10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2013

OR

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

For the transition period from                      to                     .

COMMISSION FILE NUMBER 000-22062

UWHARRIE CAPITAL CORP

(Exact name of registrant as specified in its charter)

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)

Registrant’s Telephone number, including area code: (704) 983-6181

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 7,471,204 shares of common stock outstanding as of November 4, 2013.

Table of Contents

		Page No.
Part I.	FINANCIAL INFORMATION
Item 1 –	Financial Statements (Unaudited)
	Consolidated Balance Sheets September 30, 2013 and December 31, 2012		3
	Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2013 and 2012		4
	Consolidated Statements of Comprehensive Income for the Three And Nine Months Ended September  30, 2013 and 2012		5
	Consolidated Statements of Changes in Shareholders’ Equity Nine Months Ended September 30, 2013		6
	Consolidated Statements of Cash Flows Nine Months Ended September 30, 2013 and 2012		7
	Notes to Consolidated Financial Statements		8
Item 2 –	Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3 –	Quantitative and Qualitative Disclosures about Market Risk		37
Item 4 –	Controls and Procedures		38
Part II.	OTHER INFORMATION
Item 1 –	Legal Proceedings		39
Item 1A –	Risk Factors		39
Item 2 –	Unregistered Sales of Equity Securities and Use of Proceeds		39
Item 3 –	Defaults Upon Senior Securities		40
Item 4 –	Mine Safety Disclosures		40
Item 5 –	Other Information		40
Item 6 –	Exhibits		40
	Exhibit Index		43

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Uwharrie Capital Corp and Subsidiaries

Consolidated Balance Sheets

Part I. FINANCIAL INFORMATION

Item 1 – Financial Statements

	September 30, 2013 (Unaudited)			December 31, 2012*
	(dollars in thousands)
ASSETS
Cash and due from banks	$	7,065		$	8,877
Interest-earning deposits with banks		49,651			72,851
Securities available for sale, at fair value		123,126			91,638
Loans held for sale		560			5,373
Loans:
Loans held for investment		312,148			329,183
Less allowance for loan losses		(5,259	)		(6,801	)
Net loans held for investment		306,889			322,382
Premises and equipment, net		13,885			14,952
Interest receivable		1,618			1,753
Restricted stock		1,319			2,265
Bank owned life insurance		6,486			6,394
Other real estate owned		9,264			8,713
Prepaid assets		782			635
Other assets		10,337			9,174
Total assets	$	530,982		$	545,007
LIABILITIES
Deposits:
Demand noninterest-bearing	$	78,694		$	70,347
Interest checking and money market accounts		225,546			211,066
Savings deposits		46,928			43,336
Time deposits, $100,000 and over		45,910			53,449
Other time deposits		65,906			79,414
Total deposits		462,984			457,612
Short-term borrowed funds		6,004			18,690
Long-term debt		11,165			12,673
Interest payable		231			270
Other liabilities		7,521			11,449
Total liabilities		487,905			500,694
Redeemable common stock held by the Employee Stock Ownership Plan (ESOP)		1,647			1,584
Off balance sheet items, commitments and contingencies (Note 9)
SHAREHOLDERS’ EQUITY
Preferred stock, no par value: 10,000,000 shares authorized;
2,258 and 10,000 shares of series A issued and outstanding;		2,258			10,000
500 shares of series B issued and outstanding		500			500
Discount on preferred stock		(25	)		(100	)
Common stock, $1.25 par value: 20,000,000 shares issued authorized; shares issued and outstanding 7,471,204 and 7,502,496 shares, respectively		9,339			9,378
Additional paid-in capital		12,049			12,201
Unearned ESOP compensation		(874	)		(875	)
Undivided profits		10,658			10,138
Accumulated other comprehensive income (loss)		(234	)		1,487
Total Uwharrie Capital shareholders’ equity		33,671			42,729
Noncontrolling interest		7,759			—
Total shareholders’ equity		41,430			42,729
Total liabilities and shareholders’ equity	$	530,982		$	545,007

(*) Derived from audited consolidated financial statements

See accompanying notes

-3-

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Income (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(in thousands, except share and per share data)
Interest Income
Loans, including fees	$	4,368		$	4,809		$	13,244		$	14,957
Investment securities
US Treasury		103			145			296			432
US Government agencies and corporations		322			375			703			768
State and political subdivisions		61			75			189			255
Interest-earning deposits with banks and federal funds sold		24			29			133			101
Total interest income		4,878			5,433			14,565			16,513
Interest Expense
Interest checking and money market accounts		110			129			338			414
Savings deposits		47			49			131			154
Time deposits, $100,000 and over		135			195			462			610
Other time deposits		162			250			557			770
Short-term borrowed funds		19			98			142			253
Long-term debt		164			180			501			621
Total interest expense		637			901			2,131			2,822
Net interest income		4,241			4,532			12,434			13,691
Provision for (recovery of) loan losses		227			391			(547	)		1,094
Net interest income after provision (recovery of) for loan losses		4,014			4,141			12,981			12,597
Noninterest Income
Service charges on deposit accounts		408			450			1,205			1,318
Other service fees and commissions		870			801			2,504			2,392
Gain on sale of securities (includes reclassification of $14 from accumulated other comprehensive income)		—			—			14			16
Gain (loss) on fixed assets and other assets		53			(80	)		278			216
Income from mortgage loan sales		361			1,102			1,843			2,578
Other income		118			107			342			345
Total noninterest income		1,810			2,380			6,186			6,865
Noninterest Expense
Salaries and employee benefits		3,037			3,215			9,189			9,478
Net occupancy expense		295			293			845			863
Equipment expense		180			185			534			556
Data processing costs		186			204			578			638
Office supplies and printing		76			93			187			245
Foreclosed real estate expense		134			547			1,257			1,357
Professional fees and services		306			295			787			467
Marketing and donations		181			146			557			484
Electronic banking expense		258			227			729			681
Software amortization and maintenance		132			140			413			423
FDIC insurance		124			173			421			518
Other noninterest expense		649			632			1,975			1,828
Total noninterest expense		5,558			6,150			17,472			17,538
Income before income taxes		266			371			1,695			1,924
Income taxes (includes reclassification of $5 from accumulated other comprehensive income)		48			109			557			561
Net income	$	218		$	262		$	1,138		$	1,363
Consolidated net income	$	218			262			1,138			1,363
Less: net income attributable to noncontrolling Interest		(111	)		—			(328	)		0
Net income attributable to Uwharrie Capital Corp		107			262			810			1,363
Dividends – preferred stock		(64	)		(161	)		(290	)		(484	)
Net income available to common shareholders	$	43		$	101		$	520		$	879
Net income per common share
Basic	$	0.01		$	0.01		$	0.07		$	0.12
Diluted	$	0.01		$	0.01		$	0.07		$	0.12
Weighted average shares outstanding
Basic		7,268,763			7,379,657			7,287,482			7,416,453
Diluted		7,268,763			7,379,657			7,287,482			7,416,453

See accompanying notes

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UWHARRIE CAPITAL CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(in thousands)
Net Income	$	218		$	262		$	1,138		$	1,363
Other comprehensive income (loss)
Unrealized gain (loss) on available for sale securities		(91	)		414			(2,641	)		366
Related tax effect		30			(143	)		916			(126	)
Reclassification of (gain) loss recognized in net income		—			—			(14	)		(16	)
Related tax effect		—			—			5			6
Total other comprehensive income (loss)		(61	)		271			(1,734	)		230
Comprehensive income (loss)		157			533			(596	)		1,593
Less: Comprehensive income (loss) attributable to noncontrolling interest		(111	)		—			(328	)		—
Comprehensive income (loss) attributable to Uwharrie Capital	$	46		$	533		$	(924	)	$	1,593

See accompanying notes

-5-

Uwharrie Capital Corp and Subsidiaries

Consolidated Statement of Changes in Shareholders’ Equity (Unaudited)

	Number Common Shares Issued			Preferred Stock Series A			Preferred Stock Series B		Discount on Preferred Stock			Common Stock			Additional Paid-in Capital			Unearned ESOP Compensation			Undivided Profits			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest			Total
(dollars in thousands, except share data)
Balance, December 31, 2012		7,502,496		$	10,000		$	500	$	(100	)	$	9,378		$	12,201		$	(875	)	$	10,138		$	1,487		$	—		$	42,729
Net Income		—			—			—		—			—			—			—			810			—			328			1,138
Repurchase of common stock		(31,292	)		—			—		—			(39	)		(53	)		—			—			—			—			(92	)
Other comprehensive loss		—			—			—		—			—			—			—			—			(1,721	)		—			(1,721	)
Release of ESOP shares		—			—			—		—			—			(36	)		70			—			—			—			34
Increase in ESOP notes receivable		—			—			—		—			—			—			(69	)		—			—			—			(69	)
Reclass to mezzanine capital		—			—			—		—			—			(63	)		—			—			—			—			(63	)
Repayment of preferred stock series A		—			(7,742	)		—		—			—			—			—			—			—			—			(7,742	)
Issuance of preferred stock series B (noncontrolling interest)		—			—			—		—			—			—			—			—			—			7,855			7,855
Record costs of series B preferred stock (noncontrolling interest)		—			—			—		—			—			—			—			—			—			(113	)		(113	)
Record preferred stock dividend series B (noncontrolling interest)		—			—			—		—			—			—			—			—			—			(311	)		(311	)
Record preferred stock dividend and discount accretion		—			—			—		75			—			—			—			(290	)		—			—			(215	)
Balance, September 30, 2013		7,471,204		$	2,258		$	500	$	(25	)	$	9,339		$	12,049		$	(874	)	$	10,658		$	(234	)	$	7,759		$	41,430

See accompanying notes

-6-

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended September 30,
	2013			2012
	(dollars in thousands)
Cash flows from operating activities
Net income	$	1,138		$	1,363
Adjustments to reconcile net income to net cash
Provided by (used in) operating activities:
Depreciation		584			718
Net amortization of security premiums/discounts		1,163			907
Net amortization of mortgage servicing rights		619			609
Impairment of foreclosed real estate		745			988
Impairment of (recovery of) other assets		(75	)		50
Provision for (recovery of) loan losses		(547	)		1,094
Stock compensation		—			3
Net realized gain on sales / calls available for sales securities		(14	)		(16	)
Income from mortgage loan sales		(1,843	)		(2,578	)
Proceeds from sales of loans held for sale		67,218			89,969
Origination of loans held for sale		(60,562	)		(86,458	)
Gain on sale of premises, equipment and other assets		(229	)		(276	)
Increase in cash surrender value of life insurance		(92	)		(183	)
(Gain) loss on sales of foreclosed real estate		(18	)		60
Release of ESOP shares		34			35
Net change in interest receivable		135			149
Net change in other assets		(576	)		137
Net change in interest payable		(39	)		(24	)
Net change in other liabilities		3,454			873
Net cash provided by operating activities		11,095			7,420
Cash flows from investing activities
Proceeds from sales, maturities and calls of securities available for sale		11,413			19,215
Purchase of securities available for sale		(46,693	)		(61,369	)
Net decrease in loans		12,768			24,845
Proceeds from sales of premises, equipment and other assets		949			—
Purchase of premises and equipment		(237	)		(610	)
Proceeds from sales of foreclosed real estate		1,994			1,724
Investment in other assets		(356	)		(260	)
Net decrease in restricted stock		946			1,024
Net cash used in investing activities		(19,216	)		(15,431	)
Cash flows from financing activities
Net increase in deposit accounts		5,372			19,062
Net decrease in short-term borrowed funds		(12,686	)		(156	)
Net decrease in long-term debt		(1,508	)		(12,557	)
Proceeds from preferred stock series B issued by subsidiaries		360			—
Repayment of preferred stock series A		(7,742	)		—
Increase in unearned ESOP compensation		(69	)		(176	)
Repurchase of common stock		(92	)		(243	)
Dividend and discount accretion on preferred stock		(215	)		(409	)
Dividend and cost accretion on noncontrolling interest		(311	)		—
Net cash provided (used in) in financing activities		(16,891	)		5,521
Increase (decrease) in cash and cash equivalents		(25,012	)		(2,490	)
Cash and cash equivalents, beginning of period		81,728			28,687
Cash and cash equivalents, end of period	$	56,716		$	26,197
Supplemental Disclosures of Cash Flow Information
Interest paid	$	2,170		$	2,846
Income taxes paid		648			78
Supplemental Schedule of Non-Cash Activities
Net change in fair value securities available for sale, net of tax	$	(1,721	)	$	230
Loans transferred to foreclosed real estate		3,272			1,649
Company financed sales of other real estate owned		(213	)		(188	)
Net change in ESOP liability		63			—

See accompanying notes

-7-

UWHARRIE CAPITAL CORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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, Bank of Stanly (“Stanly”), Anson Bank & Trust Co. (“Anson”), Cabarrus Bank & Trust Company (“Cabarrus”), Strategic Investment Advisors, Inc. (“SIA”), and Uwharrie Mortgage Inc. Stanly consolidates its subsidiaries, the Strategic Alliance Corporation, BOS Agency, Inc. and Gateway Mortgage, Inc., each of which is wholly-owned by Stanly. On September 1, 2013, Anson and Cabarrus were consolidated into Stanly and effective September 1, 2013, Stanly’s name was changed to Uwharrie Bank (“Uwharrie”).

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 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 2012 Annual Report on Form 10-K. This Quarterly Report should be read in conjunction with such Annual Report.

Note 2 – Comprehensive Income

The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other accumulated 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 accumulated 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 income for the three and nine months ending September 30, 2013:

	Unrealized holding gains on available-for-sale Securities (net)
	Three months ended September 30, 2013			Nine months ended September 30, 2013
	(dollars in thousands)
Beginning Balance	$	(173	)	$	1,487
Other comprehensive income (loss) before reclassifications, net of $30,000 and $916,000 tax effect, respectively		(61	)		(1,712	)
Amounts reclassified from accumulated other Comprehensive income, net of $5,000 tax effect		—			(9	)
Net current-period other comprehensive loss		(61	)		(1,721	)
Ending Balance	$	(234	)	$	(234	)

-8-

Note 3 – Noncontrolling Interest

During the third quarter of 2012, each of the Company’s subsidiary banks began a campaign to sell Fixed Rate Noncumulative Perpetual Preferred Stock, Series B to be issued by each subsidiary bank. The preferred stock qualifies as Tier 1 capital at each bank and will pay dividends at an annual rate of 5.30%. The preferred stock has no voting rights. The offerings ended on December 31, 2012 with Stanly raising $4.5 million, Anson raising $1.5 million and Cabarrus raising $1.9 million in new capital less total issuance costs of $113,000. These funds were held in an escrow account at December 31, 2012 and the new preferred stock was issued in January 2013. The total net amount of capital raised $7.7 million at the subsidiary bank level, consolidates up to the Company and 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. Beginning September 1, 2013, the Fixed Rate Noncumulative Perpetual Preferred Stock, Series B has rolled into one issue under Uwharrie Bank effective with the consolidation and name change.

During the third quarter of 2013, the Company’s subsidiary bank, Uwharrie Bank, began a campaign to sell Fixed Rate Noncumulative Perpetual Preferred Stock, Series C to be issued by the subsidiary bank. The preferred stock qualifies as Tier 1 capital at the bank and will pay dividends at an annual rate of 5.30%. The preferred stock has no voting rights. The offering ended September 15, 2013 with Uwharrie raising $2.8 million in new capital less total issuance costs of $23,000. At September 30, 2013, these funds were held in an escrow account and the new preferred stock was issued on October 1, 2013.

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. For the three and nine months ended September 30, 2013, the Company’s 92,491 stock options outstanding did not have a dilutive effect on per share results because the exercise prices exceeded the share values for each period. The Company had 122,341 stock options outstanding for the three and nine months ended September 30, 2012, and they did not have a dilutive effect.

-9-

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 computation of basic and dilutive earnings per share is summarized below:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Weighted average number of common shares outstanding		7,473,903			7,563,255			7,473,903			7,563,255
Effect of ESOP shares		(205,140	)		(183,598	)		(186,421	)		(146,802	)
Adjusted weighted average number of common shares used in computing basic net income per common share		7,268,763			7,379,657			7,287,482			7,416,453
Effect of dilutive stock options		—			—			—			—
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share		7,268,763			7,379,657			7,287,482			7,416,453

Note 5 – Investment Securities

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

September 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
U.S. Treasury	$	23,522	$	572	$	222	$	23,872
U.S. Government agencies		52,384		243		946		51,681
GSE – Mortgage-backed securities and CMO’s		40,235		229		630		39,834
State and political subdivisions		7,353		386		—		7,739
Total securities available for sale	$	123,494	$	1,430	$	1,798	$	123,126

December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
U.S. Treasury	$	18,731	$	846	$	1	$	19,576
U.S. Government agencies		21,689		485		—		22,174
GSE – Mortgage-backed securities and CMO’s		40,766		379		123		41,022
State and political subdivisions		8,165		701		—		8,866
Total securities available for sale	$	89,351	$	2,411	$	124	$	91,638

At both September 30, 2013 and December 31, 2012, the Company owned Federal Reserve Bank stock reported at cost of $467,000 and $803,000, respectively that is included in other assets. Also at September 30, 2013 and December 31, 2012, the Company owned Federal Home Loan Bank Stock (FHLB) of $852,000 and $1.5 million, respectively. The investments in Federal Reserve stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks. These investments are carried at cost since there is no ready market and historically redemption has been made at par value. The Company estimated that the fair value approximated cost and that these investments were not impaired at September 30, 2013.

-10-

Results from sales of securities available for sale for the three and nine month period ended September 30, 2013 and September 30, 2012 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(dollars in thousands)
Gross proceeds from sales	$	—	$	—	$	426	$	8,996
Realized gains from sales	$	—	$	—	$	14	$	128
Realized losses from sales		—		—		—		(112	)
Net Realized gains	$	—	$	—	$	14	$	16

At September 30, 2013 and December 31, 2012, securities available for sale with a carrying amount of $63.2 million and $48.8 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

The following tables show the gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012. These unrealized losses on investment securities are a result of temporary fluctuations in the market prices due to a rise in interest rates, which will adjust if rates decline, and a volatile market. Management does not believe these fluctuations are a reflection of the quality of the investments. At September 30, 2013, the unrealized losses for securities less than twelve months related to two United States Treasury notes, ten government agency bonds and ten government sponsored enterprise (GSE) mortgage backed securities. The Company did have two GSE mortgage backed securities that had been in a loss position for more than twelve months. At December 31, 2012, the unrealized losses related to two United States Treasury notes and seven mortgage backed securities.

	Less than 12 Months				12 Months or More				Total
September 30, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	7,193	$	222	$	—	$	—	$	7,193	$	222
U.S. Gov’t agencies		37,420		946		—		—		37,420		946
GSE-Mortgage-backed securities and CMO’s		18,706		533		4,077		97		22,783		630
State and political subdivisions		—		—		—		—		—		—
	$	63,319	$	1,701	$	4,077	$	97	$	67,396	$	1,798

	Less than 12 Months				12 Months or More				Total
December 31, 2012	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	2,485	$	1	$	—	$	—	$	2,485	$	1
U.S. Gov’t agencies		—		—		—		—		—		—
GSE-Mortgage-backed securities and CMO’s		21,355		123		—		—		21,355		123
State and political subdivisions		—		—		—		—		—		—
	$	23,840	$	124	$	—	$	—	$	23,840	$	124

Declines in the fair value of the investment portfolio are believed by management to be temporary in nature. When evaluating an investment for other-than-temporary impairment losses, management considers among other things, the length of time and the extent to which the fair value has been in a loss position, the financial condition of the issuer and the intent and the ability the Company has to hold the investment until the loss position is recovered.

-11-

At September 30, 2013, the Company had two GSE mortgage backed securities that had been in a loss position for twelve months or more. The unrealized losses are not likely to reverse unless market interest rates decline to the levels that existed when the securities were purchased. None of the unrealized losses relate to the marketability of the securities or the issuer’s ability to honor redemption obligations. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. At September 30, 2013, the Company had no intent to sell and was not more likely than not to be required to sell the available for sale securities that were in a loss position prior to full recovery. For the three and nine months ended September 30, 2013, there were no available for sale securities deemed to be other than temporarily impaired.

