8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 24, 2011

UWHARRIE CAPITAL CORP

(Exact name of Registrant as specified in its charter)

NORTH CAROLINA	000-22062	56-1814206
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer Identification number)

132 NORTH FIRST STREET, ALBEMARLE, NORTH CAROLINA 28001

(Address of principal executive offices)

Registrant’s telephone number, including area code (704) 982-4415

N/A

(Former address of principal executive offices)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On August 24, 2011, Uwharrie Capital Corp (the “Registrant”) released a quarterly report to its shareholders that included a letter to the shareholders from President and CEO Roger L. Dick and unaudited financial information for the period ended June 30, 2011. A copy of this report is attached hereto as Exhibit 99.1 and incorporated by reference herein.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits

Exhibit No.	Description of Exhibit
99.1	Quarterly report to shareholders for the period ended June 30, 2011.

This Current Report on Form 8-K (including information included or incorporated by reference herein) may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of Registrant’s goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” “outlook” or similar expressions. These statements are based upon the current belief and expectations of Registrant’s management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond Registrant’s control).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

UWHARRIE CAPITAL CORP
By:	/s/ Roger L. Dick
	Roger L. Dick
	Chief Executive Officer

Dated: August 24, 2011

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
99.1	Quarterly report to shareholders for the period ended June 30, 2011.

EX-99.1

Exhibit 99.1

Second Quarter Report

June 30, 2011

August 24, 2011

Dear Shareholder:

Times of crisis in the economy can be considered blessed moments in history. These are the times that we, as a community and nation of people, stop and reevaluate our paths. We are in a global economic recession, with high unemployment, virtually no job growth, and so ridden with debt that Standard & Poor’s has downgraded our nation’s credit quality. We have not seen times like these before, and these challenges require us, as individuals and corporate bodies, to rethink our attitudes about debt, investing, and generally speaking, our risk-taking in a world that has become a lot more uncertain.

The recession has been devastating on individuals and businesses in our state and our markets are no exception. Uwharrie Capital Corp remains committed to helping families and local businesses through these challenging times. We are working to make a difference in the overall financial health of our customers and the communities we serve.

As a result of the recession, all banks in North Carolina have been challenged in loan quality and earnings since 2008. Thanks to the support of you and our communities, we have continued to be profitable and have performed better than our peers in all measures of asset quality and earnings. Earnings for second quarter 2011 of $709 thousand compared favorably to second quarter 2010 earnings of $331 thousand, for an increase of 114%. This is a result of an improvement in our credit quality, due primarily to a reduction in the loan loss provision from $830 thousand during the second quarter of 2010 to $160 thousand for the same period 2011. On a year-to-date basis our earnings are up 5.5% to $918 thousand.

During 2011, the loan demand in our markets has been down substantially, which has been indicative of the industry as consumers and businesses across the nation are borrowing less and saving more. This has multiple implications for our company. Assets increased by $6.3 million from June 2010 to June 2011; however, since the first of the year, loan demand has been very soft, resulting in a lower loan balance from the close of December 2010. During 2011 the increased savings in our noninterest-bearing deposits grew by 5.73%, helping to provide a lower cost funding source in the face of declining loan and investment yields. Our net interest margin was 3.99% and 4.19% for the comparable periods in 2011 and 2010, respectively.

A community bank’s health reflects the community and markets it serves. We believe that localizing our economies by supporting the small businesses in our communities, we can immunize ourselves against the global economic currents. Working together we can build strong local economies that are independent.

Our core earnings philosophy remains strong as does our capital. We continue to focus on increasing revenue, quality loan growth and improving asset quality. Development of our e-zMobile banking services are adding new customer convenience, while advancements in savings and investment programs are helping protect hard earned dollars. Responsible lending programs for home owners and businesses allow families and individuals to pursue their dreams while creating a brighter future for the communities we call home.

We are successfully accomplishing our strategy of providing the best value in financial services in the markets we serve. Working together…caring about each other and being motivated to do the right kinds of things…we are making a difference. We are building more than just a good banking organization to serve our communities; we are building strong local economies and sustainable communities that can survive this new age. Our best days are ahead!

