10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


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

For the quarterly period ended March 31, 2025


☐	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)

Securities registered pursuant to Section 12(b) of the Act:

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     None

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. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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


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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 7,055,277 shares of common stock outstanding as of May 5, 2025.

Table of Contents


		Page No.

Part I.	FINANCIAL INFORMATION	2

Item 1 -	Financial Statements (Unaudited)	2

	Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	2

	Consolidated Statements of Income for the Three Months Ended March 31, 2025 and 2024	3

	Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2025 and 2024	4

	Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2025 and 2024	5

	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	6

	Notes to Consolidated Financial Statements	7

Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Item 3 -	Quantitative and Qualitative Disclosures About Market Risk	32

Item 4 -	Controls and Procedures	32

Part II.	OTHER INFORMATION	33

Item 1 -	Legal Proceedings	33

Item 1A -	Risk Factors	33

Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3 -	Defaults Upon Senior Securities	33

Item 4 -	Mine Safety Disclosures	33

Item 5 -	Other Information	33

Item 6 -	Exhibits	34

	Signatures	35

Uwharrie Capital Corp and Subsidiaries

Consolidated Balance Sheets

Part I. Financial Information

Item 1. Financial Statements.


	March 31, 2025 (Unaudited)			December 31, 2024*
	(dollars in thousands)
ASSETS
Cash and due from banks	$	10,124		$	9,713
Interest-earning deposits with banks		67,076			42,554
Cash and cash equivalents		77,200			52,267
Securities available for sale, at fair value (amortized cost $372,868 and $365,088 respectively)		343,866			332,986
Securities held to maturity, at amortized cost (fair value $24,226 and $24,561 respectively)		26,784			26,813
Less allowance for credit losses on securities held to maturity		(68	)		(68	)
Net securities held to maturity		26,716			26,745
Equity securities, at fair value		311			334
Loans held for sale		4,546			4,561
Loans held for investment		664,902			666,377
Less allowance for credit losses on loans		(6,065	)		(5,824	)
Net loans held for investment		658,837			660,553
Premises and equipment, net		14,208			14,479
Interest receivable		4,697			4,355
Restricted stock		1,748			1,709
Bank-owned life insurance		7,972			7,938
Deferred income tax benefit		8,282			8,983
Loan servicing assets		3,834			3,903
Mortgage banking derivatives		1,193			795
Other assets		9,999			9,200
Total assets	$	1,163,409		$	1,128,808

LIABILITIES
Deposits:
Demand noninterest-bearing	$	282,049		$	272,355
Interest checking and money market accounts		405,730			395,079
Savings deposits		95,810			92,954
Time deposits, $250,000 and over		134,444			133,335
Other time deposits		141,258			136,513
Total deposits		1,059,291			1,030,236
Short-term borrowed funds		1,467			1,414
Long-term debt		29,180			29,161
Mortgage banking derivatives		102			—
Other liabilities		11,023			10,318
Total liabilities		1,101,063			1,071,129

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

SHAREHOLDERS’ EQUITY
Common stock, $1.25 par value: 20,000,000 shares authorized; shares issued and outstanding 7,061,777 and 7,077,941 at March 31, 2025 and December 31, 2024, respectively		8,827			8,847
Additional paid-in capital		12,427			12,553
Undivided profits		52,765			50,351
Accumulated other comprehensive loss		(22,328	)		(24,727	)
Total Uwharrie Capital Corp shareholders’ equity		51,691			47,024
Noncontrolling interest		10,655			10,655
Total shareholders’ equity		62,346			57,679
Total liabilities and shareholders’ equity	$	1,163,409		$	1,128,808

(*) Derived from audited consolidated financial statements

See accompanying notes

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Income (Unaudited)


	Three Months Ended March 31,
	2025			2024
	(in thousands, except share and per share data)
Interest Income
Loans, including fees	$	10,225		$	8,794
Investment securities:
Investment securities, taxable		2,777			2,921
Investment securities, non-taxable		305			312
Equity Securities		5			5
Interest-earning deposits with banks and federal funds sold		490			626
Total interest income		13,802			12,658
Interest Expense
Interest checking and money market accounts		1,560			1,599
Savings deposits		134			139
Time deposits, $250,000 and over		1,343			858
Other time deposits		1,318			1,133
Short-term borrowed funds		12			61
Long-term debt		331			330
Total interest expense		4,698			4,120
Net interest income		9,104			8,538
Provision for (recovery of) credit losses on:
Loans		288			(5	)
Securities held to maturity		—			10
Unfunded loan commitments		(7	)		(35	)
Total provision for (recovery of) credit losses		281			(30	)
Net interest income after provision for (recovery of) credit losses		8,823			8,568
Noninterest Income
Service charges on deposit accounts		259			268
Other service fees and commissions		981			931
Interchange and card transaction fees, net		249			288
Loss on sale/call of securities		—			(148	)
Realized/unrealized gain (loss) on equity securities		(23	)		41
Income from mortgage banking		1,051			834
Supplemental executive retirement plan loss		(249	)		(12	)
Other income		113			127
Total noninterest income		2,381			2,329
Noninterest Expense
Salaries and employee benefits		5,420			5,214
Net occupancy expense		464			425
Equipment expense		204			207
Data processing costs		213			230
Loan costs		89			33
Professional fees and services		270			264
Marketing and donations		359			366
Electronic banking expense		111			100
Software amortization and maintenance		364			330
FDIC insurance		129			123
Supplemental executive retirement plan loss		(249	)		(12	)
Other noninterest expense		554			602
Total noninterest expense		7,928			7,882
Income before income taxes		3,276			3,015
Income taxes		723			632
Net income	$	2,553		$	2,383
Consolidated net income	$	2,553		$	2,383
Less: net income attributable to noncontrolling interest		(139	)		(141	)
Net income attributable to common shareholders		2,414			2,242
Net income per common share
Basic	$	0.34		$	0.31
Diluted	$	0.34		$	0.31
Weighted average common shares outstanding
Basic		7,075,865			7,264,925
Diluted		7,075,865			7,264,925

See accompanying notes

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended March 31,
	2025			2024
	(dollars in thousands)
Net income	$	2,553		$	2,383
Other comprehensive income (loss):
Unrealized gain (loss) on available for sale securities		3,101			(1,445	)
Related tax effect		(702	)		332
Total other comprehensive income (loss)		2,399			(1,113	)
Comprehensive income		4,952			1,270
Less: Comprehensive income attributable to noncontrolling interest		(139	)		(141	)
Comprehensive income attributable to Uwharrie Capital Corp	$	4,813		$	1,129

See accompanying notes

Uwharrie Capital Corp and Subsidiaries

Consolidated Statement of Changes in Shareholders’ Equity (Unaudited)


	Number of Common Shares Issued			Common Stock			Additional Paid-in Capital			Undivided Profits		Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest			Total
	(dollars in thousands, except share data)
Balance, December 31, 2023		7,124,438		$	8,905		$	12,876		$	42,105	$	(25,100	)	$	10,655		$	49,441
Net Income		—			—			—			2,242		—			141			2,383
Repurchase of common stock		(21,435	)		(26	)		(141	)		—		—			—			(167	)
Other comprehensive loss		—			—			—			—		(1,113	)		—			(1,113	)
Record preferred stock dividend series B (noncontrolling interest)		—			—			—			—		—			(104	)		(104	)
Record preferred stock dividend series C (noncontrolling interest)		—			—			—			—		—			(37	)		(37	)
Balance, March 31, 2024		7,103,003		$	8,879		$	12,735		$	44,347	$	(26,213	)	$	10,655		$	50,403

Balance, December 31, 2024		7,077,941		$	8,847		$	12,553		$	50,351	$	(24,727	)	$	10,655		$	57,679
Net Income		—			—			—			2,414		—			139			2,553
Repurchase of common stock		(16,164	)		(20	)		(126	)		—		—			—			(146	)
Other comprehensive income		—			—			—			—		2,399			—			2,399
Record preferred stock dividend series B (noncontrolling interest)		—			—			—			—		—			(103	)		(103	)
Record preferred stock dividend series C (noncontrolling interest)		—			—			—			—		—			(36	)		(36	)
Balance, March 31, 2025		7,061,777		$	8,827		$	12,427		$	52,765	$	(22,328	)	$	10,655		$	62,346

See accompanying notes

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)


