<SEC-DOCUMENT>0001144204-16-132163.txt : 20161108
<SEC-HEADER>0001144204-16-132163.hdr.sgml : 20161108
<ACCEPTANCE-DATETIME>20161107174048
ACCESSION NUMBER:		0001144204-16-132163
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20161107
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20161108
DATE AS OF CHANGE:		20161107

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST UNITED CORP/MD/
		CENTRAL INDEX KEY:			0000763907
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				521380770
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14237
		FILM NUMBER:		161979361

	BUSINESS ADDRESS:	
		STREET 1:		19 S SECOND ST
		CITY:			OAKLAND
		STATE:			MD
		ZIP:			21550
		BUSINESS PHONE:		3013349471

	MAIL ADDRESS:	
		STREET 1:		19 S SECOND ST
		CITY:			OAKLAND
		STATE:			MD
		ZIP:			21550
</SEC-HEADER>
<DOCUMENT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>&#9;SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>&#9;Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):
November 7, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>First United Corporation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; text-decoration: underline; text-align: center"><U>Maryland</U></TD>
    <TD STYLE="width: 34%; text-decoration: underline; text-align: center"><U>0-14237</U></TD>
    <TD STYLE="width: 33%; text-decoration: underline; text-align: center"><U>52-1380770</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of</TD>
    <TD STYLE="text-align: center">(Commission file number)</TD>
    <TD STYLE="text-align: center">(IRS Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">incorporation or organization)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>19 South Second Street, Oakland, Maryland
21550</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices)
(Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>(301) 334-9471</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>N/A</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former Name or Former Address, if Changed
Since Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION TO BE INCLUDED IN THE REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01. Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 7, 2016, First United Corporation (the &ldquo;Company&rdquo;) entered into standby purchase
agreements (each, a &ldquo;Standby Purchase Agreement&rdquo;) with with (i) Castle Creek Special Situations Advisors LLC, Castle
Creek SSF-D Investors LP, Arch Investment Holdings I Ltd., May Clinic, Mayo Clinic Master Retirement Trust (collectively, the &ldquo;Castle
Creek Funds&rdquo;) and (ii) Second Curve Vision Fund, L.P., Second Curve Vision Fund International, Ltd., Second Curve Opportunity
Fund, L.P., Second Curve Partners, L.P., Second Curve Partners II, L.P., and Second Curve Partners International Ltd. (collectively,
the &ldquo;Second Curve Funds&rdquo;).&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Castle Creek Funds have agreed, subject
to there being sufficient shares available after purchases by shareholders in exercising their subscription rights in the Company&rsquo;s
proposed rights offering of common stock (the &ldquo;Rights Offering&rdquo;), to purchase from the Company, at the subscription
price, the lesser of (a) up to an aggregate of $5.0 million in shares of the common stock that are not purchased by shareholders
in the offering and (b) the maximum number of shares that they may purchase without causing an &ldquo;ownership change&rdquo; under
Section 382(g) of the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;). The Second Curve Funds, some of which
are current shareholders, have committed to purchase up to $2.0 million in shares of the common stock through a combination of
the exercise of their basic subscription privilege in the Rights Offering and, subject to there being sufficient shares available
after purchases by shareholders in the Rights Offering, pursuant to the offer and sale contemplated by their Standby Purchase Agreements,
provided that they will not purchase shares to the extent it would cause an &ldquo;ownership change&rdquo; under Section 382(g)
of the Code. The exact number of shares to be purchased by each Standby Investor, if any, will be allocated after the closing of
the Rights Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the Rights Offering, the Company intends
to distribute to its shareholders non-transferable subscription rights entitling the holders thereof to purchase an aggregate of
783,626 shares of the Company&rsquo;s common stock. The consummation of the sales of the Company&rsquo;s common stock to the Standby
Investors is conditioned on the completion of the Rights Offering and upon the number of unsubscribed shares available. The Company
will not know the aggregate amount of common stock to be sold to the Standby Investors until the completion of the Rights Offering.
