2014 summary annual report

2014 SUMMARY
ANNUAL REPORT
LETTER TO SHAREHOLDERS
Dear Shareholders:
Your Company moved forward emphatically in 2014 – our best year from an earnings perspective since 2008. Net income
was $1.7 million as compared to $954 thousand for the prior year. Continued improvement in credit quality plus the benefits
and efficiencies gained from the consolidation of our three bank charters, along with other actions taken, enabled these
results. Earnings available to shareholders were up 621% over 2013 and earnings per share after preferred dividends rose to
$0.15 per share from $0.02 per share. This accomplishment was not without adversity.
The Banking Environment
The banking environment remained challenged in 2014 despite the headlines declaring that unemployment is closer to
government targets, or the stock market is breaking new highs, or the U.S. economy is outpacing all other world economies.
In truth, the banking industry is grasping for profitability under the burden of a host of new regulations and associated
compliance expenses, anemic loan demand and margin pressure from the low interest rate environment.
The unprecedented regulatory burden is particularly acute for smaller community banks less capable of absorbing the
immoderate administrative costs due to scale of operations. This fact is one reason your Company consolidated its three
banks in 2013. The consolidation allowed us to be in a better position to absorb the increased costs of doing business.
However, we can expect additional regulatory costs to be placed on the industry as much of the mandates of the DoddFrank legislation have yet to be implemented and new Consumer Financial Protection Bureau (CFPB) directives are superimposed on current regulations.
Implementing Our Plan
Every business must have capital, especially banks by regulation. In order to retain and attract capital, investors must be
fairly rewarded. We firmly espouse that a commitment to the communities we serve is in the best interests not only of the
community, but also our investors. We have lived by our values that a bank does what counts. To us, that means making a
difference. We believe businesses that do what is right for their customers create value for them and, by extension, for their
shareholders. By inspiring to lift our communities in return for trusting us with their financial resources differentiates your
Company in a most meaningful way. We seek to motivate change, to meet our collective challenges head on and make
our world better. If we do, there will be prosperity to share. This is why we say we do not put profits before community.
For the past several years, we had to be reactionary in dealing with the freefall of the economy. Last year we reinvigorated
our efforts to move forward with deliberate speed even though the economy remained lackluster at best. Your management and Boards of Directors completed a rigorous strategic planning process during 2014 that provides a strategy for not
only improved financial returns, but also renews our dedication to the Vision and Mission of Uwharrie Capital Corp. This
five-year plan charts our course as we continue on in our commitment to create a financial services company dedicated to
excellence in empowering communities of people to secure financial self-sufficiency.
We have been thoughtful about our efforts, looking at everything from credit culture to customer service. We realigned
parts of our Company to better serve particular market segments which are extremely valuable to our Company and are
defined by high customer expectations and specific expertise required to substantially differentiate ourselves from our
competition.
1
While interest income remains our main revenue contributor, our longer-term strategy is to continue to invest in products
and services that differentiate us in the market and are not margin dependent. We have developed a challenging but
achievable five-year plan for expanding our fee-based product offerings, primarily mortgage and wealth management,
within our current footprint and outside our traditional markets. We have added additional leadership in the mortgage
banking area and will be marketing our services as “Uwharrie Bank Mortgage” within our current markets and expanding
into Mecklenburg, Union and other surrounding counties. Sometime mid-year, our wealth management group will begin
using the name “Uwharrie Investment Advisors.” The brand consistency of “Uwharrie” across all business units will create
synergies and improve brand recognition.
Moving Forward
We have a clear vision for Uwharrie Capital Corp and we will continue to focus on the long-term growth and health of our
Company. To better assist us in communicating this, we have modified our Vision, Mission and Core Values to be more succinct as we continue to deliver superior long-term performance for our customers, our shareholders, our associates and the
communities we serve. To learn more, we encourage you to visit uwharrie.com/AboutUs.
We invite you to attend our Annual Meeting of Shareholders on Tuesday, May 12th, where you will hear more about our
results, our plans and an exciting unveiling! Thank you for your continued support. And thank you to our dedicated associates and directors who diligently strive to ensure that Uwharrie Capital Corp remains strong and successful.
