EX-13 2 uwhr-ex13_187.htm EX-13 uwhr-ex13_187.htm

Exhibit 13

Uwharrie Capital Corp

2018

ANNUAL REPORT TO SHAREHOLDERS

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24

 


UWHARRIE CAPITAL CORP AND SUBSIDIARIES

Description of Business

Uwharrie Capital Corp (the “Company”) is a North Carolina bank holding company. The Company was incorporated on February 24, 1993 to become the bank holding company for Uwharrie Bank (the “Bank”), formerly, known as Bank of Stanly, a North Carolina commercial bank chartered on September 28, 1983, and its three wholly-owned subsidiaries, The Strategic Alliance Corporation, BOS Agency, Inc., and Gateway Mortgage, Inc., a mortgage origination company. The Company also owns two non-bank subsidiaries, Uwharrie Investment Advisors, Inc., formerly known as Strategic Investment Advisors, Inc., and Uwharrie Mortgage, Inc.

The Bank engages in retail and commercial banking with ten physical banking offices in North Carolina. The Bank provides a wide range of banking services including deposit accounts, commercial, consumer, home equity and residential mortgage loans, safe deposit boxes, and electronic banking services.

On January 19, 2000, the Company completed its acquisition of Anson Bancorp, Inc. and its subsidiary, Anson Savings Bank. The savings bank retained its North Carolina savings bank charter and became a wholly-owned subsidiary of Uwharrie Capital Corp as Anson Bank & Trust Co. (“Anson”) and provided financial services to customers through one banking office in Anson County until September 1, 2013 when it was consolidated with and into the Bank. The former Anson office is now operated by the Bank.

On April 10, 2003, the Company capitalized a new wholly-owned subsidiary bank, Cabarrus Bank & Trust Company (“Cabarrus”), located in Concord, North Carolina. As of that date, Cabarrus purchased two branch offices located in Cabarrus County from the Bank to begin its operation. Cabarrus operated as a commercial bank and provided a full range of banking services. Cabarrus was consolidated into the Bank effective September 1, 2013. The former Cabarrus offices are now operated as branches of the Bank.

The Company and its subsidiaries are located in Stanly County, Anson County, Cabarrus County and Mecklenburg County. However, the Company intends to prudently expand its service area within the Charlotte Metropolitan and Uwharrie Lakes Regions of North Carolina.

Depository services offered by the Bank include personal and commercial checking, savings, money market, certificates of deposit accounts and individual retirement accounts, all tailored to meet customers’ needs. The Bank provides fixed and variable rate loans, which include mortgage, home equity, lines of credit, consumer and commercial loans. The Bank also offers internet banking, mobile banking, and 24-hour telephone banking, providing customers the convenience of access to account information, rate information and accessibility of funds transfers between accounts. Other services include MasterCard ® credit cards and a Visa ® check card which functions as a point-of-sale (POS) and automated teller machine (ATM) card. Customers can use the check card for purchases at virtually any merchant accepting Visa ® and ATMs displaying the STAR ® or CIRRUS ® networks regionally and worldwide, respectively.

Uwharrie Investment Advisors, Inc., an SEC registered investment advisory firm, provides portfolio management services to its customers. The Strategic Alliance Corporation (Strategic Alliance ®) is a broker-dealer registered with the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). BOS Agency provides insurance products and is licensed in the state of North Carolina. Through Strategic Investment Group, a DBA for financial consultants registered with Private Client Services LLC, securities and insurance products are offered, including fixed annuities, long-term care products, Medicare supplement products, and life insurance products. Group insurance products are offered through an arrangement with Burchfield Insurance Group, Inc.

Uwharrie Investment Group: Securities and insurance products are offered through Private Client Services, LLC, 2225 Lexington Rd, Louisville, KY 40206, ph: 502-451-0600, Member FINRA and SIPC. Private Client Services, LLC and Uwharrie Capital Corp along with its affiliates and/or subsidiaries are separate, distinct, and unaffiliated entities. It is important to note that securities and insurance products are: NOT BANK DEPOSITS – NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY – NOT OBLICATIONS OF OR GUARANTEED BY ANY FINANCIAL INSTITUTION – SUBJECT TO RISK AND MAY LOSE VALUE.

Uwharrie Bank, Member FDIC, Equal Housing Lender.

