10-Q

June 30, 2024

Valuation Technique

Unobservable Input

General
Range

Nonrecurring measurements:

Individually evaluated loans

Discounted appraisals

Collateral discounts and estimated costs to sell

Note 1 – Basis of Presentation

The financial statements and accompanying notes are presented on a consolidated basis including Uwharrie Capital Corp (the “Company”) and its subsidiaries, Uwharrie Bank (the “Bank”), Uwharrie Investment Advisors, Inc. (“UIA”), and Uwharrie Mortgage, Inc. The Bank consolidates its subsidiaries, the Strategic Alliance Corporation, BOS Agency, Inc. and Gateway Mortgage, Inc., each of which is wholly owned by the Bank.

The information contained in the consolidated financial statements is unaudited. In the opinion of management, the consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and material adjustments necessary for a fair presentation of results of interim periods, all of which are of a normal recurring nature, have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for an entire year. Management is not aware of additional economic events, outside influences or changes in concentrations of business that would require additional clarification or disclosure in the consolidated financial statements.

The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to consolidated financial statements filed as part of the Company’s 2023 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 6, 2024. This Quarterly Report should be read in conjunction with such Annual Report.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses.

Accounting Changes and Reclassifications

Certain amounts in the 2023 financial statements have been reclassified to conform to the 2024 presentation. The recovery of credit losses on unfunded loan commitments has been reclassified from other noninterest expense for periods prior to 2024. The reclassification is immaterial and did not have an impact on net income or shareholders’ equity.

Certain revisions have been made to previously issued financial statements for the year ended December 31, 2023 presented on Form 10-K. The carrying value and estimated fair value for securities held to maturity disclosed in Note 11 as of December 31, 2023 were revised due to an error in the calculation. These revisions did not change the securities reported in total assets and had no effect on net income.

We evaluated the effects of this error to our previously issued financial statements in accordance with SEC Staff Accounting Bulletin No. 99 and determined that the error was not material to the financial statements and disclosures previously reported on Form 10-K for the year ended December 31, 2023.

The Company’s significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements for the year ended December 31, 2023 and are contained in the Company’s Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2023.

Note 2 – Comprehensive Income (Loss)

The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company’s only component of other comprehensive income is unrealized gains and losses, net of income tax, on investment securities available for sale.

The following table presents the changes in accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2024			2023			2024			2023
	(dollars in thousands)
Beginning balance	$	(26,213	)	$	(27,219	)	$	(25,100	)	$	(31,765	)
Other comprehensive income (loss) before reclassifications, net of $22, $664, $354 and ($695) tax effect, respectively		(75	)		(2,225	)		(1,188	)		2,280
Amounts reclassified from accumulated other comprehensive loss, net of $0, $2, $0, and ($8) tax effect, respectively		—			(7	)		—			34
Net current-period other comprehensive income (loss)		(75	)		(2,232	)		(1,188	)		2,314
Ending balance	$	(26,288	)	$	(29,451	)	$	(26,288	)	$	(29,451	)

Note 3 – Noncontrolling Interest

Note 4 – Per Share Data

Basic and diluted net income per common share is computed based on the weighted average number of shares outstanding during each period after retroactively adjusting for stock dividends. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income of the Company. The Company had no stock options outstanding at June 30, 2024 or December 31, 2023. The number of shares and earnings per share for the 2023 periods have been adjusted for the 2% stock dividend declared on October 17, 2023.

Basic and diluted net income per common share have been computed based upon net income available to common shareholders as presented in the accompanying consolidated statements of income divided by the weighted average number of common shares outstanding or assumed to be outstanding.

The weighted average number of common shares outstanding was 7,093,666 for the three-month period ended June 30, 2024 compared to 7,215,163 for the three-month period ended June 30, 2023. For the six-month period ended June 30, 2024, the weighted average number of common shares outstanding was 7,108,070 compared to 7,215,891 for the six-month period ended June 30, 2023.

Note 5 – Investment and Equity Securities

Carrying amounts and fair values of securities available for sale and held to maturity are summarized below:


June 30, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale:
U.S. Treasury	$	53,002	$	—	$	3,573	$	49,429
U.S. government agencies		45,942		83		998		45,027
GSE - Mortgage-backed securities and CMOs		157,306		72		14,220		143,158
Asset-backed securities		27,562		422		38		27,946
State and political subdivisions		95,081		—		15,492		79,589
Corporate bonds		6,000		—		385		5,615
Total securities available for sale	$	384,893	$	577	$	34,706	$	350,764


June 30, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Securities held to maturity:
State and political subdivisions	$	12,252	$	—	$	1,015	$	11,237	$	—	$	12,252
Corporate bonds		15,000		—		1,581		13,419		66		14,934
Total securities held to maturity	$	27,252	$	—	$	2,596	$	24,656	$	66	$	27,186


December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale:
U.S. Treasury	$	54,984	$	—	$	3,479	$	51,505
U.S. government agencies		43,921		66		969		43,018
GSE - Mortgage-backed securities and CMOs		137,346		170		13,729		123,787
Asset-backed securities		31,469		244		200		31,513
State and political subdivisions		95,581		15		14,196		81,400
Corporate bonds		6,000		—		509		5,491
Total securities available for sale	$	369,301	$	495	$	33,082	$	336,714


December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Securities held to maturity:
U.S. government agencies	$	133	$	—	$	1	$	132	$	—	$	133
State and political subdivisions		13,467		—		985		12,482		—		13,467
Corporate bonds		15,000		—		1,878		13,122		56		14,944
Total securities held to maturity	$	28,600	$	—	$	2,864	$	25,736	$	56	$	28,544

The Company owned Federal Reserve Bank (FRB) stock reported at cost of $959,000 at June 30, 2024 and December 31, 2023. The Company owned Federal Home Loan Bank (FHLB) stock reported at cost of $750,000 and $712,000 at June 30, 2024 and December 31, 2023, respectively. The investments in FRB stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks and are classified as restricted stock on the consolidated balance sheet. These investments are carried at cost since there is no ready market and redemption has historically been made at par value. The Company estimated that the fair value approximated cost and that these investments were not impaired at June 30, 2024.

There is no allowance for credit losses on available for sale securities. The following table shows a rollforward of the allowance for credit losses on held to maturity securities for the six months ended June 30, 2024.


	State and political subdivisions		Corporate bonds		Total
	(dollars in thousands)
Balance, December 31, 2023	$	—	$	56	$	56
Provision for credit losses		—		10		10
Charge-offs of securities		—		—		—
Recoveries		—		—		—
Balance, June 30, 2024	$	—	$	66	$	66

On a quarterly basis, the Company monitors the credit quality of the debt securities held to maturity through the use of credit ratings. For unrated securities, primarily corporate bonds consisting of subordinated debt of bank holding companies, individual financial reports are reviewed quarterly. Capital, profitability, liquidity and other ratios are reviewed to assist in determining credit quality.

The following table summarizes the credit ratings of debt securities held to maturity, presented at amortized cost, by major security type at June 30, 2024.


June 30, 2024	State and political subdivisions		Corporate bonds		Total
	(dollars in thousands)
Aaa	$	—	$	—	$	—
Aa1/Aa2/Aa3		12,252		—		12,252
A1/A2		—		—		—
BBB		—		—		—
Not rated		—		15,000		15,000
Total	$	12,252	$	15,000	$	27,252

At June 30, 2024, the Company had no securities held to maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held to maturity classified as nonaccrual for the six months ended June 30, 2024.

Results from sales of securities available for sale for the three and six-month periods ended June 30, 2024 and 2023, respectively, were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(dollars in thousands)
Gross proceeds from sales	$	—	$	4,536	$	—	$	11,329

Realized gains from sales	$	—	$	48	$	—	$	54
Realized losses from sales		—		39		—		96
Net realized gains (losses)	$	—	$	9	$	—	$	(42	)

At June 30, 2024 and December 31, 2023, securities available for sale with a carrying amount of $142.3 million and $137.1 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law. At June 30, 2024, securities available for sale with a carrying amount of $6.7 million were pledged as collateral on a borrowing established with the FRB in January 2024. More information regarding short-term borrowings can be found in Note 14 (Short-Term Borrowed Funds) to the Company's Notes to Consolidated Financial Statements.

We believe the unrealized losses on investment securities are a result of a volatile market and fluctuations in market prices due to a rise in interest rates, which will adjust if rates decline. Management does not believe these fluctuations are a reflection of the credit quality of the investments.

The following tables show the gross unrealized losses and estimated fair value of available for sale securities, for which an allowance has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2024 and December 31, 2023.


	Less than 12 Months						12 Months or More						Total
June 30, 2024	Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(dollars in thousands)
Securities available for sale:
U.S. Treasury		—	$	—	$	—		8	$	49,429	$	3,573	$	49,429	$	3,573
U.S. government agencies		7		10,022		172		22		20,349		826		30,371		998
GSE-Mortgage-backed securities and CMOs		18		31,767		263		60		98,403		13,957		130,170		14,220
Asset-backed securities		2		2,091		3		5		6,766		35		8,857		38
State and political subdivisions		2		3,314		25		61		76,064		15,467		79,378		15,492
Corporate bonds		—		—		—		3		5,615		385		5,615		385
Total securities available for sale		29	$	47,194	$	463		159	$	256,626	$	34,243	$	303,820	$	34,706


	Less than 12 Months						12 Months or More						Total
December 31, 2023	Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(dollars in thousands)
Securities available for sale
U.S. Treasury		—	$	—	$	—		9	$	51,505	$	3,479	$	51,505	$	3,479
U.S. government agencies		12		16,865		107		18		14,705		862		31,570		969
GSE-Mortgage-backed securities and CMOs		5		7,907		103		59		100,765		13,626		108,672		13,729
Asset-backed securities		2		1,711		5		7		10,140		195		11,851		200
State and political subdivisions		2		2,496		23		60		76,352		14,173		78,848		14,196
Corporate bonds		—		—		—		3		5,491		509		5,491		509
Total securities available for sale		21	$	28,979	$	238		156	$	258,958	$	32,844	$	287,937	$	33,082

Declines in the fair value of the available for sale investment portfolio are believed by management to be temporary in nature. When evaluating an investment for credit loss, management considers, among other things, the extent to which the fair value has been in a loss position; the financial condition of the issuer through the review of credit ratings and, if necessary, corporate financial statements; adverse conditions specifically related to the security such as past due principal or interest; underlying assets that collateralize the debt security; other economic conditions and demographics; and the intent and ability of the Company to hold the investment until the loss position is recovered. Any unrealized losses were largely due to increases in market interest rates over the yields available at the time of purchase. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. At June 30, 2024, the Company did not intend to sell and believed it was not likely to be required to sell the available for sale securities that were in a loss position prior to full recovery.

