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Uwharrie Capital Corp (UWHR) SEC Filing 8-K Material Event for the period ending Tuesday, November 16, 2021

Uwharrie Capital Corp

CIK: 898171 Ticker: UWHR

Exhibit 99.1

 

 

November 16, 2021

 

 

Dear Shareholder:

We are pleased to report to you year-to-date results, a record year in the making.  By the end of the third quarter of 2021, we have surpassed the total earnings of 2020.  Net income for the first nine months of 2021 was $8.9 million, as compared to $3.5 million for the same nine month period in 2020.  This equates to $8.4 million in net income available to common shareholders, or $1.17 per share, compared to $3.1 million in net income available to common shareholders, or $0.42 per share, that we reported in 2020 for the same period.  This represents an earnings growth of 179% in income per share year-to-date compared to the first nine of months of 2020.  In addition, your Company has grown $129 million, or 16%, to total assets of $921 million.  

These outstanding results come from your Company developing new relationships with businesses and families in our communities, creating new wealth and prosperity.  The reputation of Uwharrie Capital Corp and all of its financial service subsidiaries: Uwharrie Bank, Uwharrie Investment Advisors, and Uwharrie Bank Mortgage is becoming known in our region as a trusted financial services partner.  Our ability to adapt and fit our financial programs to individual needs is setting us apart.

Our purpose-driven mission, executed by a group of committed associates, is “Making a Difference.”  Our focus on Main Street America and families is to the heart of what builds sustainable communities.  The ability to bring to bear the resources so we might pursue our purpose would not be possible without your belief in our mission and investment of your capital.  Capitalism is at its best when it is also a public virtue.  By this we mean that satisfying a public need for local financial services, we are rewarded with a fair profit.  Profit is not our purpose, but rather the results of doing a good job in meeting the financial needs of the communities we serve.  As of 9/30/2021, our return on equity of 20% was reflected in the stock price of $9.65, as quoted on the OTCQX system.

As a result of these record earnings, the Board of Directors has declared a stock dividend of 3%, up from the recent 2% dividend that has been paid the last several years.  All shareholders of record on November 9, 2021, will receive the dividend on November 23, 2021.  The stock dividend will be paid electronically via book-entry (no stock certificates will be issued).  Consistent with prior years, we choose to pay a stock dividend as opposed to cash to provide our shareholders with options to suit their specific financial needs.  Shareholders still 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.

As we approach the holiday season we express our gratitude to you, our shareholders, for your continued support.  We also give thanks for the blessings we have received by working together to make our communities better places to live and we pray for your health and safety through the holidays!

 


 

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)

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands except share and per share data)

2021

 

 

2020

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Cash and due from banks

$

4,015

 

 

$

6,494

 

Interest-earning deposits with banks

 

112,059

 

 

 

63,955

 

Securities available for sale

 

291,049

 

 

 

178,582

 

Securities held to maturity (fair value $29,687 and $27,373, respectively)

 

28,588

 

 

 

26,244

 

Equity securities, at fair value

 

409

 

 

 

1,335

 

Loans held for sale

 

9,737

 

 

 

7,812

 

Loans held for investment

 

432,335

 

 

 

467,726

 

     Less: Allowance for loan losses

 

(3,670

)

 

 

(4,494

)

     Net loans held for investment

 

428,665

 

 

 

463,232

 

Premises and equipment, net

 

16,149

 

 

 

16,392

 

Interest receivable

 

2,679

 

 

 

2,447

 

Restricted stock

 

921

 

 

 

1,166

 

Bank-owned life insurance

 

9,033

 

 

 

8,901

 

Other real estate owned

 

-

 

 

 

359

 

Prepaid assets

 

879

 

 

 

1,000

 

Loan servicing assets

 

5,125

 

 

 

3,155

 

Mortgage banking derivatives

 

1,196

 

 

 

252

 

Other assets

 

10,482

 

 

 

10,578

 

     Total assets

$

920,986

 

 

$

791,904

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

     Demand, noninterest-bearing

$

243,686

 

 

$

200,764

 

     Interest checking and money market accounts

 

404,484

 

 

 

379,108

 

     Savings accounts

 

93,290

 

 

 

71,194

 

     Time deposits, $250,000 and over

 

24,363

 

 

 

9,051

 

     Other time deposits

 

47,501

 

 

 

53,570

 

          Total deposits

 

813,324

 

 

 

713,687

 

Interest payable

 

69

 

 

 

27

 

Short-term borrowed funds

 

1,130

 

 

 

635

 

Long-term debt

 

29,511

 

 

 

10,992

 

Other liabilities

 

14,791

 

 

 

12,271

 

     Total liabilities

 

858,825

 

 

 

737,612

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

     issued and outstanding or in process of issuance

 

 

 

 

 

 

 

     6,949,634 and 6,961,230 shares, respectively.

