Uwharrie Capital reports higher NII, stable credit in Q3 2025

Rhea-AI Filing Summary

Uwharrie Capital Corp (UWHR) reported Q3 2025 results showing steady growth and stable credit. Net income was $2.89 million and diluted EPS was $0.38, compared with $3.04 million and $0.39 a year ago. Year‑to‑date, net income rose to $8.27 million with EPS of $1.08 versus $0.97 in 2024.

Total assets reached $1.216 billion (from $1.129 billion at year‑end), driven by higher interest‑earning deposits and securities. Loans held for investment were $677.39 million and deposits were $1.104 billion. Net interest income improved to $9.89 million in the quarter (from $9.06 million), while the provision for credit losses was $176 thousand. Credit quality remained solid with $403 thousand in nonaccrual loans and an allowance of $6.36 million.

Other comprehensive income improved as unrealized gains on available‑for‑sale securities reduced accumulated other comprehensive loss by $3.06 million in Q3. Shareholders’ equity increased to $70.97 million. The Board declared a 3% stock dividend on October 28, 2025, with 6,988,394 common shares outstanding as of November 3, 2025.

Insights

Banking sector analyst

Solid quarter: higher NII, stable credit, equity up.

Uwharrie expanded the balance sheet to $1.216B with deposits at $1.104B. Net interest income rose to $9.888M as loan and securities yields supported topline interest income of $14.700M.

Credit costs were contained with a $176K provision and nonaccruals of $403K. The allowance for credit losses stood at $6.356M, and past‑due metrics remained modest.

Other comprehensive income improved by $3.062M on AFS marks, lifting shareholders’ equity to $70.966M. The Board declared a 3% stock dividend on Oct 28, 2025. Subsequent filings may provide additional detail on margin trends.