The aggregate amortized cost and fair value of the available for sale securities portfolio at September 30, 2013 by remaining contractual maturity are as follows:

	September 30, 2013
	Amortized Cost		Estimated Fair Value		Book Yield
Securities available for sale
U. S. Treasury
Due after one but within five years		16,107		16,679		1.91	%
Due after five but within ten years		7,415		7,193		1.27	%
		23,522		23,872		1.71	%
U.S. Government agencies
Due within twelve months		5,002		5,050		2.27	%
Due after one but within five years		28,422		28,247		1.32	%
Due after five but within ten years		18,960		18,384		1.36	%
		52,384		51,681		1.43	%
Mortgage-backed securities
Due after one but within five years		2,630		2,545		1.66	%
Due after five but within ten years		5,069		5,170		1.83	%
Due after ten years		32,536		32,119		1.59	%
		40,235		39,834		1.62	%
State and political subdivisions
Due within twelve months		481		489		3.28	%
Due after one but within five years		1,129		1,218		3.75	%
Due after five but within ten years		4,725		4,983		3.12	%
Due after ten years		1,018		1,049		4.18	%
		7,353		7,739		3.37	%
Total Securities available for sale
Due within twelve months		5,483		5,539		2.36	%
Due after one but within five years		48,288		48,689		1.59	%
Due after five but within ten years		36,169		35,730		1.64	%
Due after ten years		33,554		33,168		1.67	%
	$	123,494	$	123,126		1.66	%

-12-

Note 6 – Loans Held for Investment

The composition of net loans held for investment by class as of September 30, 2013 and December 31, 2012 are as follows:

	September 30, 2013			December 31, 2012
	(dollars in thousands)
Commercial
Commercial	$	46,001		$	41,390
Real estate – commercial		96,745			103,304
Other real estate construction loans		19,435			25,052
Noncommercial
Real estate 1 – 4 family construction		3,610			3,080
Real estate – residential		90,714			93,927
Home equity		46,133			48,517
Consumer loans		8,757			12,986
Other loans		690			822
		312,085			329,078
Less:
Allowance for loan losses		(5,259	)		(6,801	)
Deferred loan (fees) costs, net		63			105
Loans held for investment, net	$	306,889		$	322,382

Note 7 – Allowance for Loan Losses

The following table shows the change in the allowance for loss losses by loan segment for the three and nine months periods ended September 30, 2013 and 2012, respectively:

Commercial	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(dollars in thousands)
Balance, beginning of period	$	2,542		$	2,650		$	2,791		$	2,904
Provision (recovery) charged to operations		(259	)		424			(152	)		476
Charge-offs		(217	)		(367	)		(612	)		(721	)
Recoveries		20			5			59			53
Net (charge-offs)		(197	)		(362	)		(553	)		(668	)
Other		(1	)		—			(1	)		—
Balance at end of period	$	2,085		$	2,712		$	2,085		$	2,712

Non-Commercial	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(dollars in thousands)
Balance, beginning of period	$	2,939		$	4,419		$	4,010		$	3,911
Provision (recovery) charged to operations		486			(33	)		(395	)		618
Charge-offs		(257	)		(229	)		(522	)		(400	)
Recoveries		10			14			85			42
Net (charge-offs)		(247	)		(215	)		(437	)		(358	)
Other		(4	)		—			(4	)		—
Balance at end of period	$	3,174		$	4,171		$	3,174		$	4,171

-13-

The following table shows period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at September 30, 2013 and December 31, 2012:

September 30, 2013
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	1,278	$	8,732	$	807	$	153,449	$	2,085	$	162,181
Non-Commercial		1,559		10,355		1,615		139,612		3,174		149,967
Total	$	2,837	$	19,087	$	2,422	$	293,061	$	5,259	$	312,148

December 31, 2012
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	1,428	$	14,979	$	1,363	$	154,767	$	2,791	$	169,746
Non-Commercial		1,606		11,128		2,404		148,309		4,010		159,437
Total	$	3,034	$	26,107	$	3,767	$	303,076	$	6,801	$	329,183

Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following table summarizes the past due information of the loan portfolio by class:

September 30, 2013
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	—	$	307	$	307	$	45,694	$	46,001	$	—
Real estate – commercial		40		2,259		2,299		94,446		96,745		—
Other real estate construction		—		1,581		1,581		17,854		19,435		—
Real estate 1 – 4 family construction		115		—		115		3,495		3,610		—
Real estate – residential		1,587		1,842		3,429		87,348		90,777		—
Home equity		333		213		546		45,587		46,133		—
Consumer loans		73		—		73		8,684		8,757		—
Other loans		—		—		—		690		690		—
Total	$	2,148	$	6,202	$	8,350	$	303,798	$	312,148	$	—

December 31, 2012
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	98	$	437	$	535	$	40,855	$	41,390	$	—
Real estate – commercial		708		3,032		3,740		99,564		103,304		—
Other real estate construction		12		2,945		2,957		22,095		25,052		—
Real estate construction		—		—		—		3,080		3,080		—
Real estate – residential		1,309		2,507		3,816		90,216		94,032		—
Home equity		162		558		720		47,797		48,517		—
Consumer loan		218		1		219		12,767		12,986		—
Other loans		—		—		—		822		822		—
Total	$	2,507	$	9,480	$	11,987	$	317,196	$	329,183	$	—

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 90 days or more until they are paid current or charged off. Also, mortgage loans that were originated for sale but were not sold and are being held in the loan portfolio remain in an accruing status until they are foreclosed.

-14-

The composition of nonaccrual loans by class as of September 30, 2013 and December 31, 2012 is as follows:

	September 30, 2013		December 31, 2012
	(dollars in thousands)
Commercial	$	307	$	437
Real estate – commercial		2,259		3,032
Other real estate construction		1,581		2,945
Real estate 1 – 4 family construction		—		—
Real estate – residential		1,842		2,507
Home equity		213		558
Consumer loans		—		1
Other loans		—		—
	$	6,202	$	9,480

Management uses a risk-grading program to facilitate the evaluation of probable inherent loan losses and to measure the adequacy of the allowance for loan losses. 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 eight risk grades summarized in five categories as follows:

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

Watch: Loans that are watch credits include loans on management’s watch list where a risk concern may be anticipated in the near future.

Substandard: Loans that are considered substandard are loans that are inadequately protected by current sound net worth, 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 tables below summarize risk grades of the loan portfolio by class at September 30, 2013 and December 31 2012:

September 30, 2013
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	45,189	$	385	$	427	$	—	$	46,001
Real estate – commercial		84,513		6,450		5,782		—		96,745
Other real estate construction		16,640		630		2,165		—		19,435
Real estate 1 – 4 family construction		3,451		159		—		—		3,610
Real estate – residential		73,276		12,437		5,064		—		90,777
Home equity		44,525		922		686		—		46,133
Consumer loans		8,324		360		73		—		8,757
Other loans		690		—		—		—		690
Total	$	276,608	$	21,343	$	14,197	$	—	$	312,148

-15-

December 31, 2012
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	39,800	$	836	$	754	$	—	$	41,390
Real estate – commercial		84,748		9,337		9,219		—		103,304
Other real estate construction		20,684		577		3,477		314		25,052
Real estate 1 – 4 family construction		3,080		—		—		—		3,080
Real estate – residential		78,115		9,728		6,189		—		94,032
Home equity		46,590		914		1,013		—		48,517
Consumer loans		12,360		512		114		—		12,986
Other loans		822		—		—		—		822
Total	$	286,199	$	21,904	$	20,766	$	314	$	329,183

Loans that are in nonaccrual status or 90 days past due and still accruing are considered to be nonperforming. The following tables show the breakdown between performing and nonperforming loans by class at September 30, 2013 and December 31, 2012:

September 30, 2013
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	45,694	$	307	$	46,001
Real estate – commercial		94,486		2,259		96,745
Other real estate construction		17,854		1,581		19,435
Real estate 1 – 4 family construction		3,610		—		3,610
Real estate – residential		88,935		1,842		90,777
Home equity		45,920		213		46,133
Consumer loans		8,757		—		8,757
Other loans		690		—		690
Total	$	305,946	$	6,202	$	312,148

December 31, 2012
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	40,953	$	437	$	41,390
Real estate – commercial		100,272		3,032		103,304
Other real estate construction		22,107		2,945		25,052
Real estate 1 – 4 family construction		3,080		—		3,080
Real estate – residential		91,524		2,507		94,031
Home equity		47,960		558		48,518
Consumer loans		12,985		1		12,986
Other loans		822		—		822
Total	$	319,703	$	9,480	$	329,183

-16-

Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement. If a loan is deemed impaired, a specific calculation is performed and a specific reserve is allocated, if necessary. The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class at September 30, 2013 and December 31, 2012:

September 30, 2013	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance		Recorded Investment Accruing Loans 90 or More Days Past Due		Recorded Investment Loans in Non-accrual
	(dollars in thousands)
Commercial	$	648	$	—	$	529	$	449	$	—	$	307
Real estate – commercial		8,222		4,040		2,119		487		—		2,259
Other real estate construction		2,093		301		1,742		342		—		1,581
Real estate 1 – 4 family construction		375		26		349		16		—		—
Real estate – residential		9,078		4,144		4,934		1,127		—		1,842
Home equity		754		273		481		347		—		213
Consumer loans		148		79		69		69		—		—
Other loans		1		1		—		—		—		—
Total	$	21,319	$	8,864	$	10,223	$	2,837	$	—	$	6,202

December 31, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance		Recorded Investment Accruing Loans 90 or More Days Past Due		Recorded Investment Loans in Non-accrual
	(dollars in thousands)
Commercial	$	1,977	$	388	$	1,470	$	616	$	—	$	437
Real estate – commercial		11,299		6,341		2,895		411		—		3,032
Other real estate construction		3,935		2,437		1,448		401		—		2,945
Real estate 1 – 4 family construction		840		713		127		127		—		—
Real estate – residential		8,985		3,994		4,991		1,215		—		2,507
Home equity		1,068		521		547		159		—		558
Consumer loans		235		39		196		105		—		1
Other loans		—		—		—		—		—		—
Total	$	28,339	$	14,433	$	11,674	$	3,034	$	—	$	9,480

	Three Months ended September 30, 2013				Three Months ended September 30, 2012
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	926	$	3	$	1,112	$	23
Real estate – commercial		6,978		48		12,245		153
Other real estate construction		2,091		3		4,168		55
Real estate 1 – 4 family construction		376		7		1,014		15
Real estate – residential		8,727		52		12,680		166
Home equity		908		4		1,333		18
Consumer loans		148		2		343		4
Other loans		—		—		—		—
Total	$	20,154	$	119	$	32,895	$	434

-17-

	Nine Months ended September 30, 2013				Nine Months ended September 30, 2012
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	1,001	$	11	$	1,301	$	50
Real estate – commercial		7,340		186		12,397		493
Other real estate construction		2,108		16		4,112		180
Real estate 1 – 4 family construction		383		18		1,124		31
Real estate – residential		8,693		273		12,261		477
Home equity		954		17		1,244		42
Consumer loans		169		6		332		14
Other loans		—		—		—		—
Total	$	20,648	$	527	$	32,771	$	1,287

Note 8 – Troubled Debt Restructures

A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification involves providing a concession to the existing loan contract. The Company offers various types of concessions when modifying loans to troubled borrowers, however, forgiveness of principal is rarely granted. Concessions offered are term extensions, capitalizing accrued interest, reducing interest rates to below current market rates or a combination of any of these. Combinations from time to time may include allowing a customer to be placed on interest-only payments. The presentations below in the “other” category are TDR’s with a combination of concessions. At the time of a TDR, additional collateral or a guarantor may be requested.

Loans modified as a TDR are typically already on nonaccrual status and partial chargeoffs may have in some cases already been taken against the outstanding loan balance. The Company classifies TDR loans as impaired loans and evaluates the need for an allowance for loan loss on a loan-by-loan basis. An allowance is based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the estimated fair value of the underlying collateral less any selling costs, if the loan is deemed to be collateral dependent.

For the three and nine months ended September 30, 2013 and 2012 the following tables present a breakdown of the types of concessions made by loan class:

	Three months ended September 30, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—	$	—
Real estate – commercial		—		—		—
Other real estate construction		—		—		—
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		2		269		268
Home equity		—		—		—
Consumer loans		—		—		—
Other loans		—		—		—
Total		2	$	269	$	268

-18-

	Three months ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		1	$	33	$	33
Real estate – commercial		—		—		—
Other real estate construction		1		49		49
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		4		217		217
Home equity		—		—		—
Consumer loans		2		62		62
Other loans		—		—		—
Total		8	$	361	$	361

	Nine months ended September 30, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—	$	—
Real estate – commercial		1		357		342
Other real estate construction		—		—		—
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		4		468		458
Home equity		—		—		—
Consumer loans		—		—		—
Other loans		—		—		—
Total		5	$	825	$	800

	Nine months ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		3	$	111	$	101
Real estate – commercial		2		619		113
Other real estate construction		1		49		49
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		5		242		240
Home equity		—		—		—
Consumer loans		3		114		108
Other loans		—		—		—
Total		14	$	1,135	$	611

-19-

The following tables present loans that were modified as troubled debt restructurings within the previous twelve months ending September 30, 2013 and 2012 for which there was a payment default:

	Twelve months ended September 30, 2013
	Number of Loans		Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—
Real estate – commercial		—		—
Other real estate construction		—		—
Real estate 1 – 4 family construction		—		—
Real estate – residential		—		—
Home Equity loans		—		—
Consumer loans		—		—
Other loans		—		—
Total		—	$	—

	Twelve months ended September 30, 2012
	Number of Loans		Recorded Investment
	(dollars in thousands)
Other:
Commercial		1	$	33
Real estate – commercial		—		—
Other real estate construction		1		49
Real estate 1 – 4 family construction		—		—
Real estate – residential		5		240
Home Equity loans		—		—
Consumer loans		2		64
Other loans		—		—
Total		9	$	386

A default on a troubled debt restructure is defined as being past due 90 days or being out of compliance with the modification agreement. As mentioned, the Company considers TDRs to be impaired loans and has $639,000 in allowance for loan loss as of September 30, 2013, as a direct result of these TDR’s.

The following tables present the successes and failures of the types of modifications within the previous twelve months ending September 30, 2013 and 2012:

September 30, 2013
	Paid In Full					Paying as restructured					Converted to nonaccrual					Foreclosure/ Default
	Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments
	(dollars in thousands)
Below market interest rate		—		$	—		—		$	—		—		$	—		—		$	—
Extended payment terms		—			—		—			—		—			—		—			—
Forgiveness of Principal		—			—		10			1,578		—			—		—			—
Other Loans		—			—		—			—		—			—		—			—
Total		—		$	—		10		$	1,578		—		$	—		—		$	—

-20-

September 30, 2012
	Paid In Full					Paying as restructured					Converted to nonaccrual					Foreclosure/ Default
	Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments
	(dollars in thousands)
Below market interest rate		—		$	—		—		$	—		—		$	—		—		$	—
Other Loans		—			—		6			352		—			—		11			897
Total		—		$	—		6		$	352		—		$	—		11		$	897

The Company has not committed to fund any additional disbursements for TDR’s.

Note 9 – Commitments and Contingencies

The 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 the 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. 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 September 30, 2013, outstanding financial instruments whose contract amounts represent credit risk were approximately:

	(dollars in thousands)
Commitments to extend credit	$	62,112
Credit card commitments		8,102
Standby letters of credit		1,100
Total commitments	$	71,314

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.

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Among the Company’s assets and liabilities, investment securities available for sale 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, impaired loans, loans held for sale, which are carried at the lower of cost or market; 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; and goodwill, which is periodically tested for impairment. Deposits, short-term borrowings and long-term obligations are not reported at fair value.

Prices for US Treasury 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 and for 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.

The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment by using one of several methods including collateral value, fair value of similar debt and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the present value of the expected repayments or fair value of collateral exceed the recorded investments in such loans. At September 30, 2013, substantially all of the total impaired loans were evaluated based on the fair value of the underlying collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as nonrecurring Level 2. When an internal assessment of fair value based upon market data issued or management determines the fair value of the underlying collateral is further impaired below the appraised value, the Company records the impaired loan as nonrecurring Level 3.

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 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. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an internal assessment of fair value based upon market data issued or management determines the fair value of the underlying collateral is further impaired below the appraised value, the Company records the impaired loan as nonrecurring Level 3.

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.

Servicing assets are evaluated for impairment based upon the fair value. Fair value is determined based upon discounted cash flows using market-based assumptions.

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The following table provides fair value information for assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012:

	September 30, 2013
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
US Treasury	$	23,872	$	23,872	$	—	$	—
US Government Agencies		51,681		—		51,681		—
GSE – Mortgage-backed securities and CMO’s		39,834		—		39,834		—
State and political subdivisions		7,739		—		7,739		—
Total assets at fair value	$	123,126	$	23,872	$	99,254	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
US Treasury	$	19,576	$	19,576	$	—	$	—
US Gov’t Agencies		22,174		—		22,174		—
GSE – Mortgage-backed securities and CMO’s		41,022		—		41,022		—
State and political subdivisions		8,866		—		8,866		—
Total assets at fair value	$	91,638	$	19,576	$	72,062	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

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. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2013 and December 31, 2012:

	September 30, 2013
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	7,386	$	—	$	—	$	7,386
Loans held for sale		560		—		560		—
Other real estate owned		4,206		—		—		4,206
Total assets at fair value	$	12,152	$	—	$	560	$	11,592
Total liabilities at fair value	$	—	$	—	$	—	$	—

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	December 31, 2012
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	8,640	$	—	$	—	$	8,640
Loans held for sale		5,373		—		5,373		—
Other real estate owned		5,596		—		—		5,596
Total assets at fair value	$	19,609	$	—	$	5,373	$	14,236
Total liabilities at fair value	$	—	$	—	$	—	$	—

Quantitative Information about Level 3 Fair Value Measurements

	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
OREO	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 10%
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 30%

Note 11 – Fair Values of Financial Instruments and Interest Rate Risk

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.

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The fair value estimates presented at September 30, 2013 and December 31, 2012, 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 table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of September 30, 2013 and December 31, 2012:

September 30, 2013
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	56,716	$	56,716	$	56,716	$	—	$	—
Securities available for sale		123,126		123,126		23,872		99,254		—
Loans held for investment, net		306,889		315,061		—		—		315,061
Loans held for sale		560		560		—		560		—
Restricted stock		1,319		1,319		1,319		—		—
Bank-owned life insurance		6,486		6,486		—		—		6,486
Mortgage servicing rights		2,436		3,010		—		—		3,010
Accrued interest receivable		1,618		1,618		—		—		1,618
FINANCIAL LIABILITIES
Deposits	$	462,984	$	450,552	$	—	$	—	$	450,552
Short-term borrowings		6,004		6,038		—		6,038		—
Long-term borrowings		38		38		—		38		—
Junior subordinated debt		11,127		11,252		—		—		11,252
Accrued interest payable		231		231		—		—		231

December 31, 2012
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	81,728	$	81,728	$	81,728	$	—	$	—
Securities available for sale		91,638		91,638		19,576		72,062		—
Loans held for investment, net		322,382		331,386		—		—		331,386
Loans held for sale		5,373		5,373		—		5,373		—
Restricted stock		2,265		2,265		2,265		—		—
Bank-owned life insurance		6,394		6,394		—		—		6,394
Mortgage servicing rights		2,394		2,394		—		—		2,394
Accrued interest receivable		1,753		1,753		—		—		1,753
FINANCIAL LIABILITIES
Deposits	$	457,612	$	446,669	$	—	$	—	$	446,669
Short-term borrowings		18,690		18,690		—		18,690		—
Long-term borrowings		1,546		1,702		—		1,702		—
Junior subordinated debt		11,127		11,268		—		—		11,268
Accrued interest payable		270		270		—		—		270

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:

• Cash and cash equivalents – The carrying amount of cash and cash equivalents approximate their fair values due to the short period of time until their expected realization and are recorded in Level 1.

• Securities available for sale – Securities available for sale are carried at fair value based on quoted and observable market prices and are recorded in Levels 1 and 2. Also see discussion in Note 10.

• Loans – The fair value of loans is estimated based on discounted expected cash flows using the current interest rates at which similar loans would be made and carried in level 3. Loans held for sale, which represent current mortgage production forward sales not yet delivered, are valued based on secondary market prices. The fair value of loans does not consider the lack of liquidity and uncertainty in the market that would affect the valuation. Loans held for sale are recorded in Level 2.

• Restricted stock – It is not practicable to determine fair value of restricted stock which is comprised of Federal Home Loan Bank and Federal Reserve Bank stock due to restrictions placed on its transferability and it is presented at its carrying value and is recorded in Level 1 due to the redemption provisions of the Federal Home Loan Bank and the Federal Reserve Bank.

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• Bank-owned life insurance – The carrying amount of bank-owned life insurance is the current cash surrender value and is recorded in level 3.

• Mortgage serving rights – Fair value is determined based upon discounted cash flows using market-based assumptions and is recorded in Level 3.

• Accrued interest receivable and payable – Both accrued interest receivable and payable are recorded in Level 3, as there are not active markets for these.

• Deposits – The fair value of deposits is estimated based on discounted cash flow analyses using offered market rates and is recorded in Level 3. The fair value of deposits does not consider any customer related intangibles.

• Borrowings – The fair value disclosed for short-term borrowings, which are composed of overnight borrowings and debt due within one year approximate the carrying value for such debt and is recorded in Level 2. The estimated fair value for long-term borrowings are estimated based on discounted cash flow analyses using offered market rates. Total borrowings are carried in Level 2. Junior subordinated debt is fair valued based on discounted cash flow analyses and is recorded in Level 3.

At September 30, 2013, the 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, they were deemed to have no current fair value. See Note 9.

Note 12 – Recent Accounting Pronouncements

In February 2013, the FASB issued ASU 2013-02, an update to ASC 220 “Comprehensive Income”. The amendments in this update do not change the current reporting requirements for net income or other comprehensive income (OCI), but finalize reporting requirements related to reclassifications out of accumulated other comprehensive income (AOCI). Presentation requirements were originally addressed in ASU 2011-05, but delayed by ASU 2011-12 as a result of feedback received and have been modified in this Update to address those concerns. This Update requires entities to provide information about significant amounts reclassified out of AOCI. If the reclassified amount is required to be reclassified in its entirety to net income in the same reporting period, the entity is required to present, either on the face of the income statement or in the notes, the impact of the reclassification on the respective line items of net income. For other amounts that are reclassified partially to the balance sheet and partially to the income statement (i.e. those amounts that are not reclassified in their entirety to net income in the same reporting period), the entity must cross-reference to other disclosures that provide additional detail about those amounts. The update is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this update did not have a significant impact on the Company’s financial statements except for the added disclosures.

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.

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Note 13 – Subsequent Events

On October 3, 2013, the Company received approval to repurchase at par value, the remaining $2.3 million, or 258 shares, of Fixed Rate Cumulative Perpetual Preferred Stock, Series A issued to the United States Treasury under the Capital Purchase Program in December of 2008. This completed the Company’s repurchase at par value of the total $10.0 million of preferred stock issued in December of 2008.

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

This Quarterly Report on Form 10-Q may contain certain forward-looking statements consisting of estimates with respect to the financial condition, results of operations and business of the Company that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services. Any use of “we” or “our” in the following discussion refers to the Company on a consolidated basis.

Comparison of Financial Condition at September 30, 2013 and December 31, 2012.

During the nine months ended September 30, 2013, the Company’s total assets decreased $14.0 million, from $545.0 million to $531.0 million. The decrease was related entirely to the decline in loans held for investment.

Cash and cash equivalents decreased $25.0 million, during the nine months ended September 30, 2013. Cash and due from banks decreased $1.8 million, while interest-earning deposits with banks decreased $23.2 million. The Company has continued to invest excess cash into securities to maximize the yield.

Investment securities increased $31.5 million to $123.1 million for the nine months ended September 30, 2013. During the first nine months of 2013, the Company purchased securities of $46.7 million. The increase from new purchases was reduced by maturities and calls of $350,000, sales of $405,000 and normal reductions stemming from principal payments on mortgage backed securities. The Company is investing the funds generated from the pay downs in the loan portfolio and the increase in deposits, in lower duration securities as well as variable rate securities. These sectors should provide better protection from interest rate risk in a rising rate environment, mitigate the downside risk embedded in the current portfolio and improve the yield on earning assets. At September 30, 2013, the Company’s securities portfolio had net unrealized losses of $368,000.

Loans held for investment decreased from $329.2 million to $312.1 million, a decrease of $17.1 million. All areas of the loan portfolio decreased during the first nine months of 2013 with the exception of commercial loans and real estate one to four family construction that grew by $4.6 million and $530,000, respectively. Commercial real estate loans experienced the largest decline of $6.6 million during the period. Other real estate construction also experienced a $5.6 million decrease for the same period. The Company had two commercial real estate relationships that were foreclosed on for $2.1 million. The remainder of the decrease was related to payoffs and construction loans being converted to permanent loans. Loans held for sale decreased 89.6% or $4.8 million. The allowance for loan losses was $5.3 million, at September 30, 2013, which represented 1.68% of the loan portfolio compared to $6.8 million or 2.1% at December 31, 2012.