 

 

 

 

 

 

 

     Book value per share $7.20 in 2021 and $5.97 in 2020 (1)

 

8,687

 

 

 

8,702

 

Common stock dividend distributable

 

261

 

 

 

174

 

Additional paid-in capital

 

13,550

 

 

 

12,756

 

Undivided profits

 

29,558

 

 

 

18,600

 

Accumulated other comprehensive income (loss)

 

(550

)

 

 

3,405

 

     Total Uwharrie Capital Corp shareholders' equity

 

51,506

 

 

 

43,637

 

Noncontrolling interest

 

10,655

 

 

 

10,655

 

     Total shareholders' equity

 

62,161

 

 

 

54,292

 

     Total liabilities and shareholders' equity

$

920,986

 

 

$

791,904

 

 

 

 

 

 

 

 

 

(1) Net income per share, book value per share and weighted average shares outstanding have been adjusted to reflect the 2% stock dividend in 2020 and the 3% stock dividend in 2021.

 


 

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)

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

6,242

 

$

5,190

 

$

17,639

 

$

14,774

 

Interest on investment securities

 

1,054

 

 

960

 

 

3,055

 

 

2,315

 

Interest-earning deposits with banks and federal funds sold

 

53

 

 

26

 

 

96

 

 

616

 

Total interest income

 

7,349

 

 

6,176

 

 

20,790

 

 

17,705

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid on deposits

 

176

 

 

312

 

 

562

 

 

1,412

 

Interest paid on borrowed funds

 

191

 

 

142

 

 

461

 

 

419

 

Total interest expense

 

367

 

 

454

 

 

1,023

 

 

1,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

6,982

 

 

5,722

 

 

19,767

 

 

15,874

 

Provision for (recovery of) loan losses

 

(1,057

)

 

1,066

 

 

(1,232

)

 

2,465

 

Net interest income after provision for (recovery of) loan losses

 

8,039

 

 

4,656

 

 

20,999

 

 

13,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

253

 

 

241

 

 

735

 

 

763

 

Interchange and card transaction fees

 

261

 

 

266

 

 

819

 

 

640

 

Other service fees and commissions

 

842

 

 

588

 

 

2,272

 

 

1,911

 

Gain on sale of securities

 

-

 

 

19

 

 

991

 

 

77

 

Realized/unrealized gain (loss) on equity securities

 

(2

)

 

101

 

 

(14

)

 

434

 

Income from mortgage banking

 

2,323

 

 

3,961

 

 

9,498

 

 

8,727

 

Other income

 

883

 

 

370

 

 

1,540

 

 

428

 

Total noninterest income

 

4,560

 

 

5,546

 

 

15,841

 

 

12,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

5,833

 

 

5,254

 

 

16,455

 

 

14,708

 

Occupancy expense

 

433

 

 

430

 

 

1,319

 

 

1,261

 

Equipment expense

 

192

 

 

202

 

 

529

 

 

564

 

Data processing

 

170

 

 

171

 

 

500

 

 

491

 

Loan costs

 

192

 

 

155

 

 

689

 

 

409

 

Professional fees and services

 

239

 

 

313

 

 

707

 

 

716

 

Marketing and donations

 

215

 

 

294

 

 

1,036

 

 

705

 

Software amortization and maintenance

 

335

 

 

352

 

 

1,058

 

 

916

 

Other operating expenses

 

1,574

 

 

831

 

 

3,287

 

 

1,975

 

Total  noninterest expense

 

9,183

 

 

8,002

 

 

25,580

 

 

21,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

3,416

 

 

2,200

 

 

11,260

 

 

4,644

 

Provision for income taxes

 

732

 

 

618

 

 

2,389

 

 

1,132

 

Net Income

$

2,684

 

$

1,582

 

$

8,871

 

$

3,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income

$

2,684

 

$

1,582

 

$

8,871

 

$

3,512

 

  Less: Net income attributable to noncontrolling interest

 

(142

)

 

(142

)

 

(422

)

 

(424

)

Net income attributable to Uwharrie Capital Corp and common shareholders

$

2,542

 

$

1,440

 

$

8,449

 

$

3,088

 

Net Income Per Common Share (1)

 

 

 

 

 

 

 

 

 

 

 

 

     Basic

$

0.35

 

$

0.20

 

$

1.17

 

$

0.42

 

     Assuming dilution

$

0.35

 

$

0.20

 

$

1.17

 

$

0.42

 

Weighted Average Common Shares Outstanding (1)

 

 

 

 

 

 

 

 

 

 

 

 

     Basic

 

7,168,405

 

 

7,319,100

 

 

7,218,109

 

 

7,360,295

 

     Assuming dilution

 

7,168,405

 

 

7,319,100

 

 

7,218,109

 

 

7,360,295

 

 

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Uwharrie Capital Corp provided additional information to their SEC Filing as exhibits

Ticker: UWHR
CIK: 898171
Form Type: 8-K Corporate News
Accession Number: 0001564590-21-057153
Submitted to the SEC: Tue Nov 16 2021 8:06:22 AM EST
Accepted by the SEC: Tue Nov 16 2021
Period: Tuesday, November 16, 2021
Industry: State Commercial Banks
Events:
  1. Earnings Release
  2. Financial Exhibit

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