Fair Values of Financial Instruments

6 Months Ended

Jun. 30, 2025

Investments, All Other Investments [Abstract]

Note 11 – Fair Values of Financial Instruments

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

The fair value estimates presented at June 30, 2025 and December 31, 2024 are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price at which a liability could be settled. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The estimated fair values disclosed in the following table do not represent market values of all assets and liabilities of the Company and should not be interpreted to represent the underlying value of the Company.

The following tables reflect a comparison of carrying amounts and the estimated fair value of the financial instruments as of June 30, 2025 and December 31, 2024:


June 30, 2025	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	73,274	$	73,274	$	73,274	$	—	$	—
Securities available for sale		340,985		340,985		23,705		317,280		—
Securities held to maturity		23,699		21,047		—		10,073		10,974
Equity securities		325		325		325		—		—
Loans held for investment, net		671,325		642,928		—		—		642,928
Loans held for sale		9,147		9,147		—		9,147		—
Restricted stock		1,749		1,749		1,749		—		—
Loan servicing assets		3,828		7,447		—		7,447		—
Mortgage banking derivatives		1,076		1,076		—		104		972
Accrued interest receivable		4,300		4,300		—		—		4,300

FINANCIAL LIABILITIES
Deposits	$	1,062,364		1,061,735		—		1,061,735		—
Short-term borrowings		1,132		1,132		—		1,132		—
Long-term borrowings		29,200		26,150		—		—		26,150
Mortgage banking derivatives		170		170		—		170		—
Accrued interest payable		468		468		—		—		468


December 31, 2024	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	52,267	$	52,267	$	52,267	$	—	$	—
Securities available for sale		332,986		332,986		29,894		303,092		—
Securities held to maturity		26,745		24,561		—		10,735		13,826
Equity securities		334		334		334		—		—
Loans held for investment, net		660,553		629,111		—		—		629,111
Loans held for sale		4,561		4,561		—		4,561		—
Restricted stock		1,709		1,709		1,709		—		—
Loan servicing assets		3,903		7,323		—		7,323		—
Mortgage banking derivatives		795		795		—		204		591
Accrued interest receivable		4,355		4,355		—		—		4,355

FINANCIAL LIABILITIES
Deposits	$	1,030,236	$	1,029,696	$	—	$	1,029,696	$	—
Short-term borrowings		1,414		1,414		—		1,414		—
Long-term borrowings		29,161		25,725		—		—		25,725
Accrued interest payable		505		505		—		—		505

At June 30, 2025 the Company’s subsidiary bank had outstanding standby letters of credit and commitments to extend credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed; therefore, the fair value is the fee the Bank is expected to receive. This amount is deemed immaterial by management. See Note 9 (Commitments and Contingencies) to the Company’s Notes to Consolidated Financial Statements.

UWHARRIE CAPITAL CORP 10-Q