Further information about the Rights Offering is provided in Item 8.01 of this report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the Standby Purchase Agreements, the
Company agreed to file, within 90 days of the closing of the sales to the Standby Investors (the &ldquo;Standby Offering&rdquo;),
a registration statement under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), to register the resale
of the shares purchased by the Standby Investors, to use commercially reasonable efforts to cause that resale registration statement
to be declared effective by the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) as soon as is practicable, and to maintain
a current prospectus with respect to those shares until the earlier of the date on which (i) the Standby Investors sell or otherwise
dispose of their shares, (ii) the shares may be sold by the Standby Investors pursuant to Rule 144 under the Securities Act and
(iii) the shares are no longer issued and outstanding. The Company has agreed to pay the expenses associated with the resale registration
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The obligations of the Company and the Standby
Investors to consummate the transactions contemplated by the Standby Purchase Agreements are subject to fulfillment of the following
conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>The Company and the Standby Investors must have obtained all federal, state and other regulatory approvals required in connection
with the transactions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>The Company must have received a letter from an independent accounting firm to the effect that, among other things, the transactions
contemplated by the Standby Purchase Agreements will not cause the Company to undergo an &ldquo;ownership change&rdquo; for purposes
of Section 382 of the Code;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>No judgment, injunction, decree, regulatory proceeding or other legal restraint prohibits, or has the effect of rendering unachievable,
the consummation of the offering or the material transactions contemplated by the Standby Purchase Agreements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>No stop order suspending the effectiveness of the registration statement of which this prospectus forms a part, or any part
thereof, has been issued and no proceeding for that purpose has been initiated or threatened by the SEC; and any request of the
SEC for inclusion of additional information in the registration statement or otherwise shall have been complied with;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>The SEC shall have not suspended trading in our common stock, and the NASDAQ Global Select Market shall not have suspended
trading in securities generally on The NASDAQ Global Select Market; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>The shares to be sold in the offering and to the standby investors shall have been authorized for listing on The NASDAQ Global
Select Market (or such other exchange or market as our common stock is then listed).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The obligations of the Company to consummate
the transactions contemplated by the Standby Purchase Agreements are further subject to the condition that the representations
and warranties of the Standby Investors set forth in their Standby Purchase Agreements are true and correct in all material respects
and the Standby Investors must have performed all of their respective obligations under the Standby Purchase Agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The obligations of the Standby Investors
to consummate the transactions contemplated by the Standby Purchase Agreements are further subject to the fulfillment of the following
conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>The representations and warranties of the Company set forth in the Standby Purchase Agreement are true and correct in all material
respects and the Company must have performed all of its obligations under the Standby Purchase Agreement; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>There has not been any material adverse effect with respect to the Company and the Company must not have breached its covenants
under the Standby Purchase Agreement;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A Standby Purchase Agreement may be terminated
under the following circumstances:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>By a Standby Investor at any time prior to the sale of shares to the standby investor, by written notice to us, if (i) the
Company experiences a &ldquo;Material Adverse Effect&rdquo; (as defined in the Standby Purchase Agreement) or (ii) a &ldquo;Market
Adverse Effect&rdquo; (as defined in the Standby Purchase Agreement) has occurred that, in either case, is not cured within 21
days after the occurrence, but the right to terminate the Standby Purchase Agreement on such account will expire seven days after
the expiration of the applicable cure period;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>By the Company at any time prior to the closing of the sales contemplated by the Standby Purchase Agreements if we withdraw
or terminate the offering because we determine that the consummation of the offering is not in the best interests of us and our
shareholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>By the Company, on the one hand, or a Standby Investor, on the other hand, at any time prior to the closing of the Standby
Offering if the other party has materially breached the Standby Purchase Agreement and that breach remains uncured for 15 days
after the non-breaching party has delivered written notice of the breach to the breaching party;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>By the Company or a Standby Investor if the transactions contemplated by the Standby Purchase Agreements have not occurred
prior to May 15, 2017; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>By the Company or a Standby Investor if  the transactions contemplated by the Standby Purchase Agreements
are prohibited by law.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each of the Standby Purchase Agreements
provides that the Company and the Standby Investor will pay their own expenses associated with the transactions contemplated by
the Standby Purchase Agreement, except that the Company will be obligated to pay the reasonable actual out-of-pocket expenses of
each Standby Investor, up to $25,000 per Standby Investor, if the Company terminates the Standby Purchase Agreements because the
Company decides to terminate the Rights Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Standby Purchase Agreements require