Roger L. Dick
President and
Chief Executive Officer
2
Brendan P. Duffey
Chief Operating Officer
SELECTED FINANCIAL DATA
(in thousands except per share and shares outstanding information)
2013
2014
SUMMARY OF OPERATIONS
$
Interest income
Interest expense
Net interest income
18,457
$
19,465
2012
$
21,871
2011
$
23,822
2010
$
24,487
1,960
2,734
3,698
4,737
5,951
16,497
16,731
18,173
19,085
18,536
28
1,832
3,456
4,919
Provision for (recovery of) loan losses
(389)
Noninterest income
7,321
7,587
10,675
8,256
9,898
21,880
22,994
26,247
22,789
22,651
648
342
365
196
151
Noninterest expense
Income taxes
Net income
$
1,679
$
954
$
$
0.15
$
0.02
$
404
$
900
$
713
(0.03) $
0.03
$
0.01
PER COMMON SHARE
Net income (loss) - basic (1)
Net income (loss) - diluted (1)
0.15
0.02
(0.03)
0.03
0.01
Book value (1)
4.55
3.94
4.23
4.38
4.29
SELECTED YEAR-END BALANCES
Assets
Loans held for investment
$
518,464
310,853
$
517,320
307,348
$
545,007
329,183
$
526,902
366,675
$
535,426
387,769
Securities
118,320
100,280
91,638
88,661
96,395
Deposits
456,435
453,708
457,612
431,338
434,033
Borrowed funds
14,243
16,672
31,363
46,024
54,543
Shareholders’ equity
42,262
40,509
42,729
44,254
43,493
(1) Net income per share, book value per share, weighted average shares outstanding and shares outstanding at
year-end for years 2013 through 2010 have been adjusted to reflect the 2% stock dividend in 2014.
SERVE.
Make a difference through service.
3
UWHARRIE CAPITAL CORP BOARD OF DIRECTORS
Our collective ability to be difference-makers in the communities where we work and live begins with
talented, dedicated leadership on our Boards of Directors. These men and women are local civic and business
leaders and generous volunteers. Bolstered by their enthusiasm and counsel, our people are empowered to
carry out Uwharrie Capital Corp’s mission: making a difference.
The members of these boards work to foster the long-term success of the Company and its subsidiaries.
As always, we’re thankful for each member’s time, energy and talents.
CHAIRMAN OF THE BOARD
W. Chester Lowder
Director of Livestock Program,
Public Policy Division
North Carolina Farm Bureau
Federation, Inc.
VICE CHAIRMAN OF THE BOARD
Joe S. Brooks
Owner / Manager
Brothers Precision Tool Co.
W. Stephen Aldridge, III, Ph.D. President / Funeral Director
Stanly Funeral Home, Inc.
Nadine B. Bowers
Senior Vice President (Retired)
Strategic Investment Advisors, Inc.
and Bank of Stanly
Ronald T. Burleson
Partner
Thurman Burleson & Sons Farm
Raymond R. Cranford, Jr.
Owner / Vice President of Sales
Crook Motor Co., Inc.
Charles F. Geschickter, III
President / CEO
JTG Racing, Inc.
ST Motorsports, Inc.
Thomas M. Hearne, Jr.
Geopavement Engineer (Retired)
NC Department of Transportation
Charles D. Horne
President
Hornwood, Inc.
W. Kenneth Huntley
President
Huntley Oil & Gas Co., Inc.
Lee Roy Lookabill, Jr.
President
Anson Real Estate
and Insurance Co., Inc.
Barry S. Moose
Vice President / Operations &
Maintenance Director
SEPI Engineering & Construction Co.
Cynthia L. Mynatt
President
Ben Mynatt Buick-GMC
James E. Nance
Founder / Managing Member
North State Acquisitions, LLC
North State Negotiations, LLC
S. Todd Swaringen
Partner
Beane Swaringen & Company, PLLC
Edward B. Tyson, Ed.D.
Superintendent(Retired)
Kannapolis City Schools
Dusty W. West
President / Owner
Dean’s Ready Mixed, Inc.
Bill C. Burnside, D.D.S
General Dentist (Retired)
ADVISORY DIRECTORS
Roger L. Dick
President / CEO
Uwharrie Capital Corp
CEO
Uwharrie Bank
4
Brendan P. Duffey
Chief Operating Officer
Uwharrie Capital Corp
President
Uwharrie Bank
D. Anthony Plath
Associate Professor of Finance
University of North Carolina
at Charlotte
UWHARRIE BANK BOARD OF DIRECTORS
Roger L. Dick
President / CEO
Uwharrie Capital Corp
CEO
Uwharrie Bank
CHAIRMAN OF THE BOARD
W. Chester Lowder
Director of Livestock Program,
Public Policy Division
North Carolina Farm Bureau
Federation, Inc.
