EX-99.1 2 uwhr-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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November 21, 2025

 

 

Dear Shareholder:

As we close the third quarter of 2025, Uwharrie Capital Corp continues to move forward—not only in financial strength, but also in the deeper mission that has always defined us.

As of September 30, 2025, our assets reached $1.22 billion, an increase of $35 million, or 3%, compared to the same period in 2024. Our loan portfolio grew by $31 million to $682 million, supported by core deposit growth of $26 million year-over-year. Net income for the nine months ended September 30, 2025, rose to $8.3 million, up from $7.6 million in 2024. These results reflect the steady effort of our associates, the trust of our customers, and the confidence of our shareholders.

While the numbers tell a story of continued progress, what matters most is the purpose behind them. They represent people—families buying homes, local entrepreneurs growing their enterprises, and communities building resilience. Every loan, every deposit, every relationship contributes to a larger effort to strengthen financial well-being and opportunity close to home. Our focus remains on creating long-term value—not only for shareholders, but also for families, local businesses, and the communities that rely on strong community banking.

In recognition of the Company’s continued progress, the Board of Directors has declared a 3% stock dividend. Shareholders of record as of November 10, 2025, will receive the dividend on December 1, 2025. This action reflects both our financial performance and the shared purpose that guides our work. The dividend will be distributed electronically through book-entry, and, consistent with prior years, shareholders may retain the shares to potentially defer income recognition or sell them if liquidity is preferred.

As the holidays draw near, we are reminded of the deeper meaning behind our work—the connections we share and the good we can do together. This season, our Christmas initiatives will once again support local nonprofits and families in need, honoring you, our shareholders and customers, by extending generosity and hope throughout our communities.

As we turn the page on another year, my gratitude runs deep for the dedication of our team, the loyalty of our customers, and the steadfast support of our shareholders. Your belief in community banking that puts people first continues to light our way. Together, we are building something enduring—rooted in service, strengthened by trust, and guided by purpose.

 

Sincerely,

UWHARRIE CAPITAL CORP

 

 

 

/s/ Roger L. Dick

President and Chief Executive Officer

 

 

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

 

Uwharrie Capital Corp and Subsidiaries

 

 

 

 

 

 

Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands except share and per share data)

 

2025

 

 

2024

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash and due from banks

 

$

10,768

 

 

$

8,115

 

Interest-earning deposits with banks

 

 

100,250

 

 

 

115,783

 

Securities available for sale

 

 

354,920

 

 

 

332,645

 

Securities held to maturity (fair value $20,016 and $24,888, respectively)

 

 

22,023

 

 

 

26,843

 

Less: allowance for credit losses on securities held to maturity

 

 

(46

)

 

 

(66

)

Net securities held to maturity

 

 

21,977

 

 

 

26,777

 

Equity securities, at fair value

 

 

332

 

 

 

355

 

Loans held for sale

 

 

5,083

 

 

 

4,787

 

Loans held for investment

 

 

677,390

 

 

 

647,125

 

Less: allowance for credit losses on loans

 

 

(6,356

)

 

 

(5,736

)

Net loans held for investment

 

 

671,034

 

 

 

641,389

 

Premises and equipment, net

 

 

14,171

 

 

 

14,722

 

Interest receivable

 

 

4,700

 

 

 

4,821

 

Restricted stock

 

 

1,779

 

 

 

1,729

 

Bank-owned life insurance

 

 

8,044

 

 

 

7,901

 

Deferred income tax benefit

 

 

7,132

 

 

 

6,991

 

Loan servicing assets

 

 

3,799

 

 

 

3,982

 

Other assets

 

 

11,837

 

 

 

11,062

 

Total assets

 

$

1,215,826

 

 

$

1,181,059

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Demand, noninterest-bearing

 

$

287,219

 

 

$

288,278

 

Interest checking and money market accounts

 

 

429,147

 

 

 

431,230

 

Savings accounts

 

 

100,842

 

 

 

94,562

 

Time deposits, $250,000 and over

 

 

137,654

 

 

 

131,992

 

Other time deposits

 

 

149,191

 

 

 

131,749

 

Total deposits

 

 

1,104,053

 

 

 

1,077,811

 

Short-term borrowed funds

 

 

43

 

 

 

1,419

 

Long-term debt

 

 

29,219

 

 

 

29,142

 

Other liabilities

 

 

11,545

 

 

 

11,566

 

Total liabilities

 

 

1,144,860

 

 

 

1,119,938

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

Common stock, $1.25 par value: 20,000,000 shares authorized;

 

 

 

 

 

 

issued and outstanding or in process of issuance

 

 

 

 

 

 

6,988,394 and 6,964,323 shares, respectively.

