Driver Management revealed on Sept. 5 that it holds 360,637 shares of the community bank, equal to nearly 5.1% of the outstanding stock. Driver continued that First United “lacks scale to justify an elevated expense base” and possess a branch network that has been unable to “create sufficient operating leverage due to lackluster organic loan growth.” Driver recommends that a sale to a larger peer would be the best route to enhance shareholder value. It believes that such a move would “unlock the value of [First United’s] high-quality deposit franchise and attractive trust and wealth management businesses,” and also lift shareholder value without the “risk and uncertainty” of First United attempting to scale-up its business on its own.
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