VICE CHAIRMAN OF THE BOARD
Joe S. Brooks
Owner / Manager
Brothers Precision Tool Co.
Nadine B. Bowers
Senior Vice President (Retired)
Strategic Investment Advisors, Inc.
and Bank of Stanly
James O. Campbell
Channel Sales Manager
Viewpoint Construction Software
Tara G. Eudy
President / Treasurer
Carolina Title Company, Inc.
Charles D. Horne
President
Hornwood, Inc.
Frank A. Rankin, III
President / Owner
Concord Engineering &
Surveying, Inc.
John B. Robbins
President / Owner
Greathorn Properties, Inc.
S. Todd Swaringen
Partner
Beane Swaringen & Company, PLLC
Harvey H. Leavitt, III
Owner / Operator
Leavitt Funeral Home
Samuel M. Leder
CPA / Partner
Potter & Company, P.A.
GIVE.
Be generous with your time and energy.
5
COMMUNITY BOARDS
ANSON COMMUNITY BOARD
Thomas W. Hough
President (Retired)
Anson Pharmacy, Inc.
Mary Carlisle Little
Vice President / General Manager
H. W. Little & Co., Inc.
M. Todd Moore
Marketing Representative
Pee Dee Electric Membership
Corporation
Emmett S. Patterson
General Manager / Executive
Vice President (Retired)
Pee Dee Electric Membership
Corporation
Christopher M. Sanford
Vice President / General Manager
Wadesboro IGA Foodliner
Donald P. Scarborough
President / Broker
Plank Road Realty, Inc.
Jim L. Strayhorn
President / CEO (Retired)
Anson Bank & Trust Co.
Kevin W. Thomas
Vice President
Lynn Thomas Grading, Inc.
CABARRUS COMMUNITY BOARD
Anita A. Brown
Chancellor Emerita (Retired)
Cabarrus College of Health Sciences;
Carolinas Medical Center NorthEast
Diane R. Honeycutt
Realtor / Team Leader
Team Honeycutt
Allen Tate Realtors
Gayle W. Deal
Director of Enterprise Relations
Carolinas HealthCare System
James M. Monroe, Jr.
Executive Director (Retired)
Carolinas Medical Center
NorthEast Foundation
William C. Dusch
President / Co-Owner
Technologies Edge, Inc.
William E. Rinker
President / Owner
Rinker Commercial Properties, LLC
William F. Rogers, Jr.
Attorney
William F. Rogers, Jr., P.A.
J. Scott Padgett
Mayor
City of Concord
STANLY COMMUNITY BOARD
Darrell E. Almond
Stanly Fixtures Co., Inc. (Retired)
Eric M. Johnsen, M.D.
President / Physician
Stanly Family Care Clinic
Garry M. Lewis
Public Housing Director (Retired)
City of Albemarle
6
James F. Link
Veterinarian / Owner
North Stanly Animal Clinic
Joyce H. Little
Vice President
Wiley Little Drywall, Inc.
Eric J. Mallico, M.D.
General Surgeon
Novant Health
Rowan Medical Center
Terry L. Smith
President
Terry L. Smith
Construction Co., Inc.
Patsy G. Street
Manager (Retired)
West Stanly Christian Ministries
David L. VanDeventer
Golf Professional / Club Manager
Piney Point Golf Club
FINANCIAL REVIEW
Uwharrie Capital Corp reported net income of $1.7 million for the twelve
GROWTH IN ASSETS
(dollars in millions)
months ended December 31, 2014, as compared to $954 thousand for the
twelve months ended December 31, 2013, an increase of $725 thousand or
76%. Net income available to common shareholders was $1.1 million or $0.15
600
500
per common share for the 12 months ended December 31, 2014, compared
to net income available to common shareholders of $151 thousand or $0.02
400
per common share for the 12 months ended December 31, 2013, a 620.5%
300
improvement. Net income available to common shareholders is net income
200
less any dividends and discount accretions on preferred stock. Uwharrie
paid $591 thousand in dividends to its preferred shareholders during 2014
and $803 thousand in 2013. The Company’s total assets increased by $1.2
100
2010
2011
2012
2013
2014
2013
2014
million or 0.22%, from $517.3 million at December 31, 2013 to $518.5 million at
December 31, 2014.