The following tables show contractual maturities of the investment portfolio as of June 30, 2024:


	June 30, 2024
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities available for sale:
Due within twelve months		27,750		27,531		3.76	%
Due after one but within five years		54,232		48,838		2.01	%
Due after five but within ten years		61,590		53,919		2.59	%
Due after ten years		241,321		220,476		3.89	%
	$	384,893	$	350,764		3.41	%


	June 30, 2024
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities held to maturity:
Due within twelve months		380		380		2.98	%
Due after five but within ten years		17,661		15,842		4.29	%
Due after ten years		9,211		8,434		3.41	%
	$	27,252	$	24,656		3.97	%

The portion of unrealized gains and losses for the three and six months ended June 30, 2024 and 2023 related to equity securities still held at the reporting date is calculated as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024		2023
	(dollars in thousands)
Gross proceeds from sales	$	—		$	—		$	—	$	—

Net gains (losses) recognized during the period on equity securities	$	(19	)	$	(23	)	$	22	$	11
Less: Net gains (losses) recognized from equity securities sold during the period		—			—			—		—
Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date	$	(19	)	$	(23	)	$	22	$	11

Note 6 – Loans Held for Investment

The composition of net loans held for investment by class as of June 30, 2024 and December 31, 2023 was as follows:


	June 30, 2024			December 31, 2023
	(dollars in thousands)
Commercial
Commercial	$	102,616		$	102,366
Real estate - commercial		235,897			213,397
Other real estate construction loans		44,032			40,872
Other loans		5,971			6,214
Noncommercial
Real estate 1-4 family construction		18,987			12,481
Real estate - residential		152,813			143,697
Home equity		64,344			60,599
Consumer loans		11,268			11,581
		635,928			591,207
Less:
Allowance for credit losses		(5,908	)		(5,561	)
Deferred loan costs net		810			864

Loans held for investment, net	$	630,830		$	586,510

Note 7 – Allowance for Credit Losses on Loans

The following tables summarize the activity related to the allowance for credit losses on loans for the three and six months ended June 30, 2024 and 2023.


	Commercial Loans										Noncommercial Loans
	Commercial			Real estate commercial		Other real estate construction		Other loans			Real estate 1-4 family construction		Real estate residential		Home equity			Consumer			Total
	(dollars in thousands)
Balance, March 31, 2024	$	1,480		$	2,033	$	323	$	11		$	34	$	855	$	600		$	187		$	5,523
Provision for (recovery of) credit losses		(63	)		175		45		(1	)		8		107		69			70			410
Charge-offs		(17	)		—		—		—			—		—		(1	)		(73	)		(91	)
Recoveries		54			—		—		—			—		—		1			11			66
Net (charge-offs) recoveries		37			—		—		—			—		—		—			(62	)		(25	)
Balance, June 30, 2024	$	1,454		$	2,208	$	368	$	10		$	42	$	962	$	669		$	195		$	5,908


	Commercial Loans									Noncommercial Loans
	Commercial			Real estate commercial		Other real estate construction		Other loans		Real estate 1-4 family construction		Real estate residential		Home equity		Consumer			Total
	(dollars in thousands)
Balance, March 31, 2023	$	1,010		$	1,860	$	325	$	7	$	—	$	657	$	567	$	170		$	4,596
Provision for (recovery of) credit losses		11			20		31		—		23		9		7		—			101
Charge-offs		(1	)		—		—		—		—		—		—		(22	)		(23	)
Recoveries		8			—		—		—		—		—		7		24			39
Net (charge-offs) recoveries		7			—		—		—		—		—		7		2			16
Balance, June 30, 2023	$	1,028		$	1,880	$	356	$	7	$	23	$	666	$	581	$	172		$	4,713


	Commercial Loans										Noncommercial Loans
	Commercial			Real estate commercial		Other real estate construction			Other loans		Real estate 1-4 family construction		Real estate residential		Home equity			Consumer			Total
	(dollars in thousands)
Balance, December 31, 2023	$	1,493		$	2,057	$	389		$	9	$	31	$	796	$	582		$	204		$	5,561
Provision for (recovery of) credit losses		(79	)		151		(21	)		1		11		165		87			90			405
Charge-offs		(17	)		—		—			—		—		—		(1	)		(118	)		(136	)
Recoveries		57			—		—			—		—		1		1			19			78
Net (charge-offs) recoveries		40			—		—			—		—		1		—			(99	)		(58	)
Balance, June 30, 2024	$	1,454		$	2,208	$	368		$	10	$	42	$	962	$	669		$	195		$	5,908


	Commercial Loans											Noncommercial Loans
	Commercial			Real estate commercial		Other real estate construction			Other loans			Real estate 1-4 family construction		Real estate residential		Home equity			Consumer			Total
	(dollars in thousands)
Balance, December 31, 2022	$	435		$	760	$	177		$	4		$	—	$	561	$	277		$	76		$	2,290
Cumulative effect of change in accounting principle		702			1,017		143			5			—		74		375			91			2,407
Provision for (recovery of) credit losses		224			103		78			(2	)		23		30		(79	)		15			392
Charge-offs		(344	)		—		(42	)		—			—		—		—			(58	)		(444	)
Recoveries		11			—		—			—			—		1		8			48			68
Net (charge-offs) recoveries		(333	)		—		(42	)		—			—		1		8			(10	)		(376	)
Balance, June 30, 2023	$	1,028		$	1,880	$	356		$	7		$	23	$	666	$	581		$	172		$	4,713

Past due loan information is used by management when assessing the adequacy of the allowance for credit losses. The following tables summarize the past due information of the loan portfolio by class as of the dates indicated:


June 30, 2024	Loans 30-89 Days Past Due		Nonaccrual Loans		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(dollars in thousands)
Commercial	$	41	$	147	$	188	$	102,425	$	102,613	$	—
Real estate - commercial		—		401		401		235,615		236,016		—
Other real estate construction		—		—		—		44,032		44,032		—
Real estate 1-4 family construction		—		—		—		18,987		18,987		—
Real estate - residential		779		818		1,597		151,910		153,507		—
Home equity		151		222		373		63,971		64,344		—
Consumer loans		73		—		73		11,195		11,268		—
Other loans		—		—		—		5,971		5,971		—
Total	$	1,044	$	1,588	$	2,632	$	634,106	$	636,738	$	—


December 31, 2023	Loans 30-89 Days Past Due		Nonaccrual Loans		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(dollars in thousands)
Commercial	$	46	$	154	$	200	$	102,162	$	102,362	$	—
Real estate - commercial		588		488		1,076		212,447		213,523		—
Other real estate construction		—		—		—		40,872		40,872		—
Real estate 1-4 family construction		—		—		—		12,481		12,481		—
Real estate - residential		715		278		993		143,445		144,438		—
Home equity		115		181		296		60,304		60,600		—
Consumer loan		84		—		84		11,497		11,581		—
Other loans		—		—		—		6,214		6,214		—
Total	$	1,548	$	1,101	$	2,649	$	589,422	$	592,071	$	—

Once a loan becomes 90 days past due, the loan is automatically transferred to a nonaccrual status. The exception to this policy is credit card loans that remain in accruing status 90 days or more until they are paid current or charged off.

The carrying value of foreclosed properties held as other real estate was $141,000 at June 30, 2024 and December 31, 2023. The Company had no foreclosed residential real estate and $225,000 of residential real estate in process of foreclosure at June 30, 2024. At December 31, 2023, the Company had no foreclosed residential real estate and no residential real estate in process of foreclosure.

The composition of nonaccrual loans by class as of June 30, 2024 and December 31, 2023 was as follows:


							Six Months Ended
	June 30, 2024						June 30, 2024
	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans		Interest Income
	(dollars in thousands)
Commercial	$	—	$	147	$	147	$	—
Real estate - commercial		401		—		401		—
Other real estate construction		—		—		—		—
Real estate 1-4 family construction		—		—		—		—
Real estate - residential		176		642		818		17
Home equity		—		222		222		2
Consumer loans		—		—		—		—
Other loans		—		—		—		—
	$	577	$	1,011	$	1,588	$	19


							Six Months Ended
	December 31, 2023						June 30, 2023
	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans		Interest Income
	(dollars in thousands)
Commercial	$	—	$	154	$	154	$	—
Real estate - commercial		400		88		488		—
Other real estate construction		—		—		—		—
Real estate 1-4 family construction		—		—		—		—
Real estate - residential		181		97		278		7
Home equity		—		181		181		—
Consumer loans		—		—		—		—
Other loans		—		—		—		—
	$	581	$	520	$	1,101	$	7

A loan may be individually assessed for determining the allowance for credit losses when it is determined that it does not share similar risk characteristics with other assets. Loans that are on nonaccrual status will be reviewed to determine if they will be individually, rather than collectively, assessed. If the loan is deemed to be collateral dependent and the relationship’s outstanding balance is $100,000 or greater, it will be individually assessed. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans require an analysis of the collateral. The fair value of the collateral is discounted by liquidation costs. If the discounted fair value of the collateral is greater than the amortized loan balance, no allowance is required. Otherwise the difference between the balance and the collateral is charged off if deemed uncollectible.

The following table details the amortized cost of collateral dependent loans and any related allowance at June 30, 2024 and December 31, 2023.


	June 30, 2024				December 31, 2023
	Amortized Cost		Allowance for Credit Losses		Amortized Cost		Allowance for Credit Losses
	(dollars in thousands)
Commercial	$	141	$	49	$	147	$	95
Real estate - commercial		401		—		400		—
Other real estate construction		—		—		—		—
Real estate 1-4 family construction		—		—		—		—
Real estate - residential		726		107		172		—
Home equity		132		8		133		3
Consumer loans		—		—		—		—
Other loans		—		—		—		—
Total	$	1,400	$	164	$	852	$	98

Management uses a risk-grading program to facilitate the evaluation of probable inherent loan losses and to measure the adequacy of the allowance for credit losses on loans. In this program, risk grades are initially assigned by the loan officers and reviewed and monitored by the lenders and credit administration. The program has nine risk grades summarized in six categories as follows:

Pass: Loans that are pass grade credits include loans that are fundamentally sound, with risk factors that are reasonable and acceptable. They generally conform to policy with only minor exceptions; any major exceptions are clearly mitigated by other economic factors.