the Company, subject to certain customary exceptions, to indemnify and hold harmless each Standby Investor and its affiliated persons
against all &ldquo;Losses&rdquo; (as defined in the Standby Purchase Agreement) to which they may become subject under the Securities
Act or otherwise insofar as such Losses arise out of or are based upon, arising out of, or resulting from the Standby Purchase
Agreement and its subject matter. Each Standby Investor agreed, subject to certain customary exceptions, to indemnify and hold
harmless the Company and its affiliated persons against any Losses to which they may become subject as a result of any untrue statement
or a material fact or any omission of any material fact required to be stated in the prospectus relating to the Rights Offering
or the resale registration statement, its related prospectus and/or any related marketing material, or necessary to make the statements
therein not misleading to the extent, but only to the extent, that such untrue statement or omission is contained in any information
furnished in writing to the Company by such Standby Investor specifically for inclusion in those documents or materials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The shares of common stock to be sold and
issued pursuant to the Standby Purchase Agreements will be offered and sold in reliance upon an exemption from the registration
requirements of the Securities Act afforded by Section 4(a)(2) thereof and Regulation D promulgated thereunder. The Standby Purchase
Agreements contemplated privately negotiated transactions that did not involve a general solicitation, and each of the Standby
Investors is an &ldquo;accredited investor&rdquo; as defined in Regulation D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The foregoing description of the Standby
Purchase Agreements does not purport to be complete and is qualified in its entirety by reference to such agreements, the form
of which is filed herewith as Exhibit 10.1. This summary is intended to provide shareholders and investors with information regarding
the terms of the Standby Purchase Agreements. The representations and warranties contained in the Standby Purchase Agreements are
generally made to, and solely for the benefit of, the parties to the Standby Purchase Agreements. Certain representations and warranties
in the Standby Purchase Agreements are made for the purpose of allocating risk between the parties, rather than establishing matters
as facts. Accordingly, shareholders and investors should not rely on the representations and warranties as characterizations of
the actual state of facts, since they were only made as of the date of the Standby Purchase Agreements. The representations and
warranties contained in the Standby Purchase Agreements should only be read in conjunction with the other information that the
Company makes publicly available in reports, statements, and other documents filed with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 8.01. Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 7, 2016, the Company filed a
Registration Statement on Form S-1 with the SEC to register 783,626 shares of common stock to be offered in its proposed Rights
Offering (the &ldquo;Registration Statement&rdquo;). A copy of the Company&rsquo;s press release announcing the Rights Offering
is filed herewith as Exhibit 99.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the Rights Offering, the Company expects
to distribute to its shareholders, free of charge, non-transferable subscription rights to purchase shares of its common stock
for a subscription price per share equal to 90% of the volume weighted average closing sales price of the common stock, as reported
on The NASDAQ Global Select Market, for the 20 trading days immediately preceding the date on which the Registration Statement
is declared effective, provided that in no event will the subscription price be less than $9.00 per share or greater than $11.93
per share. As discussed in in Item 1.01 of this report, the Standby Investors have agreed to purchase the lesser of (i) all shares
of common stock not purchased by shareholders in the Rights Offering, and (ii) the maximum number of shares that they may purchase
without causing an &ldquo;ownership change&rdquo; under Section 382(g) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If all of the shares are sold in the
Rights Offering and/or to the Standby Investors, the Company expects to realize gross proceeds of between approximately $7.1
million and $9.3 million from the transactions, depending on the subscription price. The Company intends to use the proceeds
of the transactions, after paying its offering expenses, to offset the effects of its planned redemption of $10 million of
its Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the &ldquo;Series A Preferred Stock&rdquo;) and its planned
repayment of $10.8 million of outstanding junior subordinated debentures. The Company intends to consummate the redemption
and repayment as soon as is practicable following the Rights Offering and Standby Offering, but its ability to do so is
subject to the approval of the Board of Governors of the Federal Reserve System (the &ldquo;Federal Reserve&rdquo;) and the
Company&rsquo;s receipt of a cash dividend from First United Bank &amp; Trust (the &ldquo;Bank&rdquo;) in the amount of
approximately $13.0 million. The Federal Reserve has approved the planned redemption and repayment, subject to the condition
that the Company sells at least $7.0 million in common stock in the Rights Offering and/or to the Standby Investors. The
Bank&rsquo;s ability to pay cash dividends is subject to limitations imposed by banking and corporate law. Accordingly, there
can be no assurance that the Company will consummate our planned redemption and repayment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This Current Report on Form 8-K does not
constitute an offer to sell or the solicitation of an offer to buy any securities. The completion of the Rights Offering remains
subject to the satisfaction of certain conditions, and the Company reserves the right to terminate the Rights Offering at any
time prior to the expiration date of the Rights Offering, including prior to the rights distribution or the commencement of the
Rights Offering. The Registration Statement includes a preliminary prospectus relating to the Rights Offering from which certain
information has been omitted as permitted by the SEC&rsquo;s rules. After the Registration Statement has been declared effective
by the SEC, a final prospectus will be filed with the SEC and be sent to shareholders as of the record date for the Rights Offering.