GROSS LOANS
(in thousands)
Provision for loan losses, which has a significant impact on earnings, decreased
from $28 thousand in 2013 to a recovery of ($389) thousand in 2014. The level
of net loan charge-offs decreased from $1.7 million in 2013 to $968 thousand
in 2014, an improvement of $765 thousand or 44.2%. With the reduction in
provision for loan losses accompanied by net charge-offs, the allowance for
loan loss declined from $5.1 million at December 31, 2013, to $3.7 million at
450,000
400,000
350,000
300,000
250,000
200,000
December 31, 2014. This represents 1.20% of loans held for investment as of
150,000
December 31, 2014. Loans held for investment as of December 31, 2014, were
100,000
$310.9 million. This constitutes a $3.5 million increase or 1.1% loan growth
50,000
compared to 2013. Management believes the current level of the allowance
2010
2011
2012
for loan losses is appropriate in light of the credit risk inherent in the current
loan portfolio.
ASSETS UNDER MANAGEMENT
(in thousands)
Net interest income remained relatively flat when comparing the two periods,
reflecting $16.5 million in the current year compared to $16.7 million in the
prior year. While the Company generates most of its revenue from net interest
200,000
margin, diversification of our earnings base is significant to our long-term
success. Income from service charges, commissions, and fees increased from
$5.0 million in 2013 to $5.4 million in 2014. However, income from mortgage
150,000
100,000
loan sales produced income of $1.0 million in 2014, compared to $2.1 million in
2013 as refinance activity tapered significantly and new production remained
50,000
stagnant. Losses realized on the sale of investments were ($2) thousand
compared to realized losses of ($523) thousand for the prior year.
-
2010
2011
2012
2013
2014
7
FINANCIAL REVIEW
TOTAL DEPOSITS
(in thousands)
At December 31, 2014, customer deposits totaled $456.4 million, an increase of
$2.7 million compared to $453.7 million at December 31, 2013. During this period
borrowed funds decreased from $16.7 million at the end of the prior year to $14.2
million at the end of 2014, a difference of $2.5 million or 14.6%.
500,000
450,000
400,000
350,000
300,000
250,000
Noninterest expense for the year ended December 31, 2014 was $21.9 million
200,000
compared to $23.0 million for the same period of 2013, a decrease of $1.1 million.
150,000
Salaries and employee benefits, the largest component of noninterest expense,
100,000
decreased $372 thousand, from $12.4 million for the period ending December 31,
50,000
2013, to $12.1 million for the current year. The reduction in salaries and benefits
2010
2011
2012
2013
2014
primarily reflects the efficiency realized by the merger of the three subsidiary
banks after the effect of increased costs due to new regulations. Foreclosed real
estate expense decreased $401 thousand during 2014. The primary driver behind
this decrease was the decrease in write-downs on other real estate owned. Total
SHAREHOLDERS’ EQUITY
(dollars in millions)
50
write-downs for 2014 were $593 thousand compared to $1.0 million for 2013, a
45
decrease of 40.7%.
40
35
The Company continues to maintain a strong capital position. At December 31,
2014, total shareholders’ equity was $42.3 million, a $1.8 million improvement
30
25
20
or 4.3% over December 31, 2013, which was $40.5 million. All capital ratios are
15
above those of a well-capitalized bank as defined by our regulators.
10
5
2010
8
2011
2012
2013
2014
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors:
Uwharrie Capital Corp
Albemarle, North Carolina
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
the consolidated balance sheets of Uwharrie Capital Corp and Subsidiaries as of December 31, 2014 and 2013, and the
related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows
for each of the years in the three-year period ended December 31, 2014 (not presented herein); and in our report dated
February 27, 2015, we expressed an unqualified opinion on those consolidated financial statements. The accompanying
condensed consolidated financial statements are the responsibility of the Company’s management. Our responsibility
is to express an opinion on the information set forth in the condensed consolidated financial statements in relation to
the consolidated financial statements from which it has been derived.
In our opinion, the information set forth in the accompanying condensed consolidated balance sheets as of December 31,
2014 and 2013, and the related condensed consolidated statements of income for each of the years in the three-year
period ended December 31, 2014, is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived.
Asheville, North Carolina
February 27, 2015
TEACH.
Improve our community through financial education.