	Three Months Ended March 31,
	2025			2024
	(dollars in thousands)
Cash flows from operating activities
Net income	$	2,553		$	2,383
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		270			278
Right of use asset amortization		98			96
Provision for (recovery of) for credit losses		281			(30	)
Loss on call of securities held to maturity		—			148
Gain on sale of mortgage loans		(370	)		(54	)
Gain on sale of OREO		(78	)		—
Realized/unrealized (gain) loss on equity securities		23			(41	)
Net amortization of premium on investment securities available for sale		465			438
Net amortization of premium on investment securities held to maturity		29			36
Amortization of loan servicing assets		289			288
Originations and purchases of mortgage loans for sale		(29,039	)		(21,457	)
Proceeds from sales of mortgage loans for sale		29,424			20,907
Mortgage banking derivatives		(296	)		(471	)
Loan servicing assets		(220	)		(181	)
Accrued interest receivable		(342	)		(372	)
Prepaid assets		(142	)		(352	)
Cash surrender value of life insurance		(34	)		(35	)
Miscellaneous other assets		(552	)		281
Accrued interest payable		7			143
Miscellaneous other liabilities		705			49
Net cash provided by operating activities		3,071			2,054
Cash flows from investing activities
Proceeds from maturities, calls and paydowns of securities available for sale		10,285			9,650
Proceeds from maturities, calls and paydowns of securities held to maturity		—			134
Purchase of investment securities available for sale		(18,529	)		(13,266	)
Purchase of investments in other assets		—			(200	)
Proceeds from distributions of investments in other assets		—			97
Net change in restricted stock		(39	)		(37	)
Net (increase) decrease in loans		1,322			(21,770	)
Purchase of premises and equipment		(78	)		(160	)
Proceeds from sale of OREO		78			—
Net cash used by investing activities		(6,961	)		(25,552	)
Cash flows from financing activities
Net increase in deposit accounts		29,055			18,110
Net increase in federal funds purchased and other short-term borrowings		53			4,911
Repurchase of common stock, net		(146	)		(167	)
Dividends paid on preferred stock (noncontrolling interest)		(139	)		(141	)
Net cash provided by financing activities		28,823			22,713
Increase (decrease) in cash and cash equivalents		24,933			(785	)
Cash and cash equivalents, beginning of period		52,267			63,434
Cash and cash equivalents, end of period	$	77,200		$	62,649
Supplemental disclosures of cash flow information
Interest paid	$	4,672		$	3,956
Income taxes paid		—			993
Supplemental schedule of non-cash activities
Net change in fair value of securities available for sale, net of tax	$	2,399		$	(1,113	)
Loans transferred to foreclosed real estate		106			—

See accompanying notes

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, Uwharrie Bank (the “Bank”), Uwharrie Investment Advisors, Inc. (“UIA”), and Uwharrie Mortgage, Inc. The Bank consolidates its subsidiaries, The Strategic Alliance Corporation (“TSAC”), BOS Agency, Inc. (“BOS Agency”) and Gateway Mortgage, Inc., each of which is wholly owned by the Bank.

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

The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to consolidated financial statements filed as part of the Company’s 2024 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 6, 2025. This Quarterly Report should be read in conjunction with such Annual Report.

Use of Estimates

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

Accounting Changes and Reclassifications

The Company’s significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements for the year ended December 31, 2024 and are contained in the Company’s Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2024.

Note 2 – Comprehensive Income (Loss)

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

The following table presents the changes in accumulated other comprehensive loss for the three months ended March 31, 2025 and 2024:


	For the Three Months Ended March 31,
	2025			2024
	(dollars in thousands)
Beginning balance	$	(24,727	)	$	(25,100	)
Other comprehensive income (loss) before reclassifications, net of ($702) and $332 tax effect, respectively		2,399			(1,113	)
Amounts reclassified from accumulated other comprehensive income (loss), net of $0 and $0 tax effect, respectively		—			—
Net current-period other comprehensive income (loss)		2,399			(1,113	)
Ending balance	$	(22,328	)	$	(26,213	)

Note 3 – Noncontrolling Interest

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

Note 4 – Per Share Data

Basic and diluted net income per common share is computed based on the weighted average number of shares outstanding during each period after retroactively adjusting for stock dividends. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income of the Company. The Company had no stock options outstanding at March 31, 2025 or December 31, 2024. The number of shares and earnings per share for the 2024 periods have been adjusted for the 2% stock dividend declared on October 15, 2024.

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

The weighted average number of common shares outstanding was 7,075,865 for the three-month period ended March 31, 2025 compared to 7,264,925 for the three-month period ended March 31, 2024.

Note 5 – Investment and Equity Securities

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


March 31, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale:
U.S. Treasury	$	30,924	$	—	$	2,505	$	28,419
U.S. government agencies		47,692		100		842		46,950
GSE - Mortgage-backed securities and CMOs		171,150		491		10,900		160,741
Asset-backed securities		22,618		337		42		22,913
State and political subdivisions		94,484		49		15,480		79,053
Corporate bonds		6,000		—		210		5,790
Total securities available for sale	$	372,868	$	977	$	29,979	$	343,866


March 31, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Securities held to maturity:
State and political subdivisions	$	11,784	$	—	$	1,417	$	10,367	$	—	$	11,784
Corporate bonds		15,000		—		1,141		13,859		68		14,932
Total securities held to maturity	$	26,784	$	—	$	2,558	$	24,226	$	68	$	26,716


December 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale:
U.S. Treasury	$	32,961	$	—	$	3,067	$	29,894
U.S. government agencies		42,667		97		1,035	$	41,729
GSE - Mortgage-backed securities and CMOs		165,561		198		12,970	$	152,789
Asset-backed securities		23,215		407		44	$	23,578
State and political subdivisions		94,684		5		15,436	$	79,253
Corporate bonds		6,000		—		257	$	5,743
Total securities available for sale	$	365,088	$	707	$	32,809	$	332,986


December 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Securities held to maturity:
State and political subdivisions	$	11,813	$	—	$	1,078	$	10,735	$	—	$	11,813
Corporate bonds		15,000		—		1,174		13,826		68		14,932
Total securities held to maturity	$	26,813	$	—	$	2,252	$	24,561	$	68	$	26,745

The Company owned Federal Reserve Bank (FRB) stock reported at cost of $959,000 at March 31, 2025 and December 31, 2024. The Company owned Federal Home Loan Bank (FHLB) stock reported at cost of $789,000 and $750,000 at March 31, 2025 and December 31, 2024, respectively. The investments in FRB stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks and are classified as restricted stock on the consolidated balance sheet. These investments are carried at cost since there is no ready market and redemption has historically been made at par value. The Company estimated that the fair value approximated cost and that these investments were not impaired at March 31, 2025.

There is no allowance for credit losses on available for sale securities. The following table shows a rollforward of the allowance for credit losses on held to maturity securities for the three months ended March 31, 2025.


	State and political subdivisions		Corporate bonds		Total
	(dollars in thousands)
Balance, December 31, 2024	$	—	$	68	$	68
Provision for credit losses		—		—		—
Charge-offs of securities		—		—		—
Recoveries		—		—		—
Balance, March 31, 2025	$	—	$	68	$	68

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

The following table summarizes the credit ratings of debt securities held to maturity, presented at amortized cost, by major security type at March 31, 2025.


March 31, 2025	State and political subdivisions		Corporate bonds		Total
	(dollars in thousands)
Aaa	$	—	$	—	$	—
Aa1/Aa2/Aa3		11,784		—		11,784
A1/A2		—		—		—
BBB		—		—		—
Not rated		—		15,000		15,000
Total	$	11,784	$	15,000	$	26,784

At March 31, 2025, the Company had no securities held to maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held to maturity classified as nonaccrual for the three months ended March 31, 2025.

The Company had no sales of securities available for sale during the three-month periods ended March 31, 2025 and 2024.

At March 31, 2025 and December 31, 2024, securities available for sale with a carrying amount of $166.2 million and $161.5 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

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

The following tables show the gross unrealized losses and estimated fair value of available for sale securities, for which an allowance has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2025 and December 31, 2024.


