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 17, 2023

 

 

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 17, 2023, 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, 2023.

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

(c) Exhibits

 

Exhibit Number		Description
99.1		Quarterly report to shareholders for the period ended September 30, 2023
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 17, 2023		By:	/s/ Heather H. Almond
			Heather H. Almond
			Principal Financial Officer

 

 

 

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Exhibit 99.1

 

 

 

November 17, 2023

Dear Shareholder:

As we complete the third quarter of 2023, we are pleased to present you with an update that underscores the strength and stability of our financial position. Your Company has continued to grow in assets and deepen its community ties, reflecting our collective commitment to a prosperous future for all stakeholders.

Over the past year, from September 30, 2022, to September 30, 2023, our assets have increased from $1.04 billion to $1.07 billion. During this period, our loan portfolio has increased by $102 million, which translates to a robust 21% year-over-year growth. This growth has been achieved while steadfastly upholding our strong credit standards. We have not wavered in our commitment to responsible lending, ensuring that the quality of our loan portfolio remains of the highest order.

Our Bank’s capital ratios reflect our strong financial foundation, with a Total Risk Based Capital ratio of 14.23%. This solid capital base positions us well above the regulatory requirements and is indicative of our prudent financial management and forward-looking strategy.

The net income for the first nine months of 2023 is reported at $6.3 million, an increase from the $5.3 million recorded at the same time last year. This equates to $5.9 million in net income available to common shareholders, or $0.82 per share, compared to $4.9 million in net income available to common shareholders, or $0.67 per share, that we reported in 2022 for the same period. This growth in earnings is a clear demonstration of our operational excellence and the effectiveness of our strategic initiatives.

In recognition of our solid performance, the Board of Directors has declared a 2% stock dividend. All shareholders of record on November 7, 2023, will receive the dividend on November 21, 2023. The stock dividend will be paid electronically via book-entry (no stock certificates will be issued). Consistent with prior years, we chose to pay a stock dividend as opposed to cash to provide our shareholders with options to suit their specific financial needs. Shareholders in peak earning years may choose to hold the dividend shares, which defers income, and paying taxes in later years could be at a lower capital gains rate. For our shareholders desiring current income, these new shares can be sold for cash. The stock dividend gives you the flexibility of when to recognize the income and address the tax considerations based on your individual needs.

We move forward with the determination to sustain this momentum, balancing growth with stability and always with an eye on serving the best interests of our communities and stakeholders.

Thank you for your continued trust and partnership. Best wishes to you and your families as we head into the 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)		2023				2022
Assets
Cash and due from banks		$	9,463			$	5,821
Interest-earning deposits with banks			68,407				147,397
Securities available for sale			328,099				321,382
Securities held to maturity (fair value $24,807 and $26,990, respectively)			29,146				30,343
Less: allowance for credit losses on securities held to maturity			(65	)			-
Equity securities, at fair value			299				321
Loans held for sale			4,584				4,740
Loans held for investment			578,835				477,175
Less: allowance for credit losses on loans			(5,115	)			(2,661	)
Net loans held for investment			573,720				474,514
Premises and equipment, net			15,172				14,885
Interest receivable			4,313				3,203
Restricted stock			1,672				1,428
Bank-owned life insurance			7,756				9,155
Deferred income tax benefit			12,512				11,560
Loan servicing assets			4,431				5,149
Other assets			10,293				8,783
Total assets		$	1,069,802			$	1,038,681
Liabilities
Deposits:
Demand, noninterest-bearing		$	276,484			$	293,112
Interest checking and money market accounts			435,289				499,515
Savings accounts			103,953				107,088
Time deposits, $250,000 and over			70,026				46,422
Other time deposits			104,537				17,424
Total deposits			990,289				963,561
Short-term borrowed funds			931				1,103
Long-term debt			29,085				29,588
Other liabilities			12,427				11,937
Total liabilities			1,032,732				1,006,189
Shareholders' Equity
Common stock, $1.25 par value: 20,000,000 shares authorized;
issued and outstanding or in process of issuance
7,049,510 and 6,928,661 shares, respectively.
Book value per share $3.67 in 2023 and $3.01 in 2022 (1)			8,812				8,661
Common stock dividend distributable			176				216
Additional paid-in capital			13,331				12,886
Undivided profits			39,980				34,138
Accumulated other comprehensive loss			(35,884	)			(34,064	)
Total Uwharrie Capital Corp shareholders' equity			26,415				21,837
Noncontrolling interest			10,655				10,655
Total shareholders' equity			37,070				32,492
Total liabilities and shareholders' equity		$	1,069,802			$	1,038,681
(1) Net income per share, book value per share and weighted average shares outstanding have been adjusted to reflect the 2% stock dividend in 2023 and the 2.5% stock dividend in 2022.

 

 

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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)		2023				2022				2023				2022
Interest Income
Interest and fees on loans		$	7,645			$	5,367			$	21,001			$	15,771
Interest on investment securities			3,086				1,973				8,904				4,954
Interest-earning deposits with banks and federal funds sold			979				725				3,230				1,012
Total interest income			11,710				8,065				33,135				21,737
Interest Expense
Interest paid on deposits			3,188				513				8,016				903
Interest paid on borrowed funds			345				340				1,030				1,014
Total interest expense			3,533				853				9,046				1,917
Net Interest Income			8,177				7,212				24,089				19,820
Provision for (recovery of) credit losses			599				(1,512	)			985				(1,407	)
Net interest income after provision for (recovery of) credit losses			7,578				8,724				23,104				21,227
Noninterest Income
Service charges on deposit accounts			272				282				785				786
Interchange and card transaction fees			291				315				910				856
Other service fees and commissions			875				763				2,586				2,465
Loss on sale of securities			-				-				(42	)			(91	)
Realized/unrealized gain (loss) on equity securities			(4	)			(6	)			7				(71	)
Income from mortgage banking			957				819				2,542				3,258
Other income (loss)			128				65				399				(84	)
Total noninterest income			2,519				2,238				7,187				7,119
Noninterest Expense
Salaries and employee benefits			4,822				4,868				14,498				14,796
Occupancy expense			460				424				1,345				1,276
Equipment expense			195				199				578				580
Data processing			103				204				511				610
Loan costs			88				92				286				356
Professional fees and services			268				217				705				633
Marketing and donations			313				359				1,037				898
Software amortization and maintenance			311				304				914				923
Other operating expenses			830				733				2,483				1,751
Total noninterest expense			7,390				7,400				22,357				21,823
Income before income taxes			2,707				3,562				7,934				6,523
Provision for income taxes			558				737				1,608				1,215
Net Income		$	2,149			$	2,825			$	6,326			$	5,308
Consolidated net income		$	2,149			$	2,825			$	6,326			$	5,308
Less: net income attributable to noncontrolling interest			(142	)			(142	)			(422	)			(422	)
Net income attributable to Uwharrie Capital Corp and common shareholders		$	2,007			$	2,683			$	5,904			$	4,886
Net Income Per Common Share (1)
Basic		$	0.28			$	0.37			$	0.82			$	0.67
Assuming dilution		$	0.28			$	0.37			$	0.82			$	0.67
Weighted Average Common Shares Outstanding (1)
Basic			7,196,706				7,245,951				7,209,426				7,253,349
Assuming dilution			7,196,706				7,245,951				7,209,426				7,253,349

 

 

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v3.23.3

Document And Entity Information	Nov. 17, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 17, 2023
Entity Registrant Name	Uwharrie Capital Corp
Entity Central Index Key	0000898171
Entity Emerging Growth Company	false
Securities Act 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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