Exhibit 99.1
May 22, 2025
Dear Shareholder:
As we reflect on the first quarter of 2025, we remain deeply grounded in our mission to serve people first and steward the financial well-being of our communities. The broader banking sector continues to navigate a complex landscape shaped by evolving interest rate dynamics, regulatory scrutiny, and shifting customer expectations. Through it all, your Company remains focused on long-term resilience, responsible growth, and values-driven service.
Community banks like ours continue to prove their relevance and strength. While some financial institutions have faced growing regulatory pressure and margin compression, our local presence and relationship-first model have positioned us to respond with agility and care. We remain committed to local decision-making and tailored financial solutions that reflect the needs and aspirations of the communities we serve.
Financial Performance
During the first quarter, your Company achieved the following key milestones:
•Total assets reached $1.16B, representing a 3% increase from December 31, 2024.
•Deposit growth totaled $29M, reflecting continued relationship development across our core markets.
•Net income for the quarter was $2.6M, compared to $2.4M in Q1 2024.
•Pre-Tax, Pre-Provision Income* for Q1 2025 was $3.6M, compared to $3.0M in Q1 2024, a 19% increase.
•Credit quality remained sound, with 0.06% of total loans as past-due 30+ days or non-accrual compared to FFIEC peer** of 1.12%.
These results speak to the trust you have placed in us and the dedication of our team, who continue to deliver high-touch service in an increasingly digital world.
Positioned for What’s Ahead
We enter the rest of the year with clarity and purpose. Our balance sheet is strong, our capital levels are healthy, and our team is energized by the opportunity to make a difference—one relationship at a time. While economic headwinds may persist, we believe our conservative posture and community-centered strategy will allow us to remain a source of stability and opportunity.
We thank you—our shareholders, customers, associates, and communities—for your continued support. You are the reason we do what we do, and together, we are building a more vibrant and inclusive financial future.
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, 2025.
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).