FIRST UNITED CORP/MD/ 8-K

What Happened

• First United Corporation (FUNC) filed an 8-K on March 11, 2026, disclosing a Second Amended and Restated Agreement under the company's Change in Control Severance Plan with Jason B. Rush, President and CEO of First United and First United Bank & Trust.
• The amendment increases the cash severance payable to Mr. Rush if he incurs a “Severance” following a “Change in Control” under the Plan, raising the payout from 2.0 times his “Final Pay” to 2.99 times his Final Pay. A copy of the amended agreement was filed as Exhibit 10.1.

Key Details

• Date filed: March 11, 2026 (Form 8-K, Item 5.02(e)).
• Executive affected: Jason B. Rush, President and Chief Executive Officer (company and bank subsidiary).
• Severance payout increased: from 2.0x to 2.99x of “Final Pay” (as defined in the agreement).
• The amendment is made under the existing First United Corporation Change in Control Severance Plan (Plan), which was previously filed as Exhibit 10.7 to the company’s 2025 Form 10-K.

Why It Matters

• For investors, this change increases the potential cash cost to the company if a change in control triggers severance for the CEO, making the CEO’s departure package substantially larger (almost 3x final pay versus 2x).
• The filing is a governance/compensation disclosure rather than an operational or financial results update; it signals an enhanced retention/protection arrangement for the CEO in the event of a sale or control change. The amendment itself does not report an actual severance payment or a pending transaction.