Watch: Loans that are acceptable but show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss. These loans may deserve management’s attention.

Special Mention: Loans that exhibit potential weakness that deserves management’s close attention. Credits within this category exhibit risk that is increasing beyond the point where the loan would have been originally approved.

Substandard: Loans that are considered substandard are loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or the value of the collateral pledged. All nonaccrual loans are graded as substandard.

Doubtful: Loans that are considered to be doubtful have all weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make the collection or liquidation in full on the basis of current existing facts, conditions and values highly questionable and improbable.

Loss: Loans that are considered to be a loss are considered to be uncollectible and of such little value that their continuance as bankable assets is not warranted.

The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of June 30, 2024:


June 30, 2024	Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
	(dollars in thousands)
Commercial
Pass	$	13,522	$	20,740	$	16,026	$	12,866	$	4,112	$	11,345	$	22,700	$	101,311
Watch		—		168		515		73		—		—		382		1,138
Special Mention		—		16		—		—		—		—		—		16
Substandard		—		—		—		—		148		—		—		148
Total commercial		13,522		20,924		16,541		12,939		4,260		11,345		23,082		102,613

Real estate - commercial
Pass		21,050		55,394		49,529		37,510		21,930		45,680		3,453		234,546
Watch		—		—		—		—		—		69		—		69
Special Mention		—		—		—		571		117		312		—		1,000
Substandard		—		—		—		401		—		—		—		401
Total real estate - commercial		21,050		55,394		49,529		38,482		22,047		46,061		3,453		236,016

Other real estate construction
Pass		13,185		15,890		5,352		2,704		3,311		2,443		1,102		43,987
Watch		—		—		—		—		—		45		—		45
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total other real estate construction		13,185		15,890		5,352		2,704		3,311		2,488		1,102		44,032

Real estate 1-4 family construction
Pass		5,812		13,175		—		—		—		—		—		18,987
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total real estate 1-4 family construction		5,812		13,175		—		—		—		—		—		18,987

Real estate - residential
Pass		23,979		38,469		36,888		22,449		10,778		16,241		1,171		149,975
Watch		504		—		—		208		375		714		—		1,801
Special Mention		—		106		—		493		—		314		—		913
Substandard		—		555		—		—		191		72		—		818
Total real estate - residential		24,483		39,130		36,888		23,150		11,344		17,341		1,171		153,507

Home equity
Pass		23		134		287		44		405		1,236		61,629		63,758
Watch		—		—		—		109		—		84		150		343
Special Mention		—		—		—		—		—		21		—		21
Substandard		—		—		—		—		—		222		—		222
Total home equity		23		134		287		153		405		1,563		61,779		64,344

Consumer loans
Pass		4,946		2,940		1,440		310		85		394		1,128		11,243
Watch		—		—		—		—		—		—		—		—
Special Mention		—		25		—		—		—		—		—		25
Substandard		—		—		—		—		—		—		—		—
Total consumer loans		4,946		2,965		1,440		310		85		394		1,128		11,268

Other loans
Pass		—		—		1,602		2,725		1,254		390		—		5,971
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total other loans		—		—		1,602		2,725		1,254		390		—		5,971

Total Pass		82,517		146,742		111,124		78,608		41,875		77,729		91,183		629,778
Total Watch		504		168		515		390		375		912		532		3,396
Total Special Mention		—		147		—		1,064		117		647		—		1,975
Total Substandard		—		555		—		401		339		294		—		1,589
Total loans	$	83,021	$	147,612	$	111,639	$	80,463	$	42,706	$	79,582	$	91,715	$	636,738

During the six months ended June 30, 2024, sixty-eight loans totaling $1.5 million were converted from revolving to term loans.

The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of December 31, 2023:


December 31, 2023	Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
	(dollars in thousands)
Commercial
Pass	$	23,611	$	21,731	$	16,587	$	5,868	$	2,553	$	10,634	$	20,089	$	101,073
Watch		183		22		—		—		—		—		914		1,119
Special Mention		16		—		—		—		—		—		—		16
Substandard		—		—		—		154		—		—		—		154
Total commercial		23,810		21,753		16,587		6,022		2,553		10,634		21,003		102,362

Real estate - commercial
Pass		51,543		46,563		38,267		23,031		15,727		33,949		2,844		211,924
Watch		—		—		—		—		74		—		—		74
Special Mention		—		—		588		121		171		157		—		1,037
Substandard		—		—		400		88		—		—		—		488
Total real estate - commercial		51,543		46,563		39,255		23,240		15,972		34,106		2,844		213,523

Other real estate construction
Pass		20,458		10,368		3,050		3,711		542		2,148		548		40,825
Watch		—		—		—		—		—		47		—		47
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total other real estate construction		20,458		10,368		3,050		3,711		542		2,195		548		40,872

Real estate 1-4 family construction
Pass		10,628		1,353		500		—		—		—		—		12,481
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total real estate 1-4 family construction		10,628		1,353		500		—		—		—		—		12,481

Real estate - residential
Pass		46,470		40,558		23,259		11,182		3,528		15,208		1,082		141,287
Watch		—		—		209		384		122		669		—		1,384
Special Mention		666		—		501		—		—		322		—		1,489
Substandard		—		—		—		196		—		82		—		278
Total real estate - residential		47,136		40,558		23,969		11,762		3,650		16,281		1,082		144,438

Home equity
Pass		173		134		95		407		94		1,309		57,800		60,012
Watch		—		—		109		—		19		130		149		407
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		181		—		181
Total home equity		173		134		204		407		113		1,620		57,949		60,600

Consumer loans
Pass		4,302		2,089		609		121		129		352		3,936		11,538
Watch		—		—		—		—		—		—		—		—
Special Mention		25		18		—		—		—		—		—		43
Substandard		—		—		—		—		—		—		—		—
Total consumer loans		4,327		2,107		609		121		129		352		3,936		11,581

Other loans
Pass		5		1,611		2,864		1,306		—		428		—		6,214
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total other loans		5		1,611		2,864		1,306		—		428		—		6,214

Total Pass		157,190		124,407		85,231		45,626		22,573		64,028		86,299		585,354
Total Watch		183		22		318		384		215		846		1,063		3,031
Total Special Mention		707		18		1,089		121		171		479		—		2,585
Total Substandard		—		—		400		438		—		263		—		1,101
Total loans	$	158,080	$	124,447	$	87,038	$	46,569	$	22,959	$	65,616	$	87,362	$	592,071

The following tables present gross charge-offs by origination date for the six months ended June 30, 2024 and for the year ended December 31, 2023:


June 30, 2024	Gross Loan Charge-offs by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
	(dollars in thousands)
Commercial
Commercial	$	—	$	—	$	—	$	—	$	17	$	—	$	—	$	17
Real estate - commercial		—		—		—		—		—		—		—		—
Other real estate construction		—		—		—		—		—		—		—		—
Other loans		—		—		—		—		—		—		—		—
Noncommercial
Real estate 1-4 family construction		—		—		—		—		—		—		—		—
Real estate - residential		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Consumer loans		—		51		3		10		6		2		47		119
Total charge-offs	$	—	$	51	$	3	$	10	$	23	$	2	$	47	$	136


December 31, 2023	Gross Loan Charge-offs by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
	(dollars in thousands)
Commercial
Commercial	$	—	$	49	$	—	$	159	$	315	$	71	$	9	$	603
Real estate - commercial		—		—		—		—		—		—		—		—
Other real estate construction		—		42		—		—		—		—		—		42
Other loans		—		—		—		—		—		—		—		—
Noncommercial
Real estate 1-4 family construction		—		—		—		—		—		—		—		—
Real estate - residential		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Consumer loans		—		34		4		3		—		4		64		109
Total charge-offs	$	—	$	125	$	4	$	162	$	315	$	75	$	73	$	754

Loans that are in nonaccrual status or 90 days past due and still accruing are considered to be nonperforming. At both June 30, 2024 and December 31, 2023 there were no loans 90 days past due and still accruing. The following tables show the breakdown between performing and nonperforming loans by class at June 30, 2024 and December 31, 2023:


June 30, 2024	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	102,466	$	147	$	102,613
Real estate - commercial		235,615		401		236,016
Other real estate construction		44,032		—		44,032
Real estate 1-4 family construction		18,987		—		18,987
Real estate - residential		152,689		818		153,507
Home equity		64,122		222		64,344
Consumer loans		11,268		—		11,268
Other loans		5,971		—		5,971
Total	$	635,150	$	1,588	$	636,738


December 31, 2023	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	102,208	$	154	$	102,362
Real estate - commercial		213,035		488		213,523
Other real estate construction		40,872		—		40,872
Real estate 1-4 family construction		12,481		—		12,481
Real estate - residential		144,160		278		144,438
Home equity		60,419		181		60,600
Consumer loans		11,581		—		11,581
Other loans		6,214		—		6,214
Total	$	590,970	$	1,101	$	592,071

Modifications to Borrowers Experiencing Financial Difficulty

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses due to the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. The Company rarely modifies loans by providing principal forgiveness. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. In some cases, the Company will modify a loan by providing multiple types of concessions. Typically one type of concession is granted initially. If the borrower continues to experience financial difficulty, another concession may be granted. Types of concessions include term extensions beyond customary terms, capitalization of accrued interest, interest rate reductions to below current market rates, payment deferrals or principal forgiveness.

There were no loans modified for borrowers experiencing financial difficulty during the six months ended June 30, 2024. The following table shows the amortized cost basis of loans modified for borrowers experiencing financial difficulty, disaggregated by class of loans and type of concession granted, during the twelve months ended December 31, 2023.


	Payment Deferrals
	Amortized		% of Total
	Cost Basis		Loan Type			Financial Effect
	(dollars in thousands)
Real estate - residential	$	560		0.37	%	Provided additional payment deferral to borrowers in the form of interest-only payments
Total	$	560

The Company did not have any loans made to borrowers experiencing financial difficulty that were modified during the twelve months ended December 31, 2023 that subsequently defaulted. A default on a modified loan is defined as being past due 90 days or being out of compliance with the modification agreement. The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of loans that were modified during the twelve-month period ended December 31, 2023:


	Payment Status (Amortized Cost Basis)
			30-89 Days		90+ Days
	Current		Past Due		Past Due
	(dollars in thousands)
Real estate - residential	$	560	$	—	$	—
Total	$	560	$	—	$	—

Note 8 - Leases

Operating leases in which we are the lessee are recorded as operating lease right of use (“ROU”) assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on our consolidated balance sheets. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental collateralized borrowing rate at the lease commencement date. ROU assets are further adjusted for any lease incentives. Operating lease expense, which is composed of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in the net occupancy expense in the consolidated statements of income. We do not currently have any finance leases in which we are the lessee.

