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UWHARRIE CAPITAL CORP (UWHR)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered steady community-bank execution: total assets rose to $1.16B from $1.13B at year-end, while net income increased to $2.6M and diluted EPS to $0.34, both up year over year .
  • Management attributed earnings strength to improved net interest margin driven by loan portfolio growth; credit quality remained strong with past-due/non-accrual loans at just 0.06% of total loans, well below FFIEC peer benchmarks .
  • Sequentially vs Q3 2024, EPS moderated to $0.34 from $0.40 and net income to $2.553M from $3.0M amid normal seasonality and higher provision expense, while balance-sheet growth continued .
  • No formal guidance or earnings call transcript was provided; near-term stock catalysts hinge on sustained loan growth, stable credit, and net interest margin resilience, with prior (Q3 2024) stock dividend context now embedded in share count .

What Went Well and What Went Wrong

What Went Well

  • Improved profitability: Net income rose to $2.6M (vs $2.4M), and diluted EPS to $0.34 (vs $0.31) on net interest margin improvement tied to loan growth .
  • Balance-sheet momentum: Assets reached $1.16B (+3% vs 12/31/24), deposits grew $29M in the quarter, and loans held for investment stood at $664.9M, up year over year .
  • Strong credit quality: “Credit quality remained sound, with 0.06% of total loans as past-due 30+ days or non-accrual compared to FFIEC peer of 1.12%.” (Shareholder letter) .

What Went Wrong

  • Sequential moderation: Q1 2025 net income of $2.553M was below Q3 2024’s $3.0M; EPS fell to $0.34 from $0.40, with higher provision for credit losses ($0.281M vs a small recovery in prior-year quarter) weighing on post-provision earnings .
  • Limited disclosure for traders: No formal guidance ranges or earnings call transcript to clarify forward NIM trajectory, funding mix, or expense trends .
  • Funding costs still elevated: Interest paid on deposits increased to $4.355M vs $3.729M YoY, reflecting the higher-rate environment’s pressure on deposit costs .

Financial Results

Income Statement (YoY comparison: Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025
Total Interest Income ($USD Millions)$12.658 $13.802
Interest Expense ($USD Millions)$4.120 $4.698
Net Interest Income ($USD Millions)$8.538 $9.104
Provision for (Recovery of) Credit Losses ($USD Millions)$(0.030) $0.281
Noninterest Income ($USD Millions)$2.329 $2.381
Noninterest Expense ($USD Millions)$7.882 $7.928
Pre-Tax Income ($USD Millions)$3.015 $3.276
Net Income ($USD Millions)$2.383 $2.553
Net Income to Common ($USD Millions)$2.242 $2.414
Diluted EPS ($USD)$0.31 $0.34

Sequential Comparison (Q3 2024 vs Q1 2025)

MetricQ3 2024Q1 2025
Net Income ($USD Millions)$3.000 $2.553
Net Income to Common ($USD Millions)$2.900 $2.414
Diluted EPS ($USD)$0.40 $0.34

Balance Sheet Highlights

MetricQ3 2024Q4 2024Q1 2025
Total Assets ($USD Billions)$1.18 $1.13 $1.16
Deposits ($USD Millions)N/A $999.823 $1,059.291
Loans Held for Investment ($USD Millions)N/A $613.808 $664.902
Allowance for Credit Losses on Loans ($USD Millions)N/A $5.523 $6.065

KPIs

KPIQ1 2024Q1 2025
Pre-Tax, Pre-Provision Income ($USD Millions, non-GAAP)$3.0 $3.6
Past-Due 30+ Days or Non-Accrual (% of Loans)N/A 0.06%
Deposit Growth ($USD Millions, quarter)N/A $29
Weighted Avg Diluted Shares (Millions)7.265 7.076

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/NIIFY 2025N/A N/A Maintained: No formal guidance
Margins (NIM)FY 2025N/A Commentary only: NIM improved YoY (no range) N/A
OpExFY 2025N/A N/A N/A
Tax RateFY 2025N/A N/A N/A
DividendsFY 2025N/A No Q1 dividend actions disclosed; prior 2% stock dividend in Q3 2024 N/A

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript available; themes inferred from shareholder letter and press releases .

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Net Interest Margin (NIM)Q4 2024: NIM higher on larger loan portfolio Management: YoY improvement in net income due to improved NIM on loan growth Improving
Loan GrowthQ3 2024/Year-end: Larger loan portfolio driving results Loans HFI $664.9M (+YoY) Positive
Credit QualityNot highlighted with metrics in Q3/Q4 docs0.06% past-due/non-accrual; below 1.12% FFIEC peer Strong/Stable
Capital & Shareholder Actions2% stock dividend declared in Q3 2024 No new actions disclosed in Q1 2025 Stable
Deposits/Funding CostsRising deposit costs present sector-wide headwinds (implied in prior context) Interest on deposits $4.355M vs $3.729M YoY; deposit growth $29M Mixed: growth with cost pressure

Management Commentary

  • “The year-over-year improvement in net income as of March 31, 2025 is due to improvement in net interest margin resulting from increased earnings on growth in the loan portfolio.” (CFO press release) .
  • “Credit quality remained sound, with 0.06% of total loans as past-due 30+ days or non-accrual compared to FFIEC peer of 1.12%.” (CEO shareholder letter) .
  • Management emphasized community banking resilience amid a complex rate and regulatory backdrop and highlighted responsible growth and strong capital positioning .

Q&A Highlights

  • No earnings call transcript was filed or found for Q1 2025; therefore, no analyst Q&A to extract [List: earnings-call-transcript returned none].
  • Clarifications are limited to the shareholder letter and press releases; the primary narrative focuses on NIM improvement from loan growth and strong credit quality .

Estimates Context

  • S&P Global consensus coverage for EPS and revenue appears unavailable for Q1 2025; no EPS or revenue consensus mean or estimate counts were returned for UWHR. Values retrieved from S&P Global.
  • SPGI-documented “Revenue” actual for Q1 2025: $11.204M* (definition may differ from GAAP components used in company filings). Values retrieved from S&P Global.
MetricQ1 2025 Consensus Mean# of EstimatesQ1 2025 Actual
EPS ($USD)N/A*N/A*$0.34
Revenue ($USD Millions)N/A*N/A*$11.204*

*Values retrieved from S&P Global.

Implication: With limited sell-side coverage, estimate revisions are unlikely to be a near-term driver; investors should instead track internal NIM, loan growth, deposit mix, and credit metrics .

Key Takeaways for Investors

  • Balance-sheet growth and improved NIM drove YoY EPS expansion to $0.34; sustained loan growth remains core to earnings power .
  • Sequential earnings moderation vs Q3 2024 reflects normal variability and higher provision; watch provision trends alongside growth to gauge net earnings trajectory .
  • Funding costs are elevated but manageable; deposit growth of $29M supports liquidity while interest-on-deposits increased YoY—focus on repricing dynamics and deposit mix .
  • Credit quality is a differentiator, with 0.06% past-due/non-accrual and adequate ACL growth—monitor any early-cycle credit normalization as rates settle .
  • No formal guidance and no call reduce near-term visibility; use quarterly shareholder letters and 8-Ks to track NIM, loan growth, and efficiency trends .
  • Prior Q3 2024 stock dividend already reflected in EPS/share metrics—be mindful of share count effects when modeling .
  • Actionable: overweight monitoring of net interest margin trajectory and loan growth pace; potential upside if NIM holds and credit remains pristine, downside if funding costs re-accelerate or provision builds.