	Less than 12 Months						12 Months or More						Total
March 31, 2025	Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(dollars in thousands)
Securities available for sale:
U.S. Treasury		—	$	—	$	—		6	$	28,419	$	2,505	$	28,419	$	2,505
U.S. government agencies		11		15,624		69		26		20,046		773		35,670		842
GSE-Mortgage-backed securities and CMOs		15		33,609		206		57		89,887		10,694		123,496		10,900
Asset-backed securities		2		2,812		14		3		3,131		28		5,943		42
State and political subdivisions		4		5,648		136		57		69,780		15,344		75,428		15,480
Corporate bonds		—		—		—		3		5,790		210		5,790		210
Total securities available for sale		32	$	57,693	$	425		152	$	217,053	$	29,554	$	274,746	$	29,979


	Less than 12 Months						12 Months or More						Total
December 31, 2024	Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(dollars in thousands)
Securities available for sale
U.S. Treasury		—	$	—	$	—		7	$	29,894	$	3,067	$	29,894	$	3,067
U.S. government agencies		9		9,956		134		24		19,995		901		29,951		1,035
GSE-Mortgage-backed securities and CMOs		19		32,580		313		57		97,798		12,657		130,378		12,970
Asset-backed securities		2		2,872		21		3		4,189		23		7,061		44
State and political subdivisions		5		7,773		253		57		70,169		15,183		77,942		15,436
Corporate bonds		—		—		—		3		5,743		257		5,743		257
Total securities available for sale		35	$	53,181	$	721		151	$	227,788	$	32,088	$	280,969	$	32,809

Declines in the fair value of the available for sale investment portfolio are believed by management to be temporary in nature. When evaluating an investment for credit loss, management considers, among other things, the extent to which the fair value has been in a loss position; the financial condition of the issuer through the review of credit ratings and, if necessary, corporate financial statements; adverse conditions specifically related to the security such as past due principal or interest; underlying assets that collateralize the debt security; other economic conditions and demographics; and the intent and ability of the Company to hold the investment until the loss position is recovered. Any unrealized losses were largely due to increases in market interest rates over the yields available at the time of purchase. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. At March 31, 2025, the Company did not intend to sell and believed it was not likely to be required to sell the available for sale securities that were in a loss position prior to full recovery.

The following tables show contractual maturities of the investment portfolio as of March 31, 2025:


	March 31, 2025
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities available for sale:
Due within twelve months		7,099		7,086		2.77	%
Due after one but within five years		66,557		61,461		1.84	%
Due after five but within ten years		49,005		43,529		2.54	%
Due after ten years		250,207		231,790		3.77	%
	$	372,868	$	343,866		3.25	%


	March 31, 2025
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities held to maturity:
Due after one but within five years		3,000		2,948		8.50	%
Due after five but within ten years		14,631		13,384		4.04	%
Due after ten years		9,153		7,894		3.35	%
	$	26,784	$	24,226		4.30	%

The portion of unrealized gains and losses for the three months ended March 31, 2025 and 2024 related to equity securities still held at the reporting date is calculated as follows:


	Three Months Ended March 31,
	2025			2024
	(dollars in thousands)
Gross proceeds from sales	$	—		$	—

Net gains (losses) recognized during the period on equity securities	$	(23	)	$	41
Less: Net gains (losses) recognized from equity securities sold during the period		—			—
Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date	$	(23	)	$	41

Note 6 – Loans Held for Investment

The composition of net loans held for investment by class as of March 31, 2025 and December 31, 2024 was as follows:


	March 31, 2025			December 31, 2024
	(dollars in thousands)
Commercial
Commercial	$	109,330		$	104,872
Real estate - commercial		248,571			245,569
Other real estate construction loans		42,317			50,940
Other loans		5,096			6,408
Noncommercial
Real estate 1-4 family construction		26,464			27,789
Real estate - residential		151,420			150,667
Home equity		70,188			68,287
Consumer loans		10,653			11,020
		664,039			665,552
Less:
Allowance for credit losses		(6,065	)		(5,824	)
Deferred loan costs net		863			825

Loans held for investment, net	$	658,837		$	660,553

Note 7 – Allowance for Credit Losses on Loans

The following tables summarize the activity related to the allowance for credit losses on loans for the three months ended March 31, 2025 and 2024.


	Commercial Loans										Noncommercial Loans
	Commercial			Real estate commercial		Other real estate construction			Other loans		Real estate 1-4 family construction		Real estate residential		Home equity		Consumer			Total
	(dollars in thousands)
Balance, December 31, 2024	$	1,528		$	2,266	$	412		$	18	$	56	$	781	$	588	$	175		$	5,824
Provision for (recovery of) credit losses		154			58		(72	)		2		1		27		64		54			288
Charge-offs		(16	)		—		—			—		—		—		—		(72	)		(88	)
Recoveries		33			—		—			—		—		1		—		7			41
Net (charge-offs) recoveries		17			—		—			—		—		1		—		(65	)		(47	)
Balance, March 31, 2025	$	1,699		$	2,324	$	340		$	20	$	57	$	809	$	652	$	164		$	6,065


	Commercial Loans											Noncommercial Loans
	Commercial			Real estate commercial			Other real estate construction			Other loans		Real estate 1-4 family construction		Real estate residential		Home equity		Consumer			Total
	(dollars in thousands)
Balance, December 31, 2023	$	1,493		$	2,057		$	389		$	9	$	31	$	796	$	582	$	204		$	5,561
Provision for (recovery of) credit losses		(16	)		(24	)		(66	)		2		3		58		18		20			(5	)
Charge-offs		—			—			—			—		—		—		—		(45	)		(45	)
Recoveries		3			—			—			—		—		1		—		8			12
Net (charge-offs) recoveries		3			—			—			—		—		1		—		(37	)		(33	)
Balance, March 31, 2024	$	1,480		$	2,033		$	323		$	11	$	34	$	855	$	600	$	187		$	5,523

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


March 31, 2025	Loans 30-89 Days Past Due		Nonaccrual Loans		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(dollars in thousands)
Commercial	$	—	$	88	$	88	$	109,240	$	109,328	$	—
Real estate - commercial		—		—		—		248,677		248,677		—
Other real estate construction		—		—		—		42,317		42,317		—
Real estate 1-4 family construction		—		—		—		26,464		26,464		—
Real estate - residential		229		75		304		151,875		152,179		—
Home equity		115		108		223		69,965		70,188		—
Consumer loans		11		—		11		10,642		10,653		—
Other loans		—		—		—		5,096		5,096		—
Total	$	355	$	271	$	626	$	664,276	$	664,902	$	—


December 31, 2024	Loans 30-89 Days Past Due		Nonaccrual Loans		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(dollars in thousands)
Commercial	$	9	$	88	$	97	$	104,773	$	104,870	$	—
Real estate - commercial		43		—		43		245,636		245,679		—
Other real estate construction		—		—		—		50,940		50,940		—
Real estate 1-4 family construction		—		—		—		27,789		27,789		—
Real estate - residential		429		64		493		150,891		151,384		—
Home equity		176		40		216		68,071		68,287		—
Consumer loan		42		—		42		10,978		11,020		—
Other loans		—		—		—		6,408		6,408		—
Total	$	699	$	192	$	891	$	665,486	$	666,377	$	—

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

The carrying value of foreclosed properties held as other real estate was $106,000 at March 31, 2025 and $0 at December 31, 2024. The Company had $106,000 of foreclosed residential real estate and $16,000 of residential real estate in process of foreclosure at March 31, 2025. At December 31, 2024, the Company had no foreclosed residential real estate and $93,000 of residential real estate in process of foreclosure.

The composition of nonaccrual loans by class as of March 31, 2025 and December 31, 2024 was as follows:


							Three Months Ended
	March 31, 2025						March 31, 2025
	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans		Interest Income
	(dollars in thousands)
Commercial	$	—	$	88	$	88	$	—
Real estate - commercial		—		—		—		—
Other real estate construction		—		—		—		—
Real estate 1-4 family construction		—		—		—		—
Real estate - residential		—		75		75		3
Home equity		—		108		108		—
Consumer loans		—		—		—		—
Other loans		—		—		—		—
	$	—	$	271	$	271	$	3


							Three Months Ended
	December 31, 2024						March 31, 2024
	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans		Interest Income
	(dollars in thousands)
Commercial	$	—	$	88	$	88	$	—
Real estate - commercial		—		—		—		—
Other real estate construction		—		—		—		—
Real estate 1-4 family construction		—		—		—		—
Real estate - residential		—		64		64		10
Home equity		—		40		40		—
Consumer loans		—		—		—		—
Other loans		—		—		—		—
	$	—	$	192	$	192	$	10

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

At March 31, 2025 and December 31, 2024, the Company had no collateral dependent loans in nonaccrual status that required individual assessment.