0000898171falseQ3--12-31P5Yhttp://fasb.org/us-gaap/2025#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2025#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2025#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2025#ExecutiveCommitteeMember0000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2025-01-012025-09-3000008981712024-06-300000898171us-gaap:HomeEquityLoanMemberus-gaap:SubstandardMember2025-09-300000898171us-gaap:AdditionalPaidInCapitalMember2024-12-310000898171uwhr:CreditCardCommitmentsMember2024-12-310000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2024-06-300000898171us-gaap:HomeEquityLoanMemberus-gaap:PerformingFinancingReceivableMember2024-12-310000898171us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2023-12-310000898171us-gaap:OperatingSegmentsMemberuwhr:NonSegmentOperationsMember2025-01-012025-09-300000898171us-gaap:AdditionalPaidInCapitalMember2023-12-310000898171uwhr:FinancingReceivables30To89DaysPastDueMemberus-gaap:CommercialLoanMember2025-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2024-01-012024-09-300000898171us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2024-01-012024-09-300000898171us-gaap:FinancialAssetNotPastDueMember2025-09-300000898171uwhr:FitchAAOneAATwoAAThreeMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-09-300000898171uwhr:ConsumersLoansMemberus-gaap:PassMember2025-09-300000898171us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2025-09-300000898171uwhr:WatchesMemberus-gaap:HomeEquityLoanMember2025-09-300000898171us-gaap:FinancialAssetNotPastDueMemberuwhr:OtherLoansMember2024-12-310000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2025-09-300000898171uwhr:FinancingReceivables30To89DaysPastDueMember2024-12-310000898171us-gaap:NoncontrollingInterestMember2024-06-300000898171uwhr:OtherLoansMemberuwhr:CommercialMember2024-12-310000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2024-09-300000898171us-gaap:RetainedEarningsMember2025-07-012025-09-300000898171us-gaap:CommonStockMember2024-07-012024-09-300000898171us-gaap:PassMember2024-12-310000898171us-gaap:HomeEquityLoanMemberus-gaap:SubstandardMember2024-12-310000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2024-06-300000898171us-gaap:InterestRateLockCommitmentsMember2024-12-310000898171us-gaap:CommitmentsToExtendCreditMember2025-09-300000898171uwhr:FitchNotRatedMember2025-09-300000898171us-gaap:RetainedEarningsMember2024-09-300000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2024-09-300000898171us-gaap:CommercialLoanMemberuwhr:CommercialMember2024-12-310000898171us-gaap:SeriesBPreferredStockMember2024-07-012024-09-300000898171us-gaap:CommercialLoanMember2024-01-012024-12-310000898171us-gaap:RetainedEarningsMember2024-06-300000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-09-300000898171us-gaap:ParentMember2025-06-300000898171uwhr:MortgageBankingDerivativeMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:HomeEquityLoanMemberus-gaap:SpecialMentionMember2025-09-300000898171uwhr:CommercialLoansMember2024-12-310000898171uwhr:CommercialLoansMemberus-gaap:SubstandardMember2024-12-310000898171uwhr:SeriesBAndCPreferredStockMember2025-01-012025-09-300000898171us-gaap:CommercialLoanMember2024-01-012024-09-300000898171us-gaap:ParentMember2025-01-012025-09-300000898171uwhr:OtherLoansMemberuwhr:CommercialMember2023-12-310000898171us-gaap:HomeEquityLoanMemberuwhr:FinancingReceivables30To89DaysPastDueMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMember2025-01-012025-09-300000898171uwhr:OtherLoansMemberuwhr:CommercialMember2024-01-012024-09-300000898171us-gaap:USTreasurySecuritiesMember2024-12-310000898171us-gaap:OperatingSegmentsMember2025-09-300000898171us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialLoanMember2024-12-310000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-012024-09-300000898171uwhr:WatchesMemberus-gaap:HomeEquityLoanMember2024-12-310000898171us-gaap:HomeEquityLoanMemberus-gaap:PerformingFinancingReceivableMember2025-09-300000898171uwhr:RealEstateOneToFourFamilyConstructionMember2024-12-310000898171us-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2025-01-012025-09-300000898171uwhr:RealEstateCommercialMemberus-gaap:PassMember2024-12-310000898171us-gaap:OperatingSegmentsMember2025-07-012025-09-300000898171us-gaap:ParentMember2025-07-012025-09-300000898171us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:PassMember2025-09-300000898171us-gaap:FinancialAssetNotPastDueMemberuwhr:CommercialRealEstateLoanMember2025-09-300000898171us-gaap:PassMemberuwhr:RealEstateOneToFourFamilyConstructionMember2024-12-3100008981712024-01-012024-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2024-01-012024-12-310000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300000898171us-gaap:SeriesBPreferredStockMember2024-01-012024-09-300000898171us-gaap:ConsumerLoanMemberuwhr:NoncommercialMember2025-09-300000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2025-07-012025-09-300000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2023-12-310000898171us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-06-300000898171us-gaap:ParentMember2025-09-300000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2024-01-012024-09-300000898171us-gaap:CorporateBondSecuritiesMember2025-01-012025-09-300000898171us-gaap:SeriesBPreferredStockMember2025-01-012025-09-300000898171us-gaap:ConsumerLoanMemberuwhr:NoncommercialMember2024-01-012024-12-310000898171us-gaap:CorporateBondSecuritiesMemberuwhr:FitchNotRatedMember2025-09-300000898171us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:FinancialNonaccrualLoansMember2024-12-310000898171us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:FinancialNonaccrualLoansMemberuwhr:ResidentialRealEstateLoanMember2025-09-300000898171us-gaap:HomeEquityLoanMemberus-gaap:PassMember2024-12-310000898171us-gaap:ParentMember2024-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2025-01-012025-09-300000898171us-gaap:NoncontrollingInterestMemberus-gaap:SeriesBPreferredStockMember2024-01-012024-09-300000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2024-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2024-12-310000898171us-gaap:CommercialLoanMember2024-12-310000898171uwhr:FinancingReceivables30To89DaysPastDueMember2025-09-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:OtherRealEstateConstructionLoansMemberus-gaap:PerformingFinancingReceivableMember2025-09-300000898171us-gaap:FinancialAssetPastDueMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:FinancialAssetPastDueMember2024-12-310000898171uwhr:RetainedEarningsUnappropriatedExcludingRetainedEarningsAccumulatedDeficitMember2025-01-012025-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2025-06-300000898171uwhr:OtherLoansMemberus-gaap:PassMember2024-12-310000898171uwhr:ForwardSaleAndCommitmentsMember2024-12-310000898171us-gaap:SeriesCPreferredStockMember2025-01-012025-09-300000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-07-012024-09-300000898171uwhr:BankingMortgageAndWealthManagementSegmentMemberus-gaap:OperatingSegmentsMember2024-12-310000898171uwhr:OtherLoansMemberuwhr:CommercialMember2025-09-300000898171us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:BankingMortgageAndWealthManagementSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-09-300000898171uwhr:OtherLoansMember2024-12-310000898171us-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetPastDueMember2024-12-310000898171us-gaap:CommonStockMember2024-06-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:PerformingFinancingReceivableMember2025-09-300000898171us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:OtherRealEstateConstructionLoansMember2024-12-310000898171uwhr:BankingMortgageAndWealthManagementSegmentMemberus-gaap:OperatingSegmentsMember2025-09-300000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2025-06-300000898171uwhr:BankingMortgageAndWealthManagementSegmentMemberus-gaap:OperatingSegmentsMember2024-07-012024-09-300000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2024-12-310000898171uwhr:OtherRealEstateConstructionLoansMemberus-gaap:PassMember2025-09-3000008981712024-01-012024-12-310000898171us-gaap:ParentMember2024-06-300000898171us-gaap:CommercialLoanMemberuwhr:CommercialMember2025-09-300000898171us-gaap:AssetBackedSecuritiesMember2025-09-300000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2023-12-310000898171us-gaap:AccountingStandardsUpdate201602Member2024-09-300000898171us-gaap:OperatingSegmentsMemberuwhr:NonSegmentOperationsMember2025-09-300000898171us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerLoanMember2024-12-310000898171us-gaap:FinancialAssetPastDueMemberuwhr:CommercialRealEstateLoanMember2024-12-310000898171uwhr:FinancingReceivables30To89DaysPastDueMemberus-gaap:CommercialLoanMember2024-12-310000898171us-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310000898171us-gaap:OperatingSegmentsMemberuwhr:NonSegmentOperationsMember2024-07-012024-09-300000898171us-gaap:NoncontrollingInterestMember2025-06-300000898171uwhr:CreditCardCommitmentsMember2025-09-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2024-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberus-gaap:PerformingFinancingReceivableMember2024-12-310000898171uwhr:OtherLoansMemberuwhr:CommercialMember2025-07-012025-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2024-07-012024-09-300000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-12-310000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2025-06-300000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:NonperformingFinancingReceivableMember2024-12-3100008981712025-01-012025-09-300000898171uwhr:RealEstateCommercialMemberus-gaap:SpecialMentionMember2025-09-300000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2024-07-012024-09-300000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2024-07-012024-09-300000898171uwhr:FinancialNonaccrualLoansMember2025-09-300000898171us-gaap:NoncontrollingInterestMemberus-gaap:SeriesBPreferredStockMember2024-07-012024-09-300000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2024-12-310000898171us-gaap:InterestRateLockCommitmentsMember2025-09-300000898171us-gaap:FairValueMeasurementsNonrecurringMