q4 might have raised some concerns among investors, the overall strong financial performance, strategic expansions, and focus on community banking are likely to have supported investor confidence in First United Corp.