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): May 29, 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 May 29, 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 March 31, 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 March 31, 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: May 29, 2024		By:	/s/ Heather H. Almond
			Heather H. Almond
			Principal Financial Officer

 

 

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Exhibit 99.1

 

 

 

May 29, 2024

 

Dear Shareholder:

Our goal is to be a trusted financial partner contributing to the vitality and growth of our areas, ensuring our customers feel supported in their financial journeys and community endeavors. Toward that end, we are pleased to report that as of March 31, 2024, your Company had total assets of $1.10 billion, an increase of $51 million from the previous year. This is supported by a $39 million growth in core deposits. Our impact on the economies of the communities we serve goes beyond the assets that are recorded on our balance sheet. Uwharrie Capital Corp manages an additional $1 billion in off-balance sheet assets through Uwharrie Investment Advisors and Uwharrie Bank Mortgage.

Our loans grew $97 million year-over-year, a 19% growth funded through the expansion of deposits and liquidity reserves. We have accomplished this growth without compromising credit quality. Our strategy is not just about loan and deposit volume. Our focus is on building relationships with the families and businesses that make up our communities.

Net income for the first three months of 2024 was $2.4 million, compared to $2.0 million for the same three-month period in 2023. This equates to $2.2 million in net income available to common shareholders, or $0.31 per share, compared to $1.8 million in net income available to common shareholders, or $0.25 per share, that we reported in 2023 for the same period. This is an annualized return on shareholders’ equity of 18.96%. The key driver of the improvement in earnings year-over-year is directly attributable to the increase in net interest margin and a growth in customer relationships. This growth has continued into 2024, underscoring our strategic focus on deepening customer relationships and effectively managing our balance sheet.

As we celebrate our 40th anniversary, we want to express our heartfelt gratitude for your continued support. We invite you to join the festivities at our branch events and to follow our journey on social media. We hope that you will continue to refer your family and friends to become customers and shareholders with you. Together we can continue to build on the success of the last 40 years and continue to thrive going forward. We deeply value your support as we remain committed to making a meaningful difference…earning a good return on your investment while improving our community.

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)
		March 31,				March 31,
(Amounts in thousands except share and per share data)		2024				2023
Assets
Cash and due from banks		$	11,446			$	7,339
Interest-earning deposits with banks			51,203				110,039
Securities available for sale			338,447				331,154
Securities held to maturity, net (fair value $25,583 and $26,596, respectively)			28,430				29,227
Less: allowance for credit losses on securities held to maturity			(66	)			(63	)
Equity security, at fair value			343				326
Loans held for sale			5,299				4,089
Loans held for investment			613,808				516,394
Less: allowance for credit losses on loans			5,523				4,596
Net loans held for investment			608,285				511,798
Premises and equipment, net			14,894				14,544
Interest receivable			4,765				3,837
Restricted stock			1,709				1,468
Bank-owned life insurance			7,828				7,686
Deferred income tax benefit			9,034				9,928
Loan servicing assets			4,180				4,746
Other assets			10,869				9,294
Total assets		$	1,096,666			$	1,045,412
Liabilities
Deposits:
Demand, noninterest-bearing		$	284,856			$	279,097
Interest checking and money market accounts			407,211				457,121
Savings accounts			100,093				101,625
Time deposits, $250,000 and over			86,047				54,133
Other time deposits			121,616				68,822
Total deposits			999,823				960,798
Short-term borrowed funds			6,290				982
Long-term debt			29,123				29,376
Other liabilities			11,027				12,413
Total liabilities			1,046,263				1,003,569
Shareholders' Equity
Common stock, $1.25 par value: 20,000,000 shares authorized;
issued and outstanding or in process of issuance
7,103,003 and 7,075,125 shares, respectively.
Book value per share $5.60 in 2024 and $4.32 in 2023 (1)			8,879				8,844
Additional paid-in capital			12,735				12,633
Undivided profits			44,347				36,930
Accumulated other comprehensive loss			(26,213	)			(27,219	)
Total Uwharrie Capital Corp shareholders' equity			39,748				31,188
Noncontrolling interest			10,655				10,655
Total shareholders' equity			50,403				41,843
Total liabilities and shareholders' equity		$	1,096,666			$	1,045,412
(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
		March 31,
(Amounts in thousands except share and per share data)		2024				2023
Interest Income
Interest and fees on loans		$	8,794			$	6,367
Interest on investment securities			3,238				2,867
Interest-earning deposits with banks and federal funds sold			626				1,070
Total interest income			12,658				10,304
Interest Expense
Interest paid on deposits			3,729				2,116
Interest paid on borrowed funds			391				343
Total interest expense			4,120				2,459
Net Interest Income			8,538				7,845
Provision for (recovery of) credit losses			(30	)			277
Net interest income after provision for (recovery of) credit losses			8,568				7,568
Noninterest Income
Service charges on deposit accounts			268				249
Interchange and card transaction fees			288				304
Other service fees and commissions			931				889
Loss on sale/call of securities			(148	)			(51	)
Realized/unrealized gain on equity securities			41				34
Income from mortgage banking			834				694
Other income (loss)			115				(137	)
Total noninterest income			2,329				1,982
Noninterest Expense
Salaries and employee benefits			5,214				4,744
Occupancy expense			425				453
Equipment expense			207				188
Data processing			230				204
Loan costs			33				100
Professional fees and services			264				258
Marketing and donations			366				382
Software amortization and maintenance			330				307
Other operating expenses			813				489
Total noninterest expense			7,882				7,125
Income before income taxes			3,015				2,425
Provision for income taxes			632				471
Net Income		$	2,383			$	1,954
Consolidated net income		$	2,383			$	1,954
Less: net income attributable to noncontrolling interest			(141	)			(139	)
Net income attributable to Uwharrie Capital Corp and common shareholders		$	2,242			$	1,815
Net Income Per Common Share (1)
Basic		$	0.31			$	0.25
Assuming dilution		$	0.31			$	0.25
Weighted Average Common Shares Outstanding (1)
Basic			7,122,475				7,216,628
Assuming dilution			7,122,475				7,216,628

 

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v3.24.1.1.u2

Document And Entity Information	May 29, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 29, 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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