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMemberuwhr:CollateralDependentLoansMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:SpecialMentionMember2024-12-310000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2023-12-310000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2025-07-012025-09-300000898171us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-3000008981712025-11-030000898171us-gaap:ConsumerLoanMemberuwhr:NoncommercialMember2025-01-012025-09-300000898171us-gaap:FairValueInputsLevel3Member2025-09-300000898171uwhr:FinancialNonaccrualLoansMemberus-gaap:HomeEquityLoanMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberuwhr:FinancingReceivables30To89DaysPastDueMember2024-12-310000898171us-gaap:FinancialAssetNotPastDueMemberuwhr:OtherLoansMember2025-09-300000898171uwhr:ForwardSaleAndCommitmentsMember2025-09-300000898171us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310000898171uwhr:RetainedEarningsUnappropriatedExcludingRetainedEarningsAccumulatedDeficitMember2025-07-012025-09-300000898171us-gaap:SubstandardMemberuwhr:RealEstateCommercialMember2024-12-310000898171us-gaap:NoncontrollingInterestMember2025-07-012025-09-300000898171us-gaap:HomeEquityLoanMember2025-09-300000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000898171us-gaap:SubstandardMember2025-09-300000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2024-12-310000898171us-gaap:UnfundedLoanCommitmentMember2025-09-300000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-09-300000898171uwhr:FinancialNonaccrualLoansMemberus-gaap:CommercialLoanMember2024-12-310000898171us-gaap:FinancialAssetNotPastDueMember2024-12-310000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2025-06-300000898171uwhr:WatchesMember2024-12-310000898171us-gaap:ParentMember2024-12-310000898171us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialLoanMember2025-09-300000898171us-gaap:CommonStockMember2025-01-012025-09-300000898171us-gaap:RetainedEarningsMember2024-12-310000898171us-gaap:SeriesCPreferredStockMember2024-07-012024-09-300000898171uwhr:FinancialNonaccrualLoansMemberus-gaap:HomeEquityLoanMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2024-12-3100008981712023-12-310000898171us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-300000898171us-gaap:CommonStockMember2024-12-310000898171us-gaap:SeriesCPreferredStockMemberus-gaap:NoncontrollingInterestMember2025-07-012025-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2024-07-012024-09-300000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300000898171uwhr:OtherRealEstateConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2025-09-300000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2024-07-012024-09-300000898171us-gaap:CommercialLoanMember2025-09-300000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300000898171us-gaap:RetainedEarningsMember2024-01-012024-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2025-07-012025-09-300000898171us-gaap:SpecialMentionMember2025-09-300000898171uwhr:RetainedEarningsUnappropriatedExcludingRetainedEarningsAccumulatedDeficitMember2024-09-300000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-300000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2024-06-300000898171srt:MaximumMember2025-01-012025-09-300000898171uwhr:OtherLoansMemberus-gaap:PerformingFinancingReceivableMember2024-12-310000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-06-300000898171uwhr:BankingMortgageAndWealthManagementSegmentMemberus-gaap:OperatingSegmentsMember2025-01-012025-09-300000898171us-gaap:CorporateBondSecuritiesMember2024-12-310000898171us-gaap:OperatingSegmentsMember2024-12-310000898171us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:WatchesMemberuwhr:ResidentialRealEstateLoanMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:FinancialAssetNotPastDueMember2025-09-300000898171us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:OperatingSegmentsMember2025-01-012025-09-300000898171us-gaap:FairValueInputsLevel3Member2024-12-310000898171us-gaap:SeriesCPreferredStockMember2025-07-012025-09-300000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2025-07-012025-09-300000898171us-gaap:AdditionalPaidInCapitalMember2024-09-3000008981712025-06-300000898171us-gaap:CommonStockMember2024-01-012024-09-300000898171srt:MinimumMember2025-01-012025-09-300000898171uwhr:CommercialLoansMemberus-gaap:PassMember2025-09-300000898171us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2025-01-012025-09-300000898171us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300000898171us-gaap:FairValueMeasurementsRecurringMember2024-12-3100008981712024-09-300000898171us-gaap:InterestRateLockCommitmentsMember2025-01-012025-09-300000898171uwhr:O2025Q3DividendsMemberus-gaap:SubsequentEventMember2025-10-282025-10-280000898171us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2024-01-012024-09-300000898171us-gaap:SeriesBPreferredStockMemberus-gaap:NoncontrollingInterestMember2025-01-012025-09-300000898171us-gaap:CommitmentsToExtendCreditMember2024-12-310000898171uwhr:ConsumersLoansMember2025-09-300000898171us-gaap:NoncontrollingInterestMember2024-01-012024-09-300000898171us-gaap:EstimateOfFairValueFairValueDisclosureMember2025-09-300000898171us-gaap:AdditionalPaidInCapitalMember2024-06-300000898171uwhr:ConsumersLoansMemberus-gaap:PassMember2024-12-310000898171us-gaap:HomeEquityLoanMemberus-gaap:SpecialMentionMember2024-12-310000898171us-gaap:MortgageBackedSecuritiesMember2025-09-300000898171us-gaap:CommonStockMember2025-07-012025-09-300000898171us-gaap:NoncontrollingInterestMember2024-09-300000898171uwhr:ToBeAnnouncedTradesCollateralizedByMortgageLoansMember2025-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2024-09-300000898171uwhr:CommercialLoansMember2025-09-300000898171us-gaap:UnfundedLoanCommitmentMember2025-01-012025-09-300000898171us-gaap:NoncontrollingInterestMember2025-01-012025-09-300000898171us-gaap:FairValueInputsLevel3Memberuwhr:MortgageBankingDerivativeMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171us-gaap:PerformingFinancingReceivableMemberuwhr:RealEstateOneToFourFamilyConstructionMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMember2024-01-012024-12-310000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2024-09-300000898171us-gaap:PassMemberuwhr:RealEstateOneToFourFamilyConstructionMember2025-09-300000898171us-gaap:NonperformingFinancingReceivableMember2025-09-300000898171uwhr:RetainedEarningsUnappropriatedExcludingRetainedEarningsAccumulatedDeficitMember2024-07-012024-09-300000898171srt:MinimumMemberuwhr:ImpairedLoansMember2025-01-012025-09-300000898171us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2025-07-012025-09-300000898171us-gaap:ParentMember2024-07-012024-09-300000898171us-gaap:NoncontrollingInterestMember2025-09-300000898171us-gaap:RetainedEarningsMember2023-12-310000898171us-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetPastDueMember2025-09-300000898171uwhr:WatchesMemberuwhr:RealEstateCommercialMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:PassMember2025-09-300000898171uwhr:OtherRealEstateConstructionLoansMember2025-09-300000898171uwhr:ConsumersLoansMember2024-12-310000898171us-gaap:FairValueInputsLevel1Member2024-12-310000898171us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerLoanMember2025-09-300000898171us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialLoanMember2024-12-310000898171uwhr:FitchNotRatedMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-09-3000008981712024-12-310000898171uwhr:CommercialRealEstateLoanMemberuwhr:CommercialMember2025-09-300000898171uwhr:CommercialRealEstateLoanMemberuwhr:CommercialMember2024-12-310000898171uwhr:CommercialRealEstateLoanMember2024-12-3100008981712024-07-012024-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2025-09-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:WatchesMemberuwhr:RealEstateCommercialMember2024-12-310000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2025-09-300000898171uwhr:OtherLoansMemberuwhr:CommercialMember2025-01-012025-09-300000898171uwhr:ResidentialRealEstateLoanMember2024-01-012024-09-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171us-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialLoanMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:PerformingFinancingReceivableMember2024-12-310000898171us-gaap:CarryingReportedAmountFairValueDisclosureMember2025-09-300000898171us-gaap:CommonStockMember2025-06-300000898171us-gaap:UnfundedLoanCommitmentMember2024-12-310000898171us-gaap:AdditionalPaidInCapitalMember2025-06-300000898171us-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialLoanMember2025-09-300000898171us-gaap:HomeEquityLoanMember2024-01-012024-09-300000898171us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-310000898171us-gaap:USTreasurySecuritiesMember2025-09-300000898171uwhr:CommercialLoansMemberus-gaap:PassMember2024-12-310000898171us-gaap:SubstandardMemberuwhr:RealEstateCommercialMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberuwhr:FinancingReceivables30To89DaysPastDueMember2025-09-300000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2025-09-300000898171uwhr:FitchAAOneAATwoAAThreeMember2025-09-300000898171us-gaap:SubstandardMember2024-12-310000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-01-012025-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:FinancingReceivables30To89DaysPastDueMember2025-09-300000898171us-gaap:AccountingStandardsUpdate201602Member2025-09-300000898171uwhr:SeriesBAndCPreferredStockMember2013-01-012013-01-310000898171us-gaap:ParentMember2024-01-012024-09-300000898171us-gaap:HomeEquityLoanMember2025-01-012025-09-300000898171us-gaap:SeriesCPreferredStockMemberus-gaap:NoncontrollingInterestMember2024-01-012024-09-300000898171us-gaap:FinancialAssetNotPastDueMemberuwhr:RealEstateOneToFourFamilyConstructionMember2025-09-300000898171uwhr:MortgageBankingDerivativeMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000898171us-gaap:AssetBackedSecuritiesMember2024-12-310000898171us-gaap:StandbyLettersOfCreditMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2024-07-012024-09-300000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2024-01-012024-09-300000898171us