Our leases relate to four office locations, three of which are branch locations, with remaining terms of two to five years. Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of June 30, 2024, operating lease ROU assets were $1.3 million and the operating lease liability was $1.4 million, compared to operating lease ROU assets of $1.7 million and an operating lease liability of $1.8 million at June 30, 2023. Lease costs associated with all leases was $106,000 and $212,000 for the three and six months ended June 30, 2024, respectively.

The table below summarizes other information related to our operating leases:


	Six Months Ended June 30,
	2024			2023
	(in thousands except percent and period data)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	221		$	216
Right-of-use assets obtained in exchange for new operating lease liabilities		—			—
Weighted-average remaining lease term - operating leases, in years		3.5			4.4
Weighted-average discount rate - operating leases		2.61	%		2.56	%

The table below summarizes the maturity of remaining lease liabilities:


	June 30, 2024
	(dollars in thousands)
2024	$	224
2025		455
2026		416
2027		260
2028		97
2029 and thereafter		20
Total lease payments		1,472
Less: Interest		(70	)
Present value of lease liabilities		1,402

Note 9 - Commitments and Contingencies

The Company’s subsidiary bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, lines of credit and standby letters of credit. These instruments involve elements of credit risk in excess of amounts recognized in the accompanying financial statements.

The Bank’s risk of loss with unfunded loans and lines of credit or standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments under such instruments as it does for on-balance sheet instruments. The amount of collateral obtained, if any, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, real estate and time deposits with financial institutions. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Credit card commitments are unsecured.

At June 30, 2024 and December 31, 2023, outstanding financial instruments whose contract amounts represent credit risk were approximately:


	June 30, 2024		December 31, 2023
	(dollars in thousands)
Commitments to extend credit	$	219,195	$	204,163
Credit card commitments		25,975		25,647
Standby letters of credit		8,126		7,878
Total commitments	$	253,296	$	237,688

The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancelable. The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans. The allowance for credit losses for unfunded loan commitments of $170,000 and $184,000 at June 30, 2024 and December 31, 2023, respectively, is separately classified on the balance sheet within Other Liabilities.

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the six months ended June 30, 2024.


	Total Allowance for Credit Losses - Unfunded Loan Commitments
	(dollars in thousands)
Balance, December 31, 2023	$	184
Recovery of credit losses		(14	)
Balance, June 30, 2024	$	170

Note 10 – Fair Value Disclosures

Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation.

ASC 820 defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which those assets or liabilities are sold and considers assumptions that market participants would use when pricing those assets or liabilities. Fair values determined using Level 1 inputs rely on active and observable markets to price identical assets or liabilities. In situations where identical assets and liabilities are not traded in active markets, fair values may be determined based on Level 2 inputs, which exist when observable data exists for similar assets and liabilities. Fair values for assets and liabilities for which identical or similar assets and liabilities are not actively traded in observable markets are based on Level 3 inputs, which are considered to be unobservable.

Among the Company’s assets and liabilities, investment securities available for sale and mortgage banking derivatives are reported at their fair values on a recurring basis. Certain other assets are adjusted to their fair value on a nonrecurring basis, including other real estate owned, individually evaluated loans, loans held for sale, which are carried at the lower of cost or market, and loan servicing rights, where fair value is determined using similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Deposits, short-term borrowings and long-term obligations are not reported at fair value.

Prices for U.S. Treasury and marketable equity securities are readily available in the active markets in which those securities are traded, and the resulting fair values are shown in the Level 1 input column. Prices for government agency securities, mortgage-backed securities, asset-backed securities and state, county and municipal securities are obtained for similar securities, and the resulting fair values are shown in the Level 2 input column. Prices for all other non-marketable investments are determined based on various assumptions that are not observable. The fair values for these investment securities are shown in the Level 3 input column. Non-marketable investment securities, which are carried at their purchase price, include those that may only be redeemed by the issuer. The changes in securities between Level 1 and Level 2 were related to the purchase and sale of several securities and not the transfer of securities.

Mortgage banking derivatives, which are composed of interest rate lock commitments, or IRLCs, mortgage forward sales commitments and to-be-announced mortgage-backed securities trades (TBAs), are recorded at fair value on a recurring basis. Fair value of the IRLCs is based on projected pull-through rates and anticipated margins based on changes in market interest rates. The Company considers these to be Level 3 valuations. The fair value of mortgage forward sales commitments and TBAs is based on the gain or loss that would occur if the Company were to pair-off the transaction at the measurement date and is considered to be a Level 2 input.

The Company does not record loans at fair value on a recurring basis. However, certain nonaccrual loans are individually evaluated in connection with determining the allowance for credit losses. If the loan is deemed to be collateral dependent and the relationship’s outstanding balance is $100,000 or greater, it will be individually evaluated. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans require an analysis of the collateral. The fair value of the collateral is based on appraised values discounted by liquidation costs which the Company considers Level 3 valuations.

Foreclosed assets are adjusted to fair value upon transfer of the loans to other real estate owned. Real estate acquired in settlement of loans is recorded initially at the estimated fair value of the property less estimated selling costs at the date of foreclosure. The initial recorded value may be subsequently reduced by additional allowances, which are charged to earnings if the estimated fair value of the property less estimated selling costs declines below the initial recorded value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The Company typically bases the fair value of the collateral on appraised values, which the Company considers Level 3 valuations.

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate, based on secondary market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. These loans are recorded in Level 2.

The following tables provide fair value information for assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023:


	June 30, 2024
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	49,429	$	49,429	$	—	$	—
U.S. government agencies		45,027		—		45,027		—
GSE - Mortgage-backed securities and CMOs		143,158		—		143,158		—
Asset-backed securities		27,946		—		27,946		—
State and political subdivisions		79,589		—		79,589		—
Corporate bonds		5,615		—		5,615		—
Equity securities		324		324		—		—
Mortgage banking derivatives		798		—		40		758
Total assets at fair value on a recurring basis	$	351,886	$	49,753	$	301,375	$	758
Mortgage banking derivatives	$	94	$	—	$	94	$	—
Total liabilities at fair value on a recurring basis	$	94	$	—	$	94	$	—


	December 31, 2023
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	51,505	$	51,505	$	—	$	—
U.S. government agencies		43,018		—		43,018		—
GSE - Mortgage-backed securities and CMOs		123,787		—		123,787		—
Asset-backed securities		31,513		—		31,513		—
State and political subdivisions		81,400		—		81,400		—
Corporate bonds		5,491		—		5,491		—
Equity securities		302		302		—		—
Mortgage banking derivatives		852		—		46		806
Total assets at fair value on a recurring basis	$	337,868	$	51,807	$	285,255	$	806
Mortgage banking derivatives	$	288	$	—	$	288	$	—
Total liabilities at fair value on a recurring basis	$	288	$	—	$	288	$	—

The following table provides a rollforward for recurring Level 3 fair value measurements:


	June 30, 2024
	Mortgage banking derivatives: Interest rate lock commitments			Total
	(dollars in thousands)
Balance at December 31, 2023	$	806		$	806
Change in fair value:
Included in income from mortgage banking		(48	)		(48	)
Included in accumulated other comprehensive income (loss)		—			—
Change in observability of significant inputs:
Included in income from mortgage banking		—			—
Included in accumulated other comprehensive income (loss)		—			—
Balance at June 30, 2024	$	758		$	758

The fair value of mortgage IRLCs at June 30, 2024 was calculated based on a notional amount of $23.6 million. Significant unobservable inputs are used to determine the fair value of these derivatives. At June 30, 2024, such inputs included anticipated margins to be earned based on market movement from the original lock date and an overall projected pull-through rate of 87.0% determined by loan product, loan stage, and loan purpose. The fair value of mortgage IRLCs at December 31, 2023 was calculated based on a notional amount of $21.8 million. Significant unobservable inputs were the same as those used for the six months ended June 30, 2024 and assumed a projected pull-through rate of 82.7% at December 31, 2023. Changes in interest rates and other assumptions could significantly change these estimated values.

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value less cost to sell at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of June 30, 2024 and December 31, 2023:


	June 30, 2024
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3

Individually evaluated loans	$	671	$	—	$	—	$	671
Total assets at fair value on a nonrecurring basis	$	671	$	—	$	—	$	671


	December 31, 2023
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3

Individually evaluated loans	$	187	$	—	$	—	$	187
Total assets at fair value on a nonrecurring basis	$	187	$	—	$	—	$	187

Quantitative Information about Level 3 Fair Value Measurements

At June 30, 2024, individually evaluated loans were being evaluated with discounted appraisals for individually evaluated nonaccrual loans deemed collateral dependent.

Note 11 – Fair Values of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The fair value estimates presented at June 30, 2024 and December 31, 2023 are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price at which a liability could be settled. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The estimated fair values disclosed in the following table do not represent market values of all assets and liabilities of the Company and should not be interpreted to represent the underlying value of the Company.

The following tables reflect a comparison of carrying amounts and the estimated fair value of the financial instruments as of June 30, 2024 and December 31, 2023:


June 30, 2024	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	57,471	$	57,471	$	57,471	$	—	$	—
Securities available for sale		350,764		350,764		49,429		301,335		—
Securities held to maturity		27,186		24,656		—		11,237		13,419
Equity securities		324		324		324		—		—
Loans held for investment, net		630,830		589,574		—		—		589,574
Loans held for sale		3,611		3,611		—		3,611		—
Restricted stock		1,709		1,709		1,709		—		—
Loan servicing assets		4,089		7,272		—		7,272		—
Mortgage banking derivatives		798		798		—		40		758
Accrued interest receivable		4,688		4,688		—		—		4,688

FINANCIAL LIABILITIES
Deposits	$	1,024,075		1,022,794		—		1,022,794		—
Short-term borrowings		6,400		6,400		—		6,400		—
Long-term borrowings		29,123		25,470		—		—		25,470
Mortgage banking derivatives		94		94		—		94		—
Accrued interest payable		567		567		—		—		567


December 31, 2023	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	63,434	$	63,434	$	63,434	$	—	$	—
Securities available for sale		336,714		336,714		51,505		285,209		—
Securities held to maturity		28,544		25,736		—		12,614		13,122
Equity securities		302		302		302		—		—
Loans held for investment, net		586,510		544,985		—		—		544,985
Loans held for sale		4,695		4,695		—		4,695		—
Restricted stock		1,672		1,672		1,672		—		—
Loan servicing assets		4,287		7,030		—		7,030		—
Mortgage banking derivatives		852		852		—		46		806
Accrued interest receivable		4,393		4,393		—		—		4,393

FINANCIAL LIABILITIES
Deposits	$	981,713	$	980,534	$	—	$	980,534	$	—
Short-term borrowings		1,379		1,379		—		1,379		—
Long-term borrowings		29,104		25,102		—		—		25,102
Mortgage banking derivatives		288		288		—		288		—
Accrued interest payable		414		414		—		—		414

At June 30, 2024 the Company’s subsidiary bank had outstanding standby letters of credit and commitments to extend credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed; therefore, the fair value is the fee the Bank is expected to receive. This amount is deemed immaterial by management. See Note 9 (Commitments and Contingencies) to the Company's Notes to Consolidated Financial Statements.