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Other changes in our consolidated assets are related to premises and equipment, interest receivable, restricted stock, bank owned life insurance, other real estate owned, prepaid assets, and other assets. Bank owned life insurance and prepaid assets increased $92,000 and $147,000, respectively, while accrued interest declined $135,000. Premises and equipment declined $1.1 million. The decrease in premises and equipment was related to the sale of a piece of property that had been purchased for further use. The property was sold for $949,000, with the Company realizing a gain on the sale of $229,000. Restricted stock which is comprised of Federal Home Loan Bank stock and Federal Reserve Bank stock decreased $946,000. Federal Home Loan Bank member institutions are required to increase or decrease their ownership as their utilization of FHLB borrowings change. The Company’s required ownership in Federal Reserve Bank stock decreased $336,000 to $467,000, while the required ownership in Federal Home Loan Bank decreased $610,000 to $852,000 during the first nine months of 2013. Other real estate owned increased $551,000. The Company foreclosed on nine loan relationships totaling $3.3 million during the first nine months of 2013. Two of these loan relationships resulted in twenty-two pieces of foreclosed real estate totaling $2.0 million being added to other real estate owned. The Company sold twenty-one pieces, or $2.0 million, of other real estate owned resulting in realized gains of $18,000. The Company recorded net valuation write-down adjustments of $745,000. The majority, or $678,000, of the write-downs was attributed to one piece of property. Other assets increased $1.1 million, primarily resulting from an increase in deferred tax assets due to the reduction in unrealized gains in the available for sale securities portfolio.

Customer deposits, our primary funding source, experienced a $5.4 million increase during the nine months ended September 30, 2013, increasing from $457.6 million to $463.0 million. Demand noninterest bearing checking increased $8.3 million and interest checking and money market accounts increased $14.5 million, while savings deposits increased $3.6 million for the period. These increases were offset by declines in time deposits over $100,000 of $7.5 million and other time deposits of $13.5 million.

Total borrowings decreased $14.2 million for the period and consist of both short-term and long-term borrowed funds, primarily from the Federal Home Loan Bank. The maturity of $12.5 million in Federal Home Loan Bank advances played a major part in the decrease. At September 30, 2013, $1.5 million of the total borrowings of $17.2 million were comprised of Federal Home Loan Bank advances. Other components of total borrowings include $11.1 million in junior subordinated debt and $4.5 million in master notes and other secured borrowings.

Other liabilities decreased from $11.4 million at December 31, 2012 to $7.5 million at September 30, 2013, a decrease of $3.9 million. At December 31, 2012, the Company had a combined total of $7.9 million being held in escrow related to the Company’s subsidiary banks’ preferred stock offering in the last half of 2012. This preferred stock was issued in the first quarter of 2013. At September 30, 2013, the Company had $2.8 million being held in escrow related to the Company’s subsidiary bank’s preferred stock offering during the third quarter of 2013. This preferred stock was issued on October 1, 2013.

The Company has an Employee Stock Ownership Plan (ESOP) in place. Late in 2011, the Internal Revenue Service issued IRS notice 2011-19 that drew a clear line between what stock exchanges are considered public and which are not. The Company historically trades its stock on the Bulletin Board, which is a publically traded exchange, however, the IRS no longer recognizes the Bulletin Board as a public exchange. The result of this ruling is that companies that have ESOP plans in place are required to set aside funds to handle allocated shares put back to the company. The plan that the Company has includes a put option that requires the Company to repurchase allocated shares of participants at the participants’ option. The Company reclassed capital from additional paid-in capital to set aside the liability to cover all allocated shares that the Company may be requested to buy back. During the third quarter of 2013, the Company reclassed an additional $63,000 to this liability from additional paid-in capital.

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At September 30, 2013, total shareholders’ equity was $41.4 million, a decrease of $1.3 million from December 31, 2012. Net income for the period was $1.1 million. Unrealized gains and losses on investment securities net of tax decreased $1.7 million. The Company also recorded $290,000 in dividends on its series A and B preferred stock for the nine month period ended September 30, 2013. The Company also has $328,000 in dividends attributed to noncontrolling interest. The Company repurchased at par, $7.7 million of its series A preferred stock that was issued to the United States Treasury. The Company’s subsidiary banks issued $7.8 million of series B preferred stock that is presented less issuance costs, as noncontrolling interest. The Company, after receiving approval from the United States Department of the Treasury and the Federal Reserve, repurchased common stock totaling $92,000. At September 30, 2013, the Company and its subsidiary bank exceeded all applicable regulatory capital requirements.

Comparison of Results of Operations for the Three Months Ended September 30, 2013 and 2012.

Net Income and Net Income Available to Common Shareholders

Uwharrie Capital Corp reported net income of $218,000 for the three months ended September 30, 2013, as compared to $262,000 for the three months ended September 30, 2012, a decrease of $44,000. Net income available to common shareholders was $43,000 or $0.01 per common share for the three months ended September 30, 2013, compared to $101,000 or $0.01 per common share for the three months ended September 30, 2012. Net income available to common shareholders is net income less any dividends on preferred stock related to the $10.0 million of capital received from the United States Department of the Treasury under the Capital Purchase Program in December 2008 and dividends on the aforementioned noncontrolling interest.

Net Interest Income

As with most financial institutions, the primary component of earnings for our bank is net interest income. Net interest income is the difference between interest income, principally from loan and investment securities portfolios, and interest expense, principally on customer deposits and wholesale borrowings. Changes in net interest income result from changes in volume, spread and margin. For this purpose, volume refers to the average dollar level of interest-earning assets and interest-bearing liabilities, spread refers to the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities, and margin refers to net interest income divided by average interest-earning assets. Margin is influenced by the level and relative mix of interest-earning assets and interest-bearing liabilities, as well as by levels of noninterest-bearing liabilities and capital.

Net interest income for the three months ended September 30, 2013 and September 30, 2012 was $4.2 million and $4.5 million, respectively, a decrease of $291,000. During the current quarter, our decline in the volume of interest-earning assets outpaced the volume of interest-bearing liabilities by $296,000. The average yield on our interest–earning assets decreased 49 basis points to 4.12%, while the average rate we paid for our interest-bearing liabilities decreased 25 basis points. The Company’s assets that are interest rate sensitive adjust at the time the Federal Reserve Open Market Committee adjusts interest rates, while interest-bearing time deposits adjust at the time of maturity. The aforementioned decreases resulted in a decrease of 24 basis points in our interest rate spread, from 3.73% in 2012 to 3.49% in 2013. Our net interest margin was 3.59% and 3.86% for the comparable periods in 2013 and 2012, respectively.

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The following table presents average balance sheets and a net interest income analysis for the three months ended September 30, 2013 and 2012:

Average Balance Sheet and Net Interest Income Analysis

For the Three Months Ended September 30,

(dollars in thousands)	Average Balance				Income/Expenses				Rate/Yield
	2013		2012		2013		2012		2013			2012
Interest-earning assets:
Taxable securities	$	116,491	$	109,611	$	425	$	520		1.45	%		1.89	%
Nontaxable securities (1)		7,659		10,212		61		75		4.49	%		4.76	%
Short-term investments		39,633		16,208		24		29		0.24	%		0.71	%
Taxable loans		300,609		330,705		4,257		4,702		5.62	%		5.66	%
Non-taxable loans (1)		15,959		12,319		111		107		4.49	%		5.60	%
Total interest-earning assets		480,351		479,055		4,878		5,433		4.12	%		4.61	%
Interest-bearing liabilities:
Interest-bearing deposits		384,966		374,426		454		623		0.47	%		0.66	%
Short-term borrowed funds		8,014		19,509		19		98		0.94	%		2.00	%
Long-term debt		11,167		14,003		164		180		5.83	%		5.11	%
Total interest bearing liabilities		404,147		407,938		637		901		0.63	%		0.88	%
Net interest spread	$	76,204	$	71,117	$	4,241	$	4,532		3.49	%		3.73	%
Net interest margin (1) (% of earning assets)										3.59	%		3.86	%

(1) Yields related to securities and loans exempt from income taxes are stated on a fully tax-equivalent basis, assuming a 38.55% tax rate.

Provision and Allowance for Loan Losses

The provision for loan loss was $227,000 for the three months ending September 30, 2013 compared to $391,000 for the same period in 2012. There were net loan charge-offs of $444,000 for the three months ended September 30, 2013, as compared with net loan charge-offs of $577,000 during the same period of 2012. Refer to the Asset Quality discussion on page 33 for further information.

Noninterest Income

The Company generates most of its revenue from net interest income; however, like all financial institutions, diversification of our revenue base is of major importance to our long term success. Total noninterest income decreased $570,000 for the three month period ending September 30, 2013 as compared to the same period in 2012. Income from mortgage loan sales decreased $741,000 from $1.1 million for the quarter ended September 30, 2012 to $361,000 for the same period in 2013. Service charges on deposit accounts produced revenue of $408,000, a decrease of $42,000 for the three months ended September 30, 2013. The primary factor leading to this decrease was a decrease in NSF fees for the comparable periods. Other service fees and commissions experienced a $69,000 or 8.6% increase for the comparable three month period, primarily due to an increase in brokerage commissions and asset management fees. The Company realized gains on the sale of other real estate owned of $22,000 for the three months ended September 30, 2013 compared to realized losses of $80,000 for the same period in 2012.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2013 was $5.6 million compared to $6.2 million for the same period of 2012, a decrease of $592,000. Salaries and employee benefits, the largest component of noninterest expense, decreased $178,000 for the quarter ending September 30, 2013. Foreclosed real estate expense decreased $413,000 for the three months ending September 30, 2013. The major factor related to the decrease in foreclosed real estate expense was a decline in write-downs on properties held in other real estate owned. These write-downs are attributed to updated appraisals and the lowering of list prices. There were no write-downs for the three month period in 2013 compared to $461,000 for the same

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period in 2012. Professional fees and services were $306,000 during the three months ending September 30, 2013 as compared to $295,000 for the same period in 2012. Other noninterest expense increased $34,000 for the comparable three month period. The table below reflects the composition of other noninterest expense.

Other noninterest expense

	Three Months Ended September 30,
	2013		2012
	(dollars in thousands)
Postage	$	46	$	44
Telephone and data lines		51		41
Loan collection expense		102		81
Shareholder relations expense		44		51
Dues and subscriptions		31		39
Other		375		376
Total	$	649	$	632

Income Tax Expense

The Company had income tax expense of $48,000 for the three months ended September 30, 2013 compared to income tax expense of $109,000 in the 2012 period.

Comparison of Results of Operations For the Nine Months Ended September 30, 2013 and 2012.

Net Income and Net Income Available to Common Shareholders

Uwharrie Capital Corp reported net income of $1.1 million for the nine months ended September 30, 2013, as compared to $1.4 million for the nine months ended September 30, 2012, a decrease of $225,000. Net income available to common shareholders was $520,000 or $0.07 per common share at September 30, 2013, compared to $879,000 or $0.12 per common share at September 30, 2012. Net income available to common shareholders is net income less any dividends on preferred stock related to the capital received from the United States Department of the Treasury under the Capital Purchase Program in December 2008 and dividends on the aforementioned noncontrolling interest.

Net Interest Income

Net interest income for the nine months ended September 30, 2013 was $2.1 million as compared to $2.8 million during the nine months ended September 30, 2012, resulting in a decrease of $691,000. During the nine months ending September 30, 2013, the decline in the volume of interest-earning assets outpaced the decline in growth of our interest-bearing liabilities by $820,000. The average yield on our interest–earning assets decreased 68 basis points to 4.08%, while the average rate we paid for our interest-bearing liabilities decreased 24 basis points. The Company’s assets that are interest rate sensitive adjust at the time the Federal Reserve adjusts interest rates, while interest-bearing time deposits adjust at the time of maturity. The aforementioned changes resulted in a decrease of 44 basis points in our interest rate spread to 3.39% for the first nine months of 2013, compared to 3.83% for the first nine months of 2012. Our net interest margin was 3.49% and 3.97% for the comparable nine month periods in 2013 and 2012, respectively. A portion of the Company’s loan portfolio has interest rate floors and caps in place on the loans. Interest rate floors can provide margin protection in a down rate environment. The interest rate floors that are in place have helped the Company maintain a relatively favorable interest margin, while there has been a decline in rates over the past several years.

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The following table presents average balance sheets and a net interest income analysis for the nine months ended September 30, 2013 and 2012:

Average Balance Sheet and Net Interest Income Analysis

For the Nine Months Ended September 30,

(dollars in thousands)
	Average Balance				Income/Expenses				Rate/Yield
	2013		2012		2013		2012		2013			2012
Interest-earning assets:
Taxable securities	$	107,025	$	85,607	$	999	$	1,201		1.25	%		1.87	%
Nontaxable securities (1)		7,639		9,966		189		254		5.39	%		5.55	%
Short-term investments		50,719		24,717		133		101		0.35	%		0.55	%
Taxable loans		307,594		340,693		12,924		14,629		5.62	%		5.74	%
Non-taxable loans (1)		14,959		12,489		320		328		4.65	%		5.70	%
Total interest-earning assets		487,936		473,472		14,565		16,513		4.08	%		4.76	%
Interest-bearing liabilities:
Interest-bearing deposits		385,991		369,210		1,488		1,948		0.52	%		0.70	%
Short-term borrowed funds		12,103		18,078		142		253		1.57	%		1.87	%
Long-term debt		11,857		18,389		501		621		5.65	%		4.51	%
Total interest bearing liabilities		409,951		405,677		2,131		2,822		0.69	%		0.93	%
Net interest spread	$	77,985	$	67,795	$	12,434	$	13,691		3.39	%		3.83	%
Net interest margin (1) (% of earning assets)										3.49	%		3.97	%

(1) Yields related to securities and loans exempt from income taxes are stated on a fully tax-equivalent basis, assuming a 38.55% tax rate.

Provision and Allowance for Loan Losses

The Company had a recovery of allowance for loan losses of $547,000 for the nine months ending September 30, 2013 compared to adding $1.1 of additional provision for the same period in 2012. There were net loan charge-offs of $1.0 million for both the nine months ended September 30, 2013 and 2012, respectively. Refer to the Asset Quality discussion on page 33 for further information.

Noninterest Income

The Company generates most of its revenue from net interest income; however, like all financial institutions, diversification of our earnings base is of major importance to our long term success. Total noninterest income decreased $679,000 for the nine month period ending September 30, 2013 as compared to the same period in 2012. Income from mortgage loan sales was $1.8 million for the nine months ended September 30, 2013 as compared to $2.6 million for the same period in 2012, a decrease of $735,000. Service charges on deposit accounts produced earnings of $1.2 for the nine months ended September 30, 2013, a decrease of $113,000. The primary contributing factor was a decrease in NSF fees due in large part to changes in regulatory governance. Other service fees and commissions experienced a 4.6% increase for the comparable nine month period. This increase was directly related to brokerage commissions and asset management fees increasing. Gain on sale of other assets was $278,000 for the nine months ended September 30, 2013 compared to $216,000 for the same period in 2012. The Company realized a gain on the aforementioned sale of a piece of property being held in premises and equipment in the amount of $229,000 in the first quarter of 2013 and during the first quarter of 2012 the Company realized a gain on the sale of a government guaranteed loan of $276,000. Gains realized on the sale of securities were $14,000 for the first nine months in 2013 compared to $16,000 for the same period in 2012.

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Noninterest Expense

Noninterest expense for both the nine months ended September 30, 2013 and 2012 was $17.5 million. Salaries and employee benefits, the largest component of noninterest expense, decreased $289,000 to $9.2 million for the period ending September 30, 2013. Net occupancy and equipment expense had a combined decrease of $40,000. Professional fees and services increased $320,000. Foreclosed real estate expense decreased $100,000. The major factor related to the decrease in foreclosed real estate expense was write downs on properties held in other real estate owned. These net write downs were attributed to updated appraisals and the lowering of list prices during the first nine months of 2013 totaling $745,000 compared to $988,000 in net write downs for the same period in 2012. The increase in other professional fees and services was directly related to reimbursement of prior period legal fees totaling $360,000 during the first nine months of 2012. Of this amount, $270,000 was related to a reimbursement for legal services under the Company’s employment practices liability insurance policy and $90,000 associated with a previously closed government guaranteed loan. The Company did receive final reimbursement totaling $40,000 of prior period legal fees. Other noninterest expense increased $147,000 for the comparable nine month periods. The table below reflects the composition of other noninterest expense.

Other noninterest expense

	Nine Months Ended September 30,
	2013		2012
	(in thousands)
Postage	$	150	$	148
Telephone and data lines		143		130
Loan collection expense		296		225
Shareholder relations expense		131		129
Dues and subscriptions		114		128
Other		1,141		1,068
Total	$	1,975	$	1,828

Income Tax Expense

The Company had income tax expense of $557,000 for the nine months ended September 30, 2013 resulting in an effective tax rate of 32.86%, compared to income tax expense of $561,000 and an effective rate of 29.16% in the 2012 period. The reduction of tax free income as a percentage of total income attributed to this increase in effective tax rate.

Asset Quality

The Company’s allowance for loan losses is established through charges to earnings in the form of a provision for loan losses. The allowance is increased by provisions charged to operations and by recoveries of amounts previously charged off and is reduced by loans charged off. Management continuously evaluates the adequacy of the allowance for loan losses. In evaluating the adequacy of the allowance, management considers the following: the growth, composition and industry diversification of the portfolio; historical loan loss experience; current delinquency levels; adverse situations that may affect a borrower’s ability to repay; estimated value of any underlying collateral; prevailing economic conditions and other relevant factors. The Company’s credit administration function, through a review process, periodically validates the accuracy of the initial risk grade assessment. In addition, as a given loan’s credit quality improves or deteriorates, the credit administration department has the responsibility to change the borrower’s risk grade accordingly. For loans determined to be impaired, the allowance is based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the estimated fair value of the underlying collateral less the selling costs. This evaluation is inherently subjective, as it

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requires material estimates, including the amounts and timing of future cash flows expected to be received on impaired loans, which may be susceptible to significant change. In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses and may require additions for estimated losses based upon judgments different from those of management.

Management uses a risk-grading program to facilitate the evaluation of probable inherent loan losses and the adequacy of the allowance for loan losses. In this program, risk grades are initially assigned by loan officers and reviewed and monitored by credit administration. The Company strives to maintain its loan portfolio in accordance with conservative loan underwriting policies that result in loans specifically tailored to the needs of its market area. Every effort is made to identify and minimize the credit risks associated with such lending strategies. The Company has no foreign loans and does not engage in significant lease financing or highly leveraged transactions. The Company follows a loan review program designed to evaluate the credit risk in the loan portfolio. This process includes the maintenance of an internally classified loan list that is designed to help management assess the overall quality of the loan portfolio and the adequacy of the allowance for loan losses. In establishing the appropriate classification for specific assets, management considers, among other factors, the estimated value of the underlying collateral, the borrower’s ability to repay, the borrower’s payment history and the current delinquent status. Because of this process, certain loans are deemed as impaired and evaluated as an impaired loan.

The recovery of loan losses was $547,000 for the nine months ended September 30, 2013 as compared to provision of $1.1 million for the same period in 2012. At September 30, 2013 the levels of our impaired loans, which includes all loans in nonaccrual status and other loans deemed by management to be impaired, were $19.1 million compared to $26.1 million at December 31, 2012, a decrease of $7.0 million. Total nonaccrual loans, which are a component of impaired loans, decreased from $9.5 million at December 31, 2012 to $6.2 million at September 30, 2013. The Company foreclosed on and transferred eight loan relationships totaling $3.3 million into other real estate owned during the first the year. This was the major factor behind the decrease in nonaccrual loans during the year. The Company had net loan charge-offs for the first nine months of both 2013 and 2012 of $1.0 million.

The allowance expressed as a percentage of gross loans held for investment decreased 39 basis points from 2.07% at December 31, 2012 to 1.68% at September 30, 2013. The collectively evaluated reserve allowance as a percentage of collectively evaluated loans was 1.24% at December 31, 2012 and 0.83% at September 30, 2013, while the individually evaluated allowance as a percentage of individually evaluated loans increased from 11.62% to 14.86%. While the amount of impaired loans declined due to the related transfer of foreclosed loans to other real estate owned, these loans while impaired only had minimal specific reserve dollars. The larger decline in impaired loan balances compared to the lower decline in specific loan reserves was behind the increase in the individually evaluated percentage. The portion of the Company’s allowance for loan loss model related to general reserves captures the mean loss of individual loans and the rare event of severe loss that can occur within the loan portfolio. Specifically, the Company calculates probable losses on loans by computing a probability of loss, a loss given default, and an estimated exposure by FDIC call report codes. The loans that are impaired and included in the specific reserve are excluded from these calculations. During the fourth quarter of 2012, the Company updated its allowance for loan loss model to more accurately assess the probability of losses inherent in the loan portfolio. The probabilities of default that the Company acquires from a third party vendor are associated with a two year horizon, while the allowance for loan loss is deemed to have a one year horizon. Therefore, the Company altered the model to account for this horizon; converting the two year probability of default into a one year probability of default for each obligor. At this time, the Company also updated the data inputs into the model; specifically the loss given default and the probability of defaults obtained from the vendor. The net result of these alterations had minimal effect on the loan loss provision. The Company updates the beacon scores that are one of the components used within the allowance model semi-annually, during the first and third quarters. For the first

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time in several updates, beacon scores experienced significant improvement during 2013. This improvement coupled with a $17.0 million decline in loans resulting from pay downs resulted in approximately $575,000 of recovery in general reserves. During the second quarter of 2013, the Company updated the probability of default statistics that are used in the model. These statistics are updated periodically and like the beacon scores in the first quarter experienced significant improvement. In a continued effort to improve the model’s inputs, the methodology for computing loss given default was updated in the third quarter of 2013. Nonperforming loans, which consist of nonaccrual loans and loans past due 90 days and still accruing, to total loans decreased from 2.88% at December 31, 2012, to 1.99% at September 30, 2013. Loans past due 30 to 89 days decreased $359,000, from $2.5 million at December 31, 2012 to $2.1 million at September 30, 2013. Management believes the current level of the allowance for loan losses is appropriate in light of the risk inherent in the loan portfolio.

Restructured loans at September 30, 2013 totaled $6.3 million compared to $6.8 million at December 31, 2012, and are included in impaired loans.

