UWHR Uwharrie Capital Corp (QX)

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

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): August 19, 2024

 

 

Uwharrie Capital Corp

(Exact name of Registrant as Specified in Its Charter)

 

 

North Carolina			000-22062	56-1814206
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
132 North First Street
Albemarle, North Carolina				28001
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 704 983-6181

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		N/A		N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On August 19, 2024, Uwharrie Capital Corp (the “Registrant”) released a quarterly report to its shareholders that included a letter to the shareholders from President and CEO Roger L. Dick and unaudited financial information for the period ended June 30, 2024.

A copy of this report is attached hereto as Exhibit 99.1 and incorporated by reference herein.

This Current Report on Form 8-K (including information included or incorporated by reference herein) may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of the Registrant’s goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” “outlook” or similar expressions. These statements are based upon the current belief and expectations of the Registrant’s management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Registrant’s control).

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Description
99.1		Quarterly report to shareholders for the period ended June 30, 2024
104		Cover page interactive data file (embedded within the Inline XBRL document)

 

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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 thereunto duly authorized.

 

		UWHARRIE CAPITAL CORP
Date: August 19, 2024		By:	/s/ Heather H. Almond
			Heather H. Almond
			Principal Financial Officer

 

 

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Exhibit 99.1

 

 

 

August 19, 2024

 

Dear Shareholder:

 

We are pleased to report on the continued growth and development of Uwharrie Capital Corp and its subsidiaries. As of June 30, 2024, our total assets reached $1.1 billion, reflecting an 8.6% growth from June 30, 2023. Our total annualized return on equity improved to 17.6% as of June 30, 2024, up from 16.9% the previous year. Net income available to common shareholders for the six months ending June 30, 2024, was $4.3 million or $0.61 per share, a $419,000 increase over the $3.9 million or $0.54 per share reported for the same period in 2023.

Loan demand remains strong across all sectors of our lending portfolio and markets. Loans grew nearly 20% from June 30, 2023, to June 30, 2024, increasing our loan-to-deposit ratio to 62.5%. This growth has been achieved without compromising our credit standards; our underwriting and lending policies remain as thorough as ever. Our asset quality strength is evident in our low levels of past dues and non-accrual loans.

We continue to grow our core deposit base, allowing us to maintain our cost of funds expense and improve our net interest margin as a percentage of average assets to 3.40%. This is particularly notable as many of our peers are experiencing flat or declining net interest margins. Net interest margin remains the largest contributor to our net income. Other non-interest income sources, such as card services and wealth management, also continue to grow and diversify our earnings base.

New endeavors for our company include relocating our Mount Pleasant branch (Cabarrus County) to a more visible and accessible spot on Hwy 73. The new location, in the heart of Mount Pleasant, promises greater convenience for our customers. While we finalize the plans, we invite you to stay tuned for updates on our innovative, non-traditional branch design.

We are also excited to announce our partnership with Greenlight. This alliance allows us to offer a Uwharrie Bank-branded Greenlight app with a Greenlight Debit Card to families at no cost. Greenlight is a comprehensive money app for families, enabling kids to earn money through chores, set savings goals, and spend wisely. Parents have flexible control over limits and spending locations, receiving real-time notifications of their children's transactions. The app also includes features for setting up different ways for children to earn money, such as completing chores or engaging in gamified learning activities that teach age-appropriate financial lessons. We believe this partnership aligns perfectly with our core values of promoting financial literacy and introduces us to a new generation of customers. To learn more or to sign up for your family, please visit www.Uwharrie.com/Greenlight.

We are halfway through our 40th anniversary celebrations and have enjoyed celebrating our past and building on our future. We invite you to join us at your local branch and follow our journey on social media. We encourage you to keep referring your family and friends to join us as customers and shareholders. Together, we can build upon our 40 years of success and continue to thrive in the future. Your support is invaluable to us as we stay dedicated to making a meaningful impact—delivering a strong return on your investment while enhancing your communities.

Thank you for your continued trust and support.

 

Sincerely,

UWHARRIE CAPITAL CORP

/s/ Roger L. Dick

President and Chief Executive Officer

This Report may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of the Company's goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” “outlook,” or similar expressions. These statements are based upon the current belief and expectations of the Company‘s management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control).

