Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Note 18 - Segment Reporting

The chief operating decision maker (“CODM”) of the Company is a group of individuals, also referred to as the Executive Management Team, consisting of the Chief Executive Officer, Chief Financial Officer, Chief Operations Officer and Chief Risk Officer. The Executive Management Team is responsible for allocating resources and assessing the performance of the Company.

Segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the CODM. The Executive Management Team has identified three operating segments within the Company, each with a manager that reports directly to the CODM. The Company's business operating segments are determined based on the nature of the products or services provided and reflect the manner in which financial information is currently evaluated by the Executive Management Team. The three operating segments of the Company are as follows:

Banking Operations - This segment provides financial products and services to consumer and commercial customers in the form of deposit products, loan products and cash management services through branches, online banking, mobile banking and telephone banking. This segment is also responsible for the management of the investment portfolio. Significant components of noninterest income for this segment are service charges on deposits and interchange fees on card transactions. Significant noninterest expense is salaries and employee benefits.

Mortgage Banking - This segment reflects Uwharrie Bank Mortgage, a division of the Bank that specializes in originating and

servicing one-to-four family residential mortgage loans which are primarily sold on the secondary market. Loans sold to Fannie Mae or Freddie Mac are sold with servicing rights retained. Significant noninterest income for this segment is gain or loss on the sale of loans. Significant noninterest expense is salaries and employee benefits.

Wealth Management - This segment reflects investment advisory, broker-dealer and insurance services of UIA, TSAC and BOS

Agency, respectively. Significant noninterest income for this segment is service fees and commissions. Significant noninterest expense is salaries and employee benefits.

While the CODM monitors each segment’s pre-tax, pre-provision profit or loss, the primary measure for allocating resources to the operating segments during the annual budgeting process is Net Income. This measure is also used to assess the performance of each segment, with a focus on net interest income, noninterest income, and noninterest expense. The CODM conducts monthly income review meetings, where budget-to-actual variances for Net Income and pre-tax, pre-provision profit or loss and its components are analyzed. The Company provides a broad range of financial services as described above and aims to provide one place for its customers to satisfy all of their financial services needs. As such, many customers are shared under the “Uwharrie” umbrella as are certain costs to conduct business. Management regularly reviews the different revenue streams, but is aware that shared resources and costs of key corporate functions may not be fully allocated among the operating segments. The Executive Management Team believes it is appropriate to aggregate the three operating segments into one reportable segment. A review of quantitative thresholds was performed, and the CODM has determined that the Company’s operations are not considered to constitute more than one reportable segment. Non-segment operations are classified as Other below and include assets and activity of the parent holding company. Management will continue to evaluate the operating segments for separate reporting as facts and circumstances change.

	Banking, Mortgage and Wealth Management		Other			Consolidated
	(dollars in thousands)
For the Year Ended December 31, 2024
Interest income	$	57,537	$	102		$	57,639
Interest expense		20,328		1,386			21,714
Net interest income		37,209		(1,284	)		35,925
Noninterest income		12,022		203			12,225
Noninterest expense		34,366		497			34,863
Pre-tax, pre-provision income		14,865		(1,578	)		13,287
Provision for (recovery of) credit losses		528		—			528
Provision for income taxes		3,183		(332	)		2,851
Net income (loss)	$	11,154	$	(1,246	)	$	9,908
Total assets as of December 31, 2024	$	1,123,764	$	5,044		$	1,128,808
For the Year Ended December 31, 2023
Interest income	$	47,484	$	87		$	47,571
Interest expense		13,497		1,378			14,875
Net interest income		33,987		(1,291	)		32,696
Noninterest income		11,580		167			11,747
Noninterest expense		31,629		536			32,165
Pre-tax, pre-provision income		13,938		(1,660	)		12,278
Provision for (recovery of) credit losses		1,514		—			1,514
Provision for income taxes		2,517		(349	)		2,168
Net income (loss)	$	9,907	$	(1,311	)	$	8,596
Total assets as of December 31, 2023	$	1,066,192	$	6,399		$	1,072,591