The following nonperforming loan table shows the comparison of September 30, 2013 to December 31, 2012:

Nonperforming Assets

(dollars in thousands)

	September 30, 2013			December 31, 2012
Nonperforming assets:
Loans past due 90 days or more	$	—		$	—
Nonaccrual loans		6,202			9,480
Other real estate owned		9,264			8,713
Total nonperforming assets	$	15,466		$	18,193
Allowance for loans losses	$	5,259		$	6,801
Nonperforming loans to total loans		1.99	%		2.88	%
Allowance for loan losses to total loans		1.68	%		2.07	%
Nonperforming assets to total assets		2.91	%		3.34	%
Allowance for loan losses to nonperforming loans		84.79	%		71.74	%

During the first nine months of 2013, the Company had a net increase of $551,000 in other real estate owned. The Company foreclosed on nine loan relationships during the first nine months of 2013. Two of these loan relationships resulted in twenty-two pieces of foreclosed real estate totaling $2.0 million being added to other real estate owned. The Company sold twenty-one pieces, or $2.0 million, of other real estate owned resulting in realized gains of $18,000. The Company recorded net valuation write-down adjustments of $745,000.

Liquidity and Capital Resources

The objective of the Company’s liquidity management policy is to ensure the availability of sufficient cash flows to meet all financial commitments and to capitalize on any opportunities for expansion. Liquidity management addresses the ability to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature and to fund new loans and investments as opportunities arise.

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The Company’s primary sources of internally generated funds are principal and interest payments on loans, cash flows generated from operations and cash flow generated by investments. Growth in deposits is typically the primary source of funds for loan growth. The Company and its subsidiary bank have multiple funding sources, in addition to deposits that can be used to increase liquidity and provide additional financial flexibility. These sources are the subsidiary bank’s established federal funds lines with correspondent banks aggregating $17.3 million at September 30, 2013, with available credit of $17.3 million; established borrowing relationships with the Federal Home Loan Bank, with available credit of $52.8 million; access to borrowings from the Federal Reserve Bank discount window, with available credit of $36.9 million and the issuance of commercial paper. The Company has also secured long-term debt from other sources. Total debt from these sources aggregated $17.2 million at September 30, 2013, compared to $31.4 million at December 31, 2012.

Banks and bank holding companies, as regulated institutions, must meet required levels of capital. The Federal Reserve, the primary federal regulator of the Company and its subsidiary bank, has adopted minimum capital regulations or guidelines that categorize components and the level of risk associated with various types of assets.

Regulatory guidelines require a minimum of total capital to risk-adjusted assets ratio of 8 percent and a Tier 1 leverage ratio of 4 percent. Banks are considered “well capitalized” by regulatory standards when they meet or exceed a Tier 1 risk-based capital ratio of 6 percent, a total risk-based capital ratio of 10 percent and a leverage ratio of 5 percent. Financial institutions are expected to maintain a level of capital commensurate with the risk profile assigned to their assets in accordance with those guidelines.

The Company and its subsidiary bank have each maintained capital levels exceeding minimum levels for “well capitalized” banks and bank holding companies. The Company expects to continue to exceed minimum capital requirements without altering current operations or strategy. As previously discussed, each of the Company’s subsidiary banks had a campaign to sell Fixed Rate Noncumulative Perpetual Preferred Stock, Series B that was issued by each subsidiary bank. The preferred stock qualifies as Tier 1 capital at each bank and will pay dividends at an annual rate of 5.30%. Stanly raised $4.5 million, Anson raised $1.5 million and Cabarrus raised $1.9 million in new capital less total issuance costs of $113,000. The net total of $7.7 million is presented as noncontrolling interest at the Company level and does qualify as Tier 1 capital at the Company. At September 30, 2013, the Company had $11.1 million in subordinated debt outstanding and $2.7 million remaining in preferred stock issued to the United States Department of the Treasury after the repayment of $7.7 million to the United States Treasury. The Company has made all interest and dividend payments in a timely manner.

During the third quarter of 2013, the Company’s subsidiary, Uwharrie Bank began a campaign to sell Fixed Rate Noncumulative Perpetual Preferred Stock, Series C. The preferred stock qualifies as Tier 1 capital at the bank and will pay dividends at an annual rate of 5.30%. The proceeds of this campaign will be used to repurchase the remaining $2.7 million in preferred stock issued to the United States Department of the Treasury. This campaign was completed in September and after receiving approval the remaining preferred stock was repurchased from the United States Department of the Treasury.

Accounting and Regulatory Matters

On July 2, 2013, the Federal Reserve and the Office of the Comptroller of the Currency adopted a final rule that will revise the current risk-based and leverage capital requirements for banking organizations. The final rule is a continuation of joint notices of proposed rulemaking originally published in the Federal Register during August, 2012.

The final rule implements a revised definition of regulatory capital, a new common equity tier 1 minimum capital requirement, and a higher overall minimum tier 1 capital requirement,

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incorporating these new requirements into the existing prompt corrective action (PCA) framework. It also establishes limits on a banking organization’s capital distributions and certain discretionary bonus payments if the organization does not hold a specified amount of common equity tier 1 capital in addition to the amount necessary to meet its minimum risk-based capital requirements. This additional capital is referred to as the “capital conservation buffer”. The “countercyclical capital buffer” provisions from the proposed rule have also been adopted, however, they apply only to large financial institutions (banks and bank holding companies with total consolidated assets of $250 billion or more) implementing the “advanced approaches” framework and are not applicable to the Company or its subsidiary bank.

The final rule permanently grandfathers the tier 1 capital treatment for certain non-qualifying capital instruments, including trust preferred securities, outstanding as of May 19, 2010.

Under the proposed rules released last August, banking organizations would have been required to recognize in regulatory capital all components of accumulated other comprehensive income (excluding accumulated net gains and losses on cash-flow hedges that relate to the hedging of items that are not recognized at fair value on the balance sheet). The final rule carries this requirement forward, with an exception for smaller banking organizations, such as the Company, which are not subject to the “advanced approaches” rule. Such organizations may make a one-time election not to include most elements of accumulated other comprehensive income (including unrealized gains and losses on securities designated as available-for-sale) in regulatory capital under the final rule. Organizations making this election will be permitted to use the currently existing treatment under the general risk-based capital rules that exclude most accumulated other comprehensive income elements from regulatory capital. The election must be made with the first call report or FR Y-9 report filed after the banking organization becomes subject to the final rule (January 2015 in the Company’s case).

The new rule also amends the existing methodologies for determining risk-weighted assets for all banking organizations. Specifically, the final rule assigns a 50% or 100% risk weight to mortgage loans secured by one-to-four family residential properties. Generally, residential mortgage loans secured by a first lien on a one- to-four family residential property that are prudently underwritten and that are performing according to their original terms receive a 50% risk weight. All other one-to-four family residential mortgage loans, including loans secured by a junior lien on residential property, are assigned a 100% risk weight.

The mandatory compliance date for the Company and its subsidiary bank will be January 1, 2015, with a transition period for the capital conservation buffer until January 1, 2016, and additional transition periods for certain other measures under the new rule.

Management will continue to evaluate the potential effect of the new final rule over the coming quarters. As of the date of this report, management is not aware of any other known trends, events, uncertainties or current recommendations by regulatory authorities that will have or that are reasonably likely to have a material effect on the Company’s liquidity, capital resources, or other operations.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company’s primary market risk is interest rate risk. Interest rate risk is the result of differing maturities or repricing intervals of interest-earning assets and interest-bearing liabilities and the fact that rates on these financial instruments do not change uniformly. These conditions may impact the earnings generated by the Company’s interest earning assets or the cost of its interest-bearing liabilities, thus directly impacting the Company’s overall earnings. The Company’s management actively monitors and manages interest rate risk. One way this is accomplished is through the development of and adherence to the Company’s asset/liability policy. This policy sets forth management’s strategy for matching the risk characteristics of the Company’s interest-earning assets and liabilities so as to mitigate the effect of changes in the rate environment. In management’s opinion, the Company’s market risk profile has not changed significantly since December 31, 2012.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

At the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Securities Exchange Act (“Exchange Act”) Rule 13a-15.

Based upon that evaluation, the principal executive officer and principal financial officer concluded that in their opinion, the Company’s disclosure controls and procedures were effective (1) to provide reasonable assurance that information required to be disclosed by the Company in the reports filed or submitted by it under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) to provide reasonable assurance that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow for timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Management of the Company has evaluated, with the participation of the Company’s principal executive officer and principal financial officer, changes in the Company’s internal controls over financial reporting (as defined in Rule 13a -15(f) and 15d – 15(f) of the Exchange Act) during the third quarter of 2013. In connection with such evaluation, the Company has determined that there were no changes in the Company’s internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company reviews its disclosure controls and procedures, which may include its internal control over financial reporting, on an ongoing basis, and may from time to time make changes aimed at enhancing their effectiveness and to ensuring that the Company’s systems evolve with its business.

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Part II. OTHER INFORMATION

Item 1. Legal Proceedings

Neither the Company nor its subsidiaries, nor any of their properties are subject to any material legal proceedings. From time to time, Uwharrie is engaged in ordinary routine litigation incidental to their business.

Item 1A. Risk Factors

Disclosure under this item is not required for smaller reporting companies.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth information with respect to shares of common stock repurchased by the Company during the three months ended September 30, 2013.

	(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 of Shares that May Yet Be Purchased Under the Plans (2)(3)
July 1, 2013 Through July 31, 2013		—	$	—		—	$	—
August 1, 2013 Through August 31, 2013		—	$	—		—	$	—
September 1, 2013 Through September 30, 2013		6,900	$	2.90		—	$	—
Total		6,900	$	2.90		—	$	—

(1) Trades of the Company’s stock occur in the Over-the-Counter 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. This plan was initially adopted in 1995 and is approved annually by resolution of the Board of Directors or the Executive Committee of the Board.

Pursuant to the terms of the United States Department of the Treasury’s investment in the Company’s preferred stock under the Capital Purchase Program (“CPP”), the Company must obtain the prior consent of the United States Department of the Treasury to repurchase its common stock under the Stock Purchase Plan or to pay a cash dividend.

(2) On June 26, 2012 the Board of Directors of Uwharrie Capital Corp, after receiving approval from the United States Department of Treasury and the Federal Reserve Bank, its primary regulator, approved the repurchase of up to $400,000 of outstanding common stock. On June 27, 2012, 24,951 shares were repurchased for $68,615. On August 16, 2012, 6,250 shares were repurchased for $20,000. On September 29, 2012, 38,653 shares were repurchased for $154,612. On December 20,

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2012, 20,406 shares were repurchased for $61,218. On March 21, 2013, 7,273 shares were repurchased for $20,001. On March 27, 2013, 10,452 shares were repurchased for $32,041. On May 28, 2013, 6,667 shares were repurchased for $20,000. On September 3, 2013, 6,900 shares were repurchased for $20,010, As of September 30, 2013; there was $3,503 for repurchase under the approved plan.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None

Item 6. Exhibits

Exhibit Number	Description of Exhibit
3.1	Registrant’s Articles of Incorporation (1)
3.2	Registrant’s By-laws (6)
3.2	Articles of Amendment dated December 19, 2008, regarding Series A and Series B Preferred Stock (5)
4	Form of stock certificate (1)
4.2	Form of certificate for the Series A Preferred stock (5)
4.3	Form of certificate for the Series B Preferred stock (5)
4.4	Warrant dated December 23, 2008, for purchase of share of Series B Preferred stock (5)
4.5	Form of Security Holders Agreement (9)
10.1	Incentive Stock Option Plan, as amended (1)
10.2	Employee Stock Ownership Plan and Trust (2)
10.3	2006 Incentive Stock Option Plan (3)
10.4	2006 Employee Stock Purchase Plan (3)
10.5	Amendment to the Employee Stock Ownership Plan and Trust (4)
10.6	Letter Agreement dated December 23, 2008, between the Registrant and the United States Department of the Treasury (5)

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10.7	Relocation Assistance Agreement dated February 9, 2009, between the Registrant and Brendan P. Duffey (7)
10.8	Nonqualified Deferred Compensation Plan and Supplemental Retirement Plan Agreement dated December 31, 2008, between the Registrant and Roger L. Dick, Brendan P. Duffey, and Christy D. Stoner (7)
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 (filed herewith)
101	Interactive data files providing financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013, in XBRL (eXtensible Business Reporting Language) (8)

(1) Incorporated by reference from exhibits to Registrant’s Registration Statement on Form S-4 (Reg. No. 33-58882).

(2) Incorporated by reference to Registrant’s Annual Report on Form 10-KSB for the Fiscal year ended 1999.

(3) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the Quarter ended June 30, 2007.

(4) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the Quarter ended September 30, 2008.

(5) Incorporated by reference to Registrant’s current report on Form 8-K, filed with the Securities and Exchange Commission on December 23, 2008.

(6) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the Quarter ended September 30, 2009.

(7) Incorporated by reference to Registrant’s Annual Report on Form 10-K for the Fiscal year ended 2009.

(8) Pursuant to Regulation 406T of Regulation S-T, these interactive data files are furnished and not filed or part of a registration statement or prospectus for purposes of section 11 or 12 of the Securities Act of 1933, as amended, or section 18 of the Securities Exchange Act of 1934, as amended, and are otherwise not subject to liability.

(9) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the Quarter ended June 30, 2011.

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Signatures

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

	UWHARRIE CAPITAL CORP
	(Registrant)
Date: November 8, 2013	By:	/s/ Roger L. Dick
	Roger L. Dick
	President and Chief Executive Officer
Date: November 8, 2013	By:	/s/ R. David Beaver, III
	R. David Beaver, III
	Principal Financial Officer

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EXHIBIT INDEX

Exhibit Number	Description of Exhibit
4.1	Registrant’s Articles of Incorporation (1)
3.2	Registrant’s By-laws (6)
3.2	Articles of Amendment dated December 19, 2008, regarding Series A and Series B Preferred Stock (5)
5	Form of stock certificate (1)
4.2	Form of certificate for the Series A Preferred stock (5)
4.3	Form of certificate for the Series B Preferred stock (5)
4.4	Warrant dated December 23, 2008, for purchase of share of Series B Preferred stock (5)
4.5	Form of Security Holders Agreement (9)
10.9	Incentive Stock Option Plan, as amended (1)
10.10	Employee Stock Ownership Plan and Trust (2)
10.11	2006 Incentive Stock Option Plan (3)
10.12	2006 Employee Stock Purchase Plan (3)
10.13	Amendment to the Employee Stock Ownership Plan and Trust (4)
10.14	Letter Agreement dated December 23, 2008, between the Registrant and the United States Department of the Treasury (5)
10.15	Relocation Assistance Agreement dated February 9, 2009, between the Registrant and Brendan P. Duffey (7)
10.16	Nonqualified Deferred Compensation Plan and Supplemental Retirement Plan Agreement dated December 31, 2008, between the Registrant and Roger L. Dick, Brendan P. Duffey, and Christy D. Stoner (7)
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 (filed herewith)
101	Interactive data files providing financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013, in XBRL (eXtensible Business Reporting Language) (8)

-43-

(1) Incorporated by reference from exhibits to Registrant’s Registration Statement on Form S-4 (Reg. No. 33-58882).

(2) Incorporated by reference to Registrant’s Annual Report on Form 10-KSB for the Fiscal year ended 1999.

(3) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the Quarter ended June 30, 2007.

(4) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the Quarter ended September 30, 2008.

(5) Incorporated by reference to Registrant’s current report on Form 8-K, filed with the Securities and Exchange Commission on December 23, 2008.

(6) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the Quarter ended September 30, 2009.

(7) Incorporated by reference to Registrant’s Annual Report on Form 10-K for the Fiscal year ended 2009.

(8) Pursuant to Regulation 406T of Regulation S-T, these interactive data files are furnished and not filed or part of a registration statement or prospectus for purposes of section 11 or 12 of the Securities Act of 1933, as amended, or section 18 of the Securities Exchange Act of 1934, as amended, and are otherwise not subject to liability.

(9) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the Quarter ended June 30, 2011.

-44-

EX-31.1

Exhibit 31.1 UWHARRIE CAPITAL CORP

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Rule 13a -14(a)

I, Roger L. Dick, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended September 30, 2013 of Uwharrie Capital Corp (the “registrant”);

2. 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;

3. 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;

4. 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:

a) 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;

b) 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;

c) 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

d) 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

5. 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):

a) 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

b) 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.

Date: November 8, 2013	/s/ Roger L. Dick
	Roger L. Dick
	President and Chief Executive Officer

-45-

EX-31.2

Exhibit 31.2 UWHARRIE CAPITAL CORP

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to Rule 13a -14(a)

I, R. David Beaver, III, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended September 30, 2013 of Uwharrie Capital Corp the (“registrant”);

2. 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;

3. 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;

4. 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:

a) 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;

b) 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;

c) 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

d) 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

5. 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):

a) 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

b) 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.

Date: November 8, 2013	/s/ R. David Beaver, III
	R. David Beaver, III
	Principal Financial Officer

-46-

EX-32

Exhibit 32

Certification pursuant to 18 U.S.C. 1350 as adopted pursuant

to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned each hereby certifies that, to his knowledge, (i) the Form 10-Q filed by Uwharrie Capital Corp (the “Issuer”) for the quarter ended September 30, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in that report fairly presents, in all material respects, the financial condition and results of operations of the Issuer on the dates and for the periods presented therein.

Date: November 8, 2013	/s/ Roger L. Dick
	Roger L. Dick
	President and Chief Executive Officer
Date: November 8, 2013	/s/ R. David Beaver, III
	R. David Beaver, III
	Principal Financial Officer

-47-

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9 – Commitments and Contingencies

The 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 the 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. 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 September 30, 2013, outstanding financial instruments whose contract amounts represent credit risk were approximately:

	(dollars in thousands)
Commitments to extend credit	$	62,112
Credit card commitments		8,102
Standby letters of credit		1,100
Total commitments	$	71,314

XML

Troubled Debt Restructures - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]
Troubled debt restructure is defined as being past due	90 days
Allowance for loan loss on TDR	$ 639,000

XML

Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest Income
Loans, including fees	$ 4,368	$ 4,809	$ 13,244	$ 14,957
Investment securities
US Treasury	103	145	296	432
US Government agencies and corporations	322	375	703	768
State and political subdivisions	61	75	189	255
Interest-earning deposits with banks and federal funds sold	24	29	133	101
Total interest income	4,878	5,433	14,565	16,513
Interest Expense
Interest checking and money market accounts	110	129	338	414
Savings deposits	47	49	131	154
Time deposits, $100,000 and over	135	195	462	610
Other time deposits	162	250	557	770
Short-term borrowed funds	19	98	142	253
Long-term debt	164	180	501	621
Total interest expense	637	901	2,131	2,822
Net interest income	4,241	4,532	12,434	13,691
Provision for (recovery of) loan losses	227	391	(547)	1,094
Net interest income after provision (recovery of) for loan losses	4,014	4,141	12,981	12,597
Noninterest Income
Service charges on deposit accounts	408	450	1,205	1,318
Other service fees and commissions	870	801	2,504	2,392
Gain on sale of securities (includes reclassification of $14 from accumulated other comprehensive income)	0		14	16
Gain (loss) on fixed assets and other assets	53	(80)	278	216
Income from mortgage loan sales	361	1,102	1,843	2,578
Other income	118	107	342	345
Total noninterest income	1,810	2,380	6,186	6,865
Noninterest Expense
Salaries and employee benefits	3,037	3,215	9,189	9,478
Net occupancy expense	295	293	845	863
Equipment expense	180	185	534	556
Data processing costs	186	204	578	638
Office supplies and printing	76	93	187	245
Foreclosed real estate expense	134	547	1,257	1,357
Professional fees and services	306	295	787	467
Marketing and donations	181	146	557	484
Electronic banking expense	258	227	729	681
Software amortization and maintenance	132	140	413	423
FDIC insurance	124	173	421	518
Other noninterest expense	649	632	1,975	1,828
Total noninterest expense	5,558	6,150	17,472	17,538
Income before income taxes	266	371	1,695	1,924
Income taxes (includes reclassification of $5 from accumulated other comprehensive income)	48	109	557	561
Net income	218	262	1,138	1,363
Less: net income attributable to noncontrolling Interest	(111)		(328)	0
Net income attributable to Uwharrie Capital Corp	107	262	810	1,363
Dividends - preferred stock	(64)	(161)	(290)	(484)
Net income available to common shareholders	$ 43	$ 101	$ 520	$ 879
Net income per common share
Basic	$ 0.01	$ 0.01	$ 0.07	$ 0.12
Diluted	$ 0.01	$ 0.01	$ 0.07	$ 0.12
Weighted average shares outstanding
Basic	7,268,763	7,379,657	7,287,482	7,416,453
Diluted	7,268,763	7,379,657	7,287,482	7,416,453

XML

Comprehensive Income

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Comprehensive Income

Note 2 – Comprehensive Income

The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other accumulated 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 accumulated 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 income for the three and nine months ending September 30, 2013:

	Unrealized holding gains on available-for-sale Securities (net)
	Three months ended September 30, 2013			Nine months ended September 30, 2013
	(dollars in thousands)
Beginning Balance	$	(173	)	$	1,487
Other comprehensive income (loss) before reclassifications, net of $30,000 and $916,000 tax effect, respectively		(61	)		(1,712	)
Amounts reclassified from accumulated other Comprehensive income, net of $5,000 tax effect		—			(9	)
Net current-period other comprehensive loss		(61	)		(1,721	)
Ending Balance	$	(234	)	$	(234	)

XML

Per Share Data (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Computation of Basic and Dilutive Earnings Per Share

The computation of basic and dilutive earnings per share is summarized below:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Weighted average number of common shares outstanding		7,473,903			7,563,255			7,473,903			7,563,255
Effect of ESOP shares		(205,140	)		(183,598	)		(186,421	)		(146,802	)
Adjusted weighted average number of common shares used in computing basic net income per common share		7,268,763			7,379,657			7,287,482			7,416,453
Effect of dilutive stock options		—			—			—			—
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share		7,268,763			7,379,657			7,287,482			7,416,453

XML

Fair Value Disclosures - Fair Value Information for Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	$ 123,126	$ 91,638	[1]
Level 1 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	23,872	19,576
Level 2 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	99,254	72,062
Level 3 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Recurring Basis [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	123,126	91,638
Total liabilities at fair value
Fair Value on a Recurring Basis [Member] | U.S. Treasury [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	23,872	19,576
Fair Value on a Recurring Basis [Member] | U.S. Government Agencies [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	51,681	22,174
Fair Value on a Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	39,834	41,022
Fair Value on a Recurring Basis [Member] | State and Political Subdivisions [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	7,739	8,866
Fair Value on a Recurring Basis [Member] | Level 1 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	23,872	19,576
Total liabilities at fair value
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | U.S. Treasury [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	23,872	19,576
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | U.S. Government Agencies [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Mortgage-Backed Securities [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | State and Political Subdivisions [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Recurring Basis [Member] | Level 2 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	99,254	72,062
Total liabilities at fair value
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | U.S. Treasury [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | U.S. Government Agencies [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	51,681	22,174
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	39,834	41,022
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | State and Political Subdivisions [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	7,739	8,866
Fair Value on a Recurring Basis [Member] | Level 3 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Total liabilities at fair value
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | U.S. Treasury [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | U.S. Government Agencies [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | Mortgage-Backed Securities [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | State and Political Subdivisions [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value

[1] Derived from audited consolidated financial statements

XML

Fair Value Disclosures

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures

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 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, impaired loans, loans held for sale, which are carried at the lower of cost or market; 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; and goodwill, which is periodically tested for impairment. Deposits, short-term borrowings and long-term obligations are not reported at fair value.