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Uwharrie Capital Corp and Subsidiaries
Consolidated Balance Sheets (Unaudited)
		June 30,				June 30,
(Amounts in thousands except share and per share data)		2024				2023
Assets
Cash and due from banks		$	11,195			$	10,608
Interest-earning deposits with banks			46,276				83,245
Securities available for sale			350,764				324,484
Securities held to maturity (fair value $24,656 and $25,812, respectively)			27,252				29,191
Less: allowance for credit losses on securities held to maturity			(66	)			(65	)
Equity securities, at fair value			324				303
Loans held for sale			3,611				3,297
Loans held for investment			636,738				534,364
Less: allowance for credit losses on loans			(5,908	)			(4,713	)
Net loans held for investment			630,830				529,651
Premises and equipment, net			14,552				15,206
Interest receivable			4,688				3,712
Restricted stock			1,709				1,468
Bank-owned life insurance			7,864				7,721
Deferred income tax benefit			9,056				10,593
Loan servicing assets			4,089				4,615
Other assets			11,116				9,934
Total assets		$	1,123,260			$	1,033,963
Liabilities
Deposits:
Demand, noninterest-bearing		$	286,517			$	277,685
Interest checking and money market accounts			391,245				426,997
Savings accounts			95,208				98,118
Time deposits, $250,000 and over			128,162				55,873
Other time deposits			122,943				91,597
Total deposits			1,024,075				950,270
Short-term borrowed funds			6,400				932
Long-term debt			29,123				29,066
Other liabilities			11,530				12,135
Total liabilities			1,071,128				992,403
Shareholders' Equity
Common stock, $1.25 par value: 20,000,000 shares authorized;
issued and outstanding or in process of issuance
7,068,577 and 7,057,847, respectively.
Book value per share $5.87 in 2024 and $4.29 in 2023 (1)			8,836				8,823
Additional paid-in capital			12,510				12,521
Undivided profits			46,419				39,012
Accumulated other comprehensive loss			(26,288	)			(29,451	)
Total Uwharrie Capital Corp shareholders' equity			41,477				30,905
Noncontrolling interest			10,655				10,655
Total shareholders' equity			52,132				41,560
Total liabilities and shareholders' equity		$	1,123,260			$	1,033,963
(1) Net income per share, book value per share and weighted average shares  outstanding have been adjusted to reflect the 2.0% stock dividend in 2023.

 

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Uwharrie Capital Corp and Subsidiaries
Consolidated Statements of Income (Unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
(Amounts in thousands except share and per share data)		2024				2023				2024				2023
Interest Income
Interest and fees on loans		$	9,285			$	6,989			$	18,079			$	13,356
Interest on investment securities			3,326				2,951				6,564				5,818
Interest-earning deposits with banks and federal funds sold			710				1,181				1,336				2,251
Total interest income			13,321				11,121				25,979				21,425
Interest Expense
Interest paid on deposits			4,097				2,712				7,826				4,828
Interest paid on borrowed funds			408				342				799				685
Total interest expense			4,505				3,054				8,625				5,513
Net Interest Income			8,816				8,067				17,354				15,912
Provision for credit losses			431				109				401				386
Net interest income after provision for credit losses			8,385				7,958				16,953				15,526
Noninterest Income
Service charges on deposit accounts			267				264				535				513
Interchange and card transaction fees			322				315				610				619
Other service fees and commissions			897				822				1,828				1,711
Gain (loss) on sale of securities			-				9				(148	)			(42	)
Realized/unrealized gain (loss) on equity securities			(19	)			(23	)			22				11
Income from mortgage banking			606				891				1,440				1,585
Other income			153				408				268				271
Total noninterest income			2,226				2,686				4,555				4,668
Noninterest Expense
Salaries and employee benefits			5,145				4,932				10,359				9,676
Occupancy expense			429				432				854				885
Equipment expense			218				195				425				383
Data processing			203				204				433				408
Loan costs			51				98				84				198
Professional fees and services			262				179				526				437
Marketing and donations			339				342				705				724
Software amortization and maintenance			329				296				659				603
Other operating expenses			856				1,164				1,669				1,653
Total noninterest expense			7,832				7,842				15,714				14,967
Income before income taxes			2,779				2,802				5,794				5,227
Provision for income taxes			566				579				1,198				1,050
Net Income		$	2,213			$	2,223			$	4,596			$	4,177
Consolidated net income		$	2,213			$	2,223			$	4,596			$	4,177
Less: net income attributable to noncontrolling interest			(141	)			(141	)			(282	)			(280	)
Net income attributable to Uwharrie Capital Corp and common shareholders		$	2,072			$	2,082			$	4,314			$	3,897
Net Income Per Common Share (1)
Basic		$	0.29			$	0.29			$	0.61			$	0.54
Assuming dilution		$	0.29			$	0.29			$	0.61			$	0.54
Weighted Average Common Shares Outstanding (1)
Basic			7,093,666				7,215,163				7,108,070				7,215,891
Assuming dilution			7,093,666				7,215,163				7,108,070				7,215,891

 

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v3.24.2.u1

Document And Entity Information	Aug. 19, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 19, 2024
Entity Registrant Name	Uwharrie Capital Corp
Entity Central Index Key	0000898171
Entity Emerging Growth Company	false
Entity File Number	000-22062
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	56-1814206
Entity Address, Address Line One	132 North First Street
Entity Address, City or Town	Albemarle
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28001
City Area Code	704
Local Phone Number	983-6181
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	None
No Trading Symbol Flag	true
Security Exchange Name	NONE

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