9
CONSOLIDATED BALANCE SHEETS
December 31, 2014 and 2013
2014
2013
(dollars in thousands)
ASSETS
Cash and due from banks
$
6,807
$
7,947
Interest-earning deposits with banks
43,984
64,447
Securities available for sale, at fair value
112,824
100,280
Securities held to maturity, at amortized cost (fair value $5,450,000)
5,496
Loans held for sale
2,147
1,139
Loans:
Loans held for investment
310,853
307,348
Less allowance for loan losses
(3,738)
(5,095)
Net loans held for investment
307,115
302,253
Premises and equipment, net
14,858
13,781
Interest receivable
1,747
1,747
Restricted stock
1,038
1,184
Bank owned life insurance
6,645
6,516
Other real estate owned
5,865
7,170
Prepaid assets
969
490
Other assets
8,969
10,366
Total assets
$
518,464
$
517,320
LIABILITIES
Deposits:
Demand noninterest-bearing $
Interest checking and money market accounts
Savings deposits
Time deposits, $100,000 and over
Other time deposits
Total deposits
Short-term borrowed funds
Long-term debt
Interest payable
Other liabilities
Total liabilities
80,069
$
243,116
39,091
38,912
55,247
456,435
4,685
9,558
180
4,783
475,641
74,493
228,933
41,512
44,690
64,080
453,708
5,509
11,163
224
4,491
475,095
Off balance sheet items, commitments and contingencies (Note 13)
Redeemable common stock held by the Employee Stock
Ownership Plan (ESOP) (Note 17)
561
1,716
SHAREHOLDERS’ EQUITY
Common stock, $1.25 par value: 20,000,000 shares authorized; shares issued
and outstanding 6,961,484 and 7,445,931
Additional paid-in capital
Unearned ESOP compensation
Undivided profits
Accumulated other comprehensive income (loss)
Total Uwharrie Capital shareholders’ equity
Noncontrolling interest
Total shareholders’ equity
Total liabilities and shareholders’ equity
$
The accompanying notes are an integral part of the consolidated financial statements.
GUIDE.
Lead others to self-sufficiency.
10
8,702
9,307
11,712
11,922
-
(989)
10,974
10,289
(562)
305
31,693
29,967
10,569
10,542
42,262
40,509
518,464
$
517,320
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31, 2014, 2013 and 2012
2014
2013
2012
(dollars in thousands, except share and per share data)
INTEREST INCOME
Loans, including fees
$
16,336 $
Investment securities:
US Treasury
361
US Government agencies and corporations
1,271
State and political subdivisions
321
Interest-earning deposits with banks and federal funds sold
168
Total interest income
18,457
17,573 $
19,724
397
1,066
252
177
19,465
581
1,105
324
137
21,871
INTEREST EXPENSES
Interest checking and money market accounts
Savings deposits
Time deposits $100,000 and over
Other time deposits
Short-term borrowed funds
Long-term debt
Total interest expense
Net interest income
299
57
471
526
34
573
1,960
16,497
439
171
592
708
160
664
2,734
16,731
542
197
802
1,008
353
796
3,698
18,173
PROVISION FOR (RECOVERY OF) LOAN LOSSES
Net interest income after provision for loan losses
(389)
16,886
28
16,703
1,832
16,341
NONINTEREST INCOME
Service charges on deposit accounts
1,467
1,627
1,723
Other service fees and commissions
3,928
3,399
3,178
Gain (loss) on sale of securities (includes reclassification of
($2,000) and ($523,000) from accumulated comprehensive income)
1,286
(2)
(523)
Income from mortgage loan sales
1,001
2,113
3,740
Other income
927
971
748
Total noninterest income
7,321
7,587
10,675
INTEREST INCOME
Salaries and employee benefits
12,051
12,423
12,891
Net occupancy expense
1,107
1,098
1,155
Equipment expense
680
734
733
Data processing costs
729
784
889
Office supplies and printing
273
358
334
Foreclosed real estate expense
1,246
1,647
2,994
Professional fees and services
847
680
588
Marketing and donations
762
728
691
Electronic banking expense
939
999
951
Software amortization and maintenance
535
541
576
FDIC insurance
425
518
693
Goodwill Impairment
-
-
987
Other noninterest expense
2,286
2,484
2,765
Total noninterest expense
21,880
22,994
26,247
Income before income taxes
2,327
1,296
769
Income taxes (includes reclassification of ($1,000 and $202,000)
from accumulated other comprehensive income, respectively)
648
342
365
NET INCOME
$
1,679
$
954
$
Consolidated net income
$
1,679
$
954
$
(591)
(478)
Less: Net income attributable to noncontrolling interest
Net income attributable to Uwharrie Capital Corp
1,088
476
Dividends on preferred stock
-
(325)
Net Income (loss) available to common shareholders
$
1,088
$
151
$
Net income (loss) per common share
Basic
$
0.15
$
0.02
$
Diluted
$
0.15
$
0.02
$
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic
7,300,988
7,422,286
Diluted
7,300,988
7,422,286
404
404
404
(645)
(241)
(0.03)
(0.03)
7,519,100
7,519,100
The accompanying notes are an integral part of the consolidated financial statements.
