Uwharrie Capital Corp.

05/22/2026 | Press release | Distributed by Public on 05/22/2026 09:46

Business/Financial Results (Form 8-K)

May 22, 2026

Dear Shareholder:

We are pleased to report on the progress of your Company for the first quarter of 2026. Performance during the quarter reflects continued stability in the core financial services business, a disciplined approach to growth, and a focus on stewardship that supports long-term value creation for both shareholders and the communities we serve. The broader economic environment entering 2026 remained mixed but generally constructive. Interest rates stabilized during the quarter, and while inflation and geopolitical events continue to influence markets, overall economic activity has remained resilient. Businesses and consumers alike have shown a willingness to invest and plan, even amid ongoing uncertainty.

Your Company remains focused on the principles that have guided Uwharrie since its founding: prudent lending, thoughtful growth, local decision-making, and strong customer relationships. Our balance sheet strategy emphasizes stability and flexibility, allowing us to serve our customers responsibly while remaining well positioned to adapt as economic conditions evolve. This disciplined approach reflects our commitment to stewardship-ensuring that growth strengthens ownership, participation, and long-term community vitality.

During the first quarter, your Company achieved the following milestones:

•
Total assets reached $1.25B, representing a 4% increase from December 31, 2025
•
Deposit growth totaled $51M, or 5%, reflecting continued relationship development across our core markets
•
Net income for the quarter was $3.2M, compared to $2.6M in Q1 2025
•
Pre-Tax, Pre-Provision Income* for Q1 2026 was $4.0M, compared to $3.6M in Q1 2025, a 13% increase
•
Credit quality remained sound, with 0.29% of total loans as past-due 30+ days or non-accrual compared to FFIEC peer** of 1.25%

Looking ahead, we expect economic conditions to remain dynamic, presenting both challenges and opportunities. While the timing and pace of future interest-rate changes remain uncertain, we believe our conservative approach, sound governance, and strong foundation position us well across a range of scenarios. Our focus remains on disciplined performance, long-term stewardship, and serving the communities that entrust us with their capital.

We appreciate the continued trust and confidence of our shareholders. Your support allows us to remain rooted in the communities we serve while pursuing sustainable growth that reflects our shared values.

With gratitude,

UWHARRIE CAPITAL CORP

/s/ Roger L. Dick

President and Chief Executive Officer

*Pre-Tax, Pre-Provision Income is a non-GAAP measure. This metric is used by management to measure income from recurring operations.

**Federal Financial Institutions Examination Council report of Uniform Bank Performance Report from Call Report data as of March 31, 2026.

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)

March 31,

March 31,

(Amounts in thousands except share and per share data)

2026

2025

Assets

Cash and due from banks

$

10,543

$

10,124

Interest-earning deposits with banks

105,646

67,076

Securities available for sale

366,836

343,866

Securities held to maturity (fair value $19,997 and $24,226, respectively)

21,962

26,784

Less: allowance for credit losses on securities held to maturity

(45

)

(68

)

Net securities held to maturity

21,917

26,716

Equity securities, at fair value

324

311

Loans held for sale

11,322

4,546

Loans held for investment

685,959

664,902

Less: allowance for credit losses on loans

(6,399

)

(6,065

)

Net loans held for investment

679,560

658,837

Premises and equipment, net

15,617

14,208

Interest receivable

4,578

4,697

Restricted stock

1,825

1,748

Bank-owned life insurance

8,114

7,972

Deferred income tax

7,311

8,282

Loan servicing assets

3,593

3,834

Other assets

12,028

11,192

Total assets

$

1,249,214

$

1,163,409

Liabilities

Deposits:

Demand, noninterest-bearing

$

299,137

$

282,049

Interest checking and money market accounts

428,956

405,730

Savings accounts

114,101

95,810

Time deposits, $250,000 and over

133,564

134,444

Other time deposits

155,645

141,258

Total deposits

1,131,403

1,059,291

Short-term borrowed funds

166

1,467

Long-term debt

29,067

29,180

Other liabilities

11,918

11,125

Total liabilities

1,172,554

1,101,063

Shareholders' Equity

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

issued and outstanding or in process of issuance

7,149,685 and 7,061,777 shares, respectively.

Book value per share $9.23 in 2026 and $7.11 in 2025 (1)

8,937

8,827

Additional paid-in capital

13,250

12,427

Undivided profits

62,072

52,765

Accumulated other comprehensive loss

(18,254

)

(22,328

)

Total Uwharrie Capital Corp shareholders' equity

66,005

51,691

Noncontrolling interest

10,655

10,655

Total shareholders' equity

76,660

62,346

Total liabilities and shareholders' equity

$

1,249,214

$

1,163,409

(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

March 31,

(Amounts in thousands except share and per share data)

2026

2025

Interest Income

Interest and fees on loans

$

10,614

$

10,225

Interest on investment securities

3,241

3,087

Interest-earning deposits with banks and federal funds sold

728

490

Total interest income

14,583

13,802

Interest Expense

Interest paid on deposits

4,494

4,355

Interest paid on borrowed funds

325

343

Total interest expense

4,819

4,698

Net Interest Income

9,764

9,104

Provision for (recovery of) credit losses

(62

)

281

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

9,826

8,823

Noninterest Income

Service charges on deposit accounts

289

259

Interchange and card transaction fees

242

249

Other service fees and commissions

1,054

981

Gain on sale of securities

186

-

Realized/unrealized gain (loss) on equity securities

21

(23

)

Income from mortgage banking

1,181

1,051

Other income (loss)

(14

)

(136

)

Total noninterest income

2,959

2,381

Noninterest Expense

Salaries and employee benefits

5,882

5,420

Occupancy expense

497

464

Equipment expense

199

204

Data processing

225

213

Loan costs

66

89

Professional fees and services

213

270

Marketing and donations

395

359

Software amortization and maintenance

410

364

Other operating expenses

808

545

Total noninterest expense

8,695

7,928

Income before income taxes

4,090

3,276

Provision for income taxes

875

723

Net Income

$

3,215

$

2,553

Consolidated net income

$

3,215

$

2,553

Less: net income attributable to noncontrolling interest

(139

)

(139

)

Net income attributable to Uwharrie Capital Corp and common shareholders

$

3,076

$

2,414

Net Income Per Common Share (1)

Basic

$

0.43

$

0.33

Assuming dilution

$

0.43

$

0.33

Weighted Average Common Shares Outstanding (1)

Basic

7,167,728

7,288,141

Assuming dilution

7,167,728

7,288,141

Uwharrie Capital Corp. published this content on May 22, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 22, 2026 at 15:46 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]