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2024-06-300000898171us-gaap:NoncontrollingInterestMember2024-07-012024-09-300000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2024-09-300000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:PerformingFinancingReceivableMember2025-09-300000898171us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:SpecialMentionMember2025-09-300000898171us-gaap:PerformingFinancingReceivableMemberuwhr:RealEstateOneToFourFamilyConstructionMember2025-09-300000898171uwhr:RealEstateCommercialMemberus-gaap:PassMember2025-09-300000898171us-gaap:CorporateBondSecuritiesMember2025-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2024-01-012024-09-300000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2025-01-012025-09-300000898171us-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetNotPastDueMember2025-09-300000898171uwhr:ImpairedLoansMember2025-01-012025-09-300000898171us-gaap:AdditionalPaidInCapitalMember2025-01-012025-09-300000898171us-gaap:FairValueInputsLevel2Member2024-12-310000898171us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-07-012025-09-300000898171uwhr:CollateralDependentLoansMember2025-09-300000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2025-06-300000898171us-gaap:ConsumerLoanMemberuwhr:FinancingReceivables30To89DaysPastDueMember2024-12-310000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2025-06-300000898171us-gaap:RetainedEarningsMember2024-07-012024-09-300000898171uwhr:RealEstateCommercialMemberuwhr:CommercialMember2024-01-012024-09-300000898171us-gaap:ConsumerLoanMemberuwhr:NoncommercialMember2024-12-310000898171us-gaap:StandbyLettersOfCreditMember2025-09-300000898171us-gaap:SeriesCPreferredStockMemberus-gaap:NoncontrollingInterestMember2025-01-012025-09-300000898171uwhr:RetainedEarningsUnappropriatedExcludingRetainedEarningsAccumulatedDeficitMember2024-01-012024-09-300000898171us-gaap:SpecialMentionMember2024-12-310000898171us-gaap:CommonStockMember2025-09-300000898171us-gaap:PerformingFinancingReceivableMember2024-12-310000898171us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-310000898171uwhr:WatchesMemberuwhr:ConsumersLoansMember2024-12-310000898171us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-09-300000898171us-gaap:OperatingSegmentsMember2024-07-012024-09-300000898171us-gaap:FairValueInputsLevel2Member2025-09-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-09-300000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2025-01-012025-09-300000898171us-gaap:AdditionalPaidInCapitalMember2025-09-300000898171us-gaap:HomeEquityLoanMemberus-gaap:NonperformingFinancingReceivableMember2024-12-310000898171us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2025-09-300000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2024-06-300000898171us-gaap:SeriesBPreferredStockMemberus-gaap:NoncontrollingInterestMember2025-07-012025-09-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:OtherLoansMember2025-09-300000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310000898171uwhr:WatchesMemberuwhr:ConsumersLoansMember2025-09-300000898171us-gaap:CommonStockMember2023-12-310000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2025-09-300000898171uwhr:WatchesMember2025-09-300000898171us-gaap:CommonStockMember2024-09-300000898171uwhr:ToBeAnnouncedTradesCollateralizedByMortgageLoansMember2024-12-310000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2024-06-300000898171uwhr:ImpairedLoansMembersrt:MaximumMember2025-01-012025-09-300000898171uwhr:OtherLoansMemberus-gaap:PerformingFinancingReceivableMember2025-09-300000898171us-gaap:CorporateBondSecuritiesMember2025-09-300000898171us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:SubstandardMember2025-09-300000898171us-gaap:OperatingSegmentsMemberuwhr:NonSegmentOperationsMember2025-07-012025-09-300000898171us-gaap:ConsumerLoanMember2025-09-300000898171us-gaap:ParentMember2023-12-310000898171us-gaap:PassMemberuwhr:OtherLoansMember2025-09-300000898171uwhr:WatchesMemberuwhr:CommercialLoansMember2024-12-310000898171uwhr:OtherLoansMemberuwhr:CommercialMember2024-06-300000898171us-gaap:ConsumerLoanMemberus-gaap:FinancialAssetPastDueMember2025-09-300000898171us-gaap:ConsumerLoanMemberus-gaap:FinancialAssetPastDueMember2024-12-310000898171us-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000898171uwhr:CommercialRealEstateLoanMember2025-09-300000898171uwhr:WatchesMemberuwhr:OtherRealEstateConstructionLoansMember2024-12-310000898171us-gaap:CorporateBondSecuritiesMember2024-12-310000898171us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171us-gaap:NoncontrollingInterestMember2023-12-310000898171us-gaap:HomeEquityLoanMemberus-gaap:NonperformingFinancingReceivableMember2025-09-300000898171us-gaap:OperatingSegmentsMemberuwhr:NonSegmentOperationsMember2024-01-012024-09-300000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:PassMember2024-12-310000898171us-gaap:FinancialAssetNotPastDueMemberuwhr:CommercialRealEstateLoanMember2024-12-310000898171us-gaap:OperatingSegmentsMemberuwhr:NonSegmentOperationsMember2024-12-310000898171us-gaap:USStatesAndPoliticalSubdivisionsMember2025-09-300000898171us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171us-gaap:FairValueInputsLevel1Member2025-09-3000008981712025-09-300000898171uwhr:RealEstateCommercialMember2025-09-300000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2025-07-012025-09-300000898171uwhr:WatchesMemberuwhr:CommercialLoansMember2025-09-300000898171us-gaap:MortgageBackedSecuritiesMember2024-12-310000898171uwhr:FinancingReceivables30To89DaysPastDueMemberuwhr:CommercialRealEstateLoanMember2024-12-310000898171us-gaap:FinancialAssetNotPastDueMemberuwhr:RealEstateOneToFourFamilyConstructionMember2024-12-310000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-07-012025-09-300000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2024-06-300000898171uwhr:MortgageBankingDerivativeMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:NonperformingFinancingReceivableMember2025-09-300000898171us-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-300000898171us-gaap:ConsumerLoanMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMember2025-09-300000898171us-gaap:OperatingSegmentsMember2024-01-012024-09-300000898171us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialLoanMember2025-09-300000898171us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:ConsumerLoanMemberus-gaap:PerformingFinancingReceivableMember2025-09-300000898171us-gaap:FairValueInputsLevel3Memberuwhr:MortgageBankingDerivativeMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171uwhr:ConsumersLoansMemberuwhr:NoncommercialMember2024-12-310000898171uwhr:RealEstateOneToFourFamilyConstructionMember2025-09-300000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2025-06-300000898171us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171us-gaap:RetainedEarningsMember2025-09-300000898171uwhr:RealEstateCommercialMember2024-12-310000898171uwhr:OtherLoansMemberuwhr:CommercialMember2024-07-012024-09-300000898171uwhr:MortgageBankingDerivativeMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000898171us-gaap:RetainedEarningsMember2025-06-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171us-gaap:CommercialLoanMember2025-01-012025-09-300000898171us-gaap:NoncontrollingInterestMember2024-12-310000898171us-gaap:SeriesCPreferredStockMemberus-gaap:NoncontrollingInterestMember2024-07-012024-09-300000898171uwhr:OtherLoansMemberuwhr:CommercialMember2025-06-300000898171us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-12-310000898171uwhr:CommercialLoansMemberuwhr:CommercialMember2024-07-012024-09-300000898171us-gaap:SeriesCPreferredStockMember2024-01-012024-09-300000898171uwhr:FinancialNonaccrualLoansMemberuwhr:ResidentialRealEstateLoanMember2024-12-310000898171us-gaap:NonperformingFinancingReceivableMember2024-12-310000898171us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000898171us-gaap:SeriesBPreferredStockMember2025-07-012025-09-300000898171us-gaap:PerformingFinancingReceivableMemberuwhr:CommercialRealEstateLoanMember2025-09-300000898171srt:MaximumMember2025-09-300000898171us-gaap:HomeEquityLoanMemberus-gaap:PassMember2025-09-300000898171us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2023-12-310000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:SubstandardMember2024-12-310000898171us-gaap:ConsumerLoanMemberuwhr:FinancingReceivables30To89DaysPastDueMember2025-09-300000898171uwhr:RetainedEarningsUnappropriatedExcludingRetainedEarningsAccumulatedDeficitMember2025-09-300000898171us-gaap:ConsumerLoanMemberus-gaap:PerformingFinancingReceivableMember2024-12-3100008981712025-07-012025-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2025-01-012025-09-300000898171uwhr:NoncommercialMemberuwhr:RealEstateOneToFourFamilyConstructionMember2025-07-012025-09-300000898171uwhr:OtherLoansMemberuwhr:CommercialMember2024-09-300000898171uwhr:BankingMortgageAndWealthManagementSegmentMemberus-gaap:OperatingSegmentsMember2025-07-012025-09-300000898171us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2025-09-300000898171us-gaap:RetainedEarningsMember2025-01-012025-09-300000898171us-gaap:HomeEquityLoanMember2024-12-310000898171uwhr:WatchesMemberuwhr:ResidentialRealEstateLoanMember2025-09-300000898171uwhr:OtherRealEstateConstructionLoansMemberus-gaap:PassMember2024-12-310000898171us-gaap:PerformingFinancingReceivableMemberuwhr:CommercialRealEstateLoanMember2024-12-310000898171uwhr:OtherRealEstateConstructionLoansMemberuwhr:CommercialMember2023-12-310000898171uwhr:ResidentialRealEstateLoanMemberuwhr:NoncommercialMember2023-12-310000898171uwhr:O2024Q4DividendsMember2024-10-152024-10-150000898171uwhr:RealEstateCommercialMemberus-gaap:SpecialMentionMember2024-12-310000898171uwhr:ResidentialRealEstateLoanMemberus-gaap:FinancialAssetPastDueMember2025-09-300000898171us-gaap:FinancialAssetPastDueMember2025-09-300000898171us-gaap:HomeEquityLoanMemberuwhr:NoncommercialMember2024-12-310000898171us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialLoanMember2024-12-31uwhr:Branchuwhr:Segmentuwhr:OfficeLocationxbrli:pureiso4217:USDxbrli:sharesxbrli:sharesuwhr:Loanuwhr:Securityiso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

