Thursday, September 5, 2013

Uwharrie Capital struggling to find places to lend

Uwharrie Capital Corp. is having a hard time finding places to lend money, says the CEO in a quarterly letter to shareholders released Wednesday.

Though assets have grown, total loans are down more than 6 percent over a year ago -- because of lack of loan demand, the bank says. Instead, the bank is keeping its money low-yielding liquid assets as a response to potentially rising interest rates. "This balance sheet mix is not particular to Uwharrie Capital Corp, but rather the banking industry as a whole," CEO Roger Dick writes in the letter.

The bank also notes a $680,000 charge stemming from a foreclosed property held on the books. A new appraisal dramatically reduced its value, Dick writes. But he's not so sure it was reasonable. "Appraisals continue to be a challenge for the industry, which reflect more stressed sales than economic values," he writes. "The appraised value of any property may or may not reflect the true market value. This can only be determined upon final sale."

ALLIANCE NABS RETAIL BANK MANAGER FROM PARK STERLING: Gastonia's Alliance Bank and Trust named Sally D. Dunn to be its new retail banking manager. She previously had managed Park Sterling Bank's branches in Belmont, Mount Holly and Stanley. “We have, once again, reached out into the greater Charlotte banking community and found an excellent addition to our team here in Gastonia.” CEO Don Harrison says in a statement.

CORNELIUS PROPERTY MANAGER EXPANDING: Flush with business now that large institutional investors are buying homes left and right, Cornelius-based property manager Park Avenue Properties is planning to set up five satellite offices in Raleigh, Greensboro, Greenville, S.C., Charleston, S.C., and Memphis. They're already doing steady business in the Charlotte area where Blackstone and American Homes 4 Rent are buying up hundreds of homes.

****This is a preview of The Charlotte Observer's Bank Watch Morning Report, bringing you banking news from the region, the top financial headlines, and the news driving activity in the Charlotte market.****

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