Note 12 – Recent Accounting Pronouncements and Other Changes

ASC 848, “Reference Rate Reform,” was set forth to eliminate certain reference rates and introduce new reference rates that are based on a larger, more liquid population of observable transactions that are less vulnerable to manipulation. The reference rate reform discontinues the use of certain widely used reference rates such as the London Interbank Offered Rate, or LIBOR. In response to likely challenges arising from contract modifications due to reference rate reform, the Financial Accounting Standards Board (the “FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” in March 2020 to provide optional expedients and exceptions for applying GAAP to contract modifications. As such, modifications to debt contracts may be accounted for as a continuation of the existing contract by prospectively adjusting the effective interest rate. This amendment could be applied beginning March 12, 2020 through a sunset date of December 31, 2022. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.” These amendments extend the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision based on expectations of when LIBOR would cease being published. In 2021, the UK Financial Conduct Authority delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief provided in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06 defers the sunset date from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. ASU 2022-06 was effective upon issuance. The Company no longer holds or issues loan contracts that reference LIBOR. As of July 1, 2023, all loan contracts that previously referenced LIBOR had been modified. The Company does not anticipate a material financial impact as a result of these modifications.

ASU 2023-01 “Leases (Topic 842) – Common Control Arrangements” requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). ASU 2023-01 was effective January 1, 2024 and did not have a material impact on our consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments apply to all public entities that are required to report segment information in accordance with FASB ASC Topic 280, Segment Reporting. The amendments in the ASU are intended to improve disclosures about a public entity's reportable segments through enhanced disclosures about a segment's expenses. The amendments require, on an interim and annual basis, disclosures of significant expenses and other segment items that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, as well as any other key measure of performance used for segment management decisions. The amendments require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses key profitability measures in assessing segment performance and deciding how to allocate resources. The ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impacts related to the adoption of the ASU.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances income tax disclosure requirements. Under the new guidance, entities must disclose additional information in specified categories for federal, state and foreign income taxes with respect to the reconciliation of the effective tax rate to the statutory rate (rate reconciliation). Greater detail is also required about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold. Additionally, the amendments require that entities must disaggregate income taxes paid, net of refunds received, for federal, state and foreign taxes and further disaggregate for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. The quantitative threshold is equal to 5% or more of the amount determined by multiplying pretax income (loss) from continuing operations by the applicable statutory rate. Public business entities must apply the guidance to annual periods beginning after December 15, 2024. ASU 2023-09 is effective for the Company on January 1, 2025, though early adoption is permitted. Entities may apply the amendments prospectively or may elect retrospective application. The Company is currently evaluating the potential impacts related to the adoption of this ASU.

From time to time the FASB issues exposure drafts of proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts.

Note 13 – Mortgage Banking Derivatives

The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding, otherwise known as Interest Rate Lock Commitments (IRLCs). IRLCs on mortgage loans that will be held for resale are considered to be derivatives and must be accounted for at fair value on the balance sheet. Accordingly, such commitments are recorded at fair value in the mortgage banking derivatives asset or liability with changes in fair value recorded in income from mortgage banking within the consolidated statement of income. Fair value is based on anticipated margins determined by market movement from the original lock date and projected pull-through rates on each loan by loan product, loan stage, and loan purpose.

During the term of the IRLC, the Company is exposed to the risk that the interest rate will change from the rate quoted to the borrower. In an effort to mitigate interest rate risk, the Company also enters into mortgage forward sales commitments on a mandatory basis for future delivery of residential mortgage loans after an interest rate lock is committed to the borrower. Mandatory commitments require that the loan must be delivered to the investor or a pair-off fee be paid. These forward commitments are recorded at fair value in the mortgage banking derivatives asset or liability, and changes in fair value are recorded to income from mortgage banking within the consolidated statement of income. The fair value of the forward commitments is based on the gain or loss that would occur if the Company were to pair-off the transaction at the measurement date.

The Company also enters into purchase and sale agreements of to-be-announced mortgage-backed securities trades (TBAs). A TBA trade is a contract to buy or sell mortgage-backed securities on a specific date while the underlying mortgages are not announced until just prior to settlement. These TBA trades provide an economic hedge against the effect of changes in interest rates resulting from IRLCs. TBAs are accounted for as derivatives when either of the following conditions exist: (i) when settlement of the TBA trade is not expected to occur at the next regular settlement date (which is typically the next month) or (ii) a mechanism exists to settle the contract on a net basis. As a result, these instruments are recorded at fair value in the mortgage banking derivatives asset or liability with changes in fair value recorded in income from mortgage banking within the consolidated statement of income. The fair value of the TBA trades is based on the gain or loss that would occur if the Company were to pair-off the trade at the measurement date.

The following table reflects the notional amount and fair value of mortgage banking derivatives included in the balance sheet at fair value as of June 30, 2024 and December 31, 2023.


	Notional Amount		Fair Value
	(dollars in thousands)
Balance at June 30, 2024
Included in mortgage banking derivatives asset:
Interest rate lock commitments	$	23,555	$	758
Forward sales commitments		1,498		40
Included in mortgage banking derivatives liability:
To-be-announced mortgage-backed securities trades		26,000		94

Balance at December 31, 2023
Included in mortgage banking derivatives asset:
Interest rate lock commitments	$	21,791	$	806
Forward sales commitments		1,826		46
Included in mortgage banking derivatives liability:
To-be-announced mortgage-backed securities trades		23,000		288

Note 14 – Short-Term Borrowed Funds

During the first quarter of 2024, the Company borrowed $5.0 million through the FRB’s Bank Term Funding Program (“BTFP”). The BTFP was established as an additional source of liquidity against high-quality securities valued at par. The program offered loans of up to one year in length to banks pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. The note matures on January 22, 2025 and charges interest at a rate of 4.93%. The borrowing is secured by three available for sale agency securities issued by the Small Business Administration with par value totaling $7.5 million. At June 30, 2024, the fair value of the pledged bonds was $6.7 million.

Yields related to securities and loans exempt from income taxes are stated on a fully tax-equivalent basis, assuming a 21% effective tax rate.

Trades of the Company’s common stock are quoted on the OTCQX Market from time to time. The Company also has in place a Stock Repurchase Plan that provides liquidity to its shareholders in the event a willing buyer is not available to purchase shares that are offered for sale. The Company is under no obligation to purchase shares offered; however, it will accommodate such offers as its Stock Repurchase Plan allows.

I have reviewed this quarterly report on Form 10-Q for the quarterly period ended June 30, 2024 of Uwharrie Capital Corp (the “registrant”);

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

I have reviewed this quarterly report on Form 10-Q for the quarterly period ended June 30, 2024 of Uwharrie Capital Corp the (“registrant”);

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Document and Entity Information - shares

Consolidated Balance Sheets - USD ($)
$ in Thousands

Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands

Consolidated Statements of Income (Unaudited) - USD ($)
$ in Thousands

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($)
$ in Thousands

Number of Common Shares Issued [Member]

Common Stock [Member]

Additional Paid-in Capital [Member]

Undivided Profits [Member]

Cumulative Effect, Period of Adoption [Member]

Accumulated Other Comprehensive Loss [Member]

Noncontrolling Interest [Member]


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


North Carolina		56-1814206
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

132 NORTH FIRST STREET ALBEMARLE, north carolina		28001
(Address of Principal Executive Offices)		(Zip Code)


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐


		Page No.

Part I.	FINANCIAL INFORMATION	2

Item 1 -	Financial Statements (Unaudited)	2

	Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	2

	Consolidated Statements of Income for the Three and Six Months Ended June 30, 2024 and 2023	3

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2024 and 2023	4

	Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, 2024 and 2023	5

	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023	6

	Notes to Consolidated Financial Statements	7

Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3 -	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4 -	Controls and Procedures	34

Part II.	OTHER INFORMATION	35

Item 1 -	Legal Proceedings	35

Item 1A -	Risk Factors	35

Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	35

Item 3 -	Defaults Upon Senior Securities	35

Item 4 -	Mine Safety Disclosures	35

Item 5 -	Other Information	35

Item 6 -	Exhibits	36

	Signatures	37


	June 30, 2024 (Unaudited)			December 31, 2023*
	(dollars in thousands)
ASSETS
Cash and due from banks	$	11,195		$	7,407
Interest-earning deposits with banks		46,276			56,027
Cash and cash equivalents		57,471			63,434
Securities available for sale, at fair value (amortized cost $384,893 and $369,301 respectively)		350,764			336,714
Securities held to maturity, at amortized cost (fair value $24,656 and $25,736 respectively)		27,252			28,600
Less allowance for credit losses on securities held to maturity		(66	)		(56	)
Net securities held to maturity		27,186			28,544
Equity securities, at fair value		324			302
Loans held for sale		3,611			4,695
Loans held for investment		636,738			592,071
Less allowance for credit losses on loans		(5,908	)		(5,561	)
Net loans held for investment		630,830			586,510
Premises and equipment, net		14,552			15,089
Interest receivable		4,688			4,393
Restricted stock		1,709			1,672
Bank owned life insurance		7,864			7,793
Deferred income tax benefit		9,056			8,910
Loan servicing assets		4,089			4,287
Mortgage banking derivatives		798			852
Other assets		10,318			9,396
Total assets	$	1,123,260		$	1,072,591

LIABILITIES
Deposits:
Demand noninterest-bearing	$	286,517		$	269,998
Interest checking and money market accounts		391,245			417,318
Savings deposits		95,208			101,193
Time deposits, $250,000 and over		128,162			78,046
Other time deposits		122,943			115,158
Total deposits		1,024,075			981,713
Short-term borrowed funds		6,400			1,379
Long-term debt		29,123			29,104
Mortgage banking derivatives		94			288
Other liabilities		11,436			10,666
Total liabilities		1,071,128			1,023,150

