Thursday, July 17, 2014

Uwharrie Capital Corp profit rises

Albemarle-based Uwharrie Capital Corp. said Wednesday it earned $596,000 in the second quarter, up 282 percent from the same time period a year ago when the company recorded a $680,000 charge.

The company, which operates community bank subsidiary Uwharrie Bank, said the one-time charge stemmed from an updated appraisal for a foreclosed property. That dragged down profit to $156,000.

Uwharrie has total assets of $511 million, down from the $529.7 million it reported a year ago.

Like other banks, Uwharrie has struggled to boost its lending at a time of slow loan growth industrywide. In a June 25 letter to shareholders, Uwharrie said that while economic conditions are showing signs of improvement, the lender's biggest challenge is finding new sources of revenue in a recovering economy.

On Thursday, Uwharrie declared a 2 percent dividend to be paid to shareholders of its common stock on Aug. 15.

“Having weathered the economic storm of the last few years, we are pleased to share this tangible evidence of the continued growth and development of our company," Uwharrie President Roger Dick said in a statement. "Our earnings, capital position and asset quality continue to improve."