EX-99.1

Exhibit 99.1

August 22, 2025

Dear Shareholder:

At the midpoint of 2025, we find ourselves in an economic environment that continues to present challenges. This quarter brought meaningful opportunities to advance our priorities and further strengthen Uwharrie Capital Corp.

We are proud to share that the American Bankers Association reported that Uwharrie Capital Corp ranked #14 nationally in the top 20 publicly traded banks under $2 billion in assets during 2024.

Our financial performance through the first six months of 2025 continues to excel.

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Total assets increased to $1.17B, up $46.5B, or 4.1%, from June 30, 2024.

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Total loans reached $687M, rising from $640M at June 30, 2024, a 7.2% increase.

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Deposits increased by $38.3M, or 3.7%, from Q2 2024.

•

Net income rose $271K, or 10.6%, from Q1 2025 and $781K, or 17%, year-over-year.

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Net interest margin stood at 3.56%, compared to 3.42% in Q2 2024.

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Maintained a healthy total annualized return on equity of 17.3%.

In April, our team embraced Community Banking Month with purpose. Over 130 employees participated in nearly 20 community projects across our footprint. While we engage in local initiatives throughout the year, this concentrated effort reaffirmed our deep commitment to service and civic engagement.

As we look ahead to the second half of the year, we remain grounded in our mission and guided by our core values. We are growing with purpose, listening closely, and leading with service — ever mindful of the people and communities who make this journey meaningful.

Thank you for your support. Your investment is helping shape a stronger future for our Company and for the communities we all call home.

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)	2025			2024

Assets
Cash and due from banks	$	10,676		$	11,195
Interest-earning deposits with banks		62,598			46,276
Securities available for sale		340,985			350,764
Securities held to maturity (fair value $21,047 and $24,656, respectively)		23,753			27,252
Less: allowance for credit losses on securities held to maturity		(54	)		(66	)
Net securities held to maturity		23,699			27,186
Equity securities, at fair value		325			324
Loans held for sale		9,147			3,611
Loans held for investment		677,556			636,738
Less: allowance for credit losses on loans		(6,231	)		(5,908	)
Net loans held for investment		671,325			630,830
Premises and equipment, net		14,054			14,552
Interest receivable		4,300			4,688
Restricted stock		1,749			1,709
Bank-owned life insurance		8,008			7,864
Deferred income tax benefit		8,036			9,056
Loan servicing assets		3,828			4,089
Other assets		11,024			11,116
Total assets	$	1,169,754		$	1,123,260

Liabilities
Deposits:
Demand, noninterest-bearing	$	291,431		$	286,517
Interest checking and money market accounts		394,855			391,245
Savings accounts		102,666			95,208
Time deposits, $250,000 and over		127,984			128,162
Other time deposits		145,428			122,943
Total deposits		1,062,364			1,024,075
Short-term borrowed funds		1,132			6,400
Long-term debt		29,200			29,123
Other liabilities		11,654			11,530
Total liabilities		1,104,350			1,071,128

Shareholders' Equity
Common stock, $1.25 par value: 20,000,000 shares authorized;
issued and outstanding or in process of issuance
7,013,052 and 7,068,577, respectively.
Book value per share $7.81 in 2025 and $5.75 in 2024 (1)		8,766			8,836
Additional paid-in capital		12,038			12,510
Undivided profits		55,448			46,419
Accumulated other comprehensive loss		(21,503	)		(26,288	)
Total Uwharrie Capital Corp shareholders' equity		54,749			41,477
Noncontrolling interest		10,655			10,655
Total shareholders' equity		65,404			52,132
Total liabilities and shareholders' equity	$	1,169,754		$	1,123,260


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


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)	2025			2024			2025			2024

Interest Income
Interest and fees on loans	$	10,479		$	9,285		$	20,704		$	18,079
Interest on investment securities		3,195			3,326			6,282			6,564
Interest-earning deposits with banks and federal funds sold		662			710			1,152			1,336
Total interest income		14,336			13,321			28,138			25,979

Interest Expense
Interest paid on deposits		4,270			4,097			8,625			7,826
Interest paid on borrowed funds		335			408			678			799
Total interest expense		4,605			4,505			9,303			8,625

Net Interest Income		9,731			8,816			18,835			17,354
Provision for credit losses		254			431			535			401
Net interest income after provision for credit losses		9,477			8,385			18,300			16,953

Noninterest Income
Service charges on deposit accounts		263			267			522			535
Interchange and card transaction fees		308			322			557			610
Other service fees and commissions		989			897			1,970			1,828
Loss on sale/call of securities		-			-			-			(148	)
Realized/unrealized gain (loss) on equity securities		14			(19	)		(9	)		22
Income from mortgage banking		1,027			606			2,078			1,440
Other income		483			153			347			268
Total noninterest income		3,084			2,226			5,465			4,555

Noninterest Expense
Salaries and employee benefits		5,711			5,145			11,131			10,359
Occupancy expense		433			429			897			854
Equipment expense		207			218			411			425
Data processing		228			203			441			433
Loan costs		69			51			158			84
Professional fees and services		267			262			537			526
Marketing and donations		359			339			718			705
Software amortization and maintenance		356			329			720			659
Other operating expenses		1,350			856			1,895			1,669
Total noninterest expense		8,980			7,832			16,908			15,714

Income before income taxes		3,581			2,779			6,857			5,794
Provision for income taxes		757			566			1,480			1,198
Net Income	$	2,824		$	2,213		$	5,377		$	4,596

Consolidated net income	$	2,824		$	2,213		$	5,377		$	4,596
Less: net income attributable to noncontrolling interest		(141	)		(141	)		(280	)		(282	)
Net income attributable to Uwharrie Capital Corp and common shareholders	$	2,683		$	2,072		$	5,097		$	4,314
Net Income Per Common Share (1)
Basic	$	0.38		$	0.29		$	0.72		$	0.60
Assuming dilution	$	0.38		$	0.29		$	0.72		$	0.60
Weighted Average Common Shares Outstanding (1)
Basic		7,047,162			7,235,539			7,061,434			7,250,231
Assuming dilution		7,047,162			7,235,539			7,061,434			7,250,231