 

25

 


UWHARRIE CAPITAL CORP AND SUBSIDIARIES

Financial Highlights

 

(Dollars in thousands, except per share amounts)

 

2018

 

 

2017

 

 

Percent

Increase

(Decrease)

 

For the year:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,477

 

 

$

1,611

 

 

 

53.76

%

Net income (loss) available to common shareholders

 

$

1,907

 

 

$

1,019

 

 

 

87.14

%

Basic net income (loss) per common share (1)

 

$

0.27

 

 

$

0.14

 

 

 

92.86

%

Diluted net income (loss) per common share (1)

 

$

0.27

 

 

$

0.14

 

 

 

92.86

%

Weighted average common shares outstanding (diluted) (1)

 

 

7,087,581

 

 

 

7,282,160

 

 

 

(2.67

)%

At year-end:

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

632,304

 

 

$

577,253

 

 

 

9.54

%

Total earning assets

 

 

583,631

 

 

 

526,937

 

 

 

10.76

%

Loans held for investment

 

 

369,970

 

 

 

356,871

 

 

 

3.67

%

Total interest-bearing liabilities

 

 

448,351

 

 

 

410,152

 

 

 

9.31

%

Shareholders’ equity

 

 

45,175

 

 

 

44,540

 

 

 

1.43

%

Book value per common share (1)

 

$

4.84

 

 

$

4.67

 

 

 

3.64

%

Averages for the year:

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

612,403

 

 

$

572,630

 

 

 

6.95

%

Total earning assets

 

 

566,208

 

 

 

527,249

 

 

 

7.39

%

Loans held for investment

 

 

369,419

 

 

 

348,980

 

 

 

5.86

%

Total interest-bearing liabilities

 

 

428,024

 

 

 

402,774

 

 

 

6.27

%

Shareholders’ equity

 

 

44,468

 

 

 

44,542

 

 

 

(0.17

)%

Financial ratios (in percentage):

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.40

%

 

 

0.28

%

 

 

 

 

Return on average shareholders’ equity

 

 

5.57

%

 

 

3.62

%

 

 

 

 

Average equity to average assets

 

 

7.26

%

 

 

7.78

%

 

 

 

 

Net interest margin (fully tax equivalent basis)

 

 

3.53

%

 

 

3.47

%

 

 

 

 

Allowance as % of loans at year-end

 

 

0.64

%

 

 

0.69

%

 

 

 

 

Allowance as % of nonperforming loans

 

 

227.38

%

 

 

239.80

%

 

 

 

 

Nonperforming loans to total loans

 

 

0.28

%

 

 

0.29

%

 

 

 

 

Nonperforming assets to total assets

 

 

0.33

%

 

 

0.58

%

 

 

 

 

Net loan charge-offs (recoveries) to average loans

 

 

0.05

%

 

 

 

 

 

 

 

 

(1)

Net income per share, book value per share and shares outstanding at year-end for 2017 have been adjusted to reflect the 2% stock dividend in 2018.

Market for the Company’s Common Stock and Related Security Holder Matters

It is the philosophy of Uwharrie Capital Corp to promote a strong base of local shareholders. While bid and ask prices for the Company’s common stock are quoted on the OTC Pink marketplace through www.otcmarkets.com, operated by OTC Markets Group, Inc. under the symbol UWHR, trading is sporadic with trades also taking place in privately negotiated transactions. Management makes every reasonable effort to match willing buyers with willing sellers as they become known for the purpose of private negotiations for the purchase and sale of the Company’s common stock.

Shareholders needing information about purchasing or selling shares of Uwharrie Capital Corp should contact Tamara M. Singletary or Lisa E. Hartsell, Investor Relations at Uwharrie Capital Corp, 132 N. First Street, Post Office Box 338, Albemarle, NC 28002.

The Board of Directors adopts a dividend policy on an annual basis. For 2018, Uwharrie Capital Corp declared a 2% stock dividend on its outstanding common stock. The Board of Directors will determine an appropriate dividend, if any, on an annual basis, consistent with the capital needs of the Company.

 

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27

 


 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the shareholders and the board of directors of Uwharrie Capital Corp:

 

Opinion on the Consolidated Financial Statements

 

We have audited the accompanying consolidated balance sheets of Uwharrie Capital Corp and Subsidiaries (the "Company") as of December 31, 2018 and 2017, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows, for each of the three years in the period ended December 31, 2018, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

 

/s/ Dixon Hughes Goodman LLP

 

We have served as the Company's auditor since 1996.