11
ASSOCIATES
The team at Uwharrie Capital Corp is better than it has ever been and these are the people who are
providing service that makes a difference in the lives of our customers. We’re proud of this group
and confident in our future. To each of our associates, we offer our sincere thanks.
BETTY J. ALDERMAN
DONALD M. DAVIS
JAN L. HOBBS
HEATHER H. ALMOND
CHERYL J. DEARMON
GERALD B. HONEYCUTT
KATHY H. ALMOND
STEPHEN A. DENNING
NANCY J. HONEYCUTT
JASON R. ANDREW
ROGER L. DICK
PATRICIA D. HORTON
ANNIE S. AUSTIN
BRENDAN P. DUFFEY
MARTHA E. HUGHES
AMY Y. BARBEE
DONALD R. EDWARDS
BRIAN A. INGOLD
RONALD D. BARNES
DEBRA M. ERK
WILLIESENIA A. INGRAM
JILL A. BARRIER
BRADLEY W. EUDY
RICHARD E. JAMES
ANITRA C. BARRINGER
BRANDON J. EUDY
JACQUELINE S. JERNIGAN
R. DAVID BEAVER III
KARI G. EUDY
SONYA H. JOHNSON
DAYLE C. BEAVER
KYLE V. EUDY
CAROL H. JONES
SARAH G. BIVINS
LESLIE T. EUDY
MARK O. JONES
JENNIFER L. BLAKE
DUANE S. FAGG
KATHRYN W. KLUTTZ
KASEY A. BLANKENSHIP
MONTY L. FAST
SUZETTE D. KLUTTZ
RONNIE D. BLANTON
ANNE R. FLYNN
MITCHELL C. KNIGHTEN
REBECCA B. BOST
TAMMIE D. FRALEY
W.D. “BILL” LAWHON
MELISSA T. BOWERS
MELISSA S. FREEMAN
DARIA W. LEDBETTER
ROBERT B. BRANNAN III
DEBORAH G. FRICK
HOLLY F. LEE
MISTY C. BROADWAY
ELIZABETH G. GALYAN
CHARLIE W. LENTZ
W. GAYNELLE BROOKS
YOSELINA J. GARCIA
CARRIE W. LISENBY
BARRY C. BRUMMITT
E. NICOLE GARDIN
KIMBERLY C. LONG
DEBBIE S. BURKETT
DAVID C. GASKIN
KIMBERLY E. LOVE
JOANNE B. BURLESON
SUSAN B. GIBSON
AUDREY F. LOWDER
B. DIANE BURRIS
M. CASEY GREENE
G. MARTY LOWDER
CATHY M. BURRIS
MATTHEW W. GREENE
KELLY S. LOWDER
JUDITH A. CAMP
CARIS H. HAHN
PATRICIA L. LOWDER
ANITA F. CARPENTER
LINDA D. HARKEY
SHEILA M. LOWDER
MICHELLE B. CARVER
ALISA E. HARTSELL
TERESA G. LOWDER
BRANDIS T. CHEWNING
E. TOM HARTSELL
TONYA M. LOWDER
D. STARR CLONINGER
MARY A. HARTSELL
RODRIGO M. LUEVANO
VICTORIA H. COGGINS
MICHAEL G. HARWOOD
DANA A. MANESS
TRACY L. COLLIER
BETTY H. HASTY
CHASITY E. MANUEL
MARY A. COLLINS
JANIE S. HATLEY
J. MICHAEL MASSEY
GAYLE F. COMER
TAMMY R. HELMS
ELSA E. MATA
SHELIA B. COOK
ANITA C. HILL
JOHN P. MCINTYRE
ANNGENELL Y. COOKE
JILLIAN E. HILLIARD
CHRISTOPHER W. MELTON
MELISSA L. CURLEE
DEBORAH T. HINSON
DAWN L. MELTON
12
ASSOCIATES
LORELEI V. MISENHEIMER
NEIL B. SENTER
MISTI D. THOMPSON
JENNIFER B. MOREHEAD
R. SCOTT SEYMOUR
MISTY W. THORNBURG
CHARLES N. MYERS
DEBBIE B. SHEPPARD
CRYSTAL M. TROUTMAN
LORRIE M. NANTZ
SHELLI G. SHOAF
MARCI A. TUCKER
ROBIN E. NICOLAISEN
TAMARA M. SINGLETARY
SUSAN T. TUCKER
JOHNDA S. NOBLE
BRANDI M. SMITH
TINA L. USSERY
MISTY M. NORDAN
ERICA M. SMITH
KATHY R. VALENTINE
MARTHA W. O’BRIEN
KATRINA H. SMITH
VINITA K. VANHOY
JANNA H. PRESSLEY
KELLY B. SMITH
EDDIE F. WALL
TRENA B. PURVIS
SABRINA D. SMITH
ROBBIE H. WALTERS
BRANDI A. RAY
WILLIAM H. SOWARDS
ANGELA T. WEBB
CINDY L. RILEY
PATRICIA B. SPEIGHT
DONNA N. WHITLEY
CHERYL P. RINEHARDT
MEGAN I. SPRINGER
NICOLE M. WILLIAMS
MANDI ROGERS
CHRISTY D. STONER
CYNTHIA G. WILSON
DAVID M. RUDISILL
KELLY F. STORY
TONDA M. WITMORE
M. STARR RUSSELL
MACY B. STUTTS
KENNETH E. YELTON
CYNTHIA C. SASSER
A. DONNIE SWARINGEN
KATHY L. SAVAGE
JEFFREY M. TALLEY
E. ANNE SCOTT
M. CHAD TARLTON
BROOKE L. SENTER
ANGELA S. TEEMS
LEAD.
Exemplify the right balance between community and profits.
13
MAKING A DIFFERENCE IN THE COMMUNITY