COMMISSION FILE NUMBER 000-22062

UWHARRIE CAPITAL CORP

(Exact name of registrant as specified in its charter)

North Carolina		56-1814206
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
132 NORTH FIRST STREET ALBEMARLE, north carolina		28001
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (704) 983-6181

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		☐		Accelerated filer		☐
Non-accelerated filer		☒		Smaller reporting company		☒
				Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 6,988,394 shares of common stock outstanding as of November 3, 2025.

Table of Contents

				Page No.
Part I.		FINANCIAL INFORMATION		2
Item 1 -		Financial Statements (Unaudited)		2
		Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024		2
		Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2025 and 2024		3
		Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024		4
		Consolidated Statements of Changes in Shareholders’ Equity for the Three and Nine Months Ended September 30, 2025 and 2024		5
		Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024		6
		Notes to Consolidated Financial Statements		7
Item 2 -		Management’s Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3 -		Quantitative and Qualitative Disclosures About Market Risk		36
Item 4 -		Controls and Procedures		36
Part II.		OTHER INFORMATION		37
Item 1 -		Legal Proceedings		37
Item 1A -		Risk Factors		37
Item 2 -		Unregistered Sales of Equity Securities and Use of Proceeds		37
Item 3 -		Defaults Upon Senior Securities		37
Item 4 -		Mine Safety Disclosures		37
Item 5 -		Other Information		37
Item 6 -		Exhibits		38
		Signatures		39

1

Uwharrie Capital Corp and Subsidiaries

Consolidated Balance Sheets

Part I. Financial Information

Item 1. Financial Statements.

		September 30, 2025 (Unaudited)				December 31, 2024*
		(dollars in thousands)
ASSETS
Cash and due from banks		$	10,768			$	9,713
Interest-earning deposits with banks			100,250				42,554
Cash and cash equivalents			111,018				52,267
Securities available for sale, at fair value (amortized cost $378,890 and $365,088 respectively)			354,920				332,986
Securities held to maturity, at amortized cost (fair value $20,016 and $24,561 respectively)			22,023				26,813
Less allowance for credit losses on securities held to maturity			(46	)			(68	)
Net securities held to maturity			21,977				26,745
Equity securities, at fair value			332				334
Loans held for sale			5,083				4,561
Loans held for investment			677,390				666,377
Less allowance for credit losses on loans			(6,356	)			(5,824	)
Net loans held for investment			671,034				660,553
Premises and equipment, net			14,171				14,479
Interest receivable			4,700				4,355
Restricted stock			1,779				1,709
Bank-owned life insurance			8,044				7,938
Deferred income tax benefit			7,132				8,983
Loan servicing assets			3,799				3,903
Mortgage banking derivatives			944				795
Other assets			10,893				9,200
Total assets		$	1,215,826			$	1,128,808
LIABILITIES
Deposits:
Demand noninterest-bearing		$	287,219			$	272,355
Interest checking and money market accounts			429,147				395,079
Savings deposits			100,842				92,954
Time deposits, $250,000 and over			137,654				133,335
Other time deposits			149,191				136,513
Total deposits			1,104,053				1,030,236
Short-term borrowed funds			43				1,414
Long-term debt			29,219				29,161
Mortgage banking derivatives			52				—
Other liabilities			11,493				10,318
Total liabilities			1,144,860				1,071,129
Off balance sheet items, commitments and contingencies (Note 9)
SHAREHOLDERS’ EQUITY
Common stock, $1.25 par value: 20,000,000 shares authorized; shares issued and    outstanding 6,988,394 and 7,077,941 at September 30, 2025 and December 31, 2024, respectively			8,735				8,847
Common stock dividend distributable			262				—
Additional paid-in capital			13,666				12,553
Undivided profits			56,089				50,351
Accumulated other comprehensive loss			(18,441	)			(24,727	)
Total Uwharrie Capital Corp shareholders’ equity			60,311				47,024
Noncontrolling interest			10,655				10,655
Total shareholders’ equity			70,966				57,679
Total liabilities and shareholders’ equity		$	1,215,826			$	1,128,808