 

Charlotte, North Carolina

March 6, 2019

28

 


UWHARRIE CAPITAL CORP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2018 and 2017

 

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

4,473

 

 

$

7,538

 

Interest-earning deposits with banks

 

 

113,461

 

 

 

62,865

 

Securities available for sale, at fair value

 

 

91,299

 

 

 

95,743

 

Securities held to maturity (fair value $10,750 and $11,461, respectively)

 

 

10,837

 

 

 

11,458

 

Loans held for sale

 

 

4,800

 

 

 

4,414

 

Loans:

 

 

 

 

 

 

 

 

Loans held for investment

 

 

369,970

 

 

 

356,871

 

Less allowance for loan losses

 

 

(2,374

)

 

 

(2,458

)

Net loans held for investment

 

 

367,596

 

 

 

354,413

 

Premises and equipment, net

 

 

14,800

 

 

 

14,728

 

Interest receivable

 

 

1,763

 

 

 

1,709

 

Restricted stock

 

 

1,094

 

 

 

1,067

 

Bank owned life insurance

 

 

8,671

 

 

 

8,546

 

Other real estate owned

 

 

1,047

 

 

 

2,349

 

Prepaid assets

 

 

558

 

 

 

786

 

Other assets

 

 

11,905

 

 

 

11,637

 

Total assets

 

$

632,304

 

 

$

577,253

 

LIABILITIES

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Demand noninterest-bearing

 

$

129,714

 

 

$

113,762

 

Interest checking and money market accounts

 

 

324,391

 

 

 

289,953

 

Savings deposits

 

 

54,784

 

 

 

45,698

 

Time deposits, $250,000 and over

 

 

7,920

 

 

 

7,933

 

Other time deposits

 

 

50,092

 

 

 

55,282

 

Total deposits

 

 

566,901

 

 

 

512,628

 

Short-term borrowed funds

 

 

1,190

 

 

 

1,752

 

Long-term debt

 

 

9,974

 

 

 

9,534

 

Interest payable

 

 

16

 

 

 

148

 

Other liabilities

 

 

9,048

 

 

 

8,651

 

Total liabilities

 

 

587,129

 

 

 

532,713

 

Off balance sheet items, commitments and contingencies (Note 13)

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

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

   outstanding 7,126,541 and 7,112,853, respectively

 

 

8,908

 

 

 

8,891

 

Additional paid-in capital

 

 

12,885

 

 

 

12,824

 

Undivided profits

 

 

14,421

 

 

 

13,282

 

Accumulated other comprehensive loss

 

 

(1,694

)

 

 

(1,107

)

Total Uwharrie Capital shareholders’ equity

 

 

34,520

 

 

 

33,890

 

Noncontrolling interest

 

 

10,655

 

 

 

10,650

 

Total shareholders’ equity

 

 

45,175

 

 

 

44,540

 

Total liabilities and shareholders’ equity

 

$

632,304

 

 

$

577,253

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

29

 


UWHARRIE CAPITAL CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

Years Ended December 31, 2018, 2017 and 2016

 

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

(dollars in thousands, except share

 

 

 

and per share data)

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

18,205

 

 

$

16,569

 

 

$

15,900

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

US Treasury

 

 

45

 

 

 

28

 

 

 

46

 

US Government agencies and corporations

 

 

1,405

 

 

 

1,507

 

 

 

1,296

 

State and political subdivisions non-taxable

 

 

434

 

 

 

439

 

 

 

467

 

State and political subdivisions taxable

 

 

47

 

 

 

47

 

 

 

33

 

Interest-earning deposits with banks and federal funds sold

 

 

1,737

 

 

 

750

 

 

 

304

 

Total interest income

 

 

21,873

 

 

 

19,340

 

 

 

18,046

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking and money market accounts

 

 

948

 

 

 

413

 

 

 

310

 

Savings deposits

 

 

91

 

 

 

49

 

 

 

47

 

Time deposits $250,000 and over

 

 

69

 

 

 

67

 

 

 

58

 

Other time deposits

 

 

204

 

 

 

185

 

 

 

308

 

Short-term borrowed funds

 

 

16

 

 

 

16

 

 

 

37

 

Long-term debt

 

 

554

 

 

 

547

 

 

 

550

 

Total interest expense

 

 

1,882

 

 

 

1,277

 

