Uwharrie Capital Corp Reports Q3 2025 Financial Results with $2.9M Net Income

Uwharrie Capital Corp reported its financial results for the third quarter of 2025, revealing a net income of $2.9 million, a slight decrease from $3.0 million in the same period last year. The earnings per share for the quarter were $0.38, down from $0.39 in the prior year. For the nine months ending September 30, 2025, the company achieved a net income of $8.3 million, compared to $7.6 million for the same period in 2024, reflecting a year-over-year increase of approximately 8.3%. The total interest income for the third quarter was $14.7 million, up from $14.1 million in the previous year, while interest expense decreased slightly, contributing to a net interest income of $9.9 million, an increase from $9.1 million.

The company’s total assets increased by $87 million, reaching $1.22 billion as of September 30, 2025, compared to $1.13 billion at the end of 2024. This growth was primarily driven by a significant increase in cash and cash equivalents, which rose to $111 million from $52 million, largely due to a $73.8 million increase in customer deposits. The total deposits reached $1.10 billion, up from $1.03 billion, with notable growth in demand noninterest-bearing accounts and interest checking and money market accounts. Loans held for investment also saw an increase, rising to $677.4 million from $666.4 million.

In terms of operational metrics, the allowance for credit losses on loans increased to $6.4 million, representing 0.94% of total loans held for investment, compared to 0.87% at the end of 2024. The company reported net loan charge-offs of $67,000 for the quarter, contrasting with net recoveries of $51,000 in the same quarter last year. The ratio of nonaccrual loans to total loans increased to 0.06% from 0.03%, indicating a slight deterioration in asset quality. The company also noted a recovery in the allowance for credit losses on securities held to maturity, which improved to $46,000 from $68,000.

Strategically, Uwharrie Capital Corp has focused on enhancing its operational efficiency and expanding its market presence. The company has not reported any significant acquisitions or product launches during this period but continues to emphasize the diversification of its revenue streams. The management remains optimistic about future growth, citing the potential for increased loan demand and the ongoing recovery in the economic environment. The company’s capital ratios remain strong, with sufficient liquidity to support its operations and growth initiatives, positioning it well for the upcoming quarters.