Prices for US Treasury 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 and for 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.

The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment by using one of several methods including collateral value, fair value of similar debt and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the present value of the expected repayments or fair value of collateral exceed the recorded investments in such loans. At September 30, 2013, substantially all of the total impaired loans were evaluated based on the fair value of the underlying collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as nonrecurring Level 2. When an internal assessment of fair value based upon market data issued or management determines the fair value of the underlying collateral is further impaired below the appraised value, the Company records the impaired loan as nonrecurring Level 3.

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 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. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an internal assessment of fair value based upon market data issued or management determines the fair value of the underlying collateral is further impaired below the appraised value, the Company records the impaired loan as nonrecurring Level 3.

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.

Servicing assets are evaluated for impairment based upon the fair value. Fair value is determined based upon discounted cash flows using market-based assumptions.

The following table provides fair value information for assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012:

	September 30, 2013
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
US Treasury	$	23,872	$	23,872	$	—	$	—
US Government Agencies		51,681		—		51,681		—
GSE – Mortgage-backed securities and CMO’s		39,834		—		39,834		—
State and political subdivisions		7,739		—		7,739		—
Total assets at fair value	$	123,126	$	23,872	$	99,254	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
US Treasury	$	19,576	$	19,576	$	—	$	—
US Gov’t Agencies		22,174		—		22,174		—
GSE – Mortgage-backed securities and CMO’s		41,022		—		41,022		—
State and political subdivisions		8,866		—		8,866		—
Total assets at fair value	$	91,638	$	19,576	$	72,062	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

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. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2013 and December 31, 2012:

	September 30, 2013
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	7,386	$	—	$	—	$	7,386
Loans held for sale		560		—		560		—
Other real estate owned		4,206		—		—		4,206
Total assets at fair value	$	12,152	$	—	$	560	$	11,592
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	8,640	$	—	$	—	$	8,640
Loans held for sale		5,373		—		5,373		—
Other real estate owned		5,596		—		—		5,596
Total assets at fair value	$	19,609	$	—	$	5,373	$	14,236
Total liabilities at fair value	$	—	$	—	$	—	$	—

Quantitative Information about Level 3 Fair Value Measurements

	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
OREO	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 10%
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 30%

XML

Allowance for Loan Losses - Summary of Risk Grades of Portfolio by Class (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 312,148	$ 329,183	[1]
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	46,001	41,390
Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	96,745	103,304
Other Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	19,435	25,052
Real Estate 1-4 Family Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,610	3,080
Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	90,777	94,032
Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	46,133	48,517
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	8,757	12,986
Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	690	822
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	276,608	286,199
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	45,189	39,800
Pass [Member] | Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	84,513	84,748
Pass [Member] | Other Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	16,640	20,684
Pass [Member] | Real Estate 1-4 Family Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,451	3,080
Pass [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	73,276	78,115
Pass [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	44,525	46,590
Pass [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	8,324	12,360
Pass [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	690	822
Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	21,343	21,904
Watch [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	385	836
Watch [Member] | Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	6,450	9,337
Watch [Member] | Other Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	630	577
Watch [Member] | Real Estate 1-4 Family Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	159
Watch [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	12,437	9,728
Watch [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	922	914
Watch [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	360	512
Watch [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Sub-standard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	14,197	20,766
Sub-standard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	427	754
Sub-standard [Member] | Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,782	9,219
Sub-standard [Member] | Other Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	2,165	3,477
Sub-standard [Member] | Real Estate 1-4 Family Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Sub-standard [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,064	6,189
Sub-standard [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	686	1,013
Sub-standard [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	73	114
Sub-standard [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		314
Doubtful [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Doubtful [Member] | Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Doubtful [Member] | Other Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		314
Doubtful [Member] | Real Estate 1-4 Family Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Doubtful [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Doubtful [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Doubtful [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Doubtful [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans

[1] Derived from audited consolidated financial statements

XML

Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	$ 123,126	$ 91,638	[1]
Level 1 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	23,872	19,576
Level 2 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value	99,254	72,062
Level 3 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Total assets at fair value
Fair Value on a Nonrecurring Basis [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Impaired loans	7,386	8,640
Loans held for sale	560	5,373
Other real estate owned	4,206	5,596
Total assets at fair value	12,152	19,609
Total liabilities at fair value
Fair Value on a Nonrecurring Basis [Member] | Level 1 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Impaired loans
Loans held for sale
Other real estate owned
Total assets at fair value
Total liabilities at fair value
Fair Value on a Nonrecurring Basis [Member] | Level 2 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Impaired loans
Loans held for sale	560	5,373
Other real estate owned
Total assets at fair value	560	5,373
Total liabilities at fair value
Fair Value on a Nonrecurring Basis [Member] | Level 3 [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Impaired loans	7,386	8,640
Loans held for sale
Other real estate owned	4,206	5,596
Total assets at fair value	11,592	14,236
Total liabilities at fair value

[1] Derived from audited consolidated financial statements

XML

Investment Securities - Additional Information (Detail) (USD $)	9 Months Ended	12 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2013 Security	Dec. 31, 2012 Security	Sep. 30, 2013 Mortgage-Backed Securities [Member] Security	Sep. 30, 2013 Mortgage-Backed Securities [Member] Security
Investment Securities [Line Items]
Federal Reserve stock owned by Company	$ 467,000	$ 803,000
Federal Home Loan Bank stock	852,000	1,500,000
Securities available for sale pledged as collateral on public deposits	63,200,000	48,800,000
Number of mortgage backed securities related to unrealized losses	10	7
Number of treasury note related to unrealized losses	2	2
Number of Government agency bond	10
Number of mortgage backed securities			2	2
Available for sale securities			$ 0	$ 0

XML

Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Changes in the Allowance for Loan Losses

The following table shows the change in the allowance for loss losses by loan segment for the three and nine months periods ended September 30, 2013 and 2012, respectively:

Commercial	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(dollars in thousands)
Balance, beginning of period	$	2,542		$	2,650		$	2,791		$	2,904
Provision (recovery) charged to operations		(259	)		424			(152	)		476
Charge-offs		(217	)		(367	)		(612	)		(721	)
Recoveries		20			5			59			53
Net (charge-offs)		(197	)		(362	)		(553	)		(668	)
Other		(1	)		—			(1	)		—
Balance at end of period	$	2,085		$	2,712		$	2,085		$	2,712

Non-Commercial	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(dollars in thousands)
Balance, beginning of period	$	2,939		$	4,419		$	4,010		$	3,911
Provision (recovery) charged to operations		486			(33	)		(395	)		618
Charge-offs		(257	)		(229	)		(522	)		(400	)
Recoveries		10			14			85			42
Net (charge-offs)		(247	)		(215	)		(437	)		(358	)
Other		(4	)		—			(4	)		—
Balance at end of period	$	3,174		$	4,171		$	3,174		$	4,171

Schedule of Loans and Reserve Balances by Loan Segment Both Individually and Collectively Evaluated for Impairment

The following table shows period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at September 30, 2013 and December 31, 2012:

September 30, 2013
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	1,278	$	8,732	$	807	$	153,449	$	2,085	$	162,181
Non-Commercial		1,559		10,355		1,615		139,612		3,174		149,967
Total	$	2,837	$	19,087	$	2,422	$	293,061	$	5,259	$	312,148

December 31, 2012
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	1,428	$	14,979	$	1,363	$	154,767	$	2,791	$	169,746
Non-Commercial		1,606		11,128		2,404		148,309		4,010		159,437
Total	$	3,034	$	26,107	$	3,767	$	303,076	$	6,801	$	329,183

Past Due Information of the Loan Portfolio by Class

Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following table summarizes the past due information of the loan portfolio by class:

September 30, 2013
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	—	$	307	$	307	$	45,694	$	46,001	$	—
Real estate – commercial		40		2,259		2,299		94,446		96,745		—
Other real estate construction		—		1,581		1,581		17,854		19,435		—
Real estate 1 – 4 family construction		115		—		115		3,495		3,610		—
Real estate – residential		1,587		1,842		3,429		87,348		90,777		—
Home equity		333		213		546		45,587		46,133		—
Consumer loans		73		—		73		8,684		8,757		—
Other loans		—		—		—		690		690		—
Total	$	2,148	$	6,202	$	8,350	$	303,798	$	312,148	$	—

December 31, 2012
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	98	$	437	$	535	$	40,855	$	41,390	$	—
Real estate – commercial		708		3,032		3,740		99,564		103,304		—
Other real estate construction		12		2,945		2,957		22,095		25,052		—
Real estate construction		—		—		—		3,080		3,080		—
Real estate – residential		1,309		2,507		3,816		90,216		94,032		—
Home equity		162		558		720		47,797		48,517		—
Consumer loan		218		1		219		12,767		12,986		—
Other loans		—		—		—		822		822		—
Total	$	2,507	$	9,480	$	11,987	$	317,196	$	329,183	$	—

Composition of Nonaccrual Loans by Class

The composition of nonaccrual loans by class as of September 30, 2013 and December 31, 2012 is as follows:

	September 30, 2013		December 31, 2012
	(dollars in thousands)
Commercial	$	307	$	437
Real estate – commercial		2,259		3,032
Other real estate construction		1,581		2,945
Real estate 1 – 4 family construction		—		—
Real estate – residential		1,842		2,507
Home equity		213		558
Consumer loans		—		1
Other loans		—		—
	$	6,202	$	9,480

Summary of Risk Grades of Portfolio by Class

The tables below summarize risk grades of the loan portfolio by class at September 30, 2013 and December 31 2012:

September 30, 2013
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	45,189	$	385	$	427	$	—	$	46,001
Real estate – commercial		84,513		6,450		5,782		—		96,745
Other real estate construction		16,640		630		2,165		—		19,435
Real estate 1 – 4 family construction		3,451		159		—		—		3,610
Real estate – residential		73,276		12,437		5,064		—		90,777
Home equity		44,525		922		686		—		46,133
Consumer loans		8,324		360		73		—		8,757
Other loans		690		—		—		—		690
Total	$	276,608	$	21,343	$	14,197	$	—	$	312,148

December 31, 2012
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	39,800	$	836	$	754	$	—	$	41,390
Real estate – commercial		84,748		9,337		9,219		—		103,304
Other real estate construction		20,684		577		3,477		314		25,052
Real estate 1 – 4 family construction		3,080		—		—		—		3,080
Real estate – residential		78,115		9,728		6,189		—		94,032
Home equity		46,590		914		1,013		—		48,517
Consumer loans		12,360		512		114		—		12,986
Other loans		822		—		—		—		822
Total	$	286,199	$	21,904	$	20,766	$	314	$	329,183

Summary of Performing and Nonperforming Loans by Class

The following tables show the breakdown between performing and nonperforming loans by class at September 30, 2013 and December 31, 2012:

September 30, 2013
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	45,694	$	307	$	46,001
Real estate – commercial		94,486		2,259		96,745
Other real estate construction		17,854		1,581		19,435
Real estate 1 – 4 family construction		3,610		—		3,610
Real estate – residential		88,935		1,842		90,777
Home equity		45,920		213		46,133
Consumer loans		8,757		—		8,757
Other loans		690		—		690
Total	$	305,946	$	6,202	$	312,148

December 31, 2012
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	40,953	$	437	$	41,390
Real estate – commercial		100,272		3,032		103,304
Other real estate construction		22,107		2,945		25,052
Real estate 1 – 4 family construction		3,080		—		3,080
Real estate – residential		91,524		2,507		94,031
Home equity		47,960		558		48,518
Consumer loans		12,985		1		12,986
Other loans		822		—		822
Total	$	319,703	$	9,480	$	329,183

Summary of Loans Deemed Impaired and Specific Reserves Allocated by Class

The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class at September 30, 2013 and December 31, 2012:

September 30, 2013	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance		Recorded Investment Accruing Loans 90 or More Days Past Due		Recorded Investment Loans in Non-accrual
	(dollars in thousands)
Commercial	$	648	$	—	$	529	$	449	$	—	$	307
Real estate – commercial		8,222		4,040		2,119		487		—		2,259
Other real estate construction		2,093		301		1,742		342		—		1,581
Real estate 1 – 4 family construction		375		26		349		16		—		—
Real estate – residential		9,078		4,144		4,934		1,127		—		1,842
Home equity		754		273		481		347		—		213
Consumer loans		148		79		69		69		—		—
Other loans		1		1		—		—		—		—
Total	$	21,319	$	8,864	$	10,223	$	2,837	$	—	$	6,202

December 31, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance		Recorded Investment Accruing Loans 90 or More Days Past Due		Recorded Investment Loans in Non-accrual
	(dollars in thousands)
Commercial	$	1,977	$	388	$	1,470	$	616	$	—	$	437
Real estate – commercial		11,299		6,341		2,895		411		—		3,032
Other real estate construction		3,935		2,437		1,448		401		—		2,945
Real estate 1 – 4 family construction		840		713		127		127		—		—
Real estate – residential		8,985		3,994		4,991		1,215		—		2,507
Home equity		1,068		521		547		159		—		558
Consumer loans		235		39		196		105		—		1
Other loans		—		—		—		—		—		—
Total	$	28,339	$	14,433	$	11,674	$	3,034	$	—	$	9,480

	Three Months ended September 30, 2013				Three Months ended September 30, 2012
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	926	$	3	$	1,112	$	23
Real estate – commercial		6,978		48		12,245		153
Other real estate construction		2,091		3		4,168		55
Real estate 1 – 4 family construction		376		7		1,014		15
Real estate – residential		8,727		52		12,680		166
Home equity		908		4		1,333		18
Consumer loans		148		2		343		4
Other loans		—		—		—		—
Total	$	20,154	$	119	$	32,895	$	434

	Nine Months ended September 30, 2013				Nine Months ended September 30, 2012
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	1,001	$	11	$	1,301	$	50
Real estate – commercial		7,340		186		12,397		493
Other real estate construction		2,108		16		4,112		180
Real estate 1 – 4 family construction		383		18		1,124		31
Real estate – residential		8,693		273		12,261		477
Home equity		954		17		1,244		42
Consumer loans		169		6		332		14
Other loans		—		—		—		—
Total	$	20,648	$	527	$	32,771	$	1,287

XML

Loans Held for Investment (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Composition of Net Loans Held for Investment by Class

The composition of net loans held for investment by class as of September 30, 2013 and December 31, 2012 are as follows:

	September 30, 2013			December 31, 2012
	(dollars in thousands)
Commercial
Commercial	$	46,001		$	41,390
Real estate – commercial		96,745			103,304
Other real estate construction loans		19,435			25,052
Noncommercial
Real estate 1 – 4 family construction		3,610			3,080
Real estate – residential		90,714			93,927
Home equity		46,133			48,517
Consumer loans		8,757			12,986
Other loans		690			822
		312,085			329,078
Less:
Allowance for loan losses		(5,259	)		(6,801	)
Deferred loan (fees) costs, net		63			105
Loans held for investment, net	$	306,889		$	322,382

XML

Allowance for Loan Losses - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2013
Receivables [Abstract]
Financing receivable recorded investment number of days past due	90 days

XML

Noncontrolling Interest - Additional Information (Detail) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Sale	$ 2,800,000
Total issuance costs	23,000	113,000
Noncontrolling interest	7,759,000
Preferred Stock Series B [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Dividends rate		5.30%
Voting rights		The preferred stock has no voting rights
Preferred Stock Series C [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Dividends rate	5.30%
Voting rights	The preferred stock has no voting rights
Bank of Stanly [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Sale		4,500,000
Anson Bank & Trust Co [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Sale		1,500,000
Cabarrus Bank and Trust [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Sale		$ 1,900,000

XML

Investment Securities - Gross Unrealized Losses and Fair Value of Investments (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	$ 63,319	$ 23,840
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	1,701	124
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value	4,077
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses	97
Available-for-sale Securities, Gross unrealized losses, Fair Value	67,396	23,840
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	1,798	124
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	7,193	2,485
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	222	1
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses
Available-for-sale Securities, Gross unrealized losses, Fair Value	7,193	2,485
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	222	1
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	37,420
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	946
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses
Available-for-sale Securities, Gross unrealized losses, Fair Value	37,420
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	946
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value	18,706	21,355
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses	533	123
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value	4,077
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses	97
Available-for-sale Securities, Gross unrealized losses, Fair Value	22,783	21,355
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses	630	123
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses
Available-for-sale Securities, Gross unrealized losses, Fair Value
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses

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Allowance for Loan Losses - Summary of Performing and Nonperforming Loans by Class (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 312,148	$ 329,183	[1]
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	305,946	319,703
Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	6,202	9,480
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	46,001	41,390
Commercial [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	45,694	40,953
Commercial [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	307	437
Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	96,745	103,304
Real Estate - Commercial [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	94,486	100,272
Real Estate - Commercial [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	2,259	3,032
Other Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	19,435	25,052
Other Real Estate Construction [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	17,854	22,107
Other Real Estate Construction [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,581	2,945
Real Estate 1-4 Family Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,610	3,080
Real Estate 1-4 Family Construction [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,610	3,080
Real Estate 1-4 Family Construction [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans
Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	90,777	94,032
Real Estate - Residential [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	88,935	91,524
Real Estate - Residential [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,842	2,507
Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	46,133	48,517
Home Equity [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	45,920	47,960
Home Equity [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	213	558
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	8,757	12,986
Consumer Loans [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	8,757	12,985
Consumer Loans [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		1
Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	690	822
Other Loans [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	690	822
Other Loans [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans

[1] Derived from audited consolidated financial statements

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Fair Values of Financial Instruments and Interest Rate Risk (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Comparison of Carrying Amounts and the Estimated Fair Value of the Financial Instruments

The following table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of September 30, 2013 and December 31, 2012:

September 30, 2013
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	56,716	$	56,716	$	56,716	$	—	$	—
Securities available for sale		123,126		123,126		23,872		99,254		—
Loans held for investment, net		306,889		315,061		—		—		315,061
Loans held for sale		560		560		—		560		—
Restricted stock		1,319		1,319		1,319		—		—
Bank-owned life insurance		6,486		6,486		—		—		6,486
Mortgage servicing rights		2,436		3,010		—		—		3,010
Accrued interest receivable		1,618		1,618		—		—		1,618
FINANCIAL LIABILITIES
Deposits	$	462,984	$	450,552	$	—	$	—	$	450,552
Short-term borrowings		6,004		6,038		—		6,038		—
Long-term borrowings		38		38		—		38		—
Junior subordinated debt		11,127		11,252		—		—		11,252
Accrued interest payable		231		231		—		—		231

December 31, 2012
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	81,728	$	81,728	$	81,728	$	—	$	—
Securities available for sale		91,638		91,638		19,576		72,062		—
Loans held for investment, net		322,382		331,386		—		—		331,386
Loans held for sale		5,373		5,373		—		5,373		—
Restricted stock		2,265		2,265		2,265		—		—
Bank-owned life insurance		6,394		6,394		—		—		6,394
Mortgage servicing rights		2,394		2,394		—		—		2,394
Accrued interest receivable		1,753		1,753		—		—		1,753
FINANCIAL LIABILITIES
Deposits	$	457,612	$	446,669	$	—	$	—	$	446,669
Short-term borrowings		18,690		18,690		—		18,690		—
Long-term borrowings		1,546		1,702		—		1,702		—
Junior subordinated debt		11,127		11,268		—		—		11,268
Accrued interest payable		270		270		—		—		270

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Allowance For Loan Losses - Changes in the Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified				3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012		Sep. 30, 2013 Commercial [Member]	Sep. 30, 2012 Commercial [Member]	Sep. 30, 2013 Commercial [Member]	Sep. 30, 2012 Commercial [Member]	Sep. 30, 2013 Non-Commercial [Member]	Sep. 30, 2012 Non-Commercial [Member]	Sep. 30, 2013 Non-Commercial [Member]	Sep. 30, 2012 Non-Commercial [Member]
Schedule Of Allowance For Loan Losses [Line Items]
Balance, beginning of period	$ 5,259	$ 6,801	[1]	$ 2,542	$ 2,650	$ 2,791	$ 2,904	$ 2,939	$ 4,419	$ 4,010	$ 3,911
Provision (recovery) charged to operations				(259)	424	(152)	476	486	(33)	(395)	618
Charge-offs				(217)	(367)	(612)	(721)	(257)	(229)	(522)	(400)
Recoveries				20	5	59	53	10	14	85	42
Net (charge-offs)				(197)	(362)	(553)	(668)	(247)	(215)	(437)	(358)
Other				(1)		(1)		(4)		(4)
Balance at end of period	$ 5,259	$ 6,801	[1]	$ 2,085	$ 2,712	$ 2,085	$ 2,712	$ 3,174	$ 4,171	$ 3,174	$ 4,171

[1] Derived from audited consolidated financial statements

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2013

Investments Debt And Equity Securities [Abstract]

Carrying Amounts and Fair Values of Securities Available for Sale

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

September 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
U.S. Treasury	$	23,522	$	572	$	222	$	23,872
U.S. Government agencies		52,384		243		946		51,681
GSE – Mortgage-backed securities and CMO’s		40,235		229		630		39,834
State and political subdivisions		7,353		386		—		7,739
Total securities available for sale	$	123,494	$	1,430	$	1,798	$	123,126

December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
U.S. Treasury	$	18,731	$	846	$	1	$	19,576
U.S. Government agencies		21,689		485		—		22,174
GSE – Mortgage-backed securities and CMO’s		40,766		379		123		41,022
State and political subdivisions		8,165		701		—		8,866
Total securities available for sale	$	89,351	$	2,411	$	124	$	91,638

Sales of Securities Available for Sale

Results from sales of securities available for sale for the three and nine month period ended September 30, 2013 and September 30, 2012 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(dollars in thousands)
Gross proceeds from sales	$	—	$	—	$	426	$	8,996
Realized gains from sales	$	—	$	—	$	14	$	128
Realized losses from sales		—		—		—		(112	)
Net Realized gains	$	—	$	—	$	14	$	16

Gross Unrealized Losses and Fair Value of Investments

At December 31, 2012, the unrealized losses related to two United States Treasury notes and seven mortgage backed securities.