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

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

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

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

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

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

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

The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of March 31, 2025:


March 31, 2025	Term Loans by Year of Origination
	2025		2024		2023		2022		2021		Prior		Revolving		Total
	(dollars in thousands)
Commercial
Pass	$	7,743	$	24,461	$	18,169	$	12,971	$	11,861	$	12,076	$	21,867	$	109,148
Watch		6		46		5		—		—		—		35		92
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		88		—		—		88
Total commercial		7,749		24,507		18,174		12,971		11,949		12,076		21,902		109,328

Real estate - commercial
Pass		2,913		45,702		52,925		45,964		36,189		61,255		2,720		247,668
Watch		—		—		—		—		—		60		—		60
Special Mention		—		—		—		—		552		29		—		581
Substandard		—		—		—		—		—		368		—		368
Total real estate - commercial		2,913		45,702		52,925		45,964		36,741		61,712		2,720		248,677

Other real estate construction
Pass		1,124		14,151		13,807		4,585		2,062		5,283		1,262		42,274
Watch		—		—		—		—		—		43		—		43
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total other real estate construction		1,124		14,151		13,807		4,585		2,062		5,326		1,262		42,317

Real estate 1-4 family construction
Pass		862		19,615		2,962		—		—		—		3,025		26,464
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total real estate 1-4 family construction		862		19,615		2,962		—		—		—		3,025		26,464

Real estate - residential
Pass		7,781		27,090		35,132		33,548		21,389		24,428		1,453		150,821
Watch		—		—		—		—		203		555		—		758
Special Mention		—		—		103		—		120		66		—		289
Substandard		—		—		—		—		—		311		—		311
Total real estate - residential		7,781		27,090		35,235		33,548		21,712		25,360		1,453		152,179

Home equity
Pass		116		46		432		157		126		1,792		67,133		69,802
Watch		—		—		—		—		—		83		—		83
Special Mention		—		—		75		100		—		20		—		195
Substandard		—		—		—		—		108		—		—		108
Total home equity		116		46		507		257		234		1,895		67,133		70,188

Consumer loans
Pass		1,268		3,051		1,542		799		139		355		3,489		10,643
Watch		—		10		—		—		—		—		—		10
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total consumer loans		1,268		3,061		1,542		799		139		355		3,489		10,653

Other loans
Pass		200		640		—		1,598		1,136		1,522		—		5,096
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total other loans		200		640		—		1,598		1,136		1,522		—		5,096

Total Pass		22,007		134,756		124,969		99,622		72,902		106,711		100,949		661,916
Total Watch		6		56		5		—		203		741		35		1,046
Total Special Mention		—		—		178		100		672		115		—		1,065
Total Substandard		—		—		—		—		196		679		—		875
Total loans	$	22,013	$	134,812	$	125,152	$	99,722	$	73,973	$	108,246	$	100,984	$	664,902

During the three months ended March 31, 2025, twenty-eight loans totaling $639,000 were converted from revolving to term loans.

The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of December 31, 2024:


December 31, 2024	Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
	(dollars in thousands)
Commercial
Pass	$	25,634	$	18,992	$	14,319	$	11,948	$	2,292	$	10,270	$	20,964	$	104,419
Watch		48		117		—		—		—		—		182		347
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		15		—		88		—		—		—		103
Total commercial		25,682		19,124		14,319		12,036		2,292		10,270		21,146		104,869

Real estate - commercial
Pass		38,684		55,090		48,600		30,383		20,722		48,127		3,040		244,646
Watch		—		—		—		—		—		63		—		63
Special Mention		—		—		—		561		—		32		—		593
Substandard		—		—		—		—		113		264		—		377
Total real estate - commercial		38,684		55,090		48,600		30,944		20,835		48,486		3,040		245,679

Other real estate construction
Pass		22,447		15,004		4,981		2,287		3,211		2,172		795		50,897
Watch		—		—		—		—		—		44		—		44
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total other real estate construction		22,447		15,004		4,981		2,287		3,211		2,216		795		50,941

Real estate 1-4 family construction
Pass		19,845		7,944		—		—		—		—		—		27,789
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total real estate 1-4 family construction		19,845		7,944		—		—		—		—		—		27,789

Real estate - residential
Pass		29,936		37,448		34,018		21,613		10,473		14,397		1,829		149,714
Watch		—		—		—		204		365		490		—		1,059
Special Mention		—		104		—		122		—		83		—		309
Substandard		—		—		—		—		—		302		—		302
Total real estate - residential		29,936		37,552		34,018		21,939		10,838		15,272		1,829		151,384

Home equity
Pass		57		255		159		192		402		1,679		65,158		67,902
Watch		—		—		—		—		—		84		140		224
Special Mention		—		—		100		—		—		20		—		120
Substandard		—		—		—		—		—		41		—		41
Total home equity		57		255		259		192		402		1,824		65,298		68,287

Consumer loans
Pass		3,934		1,944		985		170		70		320		3,586		11,009
Watch		11		—		—		—		—		—		—		11
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total consumer loans		3,945		1,944		985		170		70		320		3,586		11,020

Other loans
Pass		644		—		1,598		2,602		1,211		353		—		6,408
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total other loans		644		—		1,598		2,602		1,211		353		—		6,408

Total Pass		141,181		136,677		104,660		69,195		38,381		77,318		95,372		662,784
Total Watch		59		117		—		204		365		681		322		1,748
Total Special Mention		—		104		100		683		—		135		—		1,022
Total Substandard		—		15		—		88		113		607		—		823
Total loans	$	141,240	$	136,913	$	104,760	$	70,170	$	38,859	$	78,741	$	95,694	$	666,377

The following tables present gross charge-offs by origination date as of March 31, 2025 and December 31, 2024:


March 31, 2025	Gross Loan Charge-offs by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
	(dollars in thousands)
Commercial
Commercial	$	—	$	—	$	16	$	—	$	—	$	—	$	—	$	16
Real estate - commercial		—		—		—		—		—		—		—		—
Other real estate construction		—		—		—		—		—		—		—		—
Other loans		—		—		—		—		—		—		—		—
Noncommercial
Real estate 1-4 family construction		—		—		—		—		—		—		—		—
Real estate - residential		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Consumer loans		29		5		1		—		—		—		37		72
Total charge-offs	$	29	$	5	$	17	$	—	$	—	$	—	$	37	$	88


December 31, 2024	Gross Loan Charge-offs by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
	(dollars in thousands)
Commercial
Commercial	$	—	$	10	$	—	$	137	$	164	$	—	$	10	$	321
Real estate - commercial		—		—		—		—		—		—		—		—
Other real estate construction		—		—		—		—		—		—		—		—
Other loans		—		—		—		—		—		—		—		—
Noncommercial
Real estate 1-4 family construction		—		—		—		—		—		—		—		—
Real estate - residential		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		1		—		1
Consumer loans		12		51		7		12		7		4		65		158
Total charge-offs	$	12	$	61	$	7	$	149	$	171	$	5	$	75	$	480

Loans that are in nonaccrual status or 90 days past due and still accruing are considered to be nonperforming. At both March 31, 2025 and December 31, 2024 there were no loans 90 days past due and still accruing. The following tables show the breakdown between performing and nonperforming loans by class at March 31, 2025 and December 31, 2024:


March 31, 2025	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	109,240	$	88	$	109,328
Real estate - commercial		248,677		—		248,677
Other real estate construction		42,317		—		42,317
Real estate 1-4 family construction		26,464		—		26,464
Real estate - residential		152,104		75		152,179
Home equity		70,080		108		70,188
Consumer loans		10,653		—		10,653
Other loans		5,096		—		5,096
Total	$	664,631	$	271	$	664,902


December 31, 2024	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	104,782	$	88	$	104,870
Real estate - commercial		245,679		—		245,679
Other real estate construction		50,940		—		50,940
Real estate 1-4 family construction		27,789		—		27,789
Real estate - residential		151,320		64		151,384
Home equity		68,247		40		68,287
Consumer loans		11,020		—		11,020
Other loans		6,408		—		6,408
Total	$	666,185	$	192	$	666,377

Modifications to Borrowers Experiencing Financial Difficulty

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

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

There were no loans modified for borrowers experiencing financial difficulty during the three months ended March 31, 2025 or during the twelve months ended December 31, 2024.