Off balance sheet items, commitments and contingencies (Note 9)

SHAREHOLDERS’ EQUITY
Common stock, $1.25 par value: 20,000,000 shares authorized; shares issued and outstanding 7,068,577 and 7,124,438 at June 30, 2024 and December 31, 2023, respectively		8,836			8,905
Additional paid-in capital		12,510			12,876
Undivided profits		46,419			42,105
Accumulated other comprehensive loss		(26,288	)		(25,100	)
Total Uwharrie Capital Corp shareholders’ equity		41,477			38,786
Noncontrolling interest		10,655			10,655
Total shareholders’ equity		52,132			49,441
Total liabilities and shareholders’ equity	$	1,123,260		$	1,072,591


	Number of Common Shares Issued			Common Stock			Additional Paid-in Capital			Undivided Profits		Accumulated Other Comprehensive Loss			Noncontrolling Interest			Total
	(dollars in thousands, except share data)
Balance, March 31, 2023		7,075,125		$	8,844		$	12,633		$	36,930	$	(27,219	)	$	10,655		$	41,843
Net Income		—			—			—			2,082		—			141			2,223
Repurchase of common stock		(17,278	)		(21	)		(112	)		—		—			—			(133	)
Other comprehensive loss		—			—			—			—		(2,232	)		—			(2,232	)
Record preferred stock dividend series B (noncontrolling interest)		—			—			—			—		—			(103	)		(103	)
Record preferred stock dividend series C (noncontrolling interest)		—			—			—			—		—			(38	)		(38	)
Balance, June 30, 2023		7,057,847		$	8,823		$	12,521		$	39,012	$	(29,451	)	$	10,655		$	41,560

Balance, March 31, 2024		7,103,003		$	8,879		$	12,735		$	44,347	$	(26,213	)	$	10,655		$	50,403
Net Income		—			—			—			2,072		—			141			2,213
Repurchase of common stock		(34,426	)		(43	)		(225	)		—		—			—			(268	)
Other comprehensive loss		—			—			—			—		(75	)		—			(75	)
Record preferred stock dividend series B (noncontrolling interest)		—			—			—			—		—			(104	)		(104	)
Record preferred stock dividend series C (noncontrolling interest)		—			—			—			—		—			(37	)		(37	)
Balance, June 30, 2024		7,068,577		$	8,836		$	12,510		$	46,419	$	(26,288	)	$	10,655		$	52,132


	Average Balance				Income/Expenses				Rate/Yield
	2024		2023		2024		2023		2024			2023
	(dollars in thousands)
Interest-earning assets:
Taxable securities	$	309,283	$	299,789	$	3,011	$	2,623		3.92	%		3.51	%
Non-taxable securities (1)		57,908		59,259		310		323		2.70	%		2.74	%
Short-term investments		57,206		94,382		710		1,181		4.99	%		5.02	%
Equity securities		343		326		5		5		5.86	%		6.15	%
Taxable loans		609,358		516,067		9,151		6,922		6.04	%		5.38	%
Non-taxable loans (1)		17,312		12,161		134		67		3.91	%		2.77	%
Total interest-earning assets		1,051,410		981,984		13,321		11,121		5.14	%		4.58	%
Interest-bearing liabilities:
Interest-bearing deposits		720,248		675,984		4,097		2,712		2.29	%		1.61	%
Short-term borrowed funds		6,283		948		76		10		4.87	%		4.23	%
Long-term debt		29,127		29,224		332		332		4.58	%		4.56	%
Total interest bearing liabilities		755,658		706,156		4,505		3,054		2.40	%		1.73	%
Net interest spread	$	295,752	$	275,828	$	8,816	$	8,067		2.74	%		2.85	%
Net interest margin (1) (% of earning assets)										3.42	%		3.34	%


	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Program(1)		(d) Maximum Dollar Value (in thousands) of Shares that May Yet Be Purchased Under the Plans
April 1, 2024 Through April 30, 2024		—	$	—		—	$	—
May 1, 2024 Through May 31, 2024		15,696	$	7.83		—	$	—
June 1, 2024 Through June 30, 2024		18,730	$	7.77		—	$	—
Total		34,426	$	7.80		—	$	—


Exhibit Number		Description of Exhibit

3.1		Bylaws of Uwharrie Capital Corp, as amended (Incorporated by reference to Exhibit 3.1 of Registrant’s Current Report on Form 8-K filed with the SEC on April 19, 2024)

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101		Interactive data files providing financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, in inline XBRL (eXtensible Business Reporting Language) (filed herewith)
104		Cover page interactive data file (formatted in inline XBRL and contained in Exhibit 101)


		UWHARRIE CAPITAL CORP
		(Registrant)

Date:	August 6, 2024	By:	/s/ Roger L. Dick
		Roger L. Dick
		President and Chief Executive Officer

Date:	August 6, 2024	By:	/s/ Heather H. Almond
		Heather H. Almond
		Principal Financial Officer

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Registrant Name	UWHARRIE CAPITAL CORP
Entity Central Index Key	0000898171
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		7,012,280
Entity File Number	000-22062
Entity Tax Identification Number	56-1814206
Entity Address, Address Line One	132 NORTH FIRST STREET
Entity Address, City or Town	ALBEMARLE
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28001
City Area Code	704
Local Phone Number	983-6181
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	NC

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 11,195	$ 7,407
Interest-earning deposits with banks	46,276	56,027
Cash and cash equivalents	57,471	63,434
Securities available for sale, at fair value (amortized cost $384,893 and $369,301 respectively)	350,764	336,714
Securities held to maturity, at amortized cost (fair value $24,656 and $25,736 respectively)	27,252	28,600
Less allowance for credit losses on securities held to maturity	(66)	(56)
Net securities held to maturity	27,186	28,544
Equity securities, at fair value	324	302
Loans held for sale	3,611	4,695
Loans held for investment	636,738	592,071
Less allowance for credit losses on loans	(5,908)	(5,561)
Net loans held for investment	630,830	586,510
Premises and equipment, net	14,552	15,089
Interest receivable	4,688	4,393
Restricted stock	1,709	1,672
Bank-owned life insurance	7,864	7,793
Deferred income tax benefit	9,056	8,910
Loan servicing assets	4,089	4,287
Mortgage banking derivatives	798	852
Other assets	10,318	9,396
Total assets	1,123,260	1,072,591
Deposits:
Demand noninterest-bearing	286,517	269,998
Interest checking and money market accounts	391,245	417,318
Savings deposits	95,208	101,193
Time deposits, $250,000 and over	128,162	78,046
Other time deposits	122,943	115,158
Total deposits	1,024,075	981,713
Short-term borrowed funds	6,400	1,379
Long-term debt	29,123	29,104
Mortgage banking derivatives	94	288
Other liabilities	11,436	10,666
Total liabilities	1,071,128	1,023,150
Off balance sheet items, commitments and contingencies (Note 9)
SHAREHOLDERS’ EQUITY
Common stock, $1.25 par value: 20,000,000 shares authorized; shares issued and outstanding 7,068,577 and 7,124,438 at June 30, 2024 and December 31, 2023, respectively	8,836	8,905
Additional paid-in capital	12,510	12,876
Undivided profits	46,419	42,105
Accumulated other comprehensive loss	(26,288)	(25,100)
Total Uwharrie Capital Corp shareholders’ equity	41,477	38,786
Noncontrolling interest	10,655	10,655
Total shareholders’ equity	52,132	49,441
Total liabilities and shareholders’ equity	$ 1,123,260	$ 1,072,591

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Securities available for sale, at amortized cost	$ 384,893	$ 369,301
Securities held to maturity, at fair value	$ 24,656	$ 25,736
Common stock, par value	$ 1.25	$ 1.25
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	7,068,577	7,124,438
Common stock, shares outstanding	7,068,577	7,124,438

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest Income
Loans, including fees	$ 9,285	$ 6,989	$ 18,079	$ 13,356
Investment securities
Investment securities, taxable	3,011	2,623	5,932	5,115
Investment securities, non-taxable	310	323	622	693
Equity Securities	5	5	10	10
Interest-earning deposits with banks and federal funds sold	710	1,181	1,336	2,251
Total interest income	13,321	11,121	25,979	21,425
Interest Expense
Interest checking and money market accounts	1,591	1,485	3,190	2,907
Savings deposits	135	88	274	168
Time deposits, $250,000 and over	1,146	496	2,004	792
Other time deposits	1,225	643	2,358	961
Short-term borrowed funds	76	10	137	19
Long-term debt	332	332	662	666
Total interest expense	4,505	3,054	8,625	5,513
Net interest income	8,816	8,067	17,354	15,912
Provision for (recovery of) credit losses on:
Loans	410	101	405	391
Securities held to maturity		1	10	(5)
Unfunded loan commitments	21	7	(14)
Total provision for (recovery of) credit losses	431	109	401	386
Net interest income after provision for (recovery of) credit losses	8,385	7,958	16,953	15,526
Noninterest Income
Service charges on deposit accounts	267	264	535	513
Other service fees and commissions	897	822	1,828	1,711
Interchange and card transaction fees, net	322	315	610	619
Gain (loss) on sale/call of securities		9	(148)	(42)
Realized/unrealized gain (loss) on equity securities	(19)	(23)	22	11
Income from mortgage banking	606	891	1,440	1,585
Supplemental executive retirement plan gain (loss)	(34)	317	(46)	(18)
Other income	187	91	314	289
Total noninterest income	2,226	2,686	4,555	4,668
Noninterest Expense
Salaries and employee benefits	5,145	4,932	10,359	9,676
Net occupancy expense	429	432	854	885
Equipment expense	218	195	425	383
Data processing costs	203	204	433	408
Loan costs	51	98	84	198
Professional fees and services	262	179	526	437
Marketing and donations	339	342	705	724
Electronic banking expense	113	141	213	270
Software amortization and maintenance	329	296	659	603
FDIC insurance	126	117	249	234
Supplemental executive retirement plan gain (loss)	(34)	317	(46)	(18)
Other noninterest expense	651	589	1,253	1,167
Total noninterest expense	7,832	7,842	15,714	14,967
Income before income taxes	2,779	2,802	5,794	5,227
Income taxes	566	579	1,198	1,050
Net income	2,213	2,223	4,596	4,177
Less: net income attributable to noncontrolling interest	(141)	(141)	(282)	(280)
Net income attributable to Uwharrie Capital Corp and common shareholders	$ 2,072	$ 2,082	$ 4,314	$ 3,897
Net income per common share
Basic	$ 0.29	$ 0.29	$ 0.61	$ 0.54
Diluted	$ 0.29	$ 0.29	$ 0.61	$ 0.54
Weighted average common shares outstanding
Basic	7,093,666	7,215,163	7,108,070	7,215,891
Diluted	7,093,666	7,215,163	7,108,070	7,215,891