	Less than 12 Months				12 Months or More				Total
September 30, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	7,193	$	222	$	—	$	—	$	7,193	$	222
U.S. Gov’t agencies		37,420		946		—		—		37,420		946
GSE-Mortgage-backed securities and CMO’s		18,706		533		4,077		97		22,783		630
State and political subdivisions		—		—		—		—		—		—
	$	63,319	$	1,701	$	4,077	$	97	$	67,396	$	1,798

	Less than 12 Months				12 Months or More				Total
December 31, 2012	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	2,485	$	1	$	—	$	—	$	2,485	$	1
U.S. Gov’t agencies		—		—		—		—		—		—
GSE-Mortgage-backed securities and CMO’s		21,355		123		—		—		21,355		123
State and political subdivisions		—		—		—		—		—		—
	$	23,840	$	124	$	—	$	—	$	23,840	$	124

Amortized Cost and Fair Value of the Available for Sale Securities Portfolio

The aggregate amortized cost and fair value of the available for sale securities portfolio at September 30, 2013 by remaining contractual maturity are as follows:

	September 30, 2013
	Amortized Cost		Estimated Fair Value		Book Yield
Securities available for sale
U. S. Treasury
Due after one but within five years		16,107		16,679		1.91	%
Due after five but within ten years		7,415		7,193		1.27	%
		23,522		23,872		1.71	%
U.S. Government agencies
Due within twelve months		5,002		5,050		2.27	%
Due after one but within five years		28,422		28,247		1.32	%
Due after five but within ten years		18,960		18,384		1.36	%
		52,384		51,681		1.43	%
Mortgage-backed securities
Due after one but within five years		2,630		2,545		1.66	%
Due after five but within ten years		5,069		5,170		1.83	%
Due after ten years		32,536		32,119		1.59	%
		40,235		39,834		1.62	%
State and political subdivisions
Due within twelve months		481		489		3.28	%
Due after one but within five years		1,129		1,218		3.75	%
Due after five but within ten years		4,725		4,983		3.12	%
Due after ten years		1,018		1,049		4.18	%
		7,353		7,739		3.37	%
Total Securities available for sale
Due within twelve months		5,483		5,539		2.36	%
Due after one but within five years		48,288		48,689		1.59	%
Due after five but within ten years		36,169		35,730		1.64	%
Due after ten years		33,554		33,168		1.67	%
	$	123,494	$	123,126		1.66	%

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 218	$ 262	$ 1,138	$ 1,363
Other comprehensive income (loss)
Unrealized gain (loss) on available for sale securities	(91)	414	(2,641)	366
Related tax effect	30	(143)	916	(126)
Reclassification of (gain) loss recognized in net income			(14)	(16)
Related tax effect			5	6
Total other comprehensive income (loss)	(61)	271	(1,734)	230
Comprehensive income (loss)	157	533	(596)	1,593
Less: Comprehensive income (loss) attributable to noncontrolling interest	(111)		(328)
Comprehensive income (loss) attributable to Uwharrie Capital	$ 46	$ 533	$ (924)	$ 1,593

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities
Net income	$ 1,138	$ 1,363
Adjustments to reconcile net income to net cash Provided by (used in) operating activities:
Depreciation	584	718
Net amortization of security premiums/discounts	1,163	907
Net amortization of mortgage servicing rights	619	609
Impairment of foreclosed real estate	745	988
Impairment of recovery of other assets	(75)	50
Provision for (recovery of) loan losses	(547)	1,094
Stock compensation		3
Net realized gain on sales / calls available for sales securities	(14)	(16)
Income from mortgage loan sales	(1,843)	(2,578)
Proceeds from sales of loans held for sale	67,218	89,969
Origination of loans held for sale	(60,562)	(86,458)
Gain on sale of premises, equipment and other assets	(229)	(276)
Increase in cash surrender value of life insurance	(92)	(183)
(Gain) loss on sales of foreclosed real estate	(18)	60
Release of ESOP shares	34	35
Net change in interest receivable	135	149
Net change in other assets	(576)	137
Net change in interest payable	(39)	(24)
Net change in other liabilities	3,454	873
Net cash provided by operating activities	11,095	7,420
Cash flows from investing activities
Proceeds from sales, maturities and calls of securities available for sale	11,413	19,215
Purchase of securities available for sale	(46,693)	(61,369)
Net decrease in loans	12,768	24,845
Proceeds from sales of premises, equipment and other assets	949
Purchase of premises and equipment	(237)	(610)
Proceeds from sales of foreclosed real estate	1,994	1,724
Investment in other assets	(356)	(260)
Net decrease in restricted stock	946	1,024
Net cash used in investing activities	(19,216)	(15,431)
Cash flows from financing activities
Net increase in deposit accounts	5,372	19,062
Net decrease in short-term borrowed funds	(12,686)	(156)
Net decrease in long-term debt	(1,508)	(12,557)
Proceeds from preferred stock series B issued by subsidiaries	360
Repayment of preferred stock series A	(7,742)
Increase in unearned ESOP compensation	(69)	(176)
Repurchase of common stock	(92)	(243)
Dividend and discount accretion on preferred stock	(215)	(409)
Dividend and cost accretion on noncontrolling interest	(311)
Net cash provided (used in) in financing activities	(16,891)	5,521
Increase (decrease) in cash and cash equivalents	(25,012)	(2,490)
Cash and cash equivalents, beginning of period	81,728	28,687
Cash and cash equivalents, end of period	56,716	26,197
Supplemental Disclosures of Cash Flow Information
Interest paid	2,170	2,846
Income taxes paid	648	78
Supplemental Schedule of Non-Cash Activities
Net change in fair value securities available for sale, net of tax	(1,721)	230
Loans transferred to foreclosed real estate	3,272	1,649
Company financed sales of other real estate owned	(213)	(188)
Net change in ESOP liability	$ 63

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Noncontrolling Interest

9 Months Ended

Sep. 30, 2013

Noncontrolling Interest [Abstract]

Noncontrolling Interest

Note 3 – Noncontrolling Interest

During the third quarter of 2012, each of the Company’s subsidiary banks began a campaign to sell Fixed Rate Noncumulative Perpetual Preferred Stock, Series B to be issued by each subsidiary bank. The preferred stock qualifies as Tier 1 capital at each bank and will pay dividends at an annual rate of 5.30%. The preferred stock has no voting rights. The offerings ended on December 31, 2012 with Stanly raising $4.5 million, Anson raising $1.5 million and Cabarrus raising $1.9 million in new capital less total issuance costs of $113,000. These funds were held in an escrow account at December 31, 2012 and the new preferred stock was issued in January 2013. The total net amount of capital raised $7.7 million at the subsidiary bank level, consolidates up to the Company and 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. Beginning September 1, 2013, the Fixed Rate Noncumulative Perpetual Preferred Stock, Series B has rolled into one issue under Uwharrie Bank effective with the consolidation and name change.

During the third quarter of 2013, the Company’s subsidiary bank, Uwharrie Bank, began a campaign to sell Fixed Rate Noncumulative Perpetual Preferred Stock, Series C to be issued by the subsidiary bank. The preferred stock qualifies as Tier 1 capital at the bank and will pay dividends at an annual rate of 5.30%. The preferred stock has no voting rights. The offering ended September 15, 2013 with Uwharrie raising $2.8 million in new capital less total issuance costs of $23,000. At September 30, 2013, these funds were held in an escrow account and the new preferred stock was issued on October 1, 2013.

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Basis of Presentation

9 Months Ended

Sep. 30, 2013

Accounting Policies [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, Bank of Stanly (“Stanly”), Anson Bank & Trust Co. (“Anson”), Cabarrus Bank & Trust Company (“Cabarrus”), Strategic Investment Advisors, Inc. (“SIA”), and Uwharrie Mortgage Inc. Stanly consolidates its subsidiaries, the Strategic Alliance Corporation, BOS Agency, Inc. and Gateway Mortgage, Inc., each of which is wholly-owned by Stanly. On September 1, 2013, Anson and Cabarrus were consolidated into Stanly and effective September 1, 2013, Stanly’s name was changed to Uwharrie Bank (“Uwharrie”).

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 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 2012 Annual Report on Form 10-K. This Quarterly Report should be read in conjunction with such Annual Report.

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Investment Securities - Amortized Cost and Fair Value of the Available for Sale Securities Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Due within twelve months, Amortized Cost	$ 5,483
Due after one but within five years, Amortized Cost	48,288
Due after five but within ten years, Amortized Cost	36,169
Due after ten years, Amortized Cost	33,554
Total securities available for sale, Amortized Cost	123,494
Due within twelve months, Estimated Fair Value	5,539
Due after one but within five years, Estimated Fair Value	48,689
Due after five but within ten years, Estimated Fair Value	35,730
Due after ten years, Estimated Fair Value	33,168
Fair Value	123,126	91,638
Due within twelve months, Book Yield	2.36%
Due after one but within five years, Book Yield	1.59%
Due after five but within ten years, Book Yield	1.64%
Due after ten years, Book Yield	1.67%
Total securities available for sale, Book Yield	1.66%
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Due after one but within five years, Amortized Cost	16,107
Due after five but within ten years, Amortized Cost	7,415
Total securities available for sale, Amortized Cost	23,522
Due after one but within five years, Estimated Fair Value	16,679
Due after five but within ten years, Estimated Fair Value	7,193
Fair Value	23,872	19,576
Due after one but within five years, Book Yield	1.91%
Due after five but within ten years, Book Yield	1.27%
Total securities available for sale, Book Yield	1.71%
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Due within twelve months, Amortized Cost	5,002
Due after one but within five years, Amortized Cost	28,422
Due after five but within ten years, Amortized Cost	18,960
Total securities available for sale, Amortized Cost	52,384
Due within twelve months, Estimated Fair Value	5,050
Due after one but within five years, Estimated Fair Value	28,247
Due after five but within ten years, Estimated Fair Value	18,384
Fair Value	51,681	22,174
Due within twelve months, Book Yield	2.27%
Due after one but within five years, Book Yield	1.32%
Due after five but within ten years, Book Yield	1.36%
Total securities available for sale, Book Yield	1.43%
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Due after one but within five years, Amortized Cost	2,630
Due after five but within ten years, Amortized Cost	5,069
Due after ten years, Amortized Cost	32,536
Total securities available for sale, Amortized Cost	40,235
Due after one but within five years, Estimated Fair Value	2,545
Due after five but within ten years, Estimated Fair Value	5,170
Due after ten years, Estimated Fair Value	32,119
Fair Value	39,834	41,022
Due after one but within five years, Book Yield	1.66%
Due after five but within ten years, Book Yield	1.83%
Due after ten years, Book Yield	1.59%
Total securities available for sale, Book Yield	1.62%
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Due within twelve months, Amortized Cost	481
Due after one but within five years, Amortized Cost	1,129
Due after five but within ten years, Amortized Cost	4,725
Due after ten years, Amortized Cost	1,018
Total securities available for sale, Amortized Cost	7,353
Due within twelve months, Estimated Fair Value	489
Due after one but within five years, Estimated Fair Value	1,218
Due after five but within ten years, Estimated Fair Value	4,983
Due after ten years, Estimated Fair Value	1,049
Fair Value	$ 7,739	$ 8,866
Due within twelve months, Book Yield	3.28%
Due after one but within five years, Book Yield	3.75%
Due after five but within ten years, Book Yield	3.12%
Due after ten years, Book Yield	4.18%
Total securities available for sale, Book Yield	3.37%

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Troubled Debt Restructures (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Breakdown of Types of Concessions Made by Loan Class

For the three and nine months ended September 30, 2013 and 2012 the following tables present a breakdown of the types of concessions made by loan class:

	Three months ended September 30, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—	$	—
Real estate – commercial		—		—		—
Other real estate construction		—		—		—
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		2		269		268
Home equity		—		—		—
Consumer loans		—		—		—
Other loans		—		—		—
Total		2	$	269	$	268

	Three months ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		1	$	33	$	33
Real estate – commercial		—		—		—
Other real estate construction		1		49		49
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		4		217		217
Home equity		—		—		—
Consumer loans		2		62		62
Other loans		—		—		—
Total		8	$	361	$	361

	Nine months ended September 30, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—	$	—
Real estate – commercial		1		357		342
Other real estate construction		—		—		—
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		4		468		458
Home equity		—		—		—
Consumer loans		—		—		—
Other loans		—		—		—
Total		5	$	825	$	800

	Nine months ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		3	$	111	$	101
Real estate – commercial		2		619		113
Other real estate construction		1		49		49
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		5		242		240
Home equity		—		—		—
Consumer loans		3		114		108
Other loans		—		—		—
Total		14	$	1,135	$	611

Loans Modified as Troubled Debt Restructurings Within Previous Twelve Months for Which There Was Payment Default

The following tables present loans that were modified as troubled debt restructurings within the previous twelve months ending September 30, 2013 and 2012 for which there was a payment default:

	Twelve months ended September 30, 2013
	Number of Loans		Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—
Real estate – commercial		—		—
Other real estate construction		—		—
Real estate 1 – 4 family construction		—		—
Real estate – residential		—		—
Home Equity loans		—		—
Consumer loans		—		—
Other loans		—		—
Total		—	$	—

	Twelve months ended September 30, 2012
	Number of Loans		Recorded Investment
	(dollars in thousands)
Other:
Commercial		1	$	33
Real estate – commercial		—		—
Other real estate construction		1		49
Real estate 1 – 4 family construction		—		—
Real estate – residential		5		240
Home Equity loans		—		—
Consumer loans		2		64
Other loans		—		—
Total		9	$	386

Schedule of Successes and Failures of Types of Debt Restructuring

The following tables present the successes and failures of the types of modifications within the previous twelve months ending September 30, 2013 and 2012:

September 30, 2013
	Paid In Full					Paying as restructured					Converted to nonaccrual					Foreclosure/ Default
	Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments
	(dollars in thousands)
Below market interest rate		—		$	—		—		$	—		—		$	—		—		$	—
Extended payment terms		—			—		—			—		—			—		—			—
Forgiveness of Principal		—			—		10			1,578		—			—		—			—
Other Loans		—			—		—			—		—			—		—			—
Total		—		$	—		10		$	1,578		—		$	—		—		$	—

September 30, 2012
	Paid In Full					Paying as restructured					Converted to nonaccrual					Foreclosure/ Default
	Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments
	(dollars in thousands)
Below market interest rate		—		$	—		—		$	—		—		$	—		—		$	—
Other Loans		—			—		6			352		—			—		11			897
Total		—		$	—		6		$	352		—		$	—		11		$	897

XML

Comprehensive Income - Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Equity [Abstract]
Beginning Balance	$ (173)	$ 1,487
Other comprehensive income (loss) before reclassifications, net of $30,000 and $916,000 tax effect, respectively	(61)	(1,712)
Amounts reclassified from accumulated other Comprehensive income, net of $5,000 tax effect		(9)
Net current-period other comprehensive loss	(61)	(1,721)
Ending Balance	$ (234)	$ (234)

XML

Investment Securities - Carrying Amounts and Fair Values of Securities Available for Sale (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 123,494	$ 89,351
Gross Unrealized Gains	1,430	2,411
Gross Unrealized Losses	1,798	124
Fair Value	123,126	91,638
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	23,522	18,731
Gross Unrealized Gains	572	846
Gross Unrealized Losses	222	1
Fair Value	23,872	19,576
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	52,384	21,689
Gross Unrealized Gains	243	485
Gross Unrealized Losses	946
Fair Value	51,681	22,174
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	40,235	40,766
Gross Unrealized Gains	229	379
Gross Unrealized Losses	630	123
Fair Value	39,834	41,022
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,353	8,165
Gross Unrealized Gains	386	701
Gross Unrealized Losses
Fair Value	$ 7,739	$ 8,866

XML

Commitments and Contingencies - Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
Loss Contingencies [Line Items]
Total commitments	$ 71,314
Commitments to Extend Credit [Member]
Loss Contingencies [Line Items]
Total commitments	62,112
Credit Card Commitments [Member]
Loss Contingencies [Line Items]
Total commitments	8,102
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Total commitments	$ 1,100

XML

Allowance for Loan Losses - Summary of Loans Deemed Impaired and Specific Reserves Allocated by Class (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	$ 21,319		$ 21,319		$ 28,339
Recorded Investment With No Allowance	8,864		8,864		14,433
Recorded Investment With Allowance	10,223		10,223		11,674
Related Allowance	2,837		2,837		3,034
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual	6,202		6,202		9,480
Average Recorded Investment	20,154	32,895	20,648	32,771
Interest Income	119	434	527	1,287
Commercial [Member]
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	648		648		1,977
Recorded Investment With No Allowance					388
Recorded Investment With Allowance	529		529		1,470
Related Allowance	449		449		616
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual	307		307		437
Average Recorded Investment	926	1,112	1,001	1,301
Interest Income	3	23	11	50
Real Estate - Commercial [Member]
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	8,222		8,222		11,299
Recorded Investment With No Allowance	4,040		4,040		6,341
Recorded Investment With Allowance	2,119		2,119		2,895
Related Allowance	487		487		411
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual	2,259		2,259		3,032
Average Recorded Investment	6,978	12,245	7,340	12,397
Interest Income	48	153	186	493
Other Real Estate Construction [Member]
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	2,093		2,093		3,935
Recorded Investment With No Allowance	301		301		2,437
Recorded Investment With Allowance	1,742		1,742		1,448
Related Allowance	342		342		401
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual	1,581		1,581		2,945
Average Recorded Investment	2,091	4,168	2,108	4,112
Interest Income	3	55	16	180
Real Estate 1-4 Family Construction [Member]
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	375		375		840
Recorded Investment With No Allowance	26		26		713
Recorded Investment With Allowance	349		349		127
Related Allowance	16		16		127
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual
Average Recorded Investment	376	1,014	383	1,124
Interest Income	7	15	18	31
Real Estate - Residential [Member]
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	9,078		9,078		8,985
Recorded Investment With No Allowance	4,144		4,144		3,994
Recorded Investment With Allowance	4,934		4,934		4,991
Related Allowance	1,127		1,127		1,215
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual	1,842		1,842		2,507
Average Recorded Investment	8,727	12,680	8,693	12,261
Interest Income	52	166	273	477
Home Equity [Member]
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	754		754		1,068
Recorded Investment With No Allowance	273		273		521
Recorded Investment With Allowance	481		481		547
Related Allowance	347		347		159
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual	213		213		558
Average Recorded Investment	908	1,333	954	1,244
Interest Income	4	18	17	42
Consumer Loans [Member]
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	148		148		235
Recorded Investment With No Allowance	79		79		39
Recorded Investment With Allowance	69		69		196
Related Allowance	69		69		105
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual					1
Average Recorded Investment	148	343	169	332
Interest Income	2	4	6	14
Other Loans [Member]
Schedule Of Financial Receivables [Line Items]
Unpaid Principal Balance	1		1
Recorded Investment With No Allowance	1		1
Recorded Investment With Allowance
Related Allowance
Recorded Investment Accruing Loans 90 or More Days Past Due
Recorded Investment Loans in Non-accrual
Average Recorded Investment
Interest Income

XML

Allowance for Loan Losses - Past Due Information of the Loan Portfolio by Class (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due	$ 2,148	$ 2,507
Loans 90 Days or More Past Due	6,202	9,480
Total Past Due Loans	8,350	11,987
Current Loans	303,798	317,196
Net loans held for investment	312,148	329,183	[1]
Accruing Loans 90 or More Days Past Due
Commercial [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due		98
Loans 90 Days or More Past Due	307	437
Total Past Due Loans	307	535
Current Loans	45,694	40,855
Net loans held for investment	46,001	41,390
Accruing Loans 90 or More Days Past Due
Real Estate - Commercial [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due	40	708
Loans 90 Days or More Past Due	2,259	3,032
Total Past Due Loans	2,299	3,740
Current Loans	94,446	99,564
Net loans held for investment	96,745	103,304
Accruing Loans 90 or More Days Past Due
Other Real Estate Construction [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due		12
Loans 90 Days or More Past Due	1,581	2,945
Total Past Due Loans	1,581	2,957
Current Loans	17,854	22,095
Net loans held for investment	19,435	25,052
Accruing Loans 90 or More Days Past Due
Real Estate 1-4 Family Construction [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due	115
Loans 90 Days or More Past Due
Total Past Due Loans	115
Current Loans	3,495
Net loans held for investment	3,610	3,080
Accruing Loans 90 or More Days Past Due
Real Estate Construction [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due
Loans 90 Days or More Past Due
Total Past Due Loans
Current Loans		3,080
Net loans held for investment		3,080
Accruing Loans 90 or More Days Past Due
Real Estate - Residential [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due	1,587	1,309
Loans 90 Days or More Past Due	1,842	2,507
Total Past Due Loans	3,429	3,816
Current Loans	87,348	90,216
Net loans held for investment	90,777	94,032
Accruing Loans 90 or More Days Past Due
Home Equity [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due	333	162
Loans 90 Days or More Past Due	213	558
Total Past Due Loans	546	720
Current Loans	45,587	47,797
Net loans held for investment	46,133	48,517
Accruing Loans 90 or More Days Past Due
Consumer Loans [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due	73	218
Loans 90 Days or More Past Due		1
Total Past Due Loans	73	219
Current Loans	8,684	12,767
Net loans held for investment	8,757	12,986
Accruing Loans 90 or More Days Past Due
Other Loans [Member]
Schedule Of Financial Receivables [Line Items]
Loans 30-89 Days Past Due
Loans 90 Days or More Past Due
Total Past Due Loans
Current Loans	690	822
Net loans held for investment	690	822
Accruing Loans 90 or More Days Past Due

[1] Derived from audited consolidated financial statements

XML

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Preferred stock, par value			[1]
Preferred stock, shares authorized	10,000,000	10,000,000	[1]
Common stock, par value	$ 1.25	$ 1.25	[1]
Common stock, shares authorized	20,000,000	20,000,000	[1]
Common stock, shares issued	7,471,204	7,502,496	[1]
Common stock, shares outstanding	7,471,204	7,502,496	[1]
Preferred Stock Series A [Member]
Preferred stock, shares issued	2,258	10,000	[1]
Preferred stock, shares outstanding	2,258	10,000	[1]
Preferred Stock Series B [Member]
Preferred stock, shares issued	500	500	[1]
Preferred stock, shares outstanding	500	500	[1]

[1] Derived from audited consolidated financial statements

XML

Loans Held for Investment

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Loans Held for Investment

Note 6 – Loans Held for Investment

The composition of net loans held for investment by class as of September 30, 2013 and December 31, 2012 are as follows:

	September 30, 2013			December 31, 2012
	(dollars in thousands)
Commercial
Commercial	$	46,001		$	41,390
Real estate – commercial		96,745			103,304
Other real estate construction loans		19,435			25,052
Noncommercial
Real estate 1 – 4 family construction		3,610			3,080
Real estate – residential		90,714			93,927
Home equity		46,133			48,517
Consumer loans		8,757			12,986
Other loans		690			822
		312,085			329,078
Less:
Allowance for loan losses		(5,259	)		(6,801	)
Deferred loan (fees) costs, net		63			105
Loans held for investment, net	$	306,889		$	322,382