(*) Derived from audited consolidated financial statements

See accompanying notes

2

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Income (Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
		(in thousands, except share and per share data)
Interest Income
Loans, including fees		$	10,800			$	9,966			$	31,504			$	28,045
Investment securities:
Investment securities, taxable			2,883				3,066				8,536				8,998
Investment securities, non-taxable			330				307				949				929
Equity securities			5				5				15				15
Interest-earning deposits with banks and federal funds sold			682				780				1,834				2,116
Total interest income			14,700				14,124				42,838				40,103
Interest Expense
Interest checking and money market accounts			1,741				1,763				4,910				4,953
Savings deposits			158				136				430				410
Time deposits, $250,000 and over			1,335				1,431				3,895				3,435
Other time deposits			1,247				1,328				3,871				3,686
Short-term borrowed funds			1				69				24				206
Long-term debt			330				339				985				1,001
Total interest expense			4,812				5,066				14,115				13,691
Net interest income			9,888				9,058				28,723				26,412
Provision for (recovery of) credit losses on:
Loans			192				(223	)			722				182
Securities held to maturity			(8	)			—				(22	)			10
Unfunded loan commitments			(8	)			(7	)			11				(21	)
Total provision for (recovery of) credit losses			176				(230	)			711				171
Net interest income after provision for (recovery of) credit losses			9,712				9,288				28,012				26,241
Noninterest Income
Service charges on deposit accounts			280				283				802				818
Other service fees and commissions			1,002				991				2,972				2,819
Interchange and card transaction fees, net			252				267				809				877
Loss on sale/call of securities			—				—				—				(148	)
Realized/unrealized gain (loss) on equity securities			7				31				(2	)			53
Income from mortgage banking			927				861				3,005				2,301
Supplemental executive retirement plan gain (loss)			293				(66	)			417				(112	)
Other income			145				162				368				476
Total noninterest income			2,906				2,529				8,371				7,084
Noninterest Expense
Salaries and employee benefits			5,581				5,152				16,712				15,511
Net occupancy expense			488				454				1,385				1,308
Equipment expense			195				217				606				642
Data processing costs			223				177				664				610
Loan costs			47				58				205				142
Professional fees and services			289				252				826				778
Marketing and donations			375				383				1,093				1,088
Electronic banking expense			137				107				371				320
Software amortization and maintenance			412				344				1,132				1,003
FDIC insurance			137				126				400				375
Supplemental executive retirement plan gain (loss)			293				(66	)			417				(112	)
Other noninterest expense			684				616				1,958				1,869
Total noninterest expense			8,861				7,820				25,769				23,534
Income before income taxes			3,757				3,997				10,614				9,791
Income taxes			867				962				2,347				2,160
Net income		$	2,890			$	3,035			$	8,267			$	7,631
Consolidated net income		$	2,890			$	3,035			$	8,267			$	7,631
Less: net income attributable to noncontrolling interest			(142	)			(142	)			(422	)			(424	)
Net income attributable to common shareholders			2,748				2,893				7,845				7,207
Net income per common share
Basic		$	0.38			$	0.39			$	1.08			$	0.97
Diluted		$	0.38			$	0.39			$	1.08			$	0.97
Weighted average common shares outstanding
Basic			7,216,259				7,376,072				7,254,062				7,436,961
Diluted			7,216,259				7,376,072				7,254,062				7,436,961

See accompanying notes

3

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
		(dollars in thousands)
Net income		$	2,890			$	3,035			$	8,267			$	7,631
Other comprehensive income:
Unrealized gain on available for sale securities			3,962				8,987				8,133				7,445
Related tax effect			(900	)			(2,064	)			(1,847	)			(1,710	)
Total other comprehensive income			3,062				6,923				6,286				5,735
Comprehensive income			5,952				9,958				14,553				13,366
Less: Comprehensive income attributable to noncontrolling interest			(142	)			(142	)			(422	)			(424	)
Comprehensive income attributable to Uwharrie Capital Corp		$	5,810			$	9,816			$	14,131			$	12,942

See accompanying notes

4

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

		Number of Common Shares Issued				Common Stock				Common Stock Dividend Distributable				Additional Paid-in Capital				Undivided Profits				Accumulated Other Comprehensive Income (Loss)				Noncontrolling Interest				Total
		(dollars in thousands, except share data)
Balance, June 30, 2024			7,068,577			$	8,836			$	—			$	12,510			$	46,419			$	(26,288	)		$	10,655			$	52,132
Net Income			—				—				—				—				2,893				—				142				3,035
2% stock dividend declaration			—				—				174				921				(1,095	)			—				—				—
Repurchase of common stock			(104,254	)			(131	)			—				(696	)			—				—				—				(827	)
Other comprehensive loss			—				—				—				—				—				6,923				—				6,923
Record preferred stock dividend series B      (noncontrolling interest)			—				—				—				—				—				—				(105	)			(105	)
Record preferred stock dividend series C      (noncontrolling interest)			—				—				—				—				—				—				(37	)			(37	)
Balance, September 30, 2024			6,964,323			$	8,705			$	174			$	12,735			$	48,217			$	(19,365	)		$	10,655			$	61,121
Balance, June 30, 2025			7,013,052			$	8,766			$	—			$	12,038			$	55,448			$	(21,503	)		$	10,655			$	65,404
Net Income			—				—				—				—				2,748				—				142				2,890
3% stock dividend declaration			—				—				262				1,845				(2,107	)			—				—				—
Repurchase of common stock			(24,658	)			(31	)			—				(217	)			—				—				—				(248	)
Other comprehensive income			—				—				—				—				—				3,062				—				3,062
Record preferred stock dividend series B      (noncontrolling interest)			—				—				—				—				—				—				(105	)			(105	)
Record preferred stock dividend series C      (noncontrolling interest)			—				—				—				—				—				—				(37	)			(37	)
Balance, September 30, 2025			6,988,394			$	8,735			$	262			$	13,666			$	56,089			$	(18,441	)		$	10,655			$	70,966

		Number of Common Shares Issued				Common Stock				Common Stock Dividend Distributable				Additional Paid-in Capital				Undivided Profits				Accumulated Other Comprehensive Income (Loss)				Noncontrolling Interest				Total
		(dollars in thousands, except share data)
Balance, December 31, 2023			7,124,438			$	8,905			$	—			$	12,876			$	42,105			$	(25,100	)		$	10,655			$	49,441
Net Income			—				—				—				—				7,207				—				424				7,631
2% stock dividend declaration			—				—				174				921				(1,095	)			—				—				—
Repurchase of common stock			(160,115	)			(200	)			—				(1,062	)			—				—				—				(1,262	)
Other comprehensive loss			—				—				—				—				—				5,735				—				5,735
Record preferred stock dividend Series B    (noncontrolling interest)			—				—				—				—				—				—				(313	)			(313	)
Record preferred stock dividend Series C    (noncontrolling interest)			—				—				—				—				—				—				(111	)			(111	)
Balance, September 30, 2024			6,964,323			$	8,705			$	174			$	12,735			$	48,217			$	(19,365	)		$	10,655			$	61,121
Balance, December 31, 2024			7,077,941			$	8,847			$	—			$	12,553			$	50,351			$	(24,727	)		$	10,655			$	57,679
Net Income			—				—				—				—				7,845				—				422				8,267
3% stock dividend declaration			—				—				262				1,845				(2,107	)			—				—				—
Repurchase of common stock			(89,547	)			(112	)			—				(732	)			—				—				—				(844	)
Other comprehensive income			—				—				—				—				—				6,286				—				6,286
Record preferred stock dividend Series B    (noncontrolling interest)			—				—				—				—				—				—				(311	)			(311	)
Record preferred stock dividend Series C    (noncontrolling interest)			—				—				—				—				—				—				(111	)			(111	)
Balance, September 30, 2025			6,988,394			$	8,735			$	262			$	13,666			$	56,089			$	(18,441	)		$	10,655			$	70,966