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Series B [Member]	Series C [Member]	Number of Common Shares Issued [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Undivided Profits [Member]	Undivided Profits [Member] Cumulative Effect, Period of Adoption [Member]	Accumulated Other Comprehensive Loss [Member]	Noncontrolling Interest [Member]	Noncontrolling Interest [Member] Series B [Member]	Noncontrolling Interest [Member] Series C [Member]
Beginning balance at Dec. 31, 2022	$ 37,397				$ 8,844	$ 12,633	$ 37,030	$ (1,915)	$ (31,765)	$ 10,655
Beginning balance, shares at Dec. 31, 2022				7,075,125
Accounting Standards Update [Extensible Enumeration]								us-gaap:AccountingStandardsUpdate201613Member
Net Income	4,177						3,897			280
Repurchase of common stock	(133)				(21)	(112)
Repurchase of common stock, shares				(17,278)
Other comprehensive income (loss)	2,314								2,314
Record preferred stock dividend (noncontrolling interest)		$ (206)	$ (74)								$ (206)	$ (74)
Ending balance at Jun. 30, 2023	41,560				8,823	12,521	39,012		(29,451)	10,655
Ending balance, shares at Jun. 30, 2023				7,057,847
Beginning balance at Mar. 31, 2023	41,843				8,844	12,633	36,930		(27,219)	10,655
Beginning balance, shares at Mar. 31, 2023				7,075,125
Net Income	2,223						2,082			141
Repurchase of common stock	(133)				(21)	(112)
Repurchase of common stock, shares				(17,278)
Other comprehensive income (loss)	(2,232)								(2,232)
Record preferred stock dividend (noncontrolling interest)		(103)	(38)								(103)	(38)
Ending balance at Jun. 30, 2023	41,560				8,823	12,521	39,012		(29,451)	10,655
Ending balance, shares at Jun. 30, 2023				7,057,847
Beginning balance at Dec. 31, 2023	49,441				8,905	12,876	42,105		(25,100)	10,655
Beginning balance, shares at Dec. 31, 2023				7,124,438
Net Income	4,596						4,314			282
Repurchase of common stock	(435)				(69)	(366)
Repurchase of common stock, shares				(55,861)
Other comprehensive income (loss)	(1,188)								(1,188)
Record preferred stock dividend (noncontrolling interest)		(208)	(74)								(208)	(74)
Ending balance at Jun. 30, 2024	52,132				8,836	12,510	46,419		(26,288)	10,655
Ending balance, shares at Jun. 30, 2024				7,068,577
Beginning balance at Mar. 31, 2024	50,403				8,879	12,735	44,347		(26,213)	10,655
Beginning balance, shares at Mar. 31, 2024				7,103,003
Net Income	2,213						2,072			141
Repurchase of common stock	(268)				(43)	(225)
Repurchase of common stock, shares				(34,426)
Other comprehensive income (loss)	(75)								(75)
Record preferred stock dividend (noncontrolling interest)		$ (104)	$ (37)								$ (104)	$ (37)
Ending balance at Jun. 30, 2024	$ 52,132				$ 8,836	$ 12,510	$ 46,419		$ (26,288)	$ 10,655
Ending balance, shares at Jun. 30, 2024				7,068,577

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net income	$ 4,596	$ 4,177
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	537	552
Right of use asset amortization	192	187
Provision for credit losses	401	387
Loss on sale of securities available for sale	0	42
Loss on call of securities held to maturity	148
Gain on sale of premises and equipment		(37)
Gain on sale of mortgage loans	(526)	(285)
Realized/unrealized gain on equity securities	(22)	(11)
Net amortization of premium on investment securities available for sale	886	960
Net amortization of premium on investment securities held to maturity	66	71
Amortization of loan servicing assets	611	613
Originations and purchases of mortgage loans for sale	(51,641)	(38,413)
Proceeds from sales of mortgage loans for sale	53,251	38,175
Mortgage banking derivatives	(140)	(694)
Loan servicing assets	(413)	(297)
Accrued interest receivable	(295)	(79)
Prepaid assets	(149)	(714)
Cash surrender value of life insurance	(71)	(69)
Miscellaneous other assets	(312)	(222)
Accrued interest payable	153	124
Miscellaneous other liabilities	631	591
Net cash provided by operating activities	7,903	5,058
Cash flows from investing activities
Proceeds from sale of investment securities available for sale	0	11,329
Proceeds from maturities, calls and paydowns of securities available for sale	19,225	13,235
Proceeds from maturities, calls and paydowns of securities held to maturity	1,134	1,044
Purchase of investment securities available for sale	(35,703)	(22,350)
Purchase of investments in other assets	(350)	(187)
Proceeds from sale of investments in other assets	97
Net change in restricted stock	(37)	(40)
Net increase in loans	(44,725)	(36,992)
Purchase of premises and equipment	(173)	(1,172)
Proceeds from sale of premises and equipment		38
Net cash used by investing activities	(60,532)	(35,095)
Cash flows from financing activities
Net increase in deposit accounts	42,362	10,414
Net increase (decrease) in federal funds purchased and other short-term borrowings	5,021	(112)
Repayment of long-term borrowings		(580)
Repurchase of common stock, net	(435)	(133)
Dividends paid on preferred stock (noncontrolling interest)	(282)	(280)
Net cash provided by financing activities	46,666	9,309
Decrease in cash and cash equivalents	(5,963)	(20,728)
Cash and cash equivalents, beginning of period	63,434	114,581
Cash and cash equivalents, end of period	57,471	93,853
Supplemental disclosures of cash flow information
Interest paid	8,430	5,347
Income taxes paid	1,535	1,225
Supplemental schedule of non-cash activities
Net change in fair value of securities available for sale, net of tax	$ (1,188)	2,314
Loans transferred to foreclosed real estate		$ 142

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 – Basis of Presentation The financial statements and accompanying notes are presented on a consolidated basis including Uwharrie Capital Corp (the “Company”) and its subsidiaries, Uwharrie Bank (the “Bank”), Uwharrie Investment Advisors, Inc. (“UIA”), and Uwharrie Mortgage, Inc. The Bank consolidates its subsidiaries, the Strategic Alliance Corporation, BOS Agency, Inc. and Gateway Mortgage, Inc., each of which is wholly owned by the Bank. The information contained in the consolidated financial statements is unaudited. In the opinion of management, the consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and material adjustments necessary for a fair presentation of results of interim periods, all of which are of a normal recurring nature, have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for an entire year. Management is not aware of additional economic events, outside influences or changes in concentrations of business that would require additional clarification or disclosure in the consolidated financial statements. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to consolidated financial statements filed as part of the Company’s 2023 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 6, 2024. This Quarterly Report should be read in conjunction with such Annual Report. Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses. Accounting Changes and Reclassifications Certain amounts in the 2023 financial statements have been reclassified to conform to the 2024 presentation. The recovery of credit losses on unfunded loan commitments has been reclassified from other noninterest expense for periods prior to 2024. The reclassification is immaterial and did not have an impact on net income or shareholders’ equity. Certain revisions have been made to previously issued financial statements for the year ended December 31, 2023 presented on Form 10-K. The carrying value and estimated fair value for securities held to maturity disclosed in Note 11 as of December 31, 2023 were revised due to an error in the calculation. These revisions did not change the securities reported in total assets and had no effect on net income. We evaluated the effects of this error to our previously issued financial statements in accordance with SEC Staff Accounting Bulletin No. 99 and determined that the error was not material to the financial statements and disclosures previously reported on Form 10-K for the year ended December 31, 2023. The Company’s significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements for the year ended December 31, 2023 and are contained in the Company’s Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2023.

Noncontrolling Interest	6 Months Ended
Noncontrolling Interest	Jun. 30, 2024
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Note 3 – Noncontrolling Interest In 2013, the Company’s subsidiary bank issued a total of $10.7 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series B and Series C. The preferred stock qualifies as Tier 1 capital at the Bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. This capital is presented as noncontrolling interest in the consolidated balance sheets. Dividends declared on this preferred stock are presented as earnings allocated to the noncontrolling interest in the consolidated statements of income.

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The financial statements and accompanying notes are presented on a consolidated basis including Uwharrie Capital Corp (the “Company”) and its subsidiaries, Uwharrie Bank (the “Bank”), Uwharrie Investment Advisors, Inc. (“UIA”), and Uwharrie Mortgage, Inc. The Bank consolidates its subsidiaries, the Strategic Alliance Corporation, BOS Agency, Inc. and Gateway Mortgage, Inc., each of which is wholly owned by the Bank. The information contained in the consolidated financial statements is unaudited. In the opinion of management, the consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and material adjustments necessary for a fair presentation of results of interim periods, all of which are of a normal recurring nature, have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for an entire year. Management is not aware of additional economic events, outside influences or changes in concentrations of business that would require additional clarification or disclosure in the consolidated financial statements. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to consolidated financial statements filed as part of the Company’s 2023 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 6, 2024. This Quarterly Report should be read in conjunction with such Annual Report.
Use of Estimates	Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses.
Accounting Changes and Reclassifications	Accounting Changes and Reclassifications Certain amounts in the 2023 financial statements have been reclassified to conform to the 2024 presentation. The recovery of credit losses on unfunded loan commitments has been reclassified from other noninterest expense for periods prior to 2024. The reclassification is immaterial and did not have an impact on net income or shareholders’ equity. Certain revisions have been made to previously issued financial statements for the year ended December 31, 2023 presented on Form 10-K. The carrying value and estimated fair value for securities held to maturity disclosed in Note 11 as of December 31, 2023 were revised due to an error in the calculation. These revisions did not change the securities reported in total assets and had no effect on net income. We evaluated the effects of this error to our previously issued financial statements in accordance with SEC Staff Accounting Bulletin No. 99 and determined that the error was not material to the financial statements and disclosures previously reported on Form 10-K for the year ended December 31, 2023. The Company’s significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements for the year ended December 31, 2023 and are contained in the Company’s Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2023.