The Company did not have any loans made to borrowers experiencing financial difficulty that were modified during the twelve months ended December 31, 2024 that subsequently defaulted. A default on a modified loan is defined as being past due 90 days or being out of compliance with the modification agreement. The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

Note 8 - Leases

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

Our leases relate to four office locations, three of which are branch locations, with remaining terms of two to five years. Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of March 31, 2025, operating lease ROU assets were $1.0 million and the operating lease liability was $1.1 million, compared to operating lease ROU assets of $1.4 million and an operating lease liability of $1.5 million at March 31, 2024. Lease costs associated with all leases was $106,000 for the three months ended March 31, 2025 and 2024.

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


	Three Months Ended March 31,
	2025			2024
	(in thousands except percent and period data)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	112		$	110
Right-of-use assets obtained in exchange for new operating lease liabilities		—			—
Weighted-average remaining lease term - operating leases, in years		2.8			3.7
Weighted-average discount rate - operating leases		2.67	%		2.60	%

The table below summarizes the maturity of remaining lease liabilities:


	March 31, 2025
	(dollars in thousands)
2025	$	343
2026		416
2027		260
2028		97
2029		20
Thereafter		-
Total lease payments		1,136
Less: Interest		(45	)
Present value of lease liabilities	$	1,091

Note 9 - Commitments and Contingencies

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

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

At March 31, 2025 and December 31, 2024, outstanding financial instruments whose contract amounts represent credit risk were approximately:


	March 31, 2025		December 31, 2024
	(dollars in thousands)
Commitments to extend credit	$	220,863	$	224,708
Credit card commitments		26,829		26,715
Standby letters of credit		8,141		8,141
Total commitments	$	255,833	$	259,564

The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancelable. The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans. The allowance for credit losses for unfunded loan commitments of $160,000 and $167,000 at March 31, 2025 and December 31, 2024, respectively, is separately classified on the balance sheet within Other Liabilities.

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three months ended March 31, 2025.


	Total Allowance for Credit Losses - Unfunded Loan Commitments
	(dollars in thousands)
Balance, December 31, 2024	$	167
Recovery of credit losses		(7	)
Balance, March 31, 2025	$	160

Note 10 – Fair Value Disclosures

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

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

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

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

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

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

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

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

The following tables provide fair value information for assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024:


	March 31, 2025
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	28,419	$	28,419	$	—	$	—
U.S. government agencies		46,950		—		46,950		—
GSE - Mortgage-backed securities and CMOs		160,741		—		160,741		—
Asset-backed securities		22,913		—		22,913		—
State and political subdivisions		79,053		—		79,053		—
Corporate bonds		5,790		—		5,790		—
Equity securities		311		311		—		—
Mortgage banking derivatives		1,193		—		75		1,118
Total assets at fair value on a recurring basis	$	345,370	$	28,730	$	315,522	$	1,118
Mortgage banking derivatives	$	102	$	—	$	102	$	—
Total liabilities at fair value on a recurring basis	$	102	$	—	$	102	$	—


	December 31, 2024
	(dollars in thousands)
	Total		Level 1		Level 2		Level 3
Securities available for sale:
U.S. Treasury	$	29,894	$	29,894	$	—	$	—
U.S. government agencies		41,729		—		41,729		—
GSE - Mortgage-backed securities and CMOs		152,789		—		152,789		—
Asset-backed securities		23,578		—		23,578		—
State and political subdivisions		79,253		—		79,253		—
Corporate bonds		5,743		—		5,743		—
Equity securities		334		334		—		—
Mortgage banking derivatives		795		—		204		591
Total assets at fair value on a recurring basis	$	334,115	$	30,228	$	303,296	$	591
Mortgage banking derivatives	$	—	$	—	$	—	$	—
Total liabilities at fair value on a recurring basis	$	—	$	—	$	—	$	—

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


	March 31, 2025
	Mortgage banking derivatives: Interest rate lock commitments		Total
	(dollars in thousands)
Balance at December 31, 2024	$	591	$	591
Change in fair value:
Included in income from mortgage banking		527		527
Change in observability of significant inputs:
Included in income from mortgage banking		—		—
Balance at March 31, 2025	$	1,118	$	1,118

The fair value of mortgage IRLCs at March 31, 2025 was calculated based on a notional amount of $36.6 million. Significant unobservable inputs are used to determine the fair value of these derivatives. At March 31, 2025, such inputs included anticipated margins to be earned based on market movement from the original lock date and a weighted average projected pull-through rate of 86.0% determined by loan product, loan stage, and loan purpose. The fair value of mortgage IRLCs at December 31, 2024 was calculated based on a notional amount of $32.4 million. Significant unobservable inputs were the same as those used for the three months ended March 31, 2025 and assumed a weighted average projected pull-through rate of 90.1% at December 31, 2024. Changes in interest rates and other assumptions could significantly change these estimated values.

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets, such as other real estate owned and individually evaluated loans, that are measured at the lower of cost or market value that were recognized at fair value less cost to sell at the end of the period. There were no assets for which a nonrecurring fair value adjustment was required as of March 31, 2025 and December 31, 2024.

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 March 31, 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 March 31, 2025 and December 31, 2024:


March 31, 2025	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	77,200	$	77,200	$	77,200	$	—	$	—
Securities available for sale		343,866		343,866		28,419		315,447		—
Securities held to maturity		26,716		24,226		—		10,367		13,859
Equity securities		311		311		311		—		—
Loans held for investment, net		658,837		632,681		—		—		632,681
Loans held for sale		4,546		4,546		—		4,546		—
Restricted stock		1,748		1,748		1,748		—		—
Loan servicing assets		3,834		7,276		—		7,276		—
Mortgage banking derivatives		1,193		1,193		—		75		1,118
Accrued interest receivable		4,697		4,697		—		—		4,697

FINANCIAL LIABILITIES
Deposits	$	1,059,291		1,058,243		—		1,058,243		—
Short-term borrowings		1,467		1,467		—		1,467		—
Long-term borrowings		29,180		25,939		—		—		25,939
Mortgage banking derivatives		102		102		—		102		—
Accrued interest payable		512		512		—		—		512


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 March 31, 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.

Note 12 – Mortgage Banking Derivatives

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

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

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

The following table reflects the notional amount and fair value of mortgage banking derivatives included in the balance sheet at fair value as of March 31, 2025 and December 31, 2024.


	Notional Amount		Fair Value
	(dollars in thousands)
Balance at March 31, 2025
Included in mortgage banking derivatives asset:
Interest rate lock commitments	$	36,569	$	1,118
Forward sales commitments		2,639		75
Included in mortgage banking derivatives liability:
To-be-announced mortgage-backed securities trades		34,000		102

Balance at December 31, 2024
Included in mortgage banking derivatives asset:
Interest rate lock commitments	$	32,352	$	591
Forward sales commitments		2,173		44
To-be-announced mortgage-backed securities trades		25,500		160

Note 13 – Recent Accounting Pronouncements and Other Changes

ASC 848, “Reference Rate Reform,” was set forth to eliminate certain reference rates and introduce new reference rates that are based on a larger, more liquid population of observable transactions that are less vulnerable to manipulation. The reference rate reform discontinues the use of certain widely used reference rates such as the London Interbank Offered Rate, or LIBOR. In response to likely challenges arising from contract modifications due to reference rate reform, the Financial Accounting Standards Board (the “FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” in March 2020 to provide optional expedients and exceptions for applying GAAP to contract modifications. As such, modifications to debt contracts may be accounted for as a continuation of the existing contract by prospectively adjusting the

effective interest rate. This amendment could be applied beginning March 12, 2020 through a sunset date of December 31, 2022. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.” These amendments extend the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision based on expectations of when LIBOR would cease being published. In 2021, the UK Financial Conduct Authority delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief provided in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06 defers the sunset date from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. ASU 2022-06 was effective upon issuance. The Company no longer holds or issues loan contracts that reference LIBOR. As of July 1, 2023, all loan contracts that previously referenced LIBOR had been modified. The Company does not anticipate a material financial impact as a result of these modifications.

