According to a December 1st shareholder’s letter:

Capital is essential for growth and stability and though we are well capitalized by all standards, we do continuously look for opportunities to create and preserve capital. In this unprecedented year, we will not be paying a stock dividend to shareholders. Historically, through our repurchase program, it has been our practice to annually repurchase an equal amount of shares that the dividend created, which means the dividend has not been dilutive to our shareholders. With our participation in the U.S. Treasury’s Capital Purchase Program, there are restrictions on our ability to repurchase stock. Therefore, given this environment, we have chosen not to dilute our shareholders by issuing a dividend and retain that capital.

One of the reasons that invest in UWHR is because of this yearly stock dividend. I can’t say that I’m not disappointed with their “choice” not to issue this dividend to their loyal shareholders. Especially so, since insiders are being richly rewarded and according to their most recent 3rd quarter report:

Salaries and employee benefits, the largest component of noninterest expense, increased $660 thousand, from $7.9 million for the nine months ending September 30, 2008 to $8.6 million for the same period in 2009.

So, while times are tough for everyone in this economy, I guess it’s only an “unprecedented” year for shareholders.

According to their most recent 8K:

ALBEMARLE, N.C. – Uwharrie Capital Corp, parent company for Bank of Stanly, Anson Bank and Trust and Cabarrus Bank and Trust, reported net income of $905 thousand in the first quarter of 2009, an increase of 16.8% from $775 thousand reported for the first quarter of 2008. Net income available to common shareholders was $743 thousand or $0.10 per common share at March 31, 2009, compared to $775 thousand or $0.10 per common share at March 31, 2008. Net income available to common shareholders is net income less any dividends paid on preferred stock during the period.

Total assets ended the quarter $462 million, up from $411 million, at March 31, 2008, representing 12.4% growth in assets. Total deposits experienced an increase of $35.6 million from $326.8 million at March 31, 2008 to $362.4 million for the same quarter 2009. The Company continues to increase non-interest income, which exceeded $2.3 million through March 31 compared to $1.9 million, representing a 21.1% increase over the prior year’s first quarter. Growth of mortgage origination fees account for this increase as homeowners continue to take advantage of the current interest rate environment.

Yearly results for Uwharrie Capital Corp were just posted. According the their 8K and press release:

ALBEMARLE, N.C. – Uwharrie Capital Corp, parent company for Bank of Stanly, Anson Bank & Trust and Cabarrus Bank & Trust, reported unaudited earnings from operations of $3.802 million for the year ended December 31, 2008 as compared to $4.261 million for the same period in 2007. Although our markets have held up better than most across the country, we are not immune to the current economic conditions and we will continue to be vigilant and disciplined in our credit administration and operating decisions. During the year ended December 31, 2008, the Company provided loan loss provisions of $969 thousand as compared to $15 thousand for the same period in 2007. Net income for 2008, after this provision and taxes, was $2.029 million or $0.27 per share compared to $2.959 million or $0.39 per share in 2007.

Pretty good for a two dollar stock.