Exhibit 99.1
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).