XML

Consolidated Statements of Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]
Gain on sale of securities includes reclassification of accumulated other comprehensive income	$ 14	$ 16
Amounts reclassified from accumulated other comprehensive income, net of tax	$ 5	$ 6

XML

Fair Value Disclosures - Quantitative Information about Level 3 Fair Value Measurements (Detail) (Fair Value on a Nonrecurring Basis [Member], Level 3 [Member])	9 Months Ended
	Sep. 30, 2013
OREO [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Valuation Technique	Discounted appraisals
Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Valuation Technique	Discounted appraisals
Minimum [Member] | OREO [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value inputs discount rate and estimated costs to sell	0.00%
Minimum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value inputs discount rate and estimated costs to sell	0.00%
Maximum [Member] | OREO [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value inputs discount rate and estimated costs to sell	10.00%
Maximum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value inputs discount rate and estimated costs to sell	30.00%

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 7,065	$ 8,877	[1]
Interest-earning deposits with banks	49,651	72,851	[1]
Securities available for sale, at fair value	123,126	91,638	[1]
Loans held for sale	560	5,373	[1]
Loans:
Loans held for investment	312,148	329,183	[1]
Less allowance for loan losses	(5,259)	(6,801)	[1]
Net loans held for investment	306,889	322,382	[1]
Premises and equipment, net	13,885	14,952	[1]
Interest receivable	1,618	1,753	[1]
Restricted stock	1,319	2,265	[1]
Bank owned life insurance	6,486	6,394	[1]
Other real estate owned	9,264	8,713	[1]
Prepaid assets	782	635	[1]
Other assets	10,337	9,174	[1]
Total assets	530,982	545,007	[1]
Deposits:
Demand noninterest-bearing	78,694	70,347	[1]
Interest checking and money market accounts	225,546	211,066	[1]
Savings deposits	46,928	43,336	[1]
Time deposits, $100,000 and over	45,910	53,449	[1]
Other time deposits	65,906	79,414	[1]
Total deposits	462,984	457,612	[1]
Short-term borrowed funds	6,004	18,690	[1]
Long-term debt	11,165	12,673	[1]
Interest payable	231	270	[1]
Other liabilities	7,521	11,449	[1]
Total liabilities	487,905	500,694	[1]
Off balance sheet items, commitments and contingencies (Note 9)			[1]
SHAREHOLDERS' EQUITY
Discount on preferred stock	(25)	(100)	[1]
Common stock, $1.25 par value: 20,000,000 shares issued authorized; shares issued and outstanding 7,471,204 and 7,502,496 shares, respectively	9,339	9,378	[1]
Additional paid-in capital	12,049	12,201	[1]
Unearned ESOP compensation	(874)	(875)	[1]
Undivided profits	10,658	10,138	[1]
Accumulated other comprehensive income (loss)	(234)	1,487	[1]
Total Uwharrie Capital shareholders' equity	33,671	42,729	[1]
Noncontrolling interest	7,759
Total shareholders' equity	41,430	42,729	[1]
Total liabilities and shareholders' equity	530,982	545,007	[1]
Common Stock [Member] | Employee Stock Ownership Plan (ESOP) [Member]
Deposits:
Redeemable common stock held by the Employee Stock Ownership Plan (ESOP)	1,647	1,584	[1]
Preferred Stock Series A [Member]
SHAREHOLDERS' EQUITY
Preferred stock	2,258	10,000	[1]
Preferred Stock Series B [Member]
SHAREHOLDERS' EQUITY
Preferred stock	$ 500	$ 500	[1]

[1] Derived from audited consolidated financial statements

XML

Troubled Debt Restructures - Breakdown of Types of Concessions Made by Loan Class (Detail) (Other [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013 Contract	Sep. 30, 2012 Contract	Sep. 30, 2013 Contract	Sep. 30, 2012 Contract
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts	2	8	5	14
Pre-Modification Outstanding Recorded Investment	$ 269	$ 361	$ 825	$ 1,135
Post-Modification Outstanding Recorded Investment	268	361	800	611
Commercial [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts		1		3
Pre-Modification Outstanding Recorded Investment		33		111
Post-Modification Outstanding Recorded Investment		33		101
Real Estate - Commercial [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts			1	2
Pre-Modification Outstanding Recorded Investment			357	619
Post-Modification Outstanding Recorded Investment			342	113
Other Real Estate Construction [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts		1		1
Pre-Modification Outstanding Recorded Investment		49		49
Post-Modification Outstanding Recorded Investment		49		49
Real Estate 1-4 Family Construction [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Real Estate - Residential [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts	2	4	4	5
Pre-Modification Outstanding Recorded Investment	269	217	468	242
Post-Modification Outstanding Recorded Investment	268	217	458	240
Home Equity [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Consumer Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts		2		3
Pre-Modification Outstanding Recorded Investment		62		114
Post-Modification Outstanding Recorded Investment		62		108
Other Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment

XML

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk

At September 30, 2013, outstanding financial instruments whose contract amounts represent credit risk were approximately:

	(dollars in thousands)
Commitments to extend credit	$	62,112
Credit card commitments		8,102
Standby letters of credit		1,100
Total commitments	$	71,314

XML

Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income

The following table presents the changes in accumulated other comprehensive income for the three and nine months ending September 30, 2013:

	Unrealized holding gains on available-for-sale Securities (net)
	Three months ended September 30, 2013			Nine months ended September 30, 2013
	(dollars in thousands)
Beginning Balance	$	(173	)	$	1,487
Other comprehensive income (loss) before reclassifications, net of $30,000 and $916,000 tax effect, respectively		(61	)		(1,712	)
Amounts reclassified from accumulated other Comprehensive income, net of $5,000 tax effect		—			(9	)
Net current-period other comprehensive loss		(61	)		(1,721	)
Ending Balance	$	(234	)	$	(234	)

XML

Allowance for Loan Losses - Schedule of Loans and Reserve Balances by Loan Segment Both Individually and Collectively Evaluated for Impairment (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012		Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	$ 5,259		$ 6,801	[1]
Loans	312,148		329,183	[1]
All Commercial [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	2,085		2,791
Loans	162,181		169,746
Non-Commercial [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	3,174	2,939	4,010		4,171	4,419	3,911
Loans	149,967		159,437
Individually Evaluated [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	2,837		3,034
Loans	19,087		26,107
Individually Evaluated [Member] | All Commercial [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	1,278		1,428
Loans	8,732		14,979
Individually Evaluated [Member] | Non-Commercial [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	1,559		1,606
Loans	10,355		11,128
Collectively Evaluated [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	2,422		3,767
Loans	293,061		303,076
Collectively Evaluated [Member] | All Commercial [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	807		1,363
Loans	153,449		154,767
Collectively Evaluated [Member] | Non-Commercial [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Reserve	1,615		2,404
Loans	$ 139,612		$ 148,309

[1] Derived from audited consolidated financial statements

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Troubled Debt Restructures - Schedule of Successes and Failures of Types of Debt Restructuring (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013 Loans	Sep. 30, 2012 Loans
Paid In Full [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Paid In Full [Member] | Below Market Interest Rate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Paid In Full [Member] | Extend Payment Terms [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Paid In Full [Member] | Forgiveness of Principal [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Paid In Full [Member] | Other Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Paying as Restructured [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	10	6
Recorded Investments	1,578	352
Paying as Restructured [Member] | Below Market Interest Rate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Paying as Restructured [Member] | Extend Payment Terms [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Paying as Restructured [Member] | Forgiveness of Principal [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	10
Recorded Investments	1,578
Paying as Restructured [Member] | Other Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans		6
Recorded Investments		352
Converted to Nonaccrual [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Converted to Nonaccrual [Member] | Below Market Interest Rate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Converted to Nonaccrual [Member] | Extend Payment Terms [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Converted to Nonaccrual [Member] | Forgiveness of Principal [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Converted to Nonaccrual [Member] | Other Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Foreclosure/ Default [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans		11
Recorded Investments		897
Foreclosure/ Default [Member] | Below Market Interest Rate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Foreclosure/ Default [Member] | Extend Payment Terms [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Foreclosure/ Default [Member] | Forgiveness of Principal [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans
Recorded Investments
Foreclosure/ Default [Member] | Other Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans		11
Recorded Investments		$ 897

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Investment Securities - Sales of Securities Available for Sale (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Investments Debt And Equity Securities [Abstract]
Gross proceeds from sales			$ 426	$ 8,996
Realized gains from sales			14	128
Realized losses from sales				(112)
Net realized gains			$ 14	$ 16

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Per Share Data - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]
Stock outstanding options not included in the computation of EPS	92,491	122,341	92,491	122,341

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Per Share Data - Computation of Basic and Dilutive Earnings Per Share (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]
Weighted average number of common shares outstanding	7,473,903	7,563,255	7,473,903	7,563,255
Effect of ESOP shares	(205,140)	(183,598)	(186,421)	(146,802)
Adjusted weighted average number of common shares used in computing basic net income per common share	7,268,763	7,379,657	7,287,482	7,416,453
Effect of dilutive stock options
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share	7,268,763	7,379,657	7,287,482	7,416,453

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Investment Securities

9 Months Ended

Sep. 30, 2013

Investments Debt And Equity Securities [Abstract]

Investment Securities

Note 5 – Investment Securities

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

September 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
U.S. Treasury	$	23,522	$	572	$	222	$	23,872
U.S. Government agencies		52,384		243		946		51,681
GSE – Mortgage-backed securities and CMO’s		40,235		229		630		39,834
State and political subdivisions		7,353		386		—		7,739
Total securities available for sale	$	123,494	$	1,430	$	1,798	$	123,126

December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
U.S. Treasury	$	18,731	$	846	$	1	$	19,576
U.S. Government agencies		21,689		485		—		22,174
GSE – Mortgage-backed securities and CMO’s		40,766		379		123		41,022
State and political subdivisions		8,165		701		—		8,866
Total securities available for sale	$	89,351	$	2,411	$	124	$	91,638

At both September 30, 2013 and December 31, 2012, the Company owned Federal Reserve Bank stock reported at cost of $467,000 and $803,000, respectively that is included in other assets. Also at September 30, 2013 and December 31, 2012, the Company owned Federal Home Loan Bank Stock (FHLB) of $852,000 and $1.5 million, respectively. The investments in Federal Reserve stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks. These investments are carried at cost since there is no ready market and historically redemption has been made at par value. The Company estimated that the fair value approximated cost and that these investments were not impaired at September 30, 2013.

Results from sales of securities available for sale for the three and nine month period ended September 30, 2013 and September 30, 2012 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(dollars in thousands)
Gross proceeds from sales	$	—	$	—	$	426	$	8,996
Realized gains from sales	$	—	$	—	$	14	$	128
Realized losses from sales		—		—		—		(112	)
Net Realized gains	$	—	$	—	$	14	$	16

At September 30, 2013 and December 31, 2012, securities available for sale with a carrying amount of $63.2 million and $48.8 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

The following tables show the gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012. These unrealized losses on investment securities are a result of temporary fluctuations in the market prices due to a rise in interest rates, which will adjust if rates decline, and a volatile market. Management does not believe these fluctuations are a reflection of the quality of the investments. At September 30, 2013, the unrealized losses for securities less than twelve months related to two United States Treasury notes, ten government agency bonds and ten government sponsored enterprise (GSE) mortgage backed securities. The Company did have two GSE mortgage backed securities that had been in a loss position for more than twelve months. At December 31, 2012, the unrealized losses related to two United States Treasury notes and seven mortgage backed securities.

	Less than 12 Months				12 Months or More				Total
September 30, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	7,193	$	222	$	—	$	—	$	7,193	$	222
U.S. Gov’t agencies		37,420		946		—		—		37,420		946
GSE-Mortgage-backed securities and CMO’s		18,706		533		4,077		97		22,783		630
State and political subdivisions		—		—		—		—		—		—
	$	63,319	$	1,701	$	4,077	$	97	$	67,396	$	1,798

	Less than 12 Months				12 Months or More				Total
December 31, 2012	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(dollars in thousands)
Securities available for sale temporary impairment
U.S. Treasury	$	2,485	$	1	$	—	$	—	$	2,485	$	1
U.S. Gov’t agencies		—		—		—		—		—		—
GSE-Mortgage-backed securities and CMO’s		21,355		123		—		—		21,355		123
State and political subdivisions		—		—		—		—		—		—
	$	23,840	$	124	$	—	$	—	$	23,840	$	124

Declines in the fair value of the investment portfolio are believed by management to be temporary in nature. When evaluating an investment for other-than-temporary impairment losses, management considers among other things, the length of time and the extent to which the fair value has been in a loss position, the financial condition of the issuer and the intent and the ability the Company has to hold the investment until the loss position is recovered.

At September 30, 2013, the Company had two GSE mortgage backed securities that had been in a loss position for twelve months or more. The unrealized losses are not likely to reverse unless market interest rates decline to the levels that existed when the securities were purchased. None of the unrealized losses relate to the marketability of the securities or the issuer’s ability to honor redemption obligations. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. At September 30, 2013, the Company had no intent to sell and was not more likely than not to be required to sell the available for sale securities that were in a loss position prior to full recovery. For the three and nine months ended September 30, 2013, there were no available for sale securities deemed to be other than temporarily impaired.

The aggregate amortized cost and fair value of the available for sale securities portfolio at September 30, 2013 by remaining contractual maturity are as follows:

	September 30, 2013
	Amortized Cost		Estimated Fair Value		Book Yield
Securities available for sale
U. S. Treasury
Due after one but within five years		16,107		16,679		1.91	%
Due after five but within ten years		7,415		7,193		1.27	%
		23,522		23,872		1.71	%
U.S. Government agencies
Due within twelve months		5,002		5,050		2.27	%
Due after one but within five years		28,422		28,247		1.32	%
Due after five but within ten years		18,960		18,384		1.36	%
		52,384		51,681		1.43	%
Mortgage-backed securities
Due after one but within five years		2,630		2,545		1.66	%
Due after five but within ten years		5,069		5,170		1.83	%
Due after ten years		32,536		32,119		1.59	%
		40,235		39,834		1.62	%
State and political subdivisions
Due within twelve months		481		489		3.28	%
Due after one but within five years		1,129		1,218		3.75	%
Due after five but within ten years		4,725		4,983		3.12	%
Due after ten years		1,018		1,049		4.18	%
		7,353		7,739		3.37	%
Total Securities available for sale
Due within twelve months		5,483		5,539		2.36	%
Due after one but within five years		48,288		48,689		1.59	%
Due after five but within ten years		36,169		35,730		1.64	%
Due after ten years		33,554		33,168		1.67	%
	$	123,494	$	123,126		1.66	%

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Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Information for Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table provides fair value information for assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012:

	September 30, 2013
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
US Treasury	$	23,872	$	23,872	$	—	$	—
US Government Agencies		51,681		—		51,681		—
GSE – Mortgage-backed securities and CMO’s		39,834		—		39,834		—
State and political subdivisions		7,739		—		7,739		—
Total assets at fair value	$	123,126	$	23,872	$	99,254	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
US Treasury	$	19,576	$	19,576	$	—	$	—
US Gov’t Agencies		22,174		—		22,174		—
GSE – Mortgage-backed securities and CMO’s		41,022		—		41,022		—
State and political subdivisions		8,866		—		8,866		—
Total assets at fair value	$	91,638	$	19,576	$	72,062	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

Assets Measured at Fair Value on Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2013 and December 31, 2012:

	September 30, 2013
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	7,386	$	—	$	—	$	7,386
Loans held for sale		560		—		560		—
Other real estate owned		4,206		—		—		4,206
Total assets at fair value	$	12,152	$	—	$	560	$	11,592
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Impaired loans	$	8,640	$	—	$	—	$	8,640
Loans held for sale		5,373		—		5,373		—
Other real estate owned		5,596		—		—		5,596
Total assets at fair value	$	19,609	$	—	$	5,373	$	14,236
Total liabilities at fair value	$	—	$	—	$	—	$	—

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

	Valuation Technique	Unobservable Input	General Range
Nonrecurring measurements:
OREO	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 10%
Impaired loans	Discounted appraisals	Collateral discounts and Estimated costs to sell	0 – 30%

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Loans Held for Investment - Composition of Net Loans Held for Investment by Class (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	$ 312,085	$ 329,078
Less:
Allowance for loan losses	(5,259)	(6,801)	[1]
Deferred loan (fees) costs, net	63	105
Net loans held for investment	306,889	322,382	[1]
Commercial Loan [Member] | Commercial [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	46,001	41,390
Real Estate - Commercial [Member] | Commercial [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	96,745	103,304
Other Real Estate Construction [Member] | Commercial [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	19,435	25,052
Real Estate 1-4 Family Construction [Member] | Non-Commercial [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	3,610	3,080
Real Estate - Residential [Member] | Non-Commercial [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	90,714	93,927
Home Equity [Member] | Non-Commercial [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	46,133	48,517
Consumer Loans [Member] | Non-Commercial [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	8,757	12,986
Other Loans [Member] | Non-Commercial [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Loans, Total	$ 690	$ 822

[1] Derived from audited consolidated financial statements

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Troubled Debt Restructures

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Troubled Debt Restructures

Note 8 – Troubled Debt Restructures

A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification involves providing a concession to the existing loan contract. The Company offers various types of concessions when modifying loans to troubled borrowers, however, forgiveness of principal is rarely granted. Concessions offered are term extensions, capitalizing accrued interest, reducing interest rates to below current market rates or a combination of any of these. Combinations from time to time may include allowing a customer to be placed on interest-only payments. The presentations below in the “other” category are TDR’s with a combination of concessions. At the time of a TDR, additional collateral or a guarantor may be requested.

Loans modified as a TDR are typically already on nonaccrual status and partial chargeoffs may have in some cases already been taken against the outstanding loan balance. The Company classifies TDR loans as impaired loans and evaluates the need for an allowance for loan loss on a loan-by-loan basis. An allowance is based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the estimated fair value of the underlying collateral less any selling costs, if the loan is deemed to be collateral dependent.

For the three and nine months ended September 30, 2013 and 2012 the following tables present a breakdown of the types of concessions made by loan class:

	Three months ended September 30, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—	$	—
Real estate – commercial		—		—		—
Other real estate construction		—		—		—
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		2		269		268
Home equity		—		—		—
Consumer loans		—		—		—
Other loans		—		—		—
Total		2	$	269	$	268

	Three months ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		1	$	33	$	33
Real estate – commercial		—		—		—
Other real estate construction		1		49		49
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		4		217		217
Home equity		—		—		—
Consumer loans		2		62		62
Other loans		—		—		—
Total		8	$	361	$	361

	Nine months ended September 30, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—	$	—
Real estate – commercial		1		357		342
Other real estate construction		—		—		—
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		4		468		458
Home equity		—		—		—
Consumer loans		—		—		—
Other loans		—		—		—
Total		5	$	825	$	800

	Nine months ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(dollars in thousands)
Other:
Commercial		3	$	111	$	101
Real estate – commercial		2		619		113
Other real estate construction		1		49		49
Real estate 1 – 4 family construction		—		—		—
Real estate – residential		5		242		240
Home equity		—		—		—
Consumer loans		3		114		108
Other loans		—		—		—
Total		14	$	1,135	$	611

The following tables present loans that were modified as troubled debt restructurings within the previous twelve months ending September 30, 2013 and 2012 for which there was a payment default:

	Twelve months ended September 30, 2013
	Number of Loans		Recorded Investment
	(dollars in thousands)
Other:
Commercial		—	$	—
Real estate – commercial		—		—
Other real estate construction		—		—
Real estate 1 – 4 family construction		—		—
Real estate – residential		—		—
Home Equity loans		—		—
Consumer loans		—		—
Other loans		—		—
Total		—	$	—

	Twelve months ended September 30, 2012
	Number of Loans		Recorded Investment
	(dollars in thousands)
Other:
Commercial		1	$	33
Real estate – commercial		—		—
Other real estate construction		1		49
Real estate 1 – 4 family construction		—		—
Real estate – residential		5		240
Home Equity loans		—		—
Consumer loans		2		64
Other loans		—		—
Total		9	$	386

A default on a troubled debt restructure is defined as being past due 90 days or being out of compliance with the modification agreement. As mentioned, the Company considers TDRs to be impaired loans and has $639,000 in allowance for loan loss as of September 30, 2013, as a direct result of these TDR’s.

The following tables present the successes and failures of the types of modifications within the previous twelve months ending September 30, 2013 and 2012:

September 30, 2013
	Paid In Full					Paying as restructured					Converted to nonaccrual					Foreclosure/ Default
	Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments
	(dollars in thousands)
Below market interest rate		—		$	—		—		$	—		—		$	—		—		$	—
Extended payment terms		—			—		—			—		—			—		—			—
Forgiveness of Principal		—			—		10			1,578		—			—		—			—
Other Loans		—			—		—			—		—			—		—			—
Total		—		$	—		10		$	1,578		—		$	—		—		$	—

September 30, 2012
	Paid In Full					Paying as restructured					Converted to nonaccrual					Foreclosure/ Default
	Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments			Number of Loans		Recorded Investments
	(dollars in thousands)
Below market interest rate		—		$	—		—		$	—		—		$	—		—		$	—
Other Loans		—			—		6			352		—			—		11			897
Total		—		$	—		6		$	352		—		$	—		11		$	897

The Company has not committed to fund any additional disbursements for TDR’s.

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Per Share Data

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Per Share Data

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. For the three and nine months ended September 30, 2013, the Company’s 92,491 stock options outstanding did not have a dilutive effect on per share results because the exercise prices exceeded the share values for each period. The Company had 122,341 stock options outstanding for the three and nine months ended September 30, 2012, and they did not have a dilutive effect.

