8-K

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): August 18, 2020

UWHARRIE CAPITAL CORP

(Exact name of Registrant as Specified in Its Charter)

Registrant’s Telephone Number, Including Area Code: 704-983-6181

N/A

(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 (see General Instructions A.2. below):

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. ☐

Securities registered pursuant to Section 12(b) of the Act:

Item 2.02 Results of Operations and Financial Condition

On August 18, 2020, 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 June 30, 2020.

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

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.

uwhr-ex991_6.htm

Exhibit 99.1

August 18, 2020

Dear Shareholder:

Your Company continues to evolve and adapt to forced changes from COVID-19. We like to equate the current planning and forecasting environment to driving a car through fog: you move carefully and re-evaluate the situation frequently so you are able to adjust as needed to uncontrollable factors as they present themselves.

During the second quarter of 2020, Uwharrie Capital Corp and subsidiaries ensured that our customers had sufficient financial support and access to our services as needed. Our electronic platforms of online banking, mobile banking and telephone banking provide the ease of banking at customers’ fingertips, on their time. [Online operations allow for a safer environment for our team and our customers who may need to physically access our branches by appointment.]

Uwharrie Bank has become a significant alliance to our customers and non-customers through the Small Business Administration (SBA) Paycheck Protection Program (PPP). As a Preferred SBA Lender, our team reacted quickly to the Program’s requirements and this allowed our Main Street businesses, as well as businesses outside of our standard footprint that had not gotten help from their banks, to access available funds and put payroll dollars into the hands of families that depend on them. So far, we have secured funding for over 1,000 businesses for nearly $80 million in government funds, impacting over 10,000 families. Additionally, we continue to provide various payment deferrals for current consumer and business customers to help them bridge the interruption of income they are experiencing during these financially turbulent times.

The mortgage division of your Company continues to provide an important service to our customers with the refinance boom that has extended over the second quarter from the first quarter’s significant rate drop. This division has worked non-stop to aid our current and new customer base in savings by refinancing their mortgages and securing home purchases, taking advantage of the much lower rate environment. Over 500 households have been served this year through June 30, 2020. Strong production has resulted in income for the first six months of 2020 of $4.8 million, an increase of $3.2 million or 200% over the same period in 2019.

For the first six months of 2020, your Company’s earnings from all divisions before income tax and loan loss provisions was $3.8 million, an increase of $2.2 million or 130% when compared to the same period in 2019. Due to the increased risk and uncertainty associated with the effects of COVID-19, your Company added $1.4M to its provision for loan losses. The resulting Net Income Available to Common Shareholders after dividends for June 30, 2020 was $1.6 million, compared to $1.4 million reported for the same period in 2019, an increase of 21%. The Company grew assets from $656.8 million at December 31, 2019 to $748.2 million at June 30, 2020. The growth is a reflection of increased deposits from current and new customers due, in part, to PPP loan funds. In addition, natural growth has occurred as a result of the flight to safety embedded in an unfavorable market and the impact of slowed or halted spending from consumers.

While we are still unsure of the lasting impacts of the pandemic on the economy and life in general, we will continue to do our part by providing financial services and supporting the long-term sustainability in the communities we serve. We view the “COVID impact” as an opportunity to adapt and create new value. In the words of Joshua J. Marine, “Challenges are what make life interesting and overcoming them is what makes life meaningful.”

Thank you for your continued support.

Sincerely,

UWHARRIE CAPITAL CORP

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).

All values are in US Dollars.