 

 

 

 

 

 

Book value per share $8.38 in 2025 and $6.90 in 2024 (1)

 

 

8,735

 

 

 

8,705

 

Common stock dividend distributable

 

 

262

 

 

 

174

 

Additional paid-in capital

 

 

13,666

 

 

 

12,735

 

Undivided profits

 

 

56,089

 

 

 

48,217

 

Accumulated other comprehensive loss

 

 

(18,441

)

 

 

(19,365

)

Total Uwharrie Capital Corp shareholders' equity

 

 

60,311

 

 

 

50,466

 

Noncontrolling interest

 

 

10,655

 

 

 

10,655

 

Total shareholders' equity

 

 

70,966

 

 

 

61,121

 

Total liabilities and shareholders' equity

 

$

1,215,826

 

 

$

1,181,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net income per share, book value per share and weighted average shares outstanding have been adjusted to reflect the 3.0% stock dividend in 2025 and the 2.0% stock dividend in 2024.

 

 

 

 

Uwharrie Capital Corp and Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands except share and per share data)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

10,800

 

 

$

9,966

 

 

$

31,504

 

 

$

28,045

 

Interest on investment securities

 

 

3,218

 

 

 

3,378

 

 

 

9,500

 

 

 

9,942

 

Interest-earning deposits with banks and federal funds sold

 

 

682

 

 

 

780

 

 

 

1,834

 

 

 

2,116

 

Total interest income

 

 

14,700

 

 

 

14,124

 

 

 

42,838

 

 

 

40,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid on deposits

 

 

4,481

 

 

 

4,658

 

 

 

13,106

 

 

 

12,484

 

Interest paid on borrowed funds

 

 

331

 

 

 

408

 

 

 

1,009

 

 

 

1,207

 

Total interest expense

 

 

4,812

 

 

 

5,066

 

 

 

14,115

 

 

 

13,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

9,888

 

 

 

9,058

 

 

 

28,723

 

 

 

26,412

 

Provision for (recovery of) credit losses

 

 

176

 

 

 

(230

)

 

 

711

 

 

 

171

 

Net interest income after provision for (recovery of) credit losses

 

 

9,712

 

 

 

9,288

 

 

 

28,012

 

 

 

26,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

280

 

 

 

283

 

 

 

802

 

 

 

818

 

Interchange and card transaction fees

 

 

252

 

 

 

267

 

 

 

809

 

 

 

877

 

Other service fees and commissions

 

 

1,002

 

 

 

991

 

 

 

2,972

 

 

 

2,819

 

Loss on sale/call of securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(148

)

Realized/unrealized gain (loss) on equity securities

 

 

7

 

 

 

31

 

 

 

(2

)

 

 

53

 

Income from mortgage banking

 

 

927

 

 

 

861

 

 

 

3,005

 

 

 

2,301

 

Other income

 

 

438

 

 

 

96

 

 

 

785

 

 

 

364

 

Total noninterest income

 

 

2,906

 

 

 

2,529

 

 

 

8,371

 

 

 

7,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,581

 

 

 

5,152

 

 

 

16,712

 

 

 

15,511

 

Occupancy expense

 

 

488

 

 

 

454

 

 

 

1,385

 

 

 

1,308

 

Equipment expense

 

 

195

 

 

 

217

 

 

 

606

 

 

 

642

 

Data processing

 

 

223

 

 

 

177

 

 

 

664

 

 

 

610

 

Loan costs

 

 

47

 

 

 

58

 

 

 

205

 

 

 

142

 

Professional fees and services

 

 

289

 

 

 

252

 

 

 

826

 

 

 

778

 

Marketing and donations

 

 

375

 

 

 

383

 

 

 

1,093

 

 

 

1,088

 

Software amortization and maintenance

 

 

412

 

 

 

344

 

 

 

1,132

 

 

 

1,003

 

Other operating expenses

 

 

1,251

 

 

 

783

 

 

 

3,146

 

 

 

2,452

 

Total noninterest expense

 

 

8,861

 

 

 

7,820

 

 

 

25,769

 

 

 

23,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

3,757

 

 

 

3,997

 

 

 

10,614

 

 

 

9,791

 

Provision for income taxes

 

 

867

 

 

 

962

 

 

 

2,347

 

 

 

2,160

 

Net Income

 

$

2,890

 

 

$

3,035

 

 

$

8,267

 

 

$

7,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

2,890

 

 

$

3,035

 

 

$

8,267

 

 

$

7,631

 

  Less: net income attributable to noncontrolling interest

 

 

(142

)

 

 

(142

)

 

 

(422

)

 

 

(424

)

Net income attributable to common shareholders

 

$

2,748

 

 

$

2,893

 

 

$

7,845

 

 

$

7,207

 

Net Income Per Common Share (1)

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.38

 

 

$

0.39

 

 

$

1.08

 

 

$

0.97

 

Assuming dilution

 

$

0.38

 

 

$

0.39

 

 

$

1.08

 

 

$

0.97

 

Weighted Average Common Shares Outstanding (1)

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

7,216,259

 

 

 

7,376,072

 

 

 

7,254,062

 

 

 

7,436,961

 

Assuming dilution

 

 

7,216,259

 

 

 

7,376,072

 

 

 

7,254,062

 

 

 

7,436,961