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): November 08, 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 November 8, 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 September 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 September 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: November 8, 2024		By:	/s/ Heather H. Almond
			Heather H. Almond
			Principal Financial Officer

 

 

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Exhibit 99.1

 

 

November 8, 2024

 

Dear Shareholder:

 

In 2024, we are proudly celebrating our 40th year of operation. Throughout our history, we have likened our organization's growth and development to that of an individual. From navigating the "terrible twos" and the volatile teenage years, through the challenges of young adulthood, we have now reached a stage of maturity at 40. Our financial results this year reflect this organizational maturity, as we experience one of the best growth and performance periods in our history.

 

As of September 30, 2024, our assets have grown to $1.2 billion, an increase of $111 million, representing a 10% growth compared to the same period in 2023. Our loan portfolio expanded by $68 million, funded with core deposit growth of $88 million compared to September 30, 2023. Net income for the nine-month period ending September 30, 2024 rose to $7.6 million, up from $6.3 million for the same nine-month period in 2023. This performance reflects a return on equity (ROE) of 17%, underscoring the strength and maturity of our institution.

 

While these financial metrics are impressive, our true measure of success lies in the number of families and businesses we have helped to grow and thrive. Our longstanding commitment to making a difference is evident in the new homes and jobs we have helped create, driving positive change on the main streets of the communities we serve.

 

We remain steadfast in our founding mission to prioritize service to our customers and communities over the bottom line, believing that great organizations achieve success through a focus on values. It is this commitment to our core principles that continues to yield strong financial results.

 

In recognition of our performance, the Board of Directors has declared a 2% stock dividend. Shareholders of record as of October 28, 2024, will receive the dividend on November 18, 2024. The dividend will be distributed electronically via book-entry (no stock certificates will be issued). As in prior years, this stock dividend provides flexibility: shareholders may retain the shares to potentially defer income recognition or sell them to meet current financial needs.

 

We look to the future with optimism, committed to sustaining our momentum by balancing growth with stability while serving the best interests of our communities and stakeholders.

 

Thank you for your continued trust and partnership. Wishing you and your families a joyous holiday season.

 

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)
		September 30,				September 30,
(Amounts in thousands except share and per share data)		2024				2023
Assets
Cash and due from banks		$	8,115			$	9,463
Interest-earning deposits with banks			115,783				68,407
Securities available for sale			332,645				328,099
Securities held to maturity (fair value $24,888 and $24,807, respectively)			26,843				29,146
Less: allowance for credit losses on securities held to maturity			(66	)			(65	)
Net securities held to maturity			26,777				29,081
Equity securities, at fair value			355				299
Loans held for sale			4,787				4,584
Loans held for investment			647,125				578,835
Less: allowance for credit losses on loans			(5,736	)			(5,115	)
Net loans held for investment			641,389				573,720
Premises and equipment, net			14,722				15,172
Interest receivable			4,821				4,313
Restricted stock			1,729				1,672
Bank-owned life insurance			7,901				7,756
Deferred income tax benefit			6,991				12,512
Loan servicing assets			3,982				4,431
Other assets			11,062				10,293
Total assets		$	1,181,059			$	1,069,802
Liabilities
Deposits:
Demand, noninterest-bearing		$	288,278			$	276,484
Interest checking and money market accounts			431,230				435,289
Savings accounts			94,562				103,953
Time deposits, $250,000 and over			131,992				70,026
Other time deposits			131,749				104,537
Total deposits			1,077,811				990,289
Short-term borrowed funds			1,419				931
Long-term debt			29,142				29,085
Other liabilities			11,566				12,427
Total liabilities			1,119,938				1,032,732
Shareholders' Equity
Common stock, $1.25 par value: 20,000,000 shares authorized;
issued and outstanding or in process of issuance
6,964,323 and 7,049,510 shares, respectively.
Book value per share $7.10 in 2024 and $3.60 in 2023 (1)			8,705				8,812
Common stock dividend distributable			174				176
Additional paid-in capital			12,735				13,331
Undivided profits			48,217				39,980
Accumulated other comprehensive loss			(19,365	)			(35,884	)
Total Uwharrie Capital Corp shareholders' equity			50,466				26,415
Noncontrolling interest			10,655				10,655
Total shareholders' equity			61,121				37,070
Total liabilities and shareholders' equity		$	1,181,059			$	1,069,802
(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 2024 and 2023.

 

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Uwharrie Capital Corp and Subsidiaries
Consolidated Statements of Income (Unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
(Amounts in thousands except share and per share data)		2024				2023				2024				2023
Interest Income
Interest and fees on loans		$	9,966			$	7,645			$	28,045			$	21,001
Interest on investment securities			3,378				3,086				9,942				8,904
Interest-earning deposits with banks and federal funds sold			780				979				2,116				3,230
Total interest income			14,124				11,710				40,103				33,135
Interest Expense
Interest paid on deposits			4,658				3,188				12,484				8,016
Interest paid on borrowed funds			408				345				1,207				1,030
Total interest expense			5,066				3,533				13,691				9,046
Net Interest Income			9,058				8,177				26,412				24,089
Provision for (recovery of) credit losses			(230	)			599				171				985
Net interest income after provision for (recovery of) credit losses			9,288				7,578				26,241				23,104
Noninterest Income
Service charges on deposit accounts			283				272				818				785
Interchange and card transaction fees			267				291				877				910
Other service fees and commissions			991				875				2,819				2,586
Loss on sale/call of securities			-				-				(148	)			(42	)
Realized/unrealized gain (loss) on equity securities			31				(4	)			53				7
Income from mortgage banking			861				957				2,301				2,542
Other income			96				128				364				399
Total noninterest income			2,529				2,519				7,084				7,187
Noninterest Expense
Salaries and employee benefits			5,152				4,822				15,511				14,498
Occupancy expense			454				460				1,308				1,345
Equipment expense			217				195				642				578
Data processing			177				103				610				511
Loan costs			58				88				142				286
Professional fees and services			252				268				778				705
Marketing and donations			383				313				1,088				1,037
Software amortization and maintenance			344				311				1,003				914
Other operating expenses			783				830				2,452				2,483
Total noninterest expense			7,820				7,390				23,534				22,357
Income before income taxes			3,997				2,707				9,791				7,934
Provision for income taxes			962				558				2,160				1,608
Net Income		$	3,035			$	2,149			$	7,631			$	6,326
Consolidated net income		$	3,035			$	2,149			$	7,631			$	6,326
Less: net income attributable to noncontrolling interest			(142	)			(142	)			(424	)			(422	)
Net income attributable to common shareholders		$	2,893			$	2,007			$	7,207			$	5,904
Net Income Per Common Share (1)
Basic		$	0.40			$	0.27			$	1.00			$	0.80
Assuming dilution		$	0.40			$	0.27			$	1.00			$	0.80
Weighted Average Common Shares Outstanding (1)
Basic			7,161,235				7,340,640				7,220,350				7,353,615
Assuming dilution			7,161,235				7,340,640				7,220,350				7,353,615

 

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v3.24.3

Document And Entity Information	Nov. 08, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 08, 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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