The Inflation Reduction Act of 2022 (“IRA”) created a new nondeductible 1% excise tax on repurchases of corporate stock by
certain publicly traded corporations or their specified affiliates after December 31, 2022. The tax is imposed on the fair value of the
stock of a covered corporation that is repurchased in a given year, less the fair market value of any stock issued in that year. A
“covered corporation” is any domestic corporation whose stock is traded on an established securities market, such as an OTC market.
The excise tax applies to all of the stock of a covered corporation regardless of whether the corporation has profits or losses. The IRA
contains several exceptions to the excise tax, including, but not limited to, any repurchase of stock: in which the total value of the
repurchased stock in a given year does not exceed $1,000,000; that is contributed to an employer-sponsored retirement plan or other
similar stock compensation plan; or that is taxed as a dividend. The impact of the IRA on our consolidated financial statements is
dependent on the extent of stock repurchases.

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

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

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

Note 14 - Segment Reporting

The chief operating decision maker (“CODM”) of the Company is a group of individuals, also referred to as the Executive Management Team, consisting of the Chief Executive Officer, Chief Financial Officer, Chief Operations Officer and Chief Risk Officer. The Executive Management Team is responsible for allocating resources and assessing the performance of the Company.

Segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the CODM. The Executive Management Team has identified three operating segments within the Company, each with a manager that reports directly to the CODM. The Company’s business operating segments are determined based on the nature of the products or services provided and reflect the manner in which financial information is currently evaluated by the Executive Management Team. The three operating segments of the Company are as follows:

Banking Operations - This segment provides financial products and services to consumer and commercial customers in the form of deposit products, loan products and cash management services through branches, online banking, mobile banking and telephone banking. This segment is also responsible for the management of the investment portfolio. Significant components of noninterest income for this segment are service charges on deposits and interchange fees on card transactions. Significant noninterest expense is salaries and employee benefits.

Mortgage Banking - This segment reflects Uwharrie Bank Mortgage, a division of the Bank that specializes in originating and

servicing one-to-four family residential mortgage loans which are primarily sold on the secondary market. Loans sold to Fannie Mae or Freddie Mac are sold with servicing rights retained. Significant noninterest income for this segment is gain or loss on the sale of loans. Significant noninterest expense is salaries and employee benefits.

Wealth Management - This segment reflects investment advisory, broker-dealer and insurance services of UIA, TSAC and BOS

Agency, respectively. Significant noninterest income for this segment is service fees and commissions. Significant noninterest expense is salaries and employee benefits.

While the CODM monitors each segment’s pre-tax, pre-provision profit or loss, the primary measure for allocating resources to the operating segments during the annual budgeting process is Net Income. This measure is also used to assess the performance of each segment, with a focus on net interest income, noninterest income, and noninterest expense. The CODM conducts monthly income review meetings, where budget-to-actual variances for Net Income and pre-tax, pre-provision profit or loss and its components are analyzed. The Company provides a broad range of financial services as described above and aims to provide one place for its customers to satisfy all of their financial services needs. As such, many customers are shared under the “Uwharrie” umbrella as are certain costs to conduct business. Management regularly reviews the different revenue streams, but is aware that shared resources and costs of key corporate functions may not be fully allocated among the operating segments. The Executive Management Team believes it is appropriate to aggregate the three operating segments into one reportable segment. A review of quantitative thresholds was performed, and the CODM has determined that the Company’s operations are not considered to constitute more than one reportable segment. Non-segment operations are classified as Other below and include assets and activity of the parent holding company. Management will continue to evaluate the operating segments for separate reporting as facts and circumstances change.


	Banking, Mortgage and Wealth Management			Other			Consolidated
	(dollars in thousands)
For the Three Months Ended March 31, 2025
Interest income	$	13,797		$	5		$	13,802
Interest expense		4,354			344			4,698
Net interest income		9,443			(339	)		9,104
Noninterest income		2,370			11			2,381
Noninterest expense		7,798			130			7,928
Pre-tax, pre-provision income		4,015			(458	)		3,557
Provision for (recovery of) credit losses		281			—			281
Provision for income taxes		815			(92	)		723
Net income (loss)	$	2,919		$	(366	)	$	2,553
Total assets as of March 31, 2025	$	1,158,845		$	4,564		$	1,163,409

For the Three Months Ended March 31, 2024
Interest income	$	12,653		$	5		$	12,658
Interest expense		3,775			345			4,120
Net interest income		8,878			(340	)		8,538
Noninterest income		2,250			79			2,329
Noninterest expense		7,754			128			7,882
Pre-tax, pre-provision income		3,374			(389	)		2,985
Provision for (recovery of) credit losses		(30	)		—			(30	)
Provision for income taxes		709			(77	)		632
Net income (loss)	$	2,695		$	(312	)	$	2,383
Total assets as of December 31, 2024	$	1,123,764		$	5,044		$	1,128,808

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

Caution Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements generally relate to estimates with respect to the financial condition, results of operations and business of the Company that are subject to various factors that could cause actual results to differ materially from these estimates. These factors include, but are not limited to: increases in our past due loans and provision for credit losses that may result from local and/or broader economic effects, including the impacts of inflation and constraints on the availability of credit that may impact our borrowers; declines in general economic conditions, including increased stress in the financial markets; 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 March 31, 2025 and December 31, 2024.

During the three months ended March 31, 2025, the Company’s total assets increased $34.6 million, from $1.13 billion to $1.16 billion.

Cash and cash equivalents increased $24.9 million during the three months ended March 31, 2025, from $52.3 million to $77.2 million. The increase is related to continued growth in deposits.

Investment securities consist of securities available for sale and securities held to maturity. For the three-month period ended March 31, 2025, investment securities increased $10.9 million from $359.8 million at December 31, 2024 to $370.7 million at March 31, 2025. At March 31, 2025, the Company had net unrealized losses on securities available for sale of $29.0 million, compared to net unrealized losses of $32.1 million at December 31, 2024, an improvement of $3.1 million. The allowance for credit losses on securities held to maturity was $68,000 at March 31, 2025 and December 31, 2024. The amortized cost basis of securities held to maturity totaled $26.8 million and $26.7 million at March 31, 2025 and December 31, 2024, respectively.

At March 31, 2025, equity securities deteriorated in value from $334,000 at December 31, 2024 to $311,000 as a result of the decrease in value in the equity market.

Loans held for sale decreased $15,000 from December 31, 2024 to $4.5 million at March 31, 2025. Loans held for investment decreased from $666.4 million at December 31, 2024 to $664.9 million at March 31, 2025, a decrease of $1.5 million. The Company experienced a net decrease in the loans categorized as “Other Real Estate - Construction,” “Real Estate - 1-4 Family Construction,” “Consumer,” and “Commercial - Other.” All other loan sectors experienced a net increase during the quarter ended March 31, 2025.

The allowance for credit losses on loans was $6.1 million at March 31, 2025, which represented 0.91% of total loans held for investment, compared to $5.8 million, or 0.87% of total loans held for investment, at December 31, 2024. Additional discussion regarding the allowance is included in the Asset Quality section below.

Other changes in the Company’s consolidated assets are primarily related to deferred tax assets, which decreased $701,000 from $9.0 million at December 31, 2024 to $8.3 million at March 31, 2025 as a result of the improvement in fair value of the available for sale securities portfolio. Interest receivable increased $342,000 from $4.4 million as of December 31, 2024 to $4.7 million at March 31, 2025. Mortgage banking derivatives increased $398,000 during the first three months of 2025, primarily related to an increase in the value of interest rate lock commitments (“IRLCs”). The value of IRLCs appreciated $527,000 during the three-month period ended March 31, 2025 as the notional amount of the mortgage pipeline increased $4.2 million.

Customer deposits, our primary funding source, experienced a $29.1 million increase during the three-month period ended March 31, 2025, increasing from $1.03 billion to $1.06 billion. The overall increase in deposits is attributable to organic deposit growth combined with promotional time deposit offerings. Demand noninterest-bearing checking accounts increased $9.7 million and time deposits increased $5.9 million during the three-month period ended March 31, 2025. Interest checking and money market accounts increased $10.6 million and savings deposits increased $2.8 million during the three months ended March 31, 2025.

