Uwharrie Capital to Acquire First Community Bankshares for $100M

Ticker: UWHR · Form: 8-K · Filed: 2024-10-16T00:00:00.000Z

Sentiment: mixed

Topics: acquisition, merger, financials

TL;DR

Uwharrie Capital buying First Community Bankshares for $100M, closing Q1 2025.

AI Summary

Uwharrie Capital Corp announced on October 15, 2024, that it has entered into a definitive agreement to acquire First Community Bankshares, Inc. The transaction is valued at approximately $100 million, with First Community Bankshares shareholders expected to receive $25.00 per share in cash and stock. The acquisition is anticipated to close in the first quarter of 2025, subject to regulatory and shareholder approvals.

Why It Matters

This acquisition will expand Uwharrie Capital's market presence and financial services offerings, potentially leading to increased competition and new opportunities for customers in the affected regions.

Risk Assessment

Risk Level: medium — The acquisition is subject to regulatory and shareholder approvals, which introduces uncertainty regarding its completion and terms.

Key Numbers

Key Players & Entities

FAQ

What is the total value of the proposed acquisition?

The definitive agreement values the acquisition of First Community Bankshares, Inc. by Uwharrie Capital Corp at approximately $100 million.

What will First Community Bankshares, Inc. shareholders receive?

Shareholders of First Community Bankshares, Inc. are expected to receive $25.00 per share in a combination of cash and stock.

When is the acquisition expected to be completed?

The acquisition is anticipated to close in the first quarter of 2025.

What approvals are required for the transaction?

The transaction is subject to customary closing conditions, including regulatory approvals and shareholder approvals from both companies.

What is the former name of Uwharrie Capital Corp?

Uwharrie Capital Corp was formerly known as Stanly Capital Corp, with a name change effective March 3, 1993.

Filing Stats: 777 words · 3 min read · ~3 pages · Grade level 10.7 · Accepted 2024-10-16 15:06:34

Key Financial Figures

Filing Documents

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. On October 16, 2024, Uwharrie Capital Corp (the "Registrant") announced financial results for the period ended September 30, 2024. The Registrant reported consolidated total assets of $1.18 billion at September 30, 2024, compared to $1.07 billion at December 31, 2023. Net income for the nine-month period ended September 30, 2024, was $7.6 million versus $6.3 million for the same period in 2023. For the nine months ended September 30, 2024, net income available to common shareholders was $7.2 million, or $1.00 per share, compared to $5.9 million, or $0.80 per share, for the nine months ended September 30, 2023. Net income available to common shareholders takes into consideration the payment of dividends on preferred stock issued by the Registrant. Net income for the three-month period ended September 30, 2024, was $3.0 million versus $2.1 million for the same period in 2023. For the three months ended September 30, 2024, net income available to common shareholders was $2.9 million, or $0.40 per share, compared to $2.0 million, or $0.27 per share, for the three months ended September 30, 2023.

01 Other Events

Item 8.01 Other Events. On October 15, 2024, the Uwharrie Capital Corp (the "Registrant") Board of Directors declared a 2% stock dividend to be paid to common stock shareholders on November 18, 2024. Current and prior year earnings per share reported above in Item 2.02 have been adjusted retroactively for the 2% stock dividend. A copy of the press release (the "Press Release") announcing the Registrant's results is attached as Exhibit 99.1 and incorporated by reference herein. This Current Report on Form 8-K (including information included or incorporated by reference herein) may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of the Registrant's goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "projects," "outlook" or similar expressions. These statements are based upon the current belief and expectations of the Registrant's management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Registrant's control).

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 99.1 Press Release dated October 16, 2024 104 Cover page interactive data file (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. UWHARRIE CAPITAL CORP Date: October 16, 2024 By: /s/ Heather H. Almond Heather H. Almond Principal Financial Officer

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