Uwharrie Capital Corp.

08/21/2026 | Press release | Distributed by Public on 08/21/2026 07:40

Business/Financial Results (Form 8-K)

August 21, 2026

Dear Shareholder:

We are pleased to report on the performance of Uwharrie Capital Corp for the second quarter of 2026. The economic environment remains dynamic as businesses and consumers continue to navigate changing interest rate expectations, inflationary pressures, and evolving market conditions. Despite these uncertainties, we remain focused on the fundamentals that have guided our organization for decades: relationship building, sound risk management, strong capital levels, and local decision-making.

During the quarter, your Company achieved several noteworthy milestones:

•
Total assets reached $1.22B, an increase of 4.5% from June 30, 2025
•
Total deposits reached $1.1B, increasing 3.5% from June 30, 2025
•
Net income increased $1.1M, or 39%, from Q2 2025 and $1.8M, or 33%, year-over-year
•
Uwharrie Bank was recognized by the American Bankers Association as the 12th top-performing publicly traded bank in the United States among banks under $2 billion in assets, reflecting our commitment to delivering sustainable performance and long-term shareholder value
•
We completed the relocation of our Mount Pleasant office into a newly renovated, full-service banking facility, enhancing our ability to serve customers while reaffirming our commitment to the community we proudly call home

Reported earnings during the quarter were positively impacted by certain non-recurring items, including gains associated with the sale of Visa shares and the reversal of previously established credit loss reserves. While these items contributed to reported results, they are not representative of the ongoing earnings capacity of the organization. Management remains focused on core operating performance, relationship growth, and disciplined execution of our long-term strategic objectives.

We appreciate the trust and confidence of our shareholders, customers, associates, and communities. Your support enables us to continue building a stronger organization focused on long-term value creation and community impact.

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)

June 30,

June 30,

(Amounts in thousands except share and per share data)

2026

2025

Assets

Cash and due from banks

$

10,617

$

10,676

Interest-earning deposits with banks

81,095

62,598

Securities available for sale

359,771

340,985

Securities held to maturity (fair value $20,373 and $21,047, respectively)

21,924

23,753

Less: allowance for credit losses on securities held to maturity

(44

)

(54

)

Net securities held to maturity

21,880

23,699

Equity securities, at fair value

878

325

Loans held for sale

7,820

9,147

Loans held for investment

692,231

677,556

Less: allowance for credit losses on loans

(5,986

)

(6,231

)

Net loans held for investment

686,245

671,325

Premises and equipment, net

16,745

14,054

Interest receivable

4,353

4,300

Restricted stock

1,825

1,749

Bank-owned life insurance

8,149

8,008

Deferred income tax

6,857

8,036

Loan servicing assets

3,647

3,828

Other assets

12,224

11,024

Total assets

$

1,222,106

$

1,169,754

Liabilities

Deposits:

Demand, noninterest-bearing

$

295,307

$

291,431

Interest checking and money market accounts

412,841

394,855

Savings accounts

115,381

102,666

Time deposits, $250,000 and over

120,779

127,984

Other time deposits

154,758

145,428

Total deposits

1,099,066

1,062,364

Short-term borrowed funds

228

1,132

Long-term debt

30,086

29,200

Other liabilities

11,662

11,654

Total liabilities

1,141,042

1,104,350

Shareholders' Equity

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

issued and outstanding or in process of issuance

7,107,034 and 7,013,052, respectively.

Book value per share $9.91 in 2026 and $7.58 in 2025 (1)

8,884

8,766

Additional paid-in capital

12,812

12,038

Undivided profits

65,844

55,448

Accumulated other comprehensive loss

(17,131

)

(21,503

)

Total Uwharrie Capital Corp shareholders' equity

70,409

54,749

Noncontrolling interest

10,655

10,655

Total shareholders' equity

81,064

65,404

Total liabilities and shareholders' equity

$

1,222,106

$

1,169,754

(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.

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Income (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(Amounts in thousands except share and per share data)

2026

2025

2026

2025

Interest Income

Interest and fees on loans

$

10,691

$

10,479

$

21,305

$

20,704

Interest on investment securities

3,306

3,195

6,547

6,282

Interest-earning deposits with banks and federal funds sold

882

662

1,610

1,152

Total interest income

14,879

14,336

29,462

28,138

Interest Expense

Interest paid on deposits

4,351

4,270

8,845

8,625

Interest paid on borrowed funds

342

335

667

678

Total interest expense

4,693

4,605

9,512

9,303

Net Interest Income

10,186

9,731

19,950

18,835

Provision for (recovery of) credit losses

(424

)

254

(486

)

535

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

10,610

9,477

20,436

18,300

Noninterest Income

Service charges on deposit accounts

286

263

575

522

Interchange and card transaction fees

341

308

583

557

Other service fees and commissions

1,109

989

2,163

1,970

Gain (loss) on sale of securities

-

-

186

-

Realized/unrealized gain (loss) on equity securities

825

14

846

(9

)

Income from mortgage banking

997

1,027

2,178

2,078

Other income

487

483

473

347

Total noninterest income

4,045

3,084

7,004

5,465

Noninterest Expense

Salaries and employee benefits

5,973

5,711

11,855

11,131

Occupancy expense

480

433

977

897

Equipment expense

205

207

404

411

Data processing

237

228

462

441

Loan costs

84

69

150

158

Professional fees and services

210

267

423

537

Marketing and donations

666

359

1,061

718

Software amortization and maintenance

431

356

841

720

Other operating expenses

1,377

1,350

2,185

1,895

Total noninterest expense

9,663

8,980

18,358

16,908

Income before income taxes

4,992

3,581

9,082

6,857

Provision for income taxes

1,079

757

1,954

1,480

Net Income

$

3,913

$

2,824

$

7,128

$

5,377

Consolidated net income

$

3,913

$

2,824

$

7,128

$

5,377

Less: net income attributable to noncontrolling interest

(141

)

(141

)

(280

)

(280

)

Net income attributable to Uwharrie Capital Corp and common shareholders

$

3,772

$

2,683

$

6,848

$

5,097

Net Income Per Common Share (1)

Basic

$

0.53

$

0.37

$

0.96

$

0.70

Assuming dilution

$

0.53

$

0.37

$

0.96

$

0.70

Weighted Average Common Shares Outstanding (1)

Basic

7,131,251

7,258,577

7,149,389

7,273,277

Assuming dilution

7,131,251

7,258,577

7,149,389

7,273,277

Uwharrie Capital Corp. published this content on August 21, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 21, 2026 at 13:40 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]