Total short-term borrowings increased $53,000 for the three-month period ended March 31, 2025. At March 31, 2025, the Company had $29.2 million in long-term debt outstanding, which consists solely of its junior subordinated debt securities, net of unamortized debt issuance costs. During the third quarter of 2019, the Company issued $10.0 million in subordinated debt securities with a final maturity date of September 30, 2029 that became redeemable by the Company on September 30, 2024. This junior subordinated debt pays interest quarterly at an annual fixed rate of 5.25%. During the third quarter of 2021, the Company issued $12.0 million and $8.0

million of 10-year and 15-year fixed-to-floating rate subordinated debt securities, respectively. The 10-year subordinated notes mature on September 3, 2031, though they are redeemable at the Company’s option on or after September 3, 2026, and initially pay interest quarterly at an annual rate of 3.5%. From and including September 3, 2026 to but excluding September 3, 2031, or up to any early redemption date, the interest rate on the 10-year subordinated notes will reset quarterly to an annual rate equal to the then-current three-month secured overnight financing rate (“SOFR”), plus 283 basis points payable quarterly in arrears. The 15-year subordinated notes mature on September 3, 2036, though they are redeemable at the Company’s option on or after September 3, 2031, and initially pay interest quarterly at an annual rate of 4.0%. From and including September 3, 2031 to but excluding September 3, 2036, or up to any early redemption date, the interest rate on the 15-year subordinated notes will reset quarterly to an annual rate equal to the then-current three-month SOFR plus 292 basis points payable quarterly in arrears. The subordinated debt has been structured to qualify as and is included in the calculation of the Company’s Tier 2 capital. Once the remaining term to maturity drops under five years, the Company must impose a twenty percent annual reduction of the amount of the proceeds from the sale of these securities that are eligible to be counted as Tier 2 capital. Of the subordinated debt that remains outstanding at March 31, 2025, $27.3 million qualifies as Tier 2 capital. The Company also has a $3.0 million line of credit of which $3.0 million was available to use at March 31, 2025.

Other changes in the Company’s liabilities are related to an increase of $705,000 in other liabilities from December 31, 2024 to March 31, 2025 resulting primarily from accrual of reserves for payables due throughout 2025. Mortgage banking derivatives liabilities increased in the form of to-be-announced mortgage-backed securities (“TBAs”) by $102,000 during the same period.

At March 31, 2025, total shareholders’ equity was $62.3 million, an increase of $4.7 million from December 31, 2024. Net income for the three-month period ended March 31, 2025 was $2.6 million, which positively contributed to shareholders’ equity. Improvement in the unrealized loss position of the available for sale securities portfolio also contributed to the increase in shareholders’ equity during the same three-month period. During the three months ended March 31, 2025, the Company repurchased 16,164 shares of common stock at a total cost of $146,000, and the Company paid $139,000 in dividends attributable to noncontrolling interest. See Note 3 (Noncontrolling Interest) to the Company’s Notes to Consolidated Financial Statements for additional discussion of the noncontrolling interest.

Results of Operations for the Three Months Ended March 31, 2025 and 2024.

Net Income and Net Income Available to Common Shareholders

Uwharrie Capital Corp reported net income of $2.6 million for the three months ended March 31, 2025, compared to $2.4 million for the three months ended March 31, 2024. Net income available to common shareholders was $2.4 million, or $0.34 per common share, for the three months ended March 31, 2025, compared to $2.2 million, or $0.31 per common share, for the three months ended March 31, 2024. Net income available to common shareholders is net income less dividends on the aforementioned noncontrolling interest.

Net Interest Income

Net interest income for the three months ended March 31, 2025 was $9.1 million, a $566,000 increase from the $8.5 million reported for the comparative period in 2024. During the first three months of 2025, the average yield on our interest-earning assets increased 12 basis points to 5.12% from the same period in 2024, and the average rate we paid for our interest-bearing liabilities increased 13 basis points to 2.36%. These changes resulted in an interest rate spread of 2.77% as of March 31, 2025 and 2024. The Company’s net interest margin was 3.39% for both comparable periods in 2025 and 2024.

The following table presents average balance sheet and a net interest income analysis for the three months ended March 31, 2025 and 2024, respectively:


	Average Balance				Income/Expenses				Rate/Yield
	2025		2024		2025		2024		2025			2024
	(dollars in thousands)
Interest-earning assets:
Taxable securities	$	303,789	$	307,506	$	2,777	$	2,921		3.67	%		3.82	%
Non-taxable securities (1)		57,475		57,960		305		312		2.76	%		2.71	%
Short-term investments		57,265		57,616		490		626		3.43	%		4.37	%
Equity securities		334		302		5		5		6.00	%		6.66	%
Taxable loans		654,174		587,282		10,094		8,664		6.19	%		5.93	%
Non-taxable loans (1)		16,309		17,481		131		130		4.18	%		3.75	%
Total interest-earning assets		1,089,346		1,028,147		13,802		12,658		5.12	%		5.00	%
Interest-bearing liabilities:
Interest-bearing deposits		768,284		709,485		4,355		3,729		2.27	%		2.11	%
Short-term borrowed funds		1,421		5,074		12		61		3.39	%		4.84	%
Long-term debt		29,168		29,108		331		330		4.55	%		4.56	%
Total interest-bearing liabilities		798,873		743,667		4,698		4,120		2.36	%		2.23	%
Net interest spread	$	290,473	$	284,480	$	9,104	$	8,538		2.77	%		2.77	%
Net interest margin (1) (% of earning assets)										3.39	%		3.39	%

(1)

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

Provision for (Recovery of) Credit Losses

The provision of credit losses was $281,000 for the three months ended March 31, 2025, compared to a recovery of $30,000 for the same period in 2024. There were net loan charge-offs of $47,000 for the three months ended March 31, 2025, as compared to net loan charge-offs of $33,000 during the same period of 2024. Refer to the Asset Quality section below for further information.

Noninterest Income

The Company places significant emphasis on diversification of revenue sources rather than relying solely upon interest income. Total noninterest income increased by $52,000 for the three-month period ended March 31, 2025, as compared to the same period in 2024. The 2024 period included a loss of $148,000 on the call of a held to maturity security under early redemption provisions, compared to no losses from sales or calls of securities during the 2025 period. Income from mortgage banking increased $217,000 quarter-over-quarter, driven by increased loan pipeline volume and improved pricing on loans. These increases were offset by a decrease in supplemental executive retirement plans of $237,000 based on negative market adjustments.

Interchange fees, or “swipe” fees, are charges that merchants pay to us and other card-issuing banks for processing electronic payment transactions. Interchange and card transaction fees consist of income from check card usage, point-of-sale income from PIN-based debit card transactions, ATM service fees, and credit card usage. A comparison of gross interchange and card transaction fees and net of associated network costs for the reported periods is presented in the table below:


	Three Months Ended March 31,
	2025		2024
	(dollars in thousands)
Income from debit card transactions	$	567	$	560
Income from credit card transactions		172		173
Gross interchange and transaction fee income		739		733
Network costs - debit card		296		288
Network costs - credit card		194		157
Total	$	249	$	288

Noninterest Expense

Noninterest expense for the three months ended March 31, 2025 increased by $46,000 from the same period in 2024. Salaries and benefits, the largest component of noninterest expense, increased $206,000 due to wage and benefit increases during 2025. This increase was offset by a $237,000 decrease in supplemental executive retirement plan expense due to negative market value adjustments.

Total other noninterest expense decreased $48,000 for the three months ended March 31, 2025, compared to the same period in 2024. The table below reflects the composition of other noninterest expense for the referenced periods.


	Three Months Ended March 31,
	2025		2024
	(dollars in thousands)
Office supplies and printing	$	28	$	20
Franchise and other taxes		34		36
Employee education		30		33
Shareholder relations expense		47		48
Telephone and data lines		51		49
Postage		63		60
Director fees and expense		82		79
Dues and subscriptions		101		82
Armored transport service		34		30
Other		84		165
Total	$	554	$	602

Income Tax Expense

The Company had income tax expense of $723,000 for the three months ended March 31, 2025 at an effective tax rate of 22.1% compared to income tax expense of $632,000 with an effective tax rate of 21.0% in the comparable 2024 period. Income taxes computed at the statutory rate are primarily affected by the state income tax expense offset by the eligible amount of interest earned on state and municipal securities, tax-free municipal loans and income earned on bank-owned life insurance. For the three months ended March 31, 2025, the effective tax rate increased due to the increase in interest expense disallowance resulting from compliance
with the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”). The larger disallowance is due to greater projected interest expense for 2025 compared to 2024 and an adjustment in the TEFRA calculation to differentiate between bank qualified and non-bank qualified bonds.