The Company may also file other documents with the SEC regarding the Rights Offering and/or the Standby Offering. INVESTORS AND
SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER DOCUMENTS
FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED RIGHTS OFFERING.
Investors and security holders will be able to obtain a free copy of the prospectus (if and when it becomes available) and other
documents, once such documents are filed by the Company with the SEC through the website maintained by the SEC at <U>http://www.sec.gov</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This Current Report on Form 8-K contains
forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not
represent historical facts, but rather statements about management&rsquo;s beliefs, plans and objectives about the future, as well
as its assumptions and judgments concerning such beliefs, plans and objectives. These statements are evidenced by terms such as
&ldquo;anticipate&rdquo;, &ldquo;estimate&rdquo;, &ldquo;should&rdquo;, &ldquo;expect&rdquo;, &ldquo;believe&rdquo;, &ldquo;intend&rdquo;,
and similar expressions. Although these statements reflect management&rsquo;s good faith beliefs and projections, they are not
guarantees of future performance and they may not prove true. These projections involve risk and uncertainties that could cause
actual results to differ materially from those addressed in the forward-looking statements. These risks and uncertainties include,
but are not limited to, changes in general economic, market, or business conditions; changes in the financial condition and results
of operations of the Company and its subsidiaries; changes in laws or regulations or policies of federal and state regulators and
agencies; circumstances that might prevent or delay the consummation of the Rights Offering and/or the Standby Offering; and other
circumstances beyond the Company&rsquo;s control. Consequently, all of the forward-looking statements made in this report are qualified
by these cautionary statements, and there can be no assurance that the actual results anticipated will be realized, or if substantially
realized, will have the expected consequences on the Company&rsquo;s business or operations. For a discussion of the risks and
uncertainties to which the Company is subject, see the section of the periodic reports that the Company files with the SEC entitled
&ldquo;Risk Factors&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01. Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The exhibits furnished with this report
are listed in the Exhibit Index which immediately follows the signatures hereto, which Exhibit Index is incorporated herein by
reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">FIRST UNITED CORPORATION</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated: November 7, 2016</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Carissa L. Rodeheaver</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carissa L. Rodeheaver</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman, President &amp; CEO</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Exhibit No.</U></FONT></TD>
    <TD STYLE="text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Description</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Standby Purchase Agreement (incorporated
by reference to Exhibit 10.1 to the Company&rsquo;s Registration Statement on Form S-1 filed on November 7, 2016)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Press release dated November 7, 2016 (filed herewith)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>v452315_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FIRST UNITED CORPORATION ANNOUNCES RIGHTS
OFFERING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">OAKLAND, MARYLAND &ndash; November 7, 2016:
First United Corporation (NASDAQ: FUNC), a bank holding company and the parent company of First United Bank &amp; Trust (the &ldquo;Company&rdquo;),
announced today that it has filed a Registration Statement on Form S-1 (the &ldquo;Registration Statement&rdquo;) with the Securities
and Exchange Commission (the &ldquo;SEC&rdquo;) for a proposed rights offering to its existing shareholders. Under the proposed
rights offering, the Company intends to distribute to its shareholders non-transferable subscription rights to purchase an aggregate
of 783,626 shares of its common stock, par value $.01 per share, at a subscription price per share equal to 90% of the volume weighted
average closing sales price of the common stock, as reported on The NASDAQ Global Select Market, for the 20 trading days immediately
preceding the date on which the Registration Statement is declared effective, provided that in no event will the subscription price
be less than $9.00 per share or greater than $11.93 per share. Each right will entitle the holder to purchase 0.125 new shares
for each share of common stock held by a shareholder as of the record date, provided that the Company will not issue fractional
shares of common stock in the rights offering. Each holder who fully exercises its basic subscription privilege may subscribe,