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 computation of basic and dilutive earnings per share is summarized below:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Weighted average number of common shares outstanding		7,473,903			7,563,255			7,473,903			7,563,255
Effect of ESOP shares		(205,140	)		(183,598	)		(186,421	)		(146,802	)
Adjusted weighted average number of common shares used in computing basic net income per common share		7,268,763			7,379,657			7,287,482			7,416,453
Effect of dilutive stock options		—			—			—			—
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share		7,268,763			7,379,657			7,287,482			7,416,453

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Consolidated Statement of Changes in Shareholders' Equity (USD $) In Thousands, except Share data	Total USD ($)		Number Common Shares Issued [Member]	Preferred Stock Series A [Member] USD ($)	Preferred Stock Series B [Member] USD ($)	Discount on Preferred Stock [Member] USD ($)	Common Stock [Member] USD ($)	Additional Paid-in Capital [Member] USD ($)	Unearned ESOP Compensation [Member] USD ($)	Undivided Profits [Member] USD ($)	Accumulated Other Comprehensive Income (Loss) [Member] USD ($)	Noncontrolling Interest [Member] USD ($)
Beginning balance at Dec. 31, 2012	$ 42,729	[1]		$ 10,000	$ 500	$ (100)	$ 9,378	$ 12,201	$ (875)	$ 10,138	$ 1,487
Beginning balance, shares at Dec. 31, 2012	7,502,496	[1]	7,502,496
Net income	1,138									810		328
Repurchase of common stock	(92)						(39)	(53)
Repurchase of common stock, shares			(31,292)
Other comprehensive loss	(1,721)										(1,721)
Release of ESOP shares	34							(36)	70
Increase in ESOP notes receivable	(69)								(69)
Reclass to mezzanine capital	(63)							(63)
Repayment of preferred stock series A	(7,742)			(7,742)
Issuance of preferred stock series B (noncontrolling interest)	7,855											7,855
Record costs of series B preferred stock (noncontrolling interest)	(113)											(113)
Record preferred stock dividend series B (noncontrolling interest)	(311)											(311)
Record preferred stock dividend and discount accretion	(215)					75				(290)
Ending balance at Sep. 30, 2013	$ 41,430			$ 2,258	$ 500	$ (25)	$ 9,339	$ 12,049	$ (874)	$ 10,658	$ (234)	$ 7,759
Ending balance, shares at Sep. 30, 2013	7,471,204		7,471,204

[1] Derived from audited consolidated financial statements

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Troubled Debt Restructures - Loans Modified as Troubled Debt Restructurings Within Previous Twelve Months for Which There Was Payment Default (Detail) (Other [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2013 Loans	Sep. 30, 2012 Loans
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans		9
Recorded Investment		$ 386
Commercial [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans		1
Recorded Investment		33
Real Estate - Commercial [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans
Recorded Investment
Other Real Estate Construction [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans		1
Recorded Investment		49
Real Estate 1-4 Family Construction [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans
Recorded Investment
Real Estate - Residential [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans		5
Recorded Investment		240
Home Equity [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans
Recorded Investment
Consumer Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans		2
Recorded Investment		64
Other Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans
Recorded Investment

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Allowance for Loan Losses - Composition of Nonaccrual Loans by Class (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans	$ 6,202	$ 9,480
Commercial [Member]
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans	307	437
Real Estate - Commercial [Member]
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans	2,259	3,032
Other Real Estate Construction [Member]
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans	1,581	2,945
Real Estate 1-4 Family Construction [Member]
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans
Real Estate - Residential [Member]
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans	1,842	2,507
Home Equity [Member]
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans	213	558
Consumer Loans [Member]
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans		1
Other Loans [Member]
Schedule Of Financial Receivables [Line Items]
Increase in non-performing loans

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Comprehensive Income - Accumulated Other Comprehensive Income (Parenthetical) (Detail) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012
Equity [Abstract]
Other comprehensive income before reclassifications, net of tax	$ 30,000	$ 916,000
Related tax effect		$ 5,000	$ 6,000

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Fair Values of Financial Instruments and Interest Rate Risk - Comparison of Carrying Amounts and the Estimated Fair Value of the Financial Instruments (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Fair Value Assets Liabilities Quantitative Information [Line Items]
Securities available for sale	$ 123,126,000	$ 91,638,000	[1]
Loans held for investment, net	306,889,000	322,382,000	[1]
Loans held for sale	560,000	5,373,000	[1]
Restricted stock	852,000	1,500,000
Bank-owned life insurance	6,486,000	6,394,000	[1]
Accrued interest receivable	1,618,000	1,753,000	[1]
Deposits	462,984,000	457,612,000	[1]
Short-term borrowings	6,004,000	18,690,000	[1]
Accrued interest payable	231,000	270,000	[1]
Carrying Value [Member]
Fair Value Assets Liabilities Quantitative Information [Line Items]
Cash and cash equivalents	56,716,000	81,728,000
Securities available for sale	123,126,000	91,638,000
Loans held for investment, net	306,889,000	322,382,000
Loans held for sale	560,000	5,373,000
Restricted stock	1,319,000	2,265,000
Bank-owned life insurance	6,486,000	6,394,000
Mortgage servicing rights	2,436,000	2,394,000
Accrued interest receivable	1,618,000	1,753,000
Deposits	462,984,000	457,612,000
Short-term borrowings	6,004,000	18,690,000
Long-term borrowings	38,000	1,546,000
Junior subordinated debt	11,127,000	11,127,000
Accrued interest payable	231,000	270,000
Estimated Fair Value [Member]
Fair Value Assets Liabilities Quantitative Information [Line Items]
Cash and cash equivalents	56,716,000	81,728,000
Securities available for sale	123,126,000	91,638,000
Loans held for investment, net	315,061,000	331,386,000
Loans held for sale	560,000	5,373,000
Restricted stock	1,319,000	2,265,000
Bank-owned life insurance	6,486,000	6,394,000
Mortgage servicing rights	3,010,000	2,394,000
Accrued interest receivable	1,618,000	1,753,000
Deposits	450,552,000	446,669,000
Short-term borrowings	6,038,000	18,690,000
Long-term borrowings	38,000	1,702,000
Junior subordinated debt	11,252,000	11,268,000
Accrued interest payable	231,000	270,000
Level 1 [Member]
Fair Value Assets Liabilities Quantitative Information [Line Items]
Cash and cash equivalents	56,716,000	81,728,000
Securities available for sale	23,872,000	19,576,000
Loans held for investment, net
Loans held for sale
Restricted stock	1,319,000	2,265,000
Bank-owned life insurance
Mortgage servicing rights
Accrued interest receivable
Deposits
Short-term borrowings
Long-term borrowings
Junior subordinated debt
Accrued interest payable
Level 2 [Member]
Fair Value Assets Liabilities Quantitative Information [Line Items]
Cash and cash equivalents
Securities available for sale	99,254,000	72,062,000
Loans held for investment, net
Loans held for sale	560,000	5,373,000
Restricted stock
Bank-owned life insurance
Mortgage servicing rights
Accrued interest receivable
Deposits
Short-term borrowings	6,038,000	18,690,000
Long-term borrowings	38,000	1,702,000
Junior subordinated debt
Accrued interest payable
Level 3 [Member]
Fair Value Assets Liabilities Quantitative Information [Line Items]
Cash and cash equivalents
Securities available for sale
Loans held for investment, net	315,061,000	331,386,000
Loans held for sale
Restricted stock
Bank-owned life insurance	6,486,000	6,394,000
Mortgage servicing rights	3,010,000	2,394,000
Accrued interest receivable	1,618,000	1,753,000
Deposits	450,552,000	446,669,000
Short-term borrowings
Long-term borrowings
Junior subordinated debt	11,252,000	11,268,000
Accrued interest payable	$ 231,000	$ 270,000

[1] Derived from audited consolidated financial statements

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Fair Values of Financial Instruments and Interest Rate Risk

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Values of Financial Instruments and Interest Rate Risk

Note 11 – Fair Values of Financial Instruments and Interest Rate Risk

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 September 30, 2013 and December 31, 2012, 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 table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of September 30, 2013 and December 31, 2012:

September 30, 2013
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	56,716	$	56,716	$	56,716	$	—	$	—
Securities available for sale		123,126		123,126		23,872		99,254		—
Loans held for investment, net		306,889		315,061		—		—		315,061
Loans held for sale		560		560		—		560		—
Restricted stock		1,319		1,319		1,319		—		—
Bank-owned life insurance		6,486		6,486		—		—		6,486
Mortgage servicing rights		2,436		3,010		—		—		3,010
Accrued interest receivable		1,618		1,618		—		—		1,618
FINANCIAL LIABILITIES
Deposits	$	462,984	$	450,552	$	—	$	—	$	450,552
Short-term borrowings		6,004		6,038		—		6,038		—
Long-term borrowings		38		38		—		38		—
Junior subordinated debt		11,127		11,252		—		—		11,252
Accrued interest payable		231		231		—		—		231

December 31, 2012
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	81,728	$	81,728	$	81,728	$	—	$	—
Securities available for sale		91,638		91,638		19,576		72,062		—
Loans held for investment, net		322,382		331,386		—		—		331,386
Loans held for sale		5,373		5,373		—		5,373		—
Restricted stock		2,265		2,265		2,265		—		—
Bank-owned life insurance		6,394		6,394		—		—		6,394
Mortgage servicing rights		2,394		2,394		—		—		2,394
Accrued interest receivable		1,753		1,753		—		—		1,753
FINANCIAL LIABILITIES
Deposits	$	457,612	$	446,669	$	—	$	—	$	446,669
Short-term borrowings		18,690		18,690		—		18,690		—
Long-term borrowings		1,546		1,702		—		1,702		—
Junior subordinated debt		11,127		11,268		—		—		11,268
Accrued interest payable		270		270		—		—		270

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:

• Cash and cash equivalents – The carrying amount of cash and cash equivalents approximate their fair values due to the short period of time until their expected realization and are recorded in Level 1.

• Securities available for sale – Securities available for sale are carried at fair value based on quoted and observable market prices and are recorded in Levels 1 and 2. Also see discussion in Note 10.

• Loans – The fair value of loans is estimated based on discounted expected cash flows using the current interest rates at which similar loans would be made and carried in level 3. Loans held for sale, which represent current mortgage production forward sales not yet delivered, are valued based on secondary market prices. The fair value of loans does not consider the lack of liquidity and uncertainty in the market that would affect the valuation. Loans held for sale are recorded in Level 2.

• Restricted stock – It is not practicable to determine fair value of restricted stock which is comprised of Federal Home Loan Bank and Federal Reserve Bank stock due to restrictions placed on its transferability and it is presented at its carrying value and is recorded in Level 1 due to the redemption provisions of the Federal Home Loan Bank and the Federal Reserve Bank.

• Bank-owned life insurance – The carrying amount of bank-owned life insurance is the current cash surrender value and is recorded in level 3.

• Mortgage serving rights – Fair value is determined based upon discounted cash flows using market-based assumptions and is recorded in Level 3.

• Accrued interest receivable and payable – Both accrued interest receivable and payable are recorded in Level 3, as there are not active markets for these.

• Deposits – The fair value of deposits is estimated based on discounted cash flow analyses using offered market rates and is recorded in Level 3. The fair value of deposits does not consider any customer related intangibles.

• Borrowings – The fair value disclosed for short-term borrowings, which are composed of overnight borrowings and debt due within one year approximate the carrying value for such debt and is recorded in Level 2. The estimated fair value for long-term borrowings are estimated based on discounted cash flow analyses using offered market rates. Total borrowings are carried in Level 2. Junior subordinated debt is fair valued based on discounted cash flow analyses and is recorded in Level 3.

At September 30, 2013, the 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, they were deemed to have no current fair value. See Note 9.

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Allowance for Loan Losses

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Allowance for Loan Losses

Note 7 – Allowance for Loan Losses

The following table shows the change in the allowance for loss losses by loan segment for the three and nine months periods ended September 30, 2013 and 2012, respectively:

Commercial	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(dollars in thousands)
Balance, beginning of period	$	2,542		$	2,650		$	2,791		$	2,904
Provision (recovery) charged to operations		(259	)		424			(152	)		476
Charge-offs		(217	)		(367	)		(612	)		(721	)
Recoveries		20			5			59			53
Net (charge-offs)		(197	)		(362	)		(553	)		(668	)
Other		(1	)		—			(1	)		—
Balance at end of period	$	2,085		$	2,712		$	2,085		$	2,712

Non-Commercial	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(dollars in thousands)
Balance, beginning of period	$	2,939		$	4,419		$	4,010		$	3,911
Provision (recovery) charged to operations		486			(33	)		(395	)		618
Charge-offs		(257	)		(229	)		(522	)		(400	)
Recoveries		10			14			85			42
Net (charge-offs)		(247	)		(215	)		(437	)		(358	)
Other		(4	)		—			(4	)		—
Balance at end of period	$	3,174		$	4,171		$	3,174		$	4,171

The following table shows period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at September 30, 2013 and December 31, 2012:

September 30, 2013
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	1,278	$	8,732	$	807	$	153,449	$	2,085	$	162,181
Non-Commercial		1,559		10,355		1,615		139,612		3,174		149,967
Total	$	2,837	$	19,087	$	2,422	$	293,061	$	5,259	$	312,148

December 31, 2012
	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	1,428	$	14,979	$	1,363	$	154,767	$	2,791	$	169,746
Non-Commercial		1,606		11,128		2,404		148,309		4,010		159,437
Total	$	3,034	$	26,107	$	3,767	$	303,076	$	6,801	$	329,183

Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following table summarizes the past due information of the loan portfolio by class:

September 30, 2013
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	—	$	307	$	307	$	45,694	$	46,001	$	—
Real estate – commercial		40		2,259		2,299		94,446		96,745		—
Other real estate construction		—		1,581		1,581		17,854		19,435		—
Real estate 1 – 4 family construction		115		—		115		3,495		3,610		—
Real estate – residential		1,587		1,842		3,429		87,348		90,777		—
Home equity		333		213		546		45,587		46,133		—
Consumer loans		73		—		73		8,684		8,757		—
Other loans		—		—		—		690		690		—
Total	$	2,148	$	6,202	$	8,350	$	303,798	$	312,148	$	—

December 31, 2012
	Loans 30-89 Days Past Due		Loans 90 Days or More Past due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	98	$	437	$	535	$	40,855	$	41,390	$	—
Real estate – commercial		708		3,032		3,740		99,564		103,304		—
Other real estate construction		12		2,945		2,957		22,095		25,052		—
Real estate construction		—		—		—		3,080		3,080		—
Real estate – residential		1,309		2,507		3,816		90,216		94,032		—
Home equity		162		558		720		47,797		48,517		—
Consumer loan		218		1		219		12,767		12,986		—
Other loans		—		—		—		822		822		—
Total	$	2,507	$	9,480	$	11,987	$	317,196	$	329,183	$	—

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 90 days or more until they are paid current or charged off. Also, mortgage loans that were originated for sale but were not sold and are being held in the loan portfolio remain in an accruing status until they are foreclosed.

The composition of nonaccrual loans by class as of September 30, 2013 and December 31, 2012 is as follows:

	September 30, 2013		December 31, 2012
	(dollars in thousands)
Commercial	$	307	$	437
Real estate – commercial		2,259		3,032
Other real estate construction		1,581		2,945
Real estate 1 – 4 family construction		—		—
Real estate – residential		1,842		2,507
Home equity		213		558
Consumer loans		—		1
Other loans		—		—
	$	6,202	$	9,480

Management uses a risk-grading program to facilitate the evaluation of probable inherent loan losses and to measure the adequacy of the allowance for loan losses. 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 eight risk grades summarized in five categories as follows:

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

Watch: Loans that are watch credits include loans on management’s watch list where a risk concern may be anticipated in the near future.

Substandard: Loans that are considered substandard are loans that are inadequately protected by current sound net worth, 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 tables below summarize risk grades of the loan portfolio by class at September 30, 2013 and December 31 2012:

September 30, 2013
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	45,189	$	385	$	427	$	—	$	46,001
Real estate – commercial		84,513		6,450		5,782		—		96,745
Other real estate construction		16,640		630		2,165		—		19,435
Real estate 1 – 4 family construction		3,451		159		—		—		3,610
Real estate – residential		73,276		12,437		5,064		—		90,777
Home equity		44,525		922		686		—		46,133
Consumer loans		8,324		360		73		—		8,757
Other loans		690		—		—		—		690
Total	$	276,608	$	21,343	$	14,197	$	—	$	312,148

December 31, 2012
	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	39,800	$	836	$	754	$	—	$	41,390
Real estate – commercial		84,748		9,337		9,219		—		103,304
Other real estate construction		20,684		577		3,477		314		25,052
Real estate 1 – 4 family construction		3,080		—		—		—		3,080
Real estate – residential		78,115		9,728		6,189		—		94,032
Home equity		46,590		914		1,013		—		48,517
Consumer loans		12,360		512		114		—		12,986
Other loans		822		—		—		—		822
Total	$	286,199	$	21,904	$	20,766	$	314	$	329,183

Loans that are in nonaccrual status or 90 days past due and still accruing are considered to be nonperforming. The following tables show the breakdown between performing and nonperforming loans by class at September 30, 2013 and December 31, 2012:

September 30, 2013
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	45,694	$	307	$	46,001
Real estate – commercial		94,486		2,259		96,745
Other real estate construction		17,854		1,581		19,435
Real estate 1 – 4 family construction		3,610		—		3,610
Real estate – residential		88,935		1,842		90,777
Home equity		45,920		213		46,133
Consumer loans		8,757		—		8,757
Other loans		690		—		690
Total	$	305,946	$	6,202	$	312,148

December 31, 2012
	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	40,953	$	437	$	41,390
Real estate – commercial		100,272		3,032		103,304
Other real estate construction		22,107		2,945		25,052
Real estate 1 – 4 family construction		3,080		—		3,080
Real estate – residential		91,524		2,507		94,031
Home equity		47,960		558		48,518
Consumer loans		12,985		1		12,986
Other loans		822		—		822
Total	$	319,703	$	9,480	$	329,183

Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement. If a loan is deemed impaired, a specific calculation is performed and a specific reserve is allocated, if necessary. The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class at September 30, 2013 and December 31, 2012:

September 30, 2013	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance		Recorded Investment Accruing Loans 90 or More Days Past Due		Recorded Investment Loans in Non-accrual
	(dollars in thousands)
Commercial	$	648	$	—	$	529	$	449	$	—	$	307
Real estate – commercial		8,222		4,040		2,119		487		—		2,259
Other real estate construction		2,093		301		1,742		342		—		1,581
Real estate 1 – 4 family construction		375		26		349		16		—		—
Real estate – residential		9,078		4,144		4,934		1,127		—		1,842
Home equity		754		273		481		347		—		213
Consumer loans		148		79		69		69		—		—
Other loans		1		1		—		—		—		—
Total	$	21,319	$	8,864	$	10,223	$	2,837	$	—	$	6,202

December 31, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Related Allowance		Recorded Investment Accruing Loans 90 or More Days Past Due		Recorded Investment Loans in Non-accrual
	(dollars in thousands)
Commercial	$	1,977	$	388	$	1,470	$	616	$	—	$	437
Real estate – commercial		11,299		6,341		2,895		411		—		3,032
Other real estate construction		3,935		2,437		1,448		401		—		2,945
Real estate 1 – 4 family construction		840		713		127		127		—		—
Real estate – residential		8,985		3,994		4,991		1,215		—		2,507
Home equity		1,068		521		547		159		—		558
Consumer loans		235		39		196		105		—		1
Other loans		—		—		—		—		—		—
Total	$	28,339	$	14,433	$	11,674	$	3,034	$	—	$	9,480

	Three Months ended September 30, 2013				Three Months ended September 30, 2012
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	926	$	3	$	1,112	$	23
Real estate – commercial		6,978		48		12,245		153
Other real estate construction		2,091		3		4,168		55
Real estate 1 – 4 family construction		376		7		1,014		15
Real estate – residential		8,727		52		12,680		166
Home equity		908		4		1,333		18
Consumer loans		148		2		343		4
Other loans		—		—		—		—
Total	$	20,154	$	119	$	32,895	$	434

	Nine Months ended September 30, 2013				Nine Months ended September 30, 2012
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(dollars in thousands)
Commercial	$	1,001	$	11	$	1,301	$	50
Real estate – commercial		7,340		186		12,397		493
Other real estate construction		2,108		16		4,112		180
Real estate 1 – 4 family construction		383		18		1,124		31
Real estate – residential		8,693		273		12,261		477
Home equity		954		17		1,244		42
Consumer loans		169		6		332		14
Other loans		—		—		—		—
Total	$	20,648	$	527	$	32,771	$	1,287

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Fair Value Disclosures (Policies)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Policy

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.

Fair Value 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.

Comprehensive Income

In February 2013, the FASB issued ASU 2013-02, an update to ASC 220 “Comprehensive Income”. The amendments in this update do not change the current reporting requirements for net income or other comprehensive income (OCI), but finalize reporting requirements related to reclassifications out of accumulated other comprehensive income (AOCI). Presentation requirements were originally addressed in ASU 2011-05, but delayed by ASU 2011-12 as a result of feedback received and have been modified in this Update to address those concerns. This Update requires entities to provide information about significant amounts reclassified out of AOCI. If the reclassified amount is required to be reclassified in its entirety to net income in the same reporting period, the entity is required to present, either on the face of the income statement or in the notes, the impact of the reclassification on the respective line items of net income. For other amounts that are reclassified partially to the balance sheet and partially to the income statement (i.e. those amounts that are not reclassified in their entirety to net income in the same reporting period), the entity must cross-reference to other disclosures that provide additional detail about those amounts. The update is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this update did not have a significant impact on the Company’s financial statements except for the added disclosures.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2013

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 12 – Recent Accounting Pronouncements

In February 2013, the FASB issued ASU 2013-02, an update to ASC 220 “Comprehensive Income”. The amendments in this update do not change the current reporting requirements for net income or other comprehensive income (OCI), but finalize reporting requirements related to reclassifications out of accumulated other comprehensive income (AOCI). Presentation requirements were originally addressed in ASU 2011-05, but delayed by ASU 2011-12 as a result of feedback received and have been modified in this Update to address those concerns. This Update requires entities to provide information about significant amounts reclassified out of AOCI. If the reclassified amount is required to be reclassified in its entirety to net income in the same reporting period, the entity is required to present, either on the face of the income statement or in the notes, the impact of the reclassification on the respective line items of net income. For other amounts that are reclassified partially to the balance sheet and partially to the income statement (i.e. those amounts that are not reclassified in their entirety to net income in the same reporting period), the entity must cross-reference to other disclosures that provide additional detail about those amounts. The update is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this update did not have a significant impact on the Company’s financial statements except for the added disclosures.

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.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 04, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Entity Registrant Name	UWHARRIE CAPITAL CORP
Entity Central Index Key	0000898171
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,471,204

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Subsequent Events

9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Events

Note 13 – Subsequent Events

On October 3, 2013, the Company received approval to repurchase at par value, the remaining $2.3 million, or 258 shares, of Fixed Rate Cumulative Perpetual Preferred Stock, Series A issued to the United States Treasury under the Capital Purchase Program in December of 2008. This completed the Company’s repurchase at par value of the total $10.0 million of preferred stock issued in December of 2008.

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Subsequent Events - Additional Information (Detail) (Subsequent Events [Member], USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended
	Oct. 03, 2013
Subsequent Event [Line Items]
Stock to be repurchased	$ 10.0
Fixed Rate Cumulative Perpetual Preferred Stock, Series A [Member]
Subsequent Event [Line Items]
Amount of shares to be repurchased	$ 2.3
Number of shares to be repurchased	258

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Fair Values of Financial Instruments and Interest Rate Risk - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract]
Short term borrowings due period	1 year
Current fair value of off-balance sheet financial instruments	$ 0