v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

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 June 30, 2026

 

 

 

 

 

 

 

 

 

Interest income

 

$

14,874

 

 

$

5

 

 

$

14,879

 

Interest expense

 

 

4,351

 

 

 

342

 

 

 

4,693

 

Net interest income

 

 

10,523

 

 

 

(337

)

 

 

10,186

 

Noninterest income

 

 

4,015

 

 

 

30

 

 

 

4,045

 

Noninterest expense

 

 

9,533

 

 

 

130

 

 

 

9,663

 

Pre-tax, pre-provision income

 

 

5,005

 

 

 

(437

)

 

 

4,568

 

Provision for (recovery of) credit losses

 

 

(424

)

 

 

—

 

 

 

(424

)

Provision for income taxes

 

 

1,169

 

 

 

(90

)

 

 

1,079

 

Net income (loss)

 

$

4,260

 

 

$

(347

)

 

$

3,913

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

Interest income

 

$

29,452

 

 

$

10

 

 

$

29,462

 

Interest expense

 

 

8,845

 

 

 

667

 

 

 

9,512

 

Net interest income

 

 

20,607

 

 

 

(657

)

 

 

19,950

 

Noninterest income

 

 

6,852

 

 

 

152

 

 

 

7,004

 

Noninterest expense

 

 

18,093

 

 

 

265

 

 

 

18,358

 

Pre-tax, pre-provision income

 

 

9,366

 

 

 

(770

)

 

 

8,596

 

Provision for (recovery of) credit losses

 

 

(486

)

 

 

—

 

 

 

(486

)

Provision for income taxes

 

 

2,113

 

 

 

(159

)

 

 

1,954

 

Net income (loss)

 

$

7,739

 

 

$

(611

)

 

$

7,128

 

 

 

 

 

 

 

 

 

 

 

Total assets as of June 30, 2026

 

$

1,219,072

 

 

$

3,034

 

 

$

1,222,106

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

Interest income

 

$

14,331

 

 

$

5

 

 

$

14,336

 

Interest expense

 

 

4,270

 

 

 

335

 

 

 

4,605

 

Net interest income

 

 

10,061

 

 

 

(330

)

 

 

9,731

 

Noninterest income

 

 

3,023

 

 

 

61

 

 

 

3,084

 

Noninterest expense

 

 

8,834

 

 

 

146

 

 

 

8,980

 

Pre-tax, pre-provision income

 

 

4,250

 

 

 

(415

)

 

 

3,835

 

Provision for (recovery of) credit losses

 

 

254

 

 

 

—

 

 

 

254

 

Provision for income taxes

 

 

841

 

 

 

(84

)

 

 

757

 

Net income (loss)

 

$

3,155

 

 

$

(331

)

 

$

2,824

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

Interest income

 

$

28,128

 

 

$

10

 

 

$

28,138

 

Interest expense

 

 

8,625

 

 

 

678

 

 

 

9,303

 

Net interest income

 

 

19,503

 

 

 

(668

)

 

 

18,835

 

Noninterest income

 

 

5,393

 

 

 

72

 

 

 

5,465

 

Noninterest expense

 

 

16,631

 

 

 

277

 

 

 

16,908

 

Pre-tax, pre-provision income

 

 

8,265

 

 

 

(873

)

 

 

7,392

 

Provision for (recovery of) credit losses

 

 

535

 

 

 

—

 

 

 

535

 

Provision for income taxes

 

 

1,656

 

 

 

(176

)

 

 

1,480

 

Net income (loss)

 

$

6,074

 

 

$

(697

)

 

$

5,377

 

 

 

 

 

 

 

 

 

 

 

Total assets as of December 31, 2025

 

$

1,192,527

 

 

$

3,818

 

 

$

1,196,345