at the subscription price, for additional shares for allocation in the event that all available shares are not purchased pursuant
to all shareholders&rsquo; basic subscription privilege.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the rights offering is fully subscribed,
the Company expects gross proceeds to be between approximately $7.1 million and $9.3 million, depending on the subscription. The
Company intends to use the proceeds, after paying its offering expenses, to offset the effects of its planned redemption of $10.0
million of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A and its planned repayment of $10.8 million of outstanding
junior subordinated debentures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has engaged Georgeson LLC as
the information agent for the rights offering and Computershare, Inc. as the subscription agent for the rights offering. Questions
about the rights offering may be directed to Georgeson LLC at (800) 561-2871.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To facilitate the offering,
the Company has entered into Standby Purchase Agreements with certain accredited investors. Subject to the terms of the
offering and certain limits and other conditions set forth in the Standby Purchase Agreements, these accredited investors
have agreed to purchase from the Company, at the subscription price, up to $7.0 million in shares of common stock, in the
aggregate, through a combination of the exercise of their basic subscription privilege in the rights offering and the
purchase, pursuant to the Standby Purchase Agreements in the aggregate, of shares that are not purchased by shareholders in
the rights offering. Any sales pursuant to the Standby Purchase Agreements will occur after the closing of the rights
offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This press release does not constitute
an offer to sell or the solicitation of an offer to buy any securities. The completion of the proposed rights offering remains
subject to the satisfaction of certain conditions, and the Company reserves the right to terminate the rights offering at any
time prior to the expiration date of the rights offering, including prior to the rights distribution or the commencement of the
rights offering. The Registration Statement includes a preliminary prospectus relating to the proposed rights offering from which
certain information has been omitted as permitted by the SEC&rsquo;s rules. After the Registration Statement has been declared
effective by the SEC, a final prospectus will be filed with the SEC and be sent to shareholders as of the record date for the
rights offering. The Company may also file other documents with the SEC regarding the rights offering. INVESTORS AND SECURITY
HOLDERS ARE URGED TO CAREFULLY READ THE PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER DOCUMENTS FILED
WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED RIGHTS OFFERING. Investors
and security holders will be able to obtain a free copy of the prospectus (if and when it becomes available) and other documents,
once such documents are filed by the Company with the SEC through the website maintained by the SEC at <U>http://www.sec.gov</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ABOUT FIRST UNITED CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">First United Corporation
is the parent company of First United Bank &amp; Trust, a Maryland trust company, and three statutory trusts that were used as
financing vehicles. The Bank has three wholly-owned subsidiaries: OakFirst Loan Center, Inc., a West Virginia finance company;
OakFirst Loan Center, LLC, a Maryland finance company, and First OREO Trust, a Maryland statutory trust formed for the purposes
of servicing and disposing of the real estate that the Bank acquires through foreclosure or by deed in lieu of foreclosure. The
Bank also owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership; a Maryland limited partnership
formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland. The Company&rsquo;s
website is <U>www.mybank.com</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>FORWARD-LOOKING STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This press release contains forward-looking
statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not represent historical
facts, but are statements about management&rsquo;s beliefs, plans and objectives about the future, as well as its assumptions
and judgments concerning such beliefs, plans and objectives. These statements are evidenced by terms such as &ldquo;anticipate,&rdquo;
&ldquo;estimate,&rdquo; &ldquo;should,&rdquo; &ldquo;expect,&rdquo; &ldquo;believe,&rdquo; &ldquo;intend,&rdquo; and similar expressions.
Although these statements reflect management&rsquo;s good faith beliefs and projections, they are not guarantees of future performance
and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially
from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of
the periodic reports that First United Corporation files with the SEC entitled &ldquo;Risk Factors&rdquo;.</P>

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