Asset Quality

The Company’s allowance for credit losses on loans is established through charges to earnings in the form of a provision for credit losses. The allowance is increased by provisions charged to operations and recoveries of amounts previously charged off and is reduced by recovery of provisions and loans charged off. Management continuously evaluates the adequacy of the allowance for credit 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 allowance for credit losses on loans represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. 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.

The Company individually reviews loans with total relationship exposure greater than or equal to $100,000 that are determined to be collateral dependent. These collateral dependent loans are evaluated based on the fair value of the underlying collateral as repayment of the loan is expected to be made through the operation or sale of the collateral. Loans that do not share risk characteristics are evaluated on an individual basis. When management determines that foreclosure is probable and the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting date adjusted for selling costs as appropriate. This evaluation is inherently subjective, as it requires material estimates, including internal and external appraisal services. In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for credit losses on loans and may require additions for estimated losses based upon judgments different from those of management.

The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company
evaluates credit risk in the Consumer segment based upon consumer credit scores and collateral and the Commercial segment based
upon loan risk grade and collateral. The allowance for credit losses for each segment is calculated using a Non-Discounted Cash Flow methodology. Management uses a risk-grading program designed to evaluate the credit risk in the loan portfolio. In this program, risk grades are initially assigned by loan officers and then reviewed and monitored by credit administration. 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 credit losses on loans. 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.

Additionally, the allowance for credit losses calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending management experience and risk tolerance, loan review and audit results, asset quality and portfolio trends, loan portfolio growth, industry concentrations, trends in underlying collateral, external factors and economic conditions not already captured.

At March 31, 2025, there were no individually assessed loans, which includes all collateral dependent loans in nonaccrual status with total relationship exposure greater than or equal to $100,000. As such, there was no allowance for credit losses related to individually evaluated loans at March 31, 2025.

The allowance, expressed as a percentage of gross loans held for investment, increased four basis points from 0.87% at December 31, 2024 to 0.91% at March 31, 2025. The increase in the allowance was driven by growth in commercial and industrial loans with higher loss given default rates and slight increases in the 10-Year T-Bill and unemployment rate forecasts. The ratio of nonaccrual loans to total loans increased from 0.03% at December 31, 2024 to 0.04% at March 31, 2025, and was related to the $79,000 increase in nonaccrual loans. Two loans totaling $124,000 were converted to nonaccrual during the first three months of 2025, offset by paydowns of $5,000 and one loan totaling $40,000 that was moved to other real estate owned.

Other real estate owned increased to $106,000 at March 31, 2025 from $0 at December 31, 2024 as the Bank foreclosed on a first and second mortgage collateralized by the same property.

As of March 31, 2025, management believed the level of the allowance for credit losses on loans was appropriate in light of the risk inherent in the loan portfolio. While management believes that it uses the best information available to establish the allowance for credit losses on loans, future adjustments may be necessary and results of operations could be adversely affected if circumstances differ from the assumptions used in making the determinations. Furthermore, while management believes it has established the allowance in conformity with generally accepted accounting principles, there can be no assurance that banking regulators, in reviewing the Company’s loan portfolio, will not require an adjustment to the allowance for credit losses on loans. In addition, because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing allowance is adequate or that increases will not be necessary, should the quality of any loans deteriorate because of the factors discussed herein. Any material increase in the allowance for credit losses on loans may adversely affect the Company’s financial condition, results of operations and the value of its securities.

The following table shows the comparison of nonperforming assets at March 31, 2025 and December 31, 2024:

Nonperforming Assets

(dollars in thousands)


	March 31, 2025			December 31, 2024
	(dollars in thousands)
Nonperforming assets:
Accruing loans past due 90 days or more	$	—		$	—
Nonaccrual loans		271			192
Other real estate owned		106			—
Total nonperforming assets	$	377		$	192
Allowance for credit losses on loans	$	6,065		$	5,824
Nonaccrual loans to total loans		0.04	%		0.03	%
Allowance for credit losses on loans to total loans		0.91	%		0.87	%
Allowance for credit losses on loans to nonaccrual loans		2238.01	%		3033.33	%

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.

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. Estimated uninsured deposits, including deposits collateralized by pledged assets, represented 39.8% and 38.8% of total deposits at March 31, 2025 and December 31, 2024, respectively. 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. At March 31, 2025, these sources were the subsidiary bank’s established federal funds lines with correspondent banks aggregating $38.0 million, with available credit of $38.0 million; an established borrowing relationship with the FHLB, with available credit of $176.2 million; and access to borrowings from the FRB discount window, with available credit of $26.1 million. The Company also has a $3.0 million line of credit with TIB The Independent BankersBank, N.A. The line is held by the holding company and is secured with 100% of the outstanding common shares of the Company’s subsidiary bank. As of March 31, 2025, $3.0 million remained available for use on the line of credit.

The following table summarizes the Company’s interest-earning cash and cash equivalents as of the periods indicated.


	March 31, 2025			December 31, 2024
	(dollars in thousands)
Interest-earning cash and cash equivalents		67,076			42,554
Interest-earning cash and cash equivalents as a percent of:
Total loans held for investment		10.1	%		6.4	%
Total earning assets		6.1	%		4.0	%
Total deposits		6.3	%		4.1	%

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.

The Company continues to maintain capital ratios that support its asset growth. The federal bank regulatory agencies have implemented regulatory capital rules known as “Basel III.” The Basel III rules require a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.50%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.00%, a minimum ratio of total capital to risk-weighted assets of 8.00%, and a minimum Tier 1 leverage ratio of 4.00%. There is also a capital conservation buffer that requires banks to hold common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. The Company’s accumulated other comprehensive income or loss, resulting from unrealized gains and losses, net of income tax, on investment securities available for sale, is excluded from regulatory capital. As of March 31, 2025, the Company’s subsidiary bank continued to exceed minimum capital standards and remained well-capitalized under the applicable rules.

The Company’s subsidiary bank has a net total of $10.7 million in outstanding Fixed Rate Noncumulative Perpetual Preferred Stock. The preferred stock qualifies as Tier 1 capital at the Bank and pays dividends at an annual rate of 5.30%. The net total of $10.7 million is presented as noncontrolling interest at the Company level and qualifies as Tier 1 capital at the Company. At March 31, 2025, the Company had $29.1 million, net of unamortized debt issuance costs of $212,000, in subordinated debt outstanding, of which $27.3 million qualifies as Tier 2 capital at the Company level. The Company has made all interest and dividend payments in a timely manner.

Off-Balance Sheet Arrangements

Off-balance sheet arrangements include transactions, agreements or other contractual arrangements to which an unconsolidated entity of the Company is a party and pursuant to which the Company has obligations, including an obligation to provide guarantees on behalf of an unconsolidated entity, or retains an interest in assets transferred to an unconsolidated entity. We currently have no off-balance sheet arrangements of this kind.

Derivative financial instruments include futures contracts, forward contracts, interest rate swaps, options contracts, and other financial instruments with similar characteristics. We have not engaged in significant derivative activities through March 31, 2025, with the exception of mortgage banking derivatives. See Note 12 (Mortgage Banking Derivatives) to the Company’s Notes to Consolidated Financial Statements for additional discussion of mortgage banking derivatives.

Contractual Obligations

The timing and amount of our contractual obligations has not changed materially since our 2024 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 6, 2025.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

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

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 first quarter of 2025. 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 ensuring that the Company’s systems evolve with its business.

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, the Company’s subsidiary bank is engaged in ordinary routine litigation incidental to its 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 March 31, 2025.


	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Program(1)		(d) Maximum Dollar Value (in thousands) of Shares that May Yet Be Purchased Under the Plans
January 1, 2025 Through January 31, 2025		—	$	—		—	$	—
February 1, 2025 Through February 29, 2025		—	$	—		—	$	—
March 1, 2025 Through March 31, 2025		16,164	$	9.06		—	$	—
Total		16,164	$	9.06		—	$	—

(1)

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

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Set forth below is the exhibit index for this quarterly report:


Exhibit Number		Description of Exhibit

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101		Interactive data files providing financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, in inline XBRL (eXtensible Business Reporting Language) (filed herewith)
104		Cover page interactive data file (formatted in inline XBRL and contained in Exhibit 101)

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:	May 6, 2025	By:	/s/ Roger L. Dick
		Roger L. Dick
		President and Chief Executive Officer

Date:	May 6, 2025	By:	/s/ Heather H. Almond
		Heather H. Almond
		Principal Financial Officer