Uwharrie’s work to make a difference takes many forms. Along with helping the individuals,
families and businesses we call customers, we also try to make a difference by supporting the
communities where we work and live. Here are some of the highlights of these efforts from
the past year.
Uwharrie Bank provided special financing on a new
Uwharrie provided loans and other banking services to
state-of-the-art fire truck for the Town of Norwood. local farmers and food growers such as The Naked Pig
Helping our local communities and residents stay safe,
Meat Company and Carolina Farms. These companies
while also saving them some money, is just one way
are key to the local foods movement in our neck of the
we promise to make a difference.
woods and supporting them secures jobs and food for
our neighbors and also benefits our local economy.
On the last Friday of every month, Uwharrie associates were allowed to wear jeans in exchange for a $5 donation
to a local charity. To add extra incentive, the associates were given the opportunity to choose the organizations to
support. The initiative began in April of 2014 and raised more than $5,500 for organizations in Anson, Cabarrus and
Stanly counties. We’ll continue the Denim Difference this year and we’re excited to provide even more help to local
organizations.
14
COMMUNITY INVESTMENT
Our people have drawn much inspiration from the work being done in and around our
communities by many organizations. Last year, Uwharrie Capital Corp provided support to
each of the following groups in an effort to help them do more.
4-H Clubs
Feed My Lambs
Police Departments
Albemarle Downtown Development Fire Departments
Relay For Life
Corporation
Friends of Library
Rescue Unit of Stanly County
Albemarle Parks and Recreation
Friends of the Butterfly House
Rotary Clubs
Alzheimer’s Association
GHA Autism Supports
Rowan Cabarrus Community College
American Legion
Girl Scouts
Schools—Project Graduation,
American Red Cross
Gray Stone Educational
Academic Programs, Athletics
Anson County Agriculture
Foundation, Inc
Special Olympics
Anson County Arts Council
Habitat For Humanity
Stanly Community College Foundation
Anson County Partnership for
Hands for Hope
Stanly County Arts Guild
Children
Historic Cabarrus
Stanly County Senior Center
Ben Mynatt Children’s Foundation
Homes of Hope
Stanly Regional Medical Center Big Lick Bluegrass Festival
Hospice
Foundation
Boys and Girls Club of Cabarrus Humane Society
The Good Samaritan
County
Kerri D. Efird Memorial Scholarship
United Way Campaigns
Cabarrus Arts Council
Kiwanis Clubs
Upper Pee Dee Farm
Cabarrus Economic Development
Lions Clubs
and Food Council
Central NC Council Boy Scouts
Meals on Wheels
Uptown Wadesboro
Chambers of Commerce
Monarch
Uwharrie Eagles
Churches & Christian Ministries
Municipalities
Uwharrie Players
CMC Northeast Medical Foundation
Muscular Dystrophy Association
Uwharrie Youth Arts
Community Athletics, Benefits,
National Wild Turkey Federation
Veterans Memorial
Concerts, Events, Youth
NC Corporative Extension
VFW
Community Free Clinic
NC Zoo Society
Civitan Clubs
Concord Downtown Development Outdoor Heritage Days
Waverly House
Corporation
Pee Dee Lodge
Will Hughes Scholarship Fund
Esther House
Pfeiffer University
YMCAs
LOVE.
