Uwharrie Capital Corp.

08/22/2025 | Press release | Distributed by Public on 08/22/2025 10:14

Business/Financial Results (Form 8-K)

August 22, 2025

Dear Shareholder:

At the midpoint of 2025, we find ourselves in an economic environment that continues to present challenges. This quarter brought meaningful opportunities to advance our priorities and further strengthen Uwharrie Capital Corp.

We are proud to share that the American Bankers Association reported that Uwharrie Capital Corp ranked #14 nationally in the top 20 publicly traded banks under $2 billion in assets during 2024.

Our financial performance through the first six months of 2025 continues to excel.

•
Total assets increased to $1.17B, up $46.5B, or 4.1%, from June 30, 2024.
•
Total loans reached $687M, rising from $640M at June 30, 2024, a 7.2% increase.
•
Deposits increased by $38.3M, or 3.7%, from Q2 2024.
•
Net income rose $271K, or 10.6%, from Q1 2025 and $781K, or 17%, year-over-year.
•
Net interest margin stood at 3.56%, compared to 3.42% in Q2 2024.
•
Maintained a healthy total annualized return on equity of 17.3%.

In April, our team embraced Community Banking Month with purpose. Over 130 employees participated in nearly 20 community projects across our footprint. While we engage in local initiatives throughout the year, this concentrated effort reaffirmed our deep commitment to service and civic engagement.

As we look ahead to the second half of the year, we remain grounded in our mission and guided by our core values. We are growing with purpose, listening closely, and leading with service - ever mindful of the people and communities who make this journey meaningful.

Thank you for your support. Your investment is helping shape a stronger future for our Company and for the communities we all call home.

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).

Uwharrie Capital Corp and Subsidiaries

Consolidated Balance Sheets (Unaudited)

June 30,

June 30,

(Amounts in thousands except share and per share data)

2025

2024

Assets

Cash and due from banks

$

10,676

$

11,195

Interest-earning deposits with banks

62,598

46,276

Securities available for sale

340,985

350,764

Securities held to maturity (fair value $21,047 and $24,656, respectively)

23,753

27,252

Less: allowance for credit losses on securities held to maturity

(54

)

(66

)

Net securities held to maturity

23,699

27,186

Equity securities, at fair value

325

324

Loans held for sale

9,147

3,611

Loans held for investment

677,556

636,738

Less: allowance for credit losses on loans

(6,231

)

(5,908

)

Net loans held for investment

671,325

630,830

Premises and equipment, net

14,054

14,552

Interest receivable

4,300

4,688

Restricted stock

1,749

1,709

Bank-owned life insurance

8,008

7,864

Deferred income tax benefit

8,036

9,056

Loan servicing assets

3,828

4,089

Other assets

11,024

11,116

Total assets

$

1,169,754

$

1,123,260

Liabilities

Deposits:

Demand, noninterest-bearing

$

291,431

$

286,517

Interest checking and money market accounts

394,855

391,245

Savings accounts

102,666

95,208

Time deposits, $250,000 and over

127,984

128,162

Other time deposits

145,428

122,943

Total deposits

1,062,364

1,024,075

Short-term borrowed funds

1,132

6,400

Long-term debt

29,200

29,123

Other liabilities

11,654

11,530

Total liabilities

1,104,350

1,071,128

Shareholders' Equity

Common stock, $1.25 par value: 20,000,000 shares authorized;

issued and outstanding or in process of issuance

7,013,052 and 7,068,577, respectively.

Book value per share $7.81 in 2025 and $5.75 in 2024 (1)

8,766

8,836

Additional paid-in capital

12,038

12,510

Undivided profits

55,448

46,419

Accumulated other comprehensive loss

(21,503

)

(26,288

)

Total Uwharrie Capital Corp shareholders' equity

54,749

41,477

Noncontrolling interest

10,655

10,655

Total shareholders' equity

65,404

52,132

Total liabilities and shareholders' equity

$

1,169,754

$

1,123,260

(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.

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)

2025

2024

2025

2024

Interest Income

Interest and fees on loans

$

10,479

$

9,285

$

20,704

$

18,079

Interest on investment securities

3,195

3,326

6,282

6,564

Interest-earning deposits with banks and federal funds sold

662

710

1,152

1,336

Total interest income

14,336

13,321

28,138

25,979

Interest Expense

Interest paid on deposits

4,270

4,097

8,625

7,826

Interest paid on borrowed funds

335

408

678

799

Total interest expense

4,605

4,505

9,303

8,625

Net Interest Income

9,731

8,816

18,835

17,354

Provision for credit losses

254

431

535

401

Net interest income after provision for credit losses

9,477

8,385

18,300

16,953

Noninterest Income

Service charges on deposit accounts

263

267

522

535

Interchange and card transaction fees

308

322

557

610

Other service fees and commissions

989

897

1,970

1,828

Loss on sale/call of securities

-

-

-

(148

)

Realized/unrealized gain (loss) on equity securities

14

(19

)

(9

)

22

Income from mortgage banking

1,027

606

2,078

1,440

Other income

483

153

347

268

Total noninterest income

3,084

2,226

5,465

4,555

Noninterest Expense

Salaries and employee benefits

5,711

5,145

11,131

10,359

Occupancy expense

433

429

897

854

Equipment expense

207

218

411

425

Data processing

228

203

441

433

Loan costs

69

51

158

84

Professional fees and services

267

262

537

526

Marketing and donations

359

339

718

705

Software amortization and maintenance

356

329

720

659

Other operating expenses

1,350

856

1,895

1,669

Total noninterest expense

8,980

7,832

16,908

15,714

Income before income taxes

3,581

2,779

6,857

5,794

Provision for income taxes

757

566

1,480

1,198

Net Income

$

2,824

$

2,213

$

5,377

$

4,596

Consolidated net income

$

2,824

$

2,213

$

5,377

$

4,596

Less: net income attributable to noncontrolling interest

(141

)

(141

)

(280

)

(282

)

Net income attributable to Uwharrie Capital Corp and common shareholders

$

2,683

$

2,072

$

5,097

$

4,314

Net Income Per Common Share (1)

Basic

$

0.38

$

0.29

$

0.72

$

0.60

Assuming dilution

$

0.38

$

0.29

$

0.72

$

0.60

Weighted Average Common Shares Outstanding (1)

Basic

7,047,162

7,235,539

7,061,434

7,250,231

Assuming dilution

7,047,162

7,235,539

7,061,434

7,250,231

Uwharrie Capital Corp. published this content on August 22, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on August 22, 2025 at 16:14 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]