Sincerely,

UWHARRIE CAPITAL CORP

/s/ Roger L. Dick

Roger L. Dick

President and Chief Executive Officer

Uwharrie Capital Corp and Subsidiaries

Consolidated Balance Sheets

(Amounts in thousands except share and per share data)	June 30, 2011			June 30, 2010
Assets
Cash and due from banks	$	13,361		$	11,277
Investment securities available for sale		89,166			94,994
Federal funds sold		—			—
Loans held for sale		731			1,991
Loans held for investment		378,291			372,821
Less: Allowance for loan losses		7,274			5,635
Net loans held for investment		371,017			367,186
Interest receivable		2,067			2,416
Premises and equipment, net		14,678			14,127
Federal Home Loan Bank stock		2,872			3,330
Bank-owned life insurance		6,067			5,835
Goodwill		987			987
Other real estate owned		8,586			3,281
Other assets		11,830			9,612
Total assets	$	521,362		$	515,036
Liabilities
Deposits:
Demand, noninterest-bearing	$	57,982		$	50,651
Interest checking and money market accounts		176,669			167,874
Savings accounts		40,073			36,586
Time deposits, $100,000 and over		60,110			64,283
Other time deposits		92,730			90,494
Total deposits		427,564			409,888
Interest payable		322			389
Short-term borrowed funds		22,879			22,515
Long-term debt		23,238			33,589
Other liabilities		3,053			2,424
Total liabilities		477,056			468,805
Shareholders’ Equity
Preferred stock, no par value: 10,000,000 shares authorized;
10,000 shares of series A issued and outstanding		10,000			10,000
500 shares of series B issued and outstanding		500			500
Discount on preferred stock		(250	)		(350	)
Common stock, $1.25 par value: 20,000,000 shares authorized; issued and outstanding or in process of issuance 7,593,929 and 7,593,929 shares, respectively. Book value per share $4.48 in 2011 and $4.75 in 2010.		9,492			9,492
Additional paid-in capital		14,036			14,032
Unearned ESOP compensation		(672	)		(629	)
Undivided profits		10,719			10,603
Accumulated other comprehensive income (loss)		481			2,583
Total shareholders’ equity		44,306			46,231
Total liabilities and shareholders’ equity	$	521,362		$	515,036

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Income

	Three Months Ended June 30,						Six Months Ended June 30,
(Amounts in thousands except share and per share data)	2011			2010			2011			2010
Interest Income
Interest and fees on loans	$	5,417		$	5,492		$	10,759		$	10,794
Interest on investment securities		534			756			1,131			1,500
Other interest income		11			10			18			18
Total interest income		5,962			6,258			11,908			12,312
Interest Expense
Interest paid on deposits		875			1,048			1,774			2,132
Interest on borrowed funds		351			438			730			846
Total interest expense		1,226			1,486			2,504			2,978
Net Interest Income		4,736			4,772			9,404			9,334
Provision for loan losses		160			830			1,529			1,043
Net interest income after provision for loan losses		4,576			3,942			7,875			8,291
Noninterest Income
Service charges on deposit accounts		449			563			893			1,129
Other service fees and commissions		909			768			1,766			1,429
Gain (loss) on sale of securities		357			62			933			(36	)
Income from mortgage loan sales		331			390			714			736
Other income		83			40			200			168
Total noninterest income		2,129			1,823			4,506			3,426
Noninterest Expense
Salaries and employee benefits		3,050			2,886			6,095			5,714
Occupancy expense		282			272			583			538
Equipment expense		194			176			400			358
Data processing		208			209			417			411
Other operating expenses		1,932			1,672			3,610			3,366
Total noninterest expense		5,666			5,215			11,105			10,387
Income before income taxes		1,039			550			1,276			1,330
Provision for income taxes		330			219			358			460
Net Income	$	709		$	331		$	918		$	870
Net Income	$	709		$	331		$	918		$	870
Dividends - preferred stock		(161	)		(161	)		(323	)		(323	)
Net income available to common shareholders	$	548		$	170		$	595		$	547
Net Income Per Common Share (1)
Basic	$	0.07		$	0.02		$	0.08		$	0.07
Assuming dilution	$	0.07		$	0.02		$	0.08		$	0.07
Weighted Average Common Shares Outstanding (1)
Basic		7,474,178			7,488,781			7,476,193			7,486,695
Assuming dilution		7,474,178			7,488,781			7,476,193			7,486,695