Let your passion propel your work.
15
SHAREHOLDER INFORMATION
It is the philosophy of Uwharrie Capital Corp to promote a strong, local shareholder base. While bid and ask prices for the
Company’s common stock are quoted on the Over the Counter Bulletin Board under the symbol UWHR, trading is sporadic
with most trades taking place in privately negotiated transactions. Management makes every reasonable effort to match
the 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 stock should contact Tamara Singletary, Executive Vice
President, Investor Relations, 704.982.4415, tsingletary@uwharrie.com.
Securities are not FDIC insured, are not guaranteed by any financial institution and may involve investment risk and/or loss
of principal.
The financial information appearing in this Summary Annual Report has been condensed from the consolidated financial
statements which accompany the Proxy Statement distributed in connection with Uwharrie Capital Corp’s 2015 Annual
Meeting of Shareholders. A copy of the Company’s 2014 Annual Report on Form 10-K, as filed with the Securities and
Exchange Commission (SEC), may be obtained at no charge by searching the “EDGAR” archives at www.sec.gov or by
notifying Tamara Singletary, Executive Vice President, Investor Relations, 704.982.4415, tsingletary@uwharrie.com.
Management has simplified the financial presentation in this Summary Annual Report because it believes such simplification enhances the shareholder communication process. Management’s objective is to provide shareholders with
relevant financial information in an easily understood and readable format.
The accompanying condensed consolidated financial statements and their integrity and objectivity are the responsibility
of the Company’s management. The financial statements include amounts based on management’s best estimates and
judgment. Management also prepared other information in the Summary Annual Report and is responsible for its accuracy
and consistency.
This Annual 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,” “project,” “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).
16
LOCATIONS
UWHARRIE BANK LOCATIONS
ALBEMARLE
PO Box 338
Albemarle, NC 28002
Downtown Office
167 North 2nd Street
704.983.6181
NORWOOD*
107 South Main Street
PO Box 657
Norwood, NC 28128
704.474.3103
OAKBORO*
624 North Main Street
PO Box 624
Oakboro, NC 28129
704.485.3435
Village Office*
710 North 1st Street
704.983.6181
East Office*
800 NC 24-27 Highway
704.983.6181
WEST STANLY*
416 West Main Street
PO Box 715
Locust, NC 28097
704.888.8897
CONCORD
PO Box 1970
Concord, NC 28026
Palaside Drive Office*
25 Palaside Drive, NE
704.262.3855
Church Street Office
700 Church Street North
704.262.3855
WADESBORO
211 South Greene Street
PO Box 249
Wadesboro, NC 28170
704.694.2122
ATM Location
426 East Caswell Street
Wadesboro, NC 28170
* ATM locations
MT. PLEASANT*
1490 South Main Street
PO Box 1081
Mt. Pleasant, NC 28124
704.436.2300
STRATEGIC INVESTMENT ADVISORS LOCATIONS
ALBEMARLE
132 North First Street
PO Box 1517
Albemarle, NC 28002
704.983.5959
CONCORD
700 Church Street North
PO Box 1970
Concord, NC 28026
704.262.3855
WEST STANLY
416 West Main Street
PO Box 715
Locust, NC 28097
704.888.8897
Securities, with the exception of bank products, are not FDIC insured, are not guaranteed by any financial institution
and may involve investment risk and/or loss of principal.
UWHARRIE CAPITAL CORP LOCATION
ALBEMARLE
132 North First Street
PO Box 338
Albemarle, NC 28002
704.982.4415
INSPIRE.
Make a difference and motivate others to do the same.
17
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