UWHARRIE CAPITAL CORP (UWHR)·Q2 2025 Earnings Summary

Executive Summary

• EPS rose to $0.38, up from $0.34 in Q1 and $0.29 in Q2 last year, supported by net interest margin expansion to 3.56% from 3.42% YoY .
• Net income increased 10.6% QoQ and 17% YoY; management highlighted continued execution amid a challenging economic backdrop .
• Balance sheet growth continued: total assets reached $1.17B; total loans were ~$687M (+7.2% YoY) and deposits +3.7% YoY .
• Limited sell-side coverage; no formal EPS or revenue consensus was observed for Q2 2025. The company did not provide formal guidance in the press release or shareholder report .

What Went Well and What Went Wrong

What Went Well

• EPS momentum: $0.38 vs $0.34 in Q1 and $0.29 in Q2 2024; management cited stronger net interest margin as a key driver .
• Core growth: “Total loans reached $687M… a 7.2% increase,” and deposits +3.7% YoY; assets at $1.17B .
• Strong profitability metrics: “Net interest margin stood at 3.56%…,” and “Maintained a healthy total annualized return on equity of 17.3%” . Quote: “At the midpoint of 2025, we find ourselves in an economic environment that continues to present challenges. This quarter brought meaningful opportunities to advance our priorities…” .

What Went Wrong

• Operating cost pressure: Noninterest expense rose to $8.98M from $7.83M (+14.7% YoY), with salaries/benefits up to $5.71M from $5.15M .
• Funding costs remain elevated: interest expense edged up to $4.61M from $4.51M YoY, reflecting continued deposit and borrow cost pressure .
• Securities yield headwind: interest on investment securities slipped to $3.20M from $3.33M YoY; modest drag versus prior year .

Financial Results

Balance Sheet and KPIs

Notes:

• Operating Revenue is constructed from disclosed net interest income plus total noninterest income .
• Q1 revenue components were not disclosed in the Q1 8-K press release.

Guidance Changes

Earnings Call Themes & Trends

No earnings call transcript was available in the company’s filings or press materials for Q2 2025; thematic analysis is based on the shareholder letter and press releases .

Management Commentary

• “At the midpoint of 2025, we find ourselves in an economic environment that continues to present challenges. This quarter brought meaningful opportunities to advance our priorities and further strengthen Uwharrie Capital Corp.” — Roger L. Dick, President & CEO .
• “We are proud to share that the American Bankers Association reported that Uwharrie Capital Corp ranked #14 nationally in the top 20 publicly traded banks under $2 billion in assets during 2024.” .
• “Net interest margin stood at 3.56%, compared to 3.42% in Q2 2024. Maintained a healthy total annualized return on equity of 17.3%.” .

Q&A Highlights

• No Q&A transcript or earnings call materials were published in the Q2 2025 period; analysis relies on the shareholder letter and press release .

Estimates Context

• Wall Street consensus (S&P Global) for EPS and revenue was not available for Q2 2025 based on retrieved data; no # of estimates surfaced. Uwharrie appears thinly covered by sell-side analysts [GetEstimates; Values retrieved from S&P Global]*.
• S&P Global reported “Revenue (actual)” for Q2 2025 of $12.188M*, while company-reported operating revenue (net interest income + noninterest income) totaled $12.815M; definitional differences for bank “revenue” likely explain the variance . Values retrieved from S&P Global*.

Key Takeaways for Investors

• Earnings quality: sequential and YoY EPS growth on NIM expansion signals healthy core banking performance despite macro headwinds .
• Balance sheet growth: continued loan and deposit growth supports net interest income trajectory; watch deposit betas and funding mix as interest expense remains elevated .
• Cost discipline: rising noninterest expense warrants monitoring; salaries/benefits and other operating expenses drove YoY increase .
• Profitability: 17.3% annualized ROE and improved NIM provide a constructive backdrop for medium-term return profile .
• Limited external coverage: absence of consensus estimates and call materials reduces near-term headline risk but also limits sell-side-driven catalysts; narrative likely driven by execution and local macro .
• Asset sensitivity and securities income: slight YoY decline in investment securities interest suggests portfolio yield dynamics remain a lever; continued loan growth is the key offset .
• Near-term trading implications: modest positive bias on continued NIM improvement and EPS momentum; monitor expense growth and funding costs for potential pressure points .

Footnote: *Values retrieved from S&P Global.