Noncontrolling Interest - Additional Information (Detail) - Preferred Stock Series B and Series C [Member] - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Jan. 31, 2013	Jun. 30, 2024
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Preferred stock issued	$ 10.7
Dividends rate	5.30%
Voting rights		The preferred stock has no voting rights

Per Share Data - Additional Information (Detail) - shares		3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 17, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Earnings Per Share Basic And Dilutive [Line Items]
Stock dividend, percentage	2.00%
Dividends declared date	Oct. 17, 2023
Stock options outstanding				0		0
Basic		7,093,666	7,215,163	7,108,070	7,215,891

Investment and Equity Securities - Carrying Amounts and Fair Values of Securities Available for Sale (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	$ 384,893	$ 369,301
Available-for-sale Securities, Gross Unrealized Gains	577	495
Available-for-sale Securities, Gross Unrealized Losses	34,706	33,082
Securities available for sale	350,764	336,714
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	53,002	54,984
Available-for-sale Securities, Gross Unrealized Losses	3,573	3,479
Securities available for sale	49,429	51,505
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	45,942	43,921
Available-for-sale Securities, Gross Unrealized Gains	83	66
Available-for-sale Securities, Gross Unrealized Losses	998	969
Securities available for sale	45,027	43,018
GSE - Mortgage-backed Securities and CMO's [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	157,306	137,346
Available-for-sale Securities, Gross Unrealized Gains	72	170
Available-for-sale Securities, Gross Unrealized Losses	14,220	13,729
Securities available for sale	143,158	123,787
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	27,562	31,469
Available-for-sale Securities, Gross Unrealized Gains	422	244
Available-for-sale Securities, Gross Unrealized Losses	38	200
Securities available for sale	27,946	31,513
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	95,081	95,581
Available-for-sale Securities, Gross Unrealized Gains		15
Available-for-sale Securities, Gross Unrealized Losses	15,492	14,196
Securities available for sale	79,589	81,400
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	6,000	6,000
Available-for-sale Securities, Gross Unrealized Losses	385	509
Securities available for sale	$ 5,615	$ 5,491

Investment and Equity Securities - Carrying Amounts and Fair Values of Securities Held to Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule Of Held To Maturity Securities [Line Items]
Held-to-maturity Securities, Amortized Cost	$ 27,252	$ 28,600
Held-to-maturity Securities, Gross Unrealized Losses	2,596	2,864
Held-to-maturity Securities, Fair Value	24,656	25,736
Allowance for credit losses for held to maturity securities	66	56
Held-to-maturity Securities, Net Carrying Amount	27,186	28,544
U.S. Government Agencies [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held-to-maturity Securities, Amortized Cost		133
Held-to-maturity Securities, Gross Unrealized Losses		1
Held-to-maturity Securities, Fair Value		132
Held-to-maturity Securities, Net Carrying Amount		133
State and Political Subdivisions [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held-to-maturity Securities, Amortized Cost	12,252	13,467
Held-to-maturity Securities, Gross Unrealized Losses	1,015	985
Held-to-maturity Securities, Fair Value	11,237	12,482
Held-to-maturity Securities, Net Carrying Amount	12,252	13,467
Corporate Bonds [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held-to-maturity Securities, Amortized Cost	15,000	15,000
Held-to-maturity Securities, Gross Unrealized Losses	1,581	1,878
Held-to-maturity Securities, Fair Value	13,419	13,122
Allowance for credit losses for held to maturity securities	66	56
Held-to-maturity Securities, Net Carrying Amount	$ 14,934	$ 14,944

Investment and Equity Securities - Additional Information (Detail) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Available-for-sale Securities [Line Items]
Federal Reserve stock owned by Company	$ 959,000	$ 959,000
Federal Home Loan Bank stock (FHLB)	750,000	712,000
Allowance for credit losses for available for sale securities	0
Securities held to maturity	0
Securities available for sale pledged as collateral on public deposits/short-term borrowings	142,300,000	$ 137,100,000
Federal Reserve Bank
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale pledged as collateral on public deposits/short-term borrowings	6,700,000
Past Due 30 Days or More
Schedule of Available-for-sale Securities [Line Items]
Securities held to maturity current	$ 0

Investment and Equity Securities - Allowance for Credit Losses on Held to Maturity Securities (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items]
Balance, December 31, 2023	$ 56
Provision of credit losses	10
Balance, March 31, 2024	66
Corporate Bonds [Member]
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items]
Balance, December 31, 2023	56
Provision of credit losses	10
Balance, March 31, 2024	$ 66

Investment and Equity Securities - Amortized Cost and Fair Value of Available for Sale Securities Portfolio (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Due within twelve months, Amortized cost	$ 27,750
Due after one but within five years, Amortized Cost	54,232
Due after five but within ten years, Amortized Cost	61,590
Due after ten years, Amortized Cost	241,321
Available-for-sale Securities, Amortized Cost	384,893	$ 369,301
Due within twelve months, Estimated Fair Value	27,531
Due after one but within five years, Estimated Fair Value	48,838
Due after five but within ten years, Estimated Fair Value	53,919
Due after ten years, Estimated Fair Value	220,476
Available-for-sale Securities, Estimated Fair Value	$ 350,764	$ 336,714
Due within twelve months, Book Yield	3.76%
Due after one but within five years, Book Yield	2.01%
Due after five but within ten years, Book Yield	2.59%
Due after ten years, Book Yield	3.89%
Total securities available for sale, Book Yield	3.41%

Investment and Equity Securities - Amortized Cost and Fair Value of Held to Maturity Securities Portfolio (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Due within twelve months, Amortized Cost	$ 380
Due after five but within ten years, Amortized Cost	17,661
Due after ten years, Amortized cost	9,211
Total Securities held for maturity, Amortized Cost	27,252
Due within twelve months, Estimated Fair Value	380
Due after five but within ten years, Estimated Fair Value	15,842
Due after ten years, Estimated Fair Value	8,434
Total Securities held for maturity, Estimated Fair Value	$ 24,656	$ 25,736
Due within twelve months, Book Yield	2.98%
Due after five but within ten years, Book Yield	4.29%
Due after ten years, Book Yield	3.41%
Total Securities held for maturity, Book Yield	3.97%

Loans Held for Investment - Composition of Net Loans Held for Investment by Class (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	$ 635,928	$ 591,207
Less:
Less allowance for credit losses on loans	(5,908)	(5,561)
Deferred loan costs (fees) net	810	864
Net loans held for investment	630,830	586,510
Commercial [Member] \| Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	102,616	102,366
Commercial [Member] \| Real Estate - Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	235,897	213,397
Commercial [Member] \| Other Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	44,032	40,872
Commercial [Member] \| Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	5,971	6,214
Non-Commercial [Member] \| Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	11,268	11,581
Non-Commercial [Member] \| Real Estate 1 - 4 Family Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	18,987	12,481
Non-Commercial [Member] \| Real Estate - Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	152,813	143,697
Non-Commercial [Member] \| Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Total	$ 64,344	$ 60,599

Allowance for Credit Losses on Loans - Past Due Information of Loan Portfolio by Class (Detail) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable Impaired [Line Items]
Total Past Due Loans	$ 636,738,000	$ 592,071,000
Total Loans	636,738,000	592,071,000
Accruing Loans 90 or More Days Past Due	0	0
Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	1,044,000	1,548,000
Nonaccrual Loans
Financing Receivable Impaired [Line Items]
Total Past Due Loans	1,588,000	1,101,000
Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	2,632,000	2,649,000
Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	634,106,000	589,422,000
Real Estate - Commercial [Member]
Financing Receivable Impaired [Line Items]
Total Loans	236,016,000	213,523,000
Accruing Loans 90 or More Days Past Due	0	0
Real Estate - Commercial [Member] \| Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans		588,000
Real Estate - Commercial [Member] \| Nonaccrual Loans
Financing Receivable Impaired [Line Items]
Total Past Due Loans	401,000	488,000
Real Estate - Commercial [Member] \| Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	401,000	1,076,000
Real Estate - Commercial [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	235,615,000	212,447,000
Other Real Estate Construction [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	44,032,000	40,872,000
Total Loans	44,032,000	40,872,000
Accruing Loans 90 or More Days Past Due	0	0
Other Real Estate Construction [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	44,032,000	40,872,000
Real Estate 1 - 4 Family Construction [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	18,987,000	12,481,000
Total Loans	18,987,000	12,481,000
Accruing Loans 90 or More Days Past Due	0	0
Real Estate 1 - 4 Family Construction [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	18,987,000	12,481,000
Real Estate - Residential [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	153,507,000	144,438,000
Total Loans	153,507,000	144,438,000
Accruing Loans 90 or More Days Past Due	0
Real Estate - Residential [Member] \| Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	779,000	715,000
Real Estate - Residential [Member] \| Nonaccrual Loans
Financing Receivable Impaired [Line Items]
Total Past Due Loans	818,000	278,000
Real Estate - Residential [Member] \| Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	1,597,000	993,000
Real Estate - Residential [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	151,910,000	143,445,000
Home Equity [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	64,344,000	60,600,000
Total Loans	64,344,000	60,600,000
Accruing Loans 90 or More Days Past Due	0	0
Home Equity [Member] \| Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	151,000	115,000
Home Equity [Member] \| Nonaccrual Loans
Financing Receivable Impaired [Line Items]
Total Past Due Loans	222,000	181,000
Home Equity [Member] \| Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	373,000	296,000
Home Equity [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	63,971,000	60,304,000
Other Loans [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	5,971,000	6,214,000
Total Loans	5,971,000	6,214,000
Accruing Loans 90 or More Days Past Due	0	0
Other Loans [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	5,971,000	6,214,000
Commercial [Member]
Financing Receivable Impaired [Line Items]
Total Loans	102,613,000	102,362,000
Accruing Loans 90 or More Days Past Due	0	0
Commercial [Member] \| Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	41,000	46,000
Commercial [Member] \| Nonaccrual Loans
Financing Receivable Impaired [Line Items]
Total Past Due Loans	147,000	154,000
Commercial [Member] \| Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	188,000	200,000
Commercial [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	102,425,000	102,162,000
Consumer Loans [Member]
Financing Receivable Impaired [Line Items]
Total Loans	11,268,000	11,581,000
Accruing Loans 90 or More Days Past Due	0	0
Consumer Loans [Member] \| Loans 30-89 Days Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	73,000	84,000
Consumer Loans [Member] \| Financial Asset, Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	73,000	84,000
Consumer Loans [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable Impaired [Line Items]
Total Past Due Loans	$ 11,195,000	$ 11,497,000