See accompanying notes

5

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

		Nine Months Ended September 30,
		2025				2024
		(dollars in thousands)
Cash flows from operating activities
Net income		$	8,267			$	7,631
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			799				832
Right of use asset amortization			296				289
Provision for credit losses			711				171
Loss on call of securities held to maturity			—				148
Gain on sale of mortgage loans			(1,447	)			(589	)
Loss on sale of premises and equipment			—				8
Gain on sale of OREO			(83	)			—
Realized/unrealized (gain) loss on equity securities			2				(53	)
Net amortization of premium on investment securities available for sale			1,335				1,303
Net amortization of premium on investment securities held to maturity			90				95
Amortization of loan servicing assets			930				927
Originations and purchases of mortgage loans for sale			(125,295	)			(77,728	)
Proceeds from sales of mortgage loans for sale			126,220				78,225
Mortgage banking derivatives			(97	)			(581	)
Loan servicing assets			(826	)			(622	)
Accrued interest receivable			(345	)			(428	)
Prepaid assets			(2	)			30
Cash surrender value of life insurance			(106	)			(108	)
Miscellaneous other assets			(1,763	)			(188	)
Deferred income taxes			4				—
Accrued interest payable			(61	)			58
Miscellaneous other liabilities			1,225				835
Net cash provided by operating activities			9,854				10,255
Cash flows from investing activities
Proceeds from maturities, calls and paydowns of securities available for sale			35,256				47,940
Proceeds from maturities, calls and paydowns of securities held to maturity			4,700				1,514
Purchase of investment securities available for sale			(50,392	)			(37,729	)
Purchase of investments in other assets			(89	)			(350	)
Proceeds from distributions of investments in other assets			161				224
Net change in restricted stock			(70	)			(57	)
Net increase in loans			(11,309	)			(55,061	)
Purchase of premises and equipment			(729	)			(735	)
Proceeds from sale of premises and equipment			—				31
Proceeds from sale of OREO			189				—
Net cash used by investing activities			(22,283	)			(44,223	)
Cash flows from financing activities
Net increase in deposit accounts			73,817				96,098
Net increase (decrease) in federal funds purchased and other short-term borrowings			(1,371	)			40
Repayment of long term borrowings			—				(20	)
Repurchase of common stock, net			(844	)			(1,262	)
Dividends paid on preferred stock (noncontrolling interest)			(422	)			(424	)
Net cash provided by financing activities			71,180				94,432
Increase in cash and cash equivalents			58,751				60,464
Cash and cash equivalents, beginning of period			52,267				63,434
Cash and cash equivalents, end of period		$	111,018			$	123,898
Supplemental disclosures of cash flow information
Interest paid		$	14,118			$	13,570
Income taxes paid			2,707				2,312
Supplemental schedule of non-cash activities
Net change in fair value of securities available for sale, net of tax		$	6,286			$	5,735
Loans transferred to foreclosed real estate			106				—

See accompanying notes

6

UWHARRIE CAPITAL CORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 1 – Basis of Presentation

The financial statements and accompanying notes are presented on a consolidated basis including Uwharrie Capital Corp (the “Company”) and its subsidiaries, Uwharrie Bank (the “Bank”), Uwharrie Investment Advisors, Inc. (“UIA”), and Uwharrie Mortgage, Inc. The Bank consolidates its subsidiaries, The Strategic Alliance Corporation (“TSAC”), BOS Agency, Inc. (“BOS Agency”) and Gateway Mortgage, Inc., each of which is wholly owned by the Bank.

The information contained in the consolidated financial statements is unaudited. In the opinion of management, the consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and material adjustments necessary for a fair presentation of results of interim periods, all of which are of a normal recurring nature, have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for an entire year. Management is not aware of additional economic events, outside influences or changes in concentrations of business that would require additional clarification or disclosure in the consolidated financial statements.

The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to consolidated financial statements filed as part of the Company’s 2024 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 6, 2025. This Quarterly Report should be read in conjunction with such Annual Report.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses.

The allowance for credit losses calculation utilizes a forecast model for the collectively assessed population. Effective June 30, 2025, after multiple periods of parallel modeling using the national unemployment rate and the NC unemployment rate as indices, compared to the National Unemployment Rate and the 10-Year T-Bill which had previously been utilized for this purpose, a change in estimate was incorporated into the model. The change in estimate incorporated more recent data to enhance and maintain reliable results.

In conjunction with this change, it was also necessary to update the framework we used for establishing qualitative reserves, which has likewise been modified to use new indices and metrics. The change in estimate of the forecast model for the collectively assessed population also increased the maximum potential allowance allocated to the qualitative factors. While these changes altered the overall composition of the allowance model, the overall impact is not material.

Accounting Changes and Reclassifications

The Company’s significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements for the year ended December 31, 2024 and are contained in the Company’s Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2024.

Note 2 – Comprehensive Income (Loss)

The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company’s only component of other comprehensive income is unrealized gains and losses, net of income tax, on investment securities available for sale.

7

The following table presents the changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2025 and 2024:

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2025				2024				2025				2024
		(dollars in thousands)
Beginning balance		$	(21,503	)		$	(26,288	)		$	(24,727	)		$	(25,100	)
Other comprehensive income before reclassifications,    net of ($900), ($2,064), ($1,847) and ($1,710) tax effect, respectively			3,062				6,923				6,286				5,735
Amounts reclassified from accumulated other comprehensive loss,    net of $0, $0, $0, and $0 tax effect, respectively			—				—				—				—
Net current-period other comprehensive income			3,062				6,923				6,286				5,735
Ending balance		$	(18,441	)		$	(19,365	)		$	(18,441	)		$	(19,365	)

Note 3 – Noncontrolling Interest

In 2013, the Company’s subsidiary bank issued a total of $10.7 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series B and Series C. The preferred stock qualifies as Tier 1 capital at the Bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. This capital is presented as noncontrolling interest in the consolidated balance sheets. Dividends declared on this preferred stock are presented as earnings allocated to the noncontrolling interest in the consolidated statements of income.

Note 4 – Per Share Data

On October 28, 2025, the Company's Board of Directors declared a 3% stock dividend payable December 1, 2025 to shareholders of record on November 10, 2025. All information in the accompanying consolidated financial statements regarding earnings per share and weighted average number of shares outstanding has been computed giving effect to this stock dividend. The weighted average number of shares outstanding and earnings per share for the 2024 periods have also been adjusted for the 2% stock dividend declared on October 15, 2024.

