Uwharrie Capital Corp Announces Year-End 2022 Earnings

Rhea-AI Summary

Uwharrie Capital Corp (OTCQX: UWHR) reported a consolidated total asset growth, reaching $1.02 billion as of December 31, 2022, compared to $939.7 million in 2021. However, the net income decreased to $8.2 million from $10.1 million in 2021. Earnings per diluted share fell to $1.08, down from $1.29 the previous year. The primary reason for the earnings decline was a significant reduction in income from mortgage banking, driven by rising interest rates, which caused a slowdown in mortgage originations and limited refinancing opportunities for homeowners.

Positive

• Consolidated total assets increased to $1.02 billion, up from $939.7 million.
• Continued growth in asset management and financial services.

Negative

• Net income decreased to $8.2 million from $10.1 million year-over-year.
• Earnings per share fell to $1.08 from $1.29, indicating a decline in profitability.
• Reduced income from mortgage banking due to rising interest rates.

ALBEMARLE, N.C., Feb. 28, 2023 /PRNewswire/ -- Uwharrie Capital Corp (OTCQX: UWHR) and its subsidiary, Uwharrie Bank, reported consolidated total assets of $1.02 billion at December 31, 2022, versus $939.7 million at December 31, 2021.

Net income for the twelve-month period ended December 31, 2022, was $8.2 million versus $10.1 million for the same period in 2021.  For the twelve months ended December 31, 2022, net income available to common shareholders was $7.7 million, or $1.08 per diluted share, compared to $9.5 million, or $1.29 per diluted share, for December 31, 2021. Net income available to common shareholders takes into consideration the payment of dividends on preferred stock issued by the Company.

The key driver of the reduction in earnings year-over-year is primarily attributable to the reduction in income from mortgage banking as a result of the drastically increasing interest rate environment, causing a significant slow-down in mortgage originations and virtually no re-finance incentive for homeowners.

About Uwharrie Capital Corp
Uwharrie Capital Corp offers a full range of financial solutions through its subsidiaries:  Uwharrie Bank and Uwharrie Investment Advisors.  Additional information on Uwharrie Capital Corp may be found at www.Uwharrie.com or by calling 704-982-4415.

 

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SOURCE Uwharrie Capital Corp

FAQ

What were Uwharrie Capital Corp's total assets as of December 31, 2022?

Uwharrie Capital Corp reported total assets of $1.02 billion as of December 31, 2022.

What was the net income for Uwharrie Capital Corp in 2022?

The net income for Uwharrie Capital Corp in 2022 was $8.2 million.

How did Uwharrie Capital Corp's earnings per share change in 2022?

Earnings per diluted share for Uwharrie Capital Corp fell to $1.08 in 2022, down from $1.29 in 2021.

What caused the decline in Uwharrie Capital Corp's net income?

The decline in net income was mainly due to reduced income from mortgage banking amid rising interest rates.