 

 

1,310

 

Net interest income

 

 

19,991

 

 

 

18,063

 

 

 

16,736

 

Provision for (recovery of) loan losses

 

 

90

 

 

 

(236

)

 

 

(88

)

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

 

 

19,901

 

 

 

18,299

 

 

 

16,824

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

1,220

 

 

 

1,169

 

 

 

1,189

 

Other service fees and commissions

 

 

2,621

 

 

 

2,674

 

 

 

2,691

 

Interchange and card transaction fees, net

 

 

648

 

 

 

656

 

 

 

629

 

Gain (loss) on sale of securities (includes reclassification of $0, $(14), and $544 from

   accumulated comprehensive income in 2018, 2017 and 2016, respectively)

 

 

 

 

 

(14

)

 

 

544

 

Income from mortgage loan sales

 

 

2,980

 

 

 

3,345

 

 

 

3,795

 

Other income

 

 

810

 

 

 

595

 

 

 

509

 

Total noninterest income

 

 

8,279

 

 

 

8,425

 

 

 

9,357

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

16,180

 

 

 

14,710

 

 

 

14,522

 

Net occupancy expense

 

 

1,616

 

 

 

1,261

 

 

 

1,189

 

Equipment expense

 

 

734

 

 

 

597

 

 

 

646

 

Data processing costs

 

 

923

 

 

 

1,000

 

 

 

705

 

Office supplies and printing

 

 

180

 

 

 

130

 

 

 

161

 

Foreclosed real estate expense

 

 

45

 

 

 

293

 

 

 

501

 

Professional fees and services

 

 

1,058

 

 

 

723

 

 

 

703

 

Marketing and donations

 

 

786

 

 

 

977

 

 

 

941

 

Electronic banking expense

 

 

401

 

 

 

362

 

 

 

346

 

Software amortization and maintenance

 

 

924

 

 

 

787

 

 

 

697

 

FDIC insurance

 

 

234

 

 

 

229

 

 

 

269

 

Other noninterest expense

 

 

2,043

 

 

 

2,235

 

 

 

2,395

 

Total noninterest expense

 

 

25,124

 

 

 

23,304

 

 

 

23,075

 

Income before income taxes

 

 

3,056

 

 

 

3,420

 

 

 

3,106

 

Income taxes (includes reclassification of ($0, $4, and ($210)) from accumulated

   other comprehensive income, respectively)

 

 

579

 

 

 

1,809

 

 

 

895

 

Net income

 

$

2,477

 

 

$

1,611

 

 

$

2,211

 

Consolidated net income

 

$

2,477

 

 

$

1,611

 

 

$

2,211

 

Less: Net income attributable to noncontrolling interest

 

 

(570

)

 

 

(592

)

 

 

(593

)

Net income attributable to Uwharrie Capital Corp and common shareholders

 

 

1,907

 

 

 

1,019

 

 

 

1,618

 

Net income per common share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.27

 

 

$

0.14

 

 

$

0.22

 

Diluted

 

$

0.27

 

 

$

0.14

 

 

$

0.22

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

7,087,581

 

 

 

7,281,408

 

 

 

7,383,686

 

Diluted

 

 

7,087,581

 

 

 

7,282,160

 

 

 

7,383,794

 

 

The accompanying notes are an integral part of the consolidated financial statements.

30

 


UWHARRIE CAPITAL CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31, 2018, 2017 and 2016

 

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

(dollars in thousands)

 

Net Income

 

$

2,477

 

 

$

1,611

 

 

$

2,211

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on available for sale securities

 

 

(758

)

 

 

696

 

 

 

(1,131

)

Related tax effect

 

 

171

 

 

 

(340

)

 

 

359

 

Reclassification of losses (gains) recognized in net income

 

 

 

 

 

14

 

 

 

(544

)

Related tax effect

 

 

 

 

 

(4

)

 

 

210

 

Total other comprehensive income (loss)

 

 

(587

)

 

 

366

 

 

 

(1,106

)

Comprehensive income

 

 

1,890

 

 

 

1,977

 

 

 

1,105

 

Less: Comprehensive income attributable to noncontrolling interest

 

 

(570

)

 

 

(592

)

 

 

(593

)

Comprehensive income attributable to Uwharrie Capital

 

$

1,320

 

 

$

1,385

 

 

$

512

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

31

 


