EX-99.1

Exhibit 99.1

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