UWHARRIE CAPITAL CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Years Ended December 31, 2018, 2017 and 2016

 

 

 

 

Number of

Common

Shares

Issued

 

 

Common

Stock

 

 

Additional

Paid-in

Capital

 

 

Undivided

Profits

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Noncontrolling

Interest

 

 

Total

 

 

 

(dollars in thousands, except share data)

 

Balance, December 31, 2015

 

 

6,983,017

 

 

$

8,729

 

 

$

12,308

 

 

$

11,893

 

 

$

(212

)

 

$

10,596

 

 

$

43,314

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

1,618

 

 

 

 

 

 

593

 

 

 

2,211

 

Repurchase of common stock

 

 

(69,938

)

 

 

(87

)

 

 

(235

)

 

 

 

 

 

 

 

 

 

 

 

(322

)

2% stock dividend

 

 

137,236

 

 

 

171

 

 

 

467

 

 

 

(638

)

 

 

 

 

 

 

 

 

 

Cash paid – fractional shares

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

 

 

 

 

(6

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,106

)

 

 

 

 

 

(1,106

)

Record preferred stock dividend series B (noncontrolling

   interest)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(417

)

 

 

(417

)

Record preferred stock dividend series C (noncontrolling

   interest)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(149

)

 

 

(149

)

Balance, December 31, 2016

 

 

7,050,315

 

 

$

8,813

 

 

$

12,540

 

 

$

12,867

 

 

$

(1,318

)

 

$

10,623

 

 

$

43,525

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

1,019

 

 

 

 

 

 

592

 

 

 

1,611

 

Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings,

   tax effect

 

 

 

 

 

 

 

 

 

 

 

155

 

 

 

(155

)

 

 

 

 

 

 

Repurchase of common stock

 

 

(75,709

)

 

 

(95

)

 

 

(296

)

 

 

 

 

 

 

 

 

 

 

 

(391

)

2% stock dividend

 

 

138,247

 

 

 

173

 

 

 

580

 

 

 

(753

)

 

 

 

 

 

 

 

 

 

Cash paid – fractional shares

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

 

 

 

 

(6

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

366

 

 

 

 

 

 

366

 

Record preferred stock dividend series B (noncontrolling

   interest)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(416

)

 

 

(416

)

Record preferred stock dividend series C (noncontrolling

   interest)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(149

)

 

 

(149

)

Balance, December 31, 2017

 

 

7,112,853

 

 

$

8,891

 

 

$

12,824

 

 

$

13,282

 

 

$

(1,107

)

 

$

10,650

 

 

$

44,540

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

1,907

 

 

 

 

 

 

570

 

 

 

2,477

 

Repurchase of common stock

 

 

(138,629

)

 

 

(173

)

 

 

(574

)

 

 

 

 

 

 

 

 

 

 

 

(747

)

2% stock dividend

 

 

138,939

 

 

 

174

 

 

 

586

 

 

 

(760

)

 

 

 

 

 

 

 

 

 

Cash paid – fractional shares

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

 

 

 

 

 

 

(8

)

Stock options exercised

 

 

13,378

 

 

 

16

 

 

 

49

 

 

 

 

 

 

 

 

 

 

 

 

65

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(587

)

 

 

 

 

 

(587

)

Record preferred stock dividend series B (noncontrolling

   interest)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(417

)

 

 

(417

)

Record preferred stock dividend series C (noncontrolling

   interest)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(148

)

 

 

(148

)

Balance, December 31, 2018

 

 

7,126,541

 

 

$

8,908

 

 

$

12,885

 

 

$

14,421

 

 

$

(1,694

)

 

$

10,655

 

 

$

45,175

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

32

 


UWHARRIE CAPITAL CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2018, 2017 and 2016

 

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

(dollars in thousands)

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,477

 

 

$

1,611

 

 

$

2,211

 

Adjustments to reconcile net income to net cash provided (used) by operating

   activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1,067

 

 

 

857

 

 

 

1,003

 

Net amortization of security premiums/discounts AFS

 

 

767

 

 

 

850

 

 

 

990

 

Net amortization of security premiums/discounts HTM

 

 

146

 

 

 

147

 

 

 

138

 

Net amortization of loan servicing rights

 

 

663

 

 

 

733

 

 

 

751

 

Impairment of foreclosed real estate

 

 

(12

)

 

 

85

 

 

 

272

 

(Recovery) provision for loan losses

 

 

90