Basic and diluted net income per common share is computed based on the weighted average number of shares outstanding during each period after retroactively adjusting for stock dividends. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income of the Company. The Company had no stock options outstanding at September 30, 2025 or December 31, 2024.

Basic and diluted net income per common share have been computed based upon net income available to common shareholders as presented in the accompanying consolidated statements of income divided by the weighted average number of common shares outstanding or assumed to be outstanding.

Note 5 – Investment and Equity Securities

Carrying amounts and fair values of securities available for sale and held to maturity are summarized below:

September 30, 2025		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
		(dollars in thousands)
Securities available for sale:
U.S. Treasury		$	25,813			$	—			$	1,963			$	23,850
U.S. government agencies			49,081				66				867				48,280
GSE - Mortgage-backed securities and CMOs			180,083				694				8,969				171,808
Asset-backed securities			21,340				310				61				21,589
State and political subdivisions			98,573				195				13,240				85,528
Corporate bonds			4,000				—				135				3,865
Total securities available for sale		$	378,890			$	1,265			$	25,235			$	354,920

8

September 30, 2025		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value				Allowance for Credit Losses				Net Carrying Amount
		(dollars in thousands)
Securities held to maturity:
State and political subdivisions		$	11,723			$	—			$	1,215			$	10,508			$	—			$	11,723
Corporate bonds			10,300				—				792				9,508				46				10,254
Total securities held to maturity		$	22,023			$	—			$	2,007			$	20,016			$	46			$	21,977

December 31, 2024		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
		(dollars in thousands)
Securities available for sale:
U.S. Treasury		$	32,961			$	—			$	3,067			$	29,894
U.S. government agencies			42,667				97				1,035			$	41,729
GSE - Mortgage-backed securities and CMOs			165,561				198				12,970			$	152,789
Asset-backed securities			23,215				407				44			$	23,578
State and political subdivisions			94,684				5				15,436			$	79,253
Corporate bonds			6,000				—				257			$	5,743
Total securities available for sale		$	365,088			$	707			$	32,809			$	332,986

December 31, 2024		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value				Allowance for Credit Losses				Net Carrying Amount
		(dollars in thousands)
Securities held to maturity:
State and political subdivisions		$	11,813			$	—			$	1,078			$	10,735			$	—			$	11,813
Corporate bonds			15,000				—				1,174				13,826				68				14,932
Total securities held to maturity		$	26,813			$	—			$	2,252			$	24,561			$	68			$	26,745

The Company owned Federal Reserve Bank (FRB) stock reported at cost of $959,000 at September 30, 2025 and December 31, 2024. The Company owned Federal Home Loan Bank (FHLB) stock reported at cost of $819,000 and $750,000 at September 30, 2025 and December 31, 2024, respectively. The investments in FRB stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks and are classified as restricted stock on the consolidated balance sheet. These investments are carried at cost since there is no ready market and redemption has historically been made at par value. The Company estimated that the fair value approximated cost and that these investments were not impaired at September 30, 2025.

There is no allowance for credit losses on available for sale securities. The following table shows a rollforward of the allowance for credit losses on held to maturity securities for the nine months ended September 30, 2025.

		State and political subdivisions				Corporate bonds				Total
		(dollars in thousands)
Balance, December 31, 2024		$	—			$	68			$	68
Recovery of credit losses			—				(22	)			(22	)
Charge-offs of securities			—				—				—
Recoveries			—				—				—
Balance, September 30, 2025		$	—			$	46			$	46

On a quarterly basis, the Company monitors the credit quality of the debt securities held to maturity through the use of credit ratings. For unrated securities, primarily corporate bonds consisting of subordinated debt of bank holding companies, individual financial reports are reviewed quarterly. Capital, profitability, liquidity and other ratios are reviewed to assist in determining credit quality.

9

The following table summarizes the credit ratings of debt securities held to maturity, presented at amortized cost, by major security type at September 30, 2025.

September 30, 2025		State and political subdivisions				Corporate bonds				Total
		(dollars in thousands)
Aaa		$	—			$	—			$	—
Aa1/Aa2/Aa3			11,116				—				11,116
A1/A2			—				—				—
BBB			—				—				—
Not rated			607				10,300				10,907
Total		$	11,723			$	10,300			$	22,023

At September 30, 2025, the Company had no securities held to maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held to maturity classified as nonaccrual for the nine months ended September 30, 2025.

The Company had no sales of securities available for sale during the nine-month periods ended September 30, 2025 and 2024.

At September 30, 2025 and December 31, 2024, securities available for sale with a carrying amount of $171.5 million and $161.5 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

We believe the unrealized losses on investment securities are a result of a volatile market and fluctuations in market prices due to a rise in interest rates, which will adjust if rates decline. Management does not believe these fluctuations are a reflection of the credit quality of the investments.

The following tables show the gross unrealized losses and estimated fair value of available for sale securities, for which an allowance has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31, 2024.

		Less than 12 Months												12 Months or More												Total
September 30, 2025		Number of Securities				Fair Value				Unrealized Losses				Number of Securities				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
						(dollars in thousands)
Securities available for sale:
U.S. Treasury			—			$	—			$	—				5			$	23,850			$	1,963			$	23,850			$	1,963
U.S. government agencies			17				19,256				106				27				19,716				761				38,972				867
GSE-Mortgage-backed securities and CMOs			16				32,207				270				57				87,018				8,699				119,225				8,969
Asset-backed securities			—				—				—				4				4,398				61				4,398				61
State and political subdivisions			4				1,972				94				58				73,274				13,146				75,246				13,240
Corporate bonds			—				—				—				2				3,865				135				3,865				135
Total securities available for sale			37			$	53,435			$	470				153			$	212,121			$	24,765			$	265,556			$	25,235

		Less than 12 Months												12 Months or More												Total
December 31, 2024		Number of Securities				Fair Value				Unrealized  Losses				Number of Securities				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
						(dollars in thousands)
Securities available for sale
U.S. Treasury			—			$	—			$	—				7			$	29,894			$	3,067			$	29,894			$	3,067
U.S. government agencies			9				9,956				134				24				19,995				901				29,951				1,035
GSE-Mortgage-backed securities and CMOs			19				32,580				313				57				97,798				12,657				130,378				12,970
Asset-backed securities			2				2,872				21				3				4,189				23				7,061				44
State and political subdivisions			5				7,773				253				57				70,169				15,183				77,942				15,436
Corporate bonds			—				—				—				3				5,743				257				5,743				257
Total securities available for sale			35			$	53,181			$	721				151			$	227,788			$	32,088			$	280,969			$	32,809

10

Declines in the fair value of the available for sale investment portfolio are believed by management to be temporary in nature. When evaluating an investment for credit loss, management considers, among other things, the extent to which the fair value has been in a loss position; the financial condition of the issuer through the review of credit ratings and, if necessary, corporate financial statements; adverse conditions specifically related to the security such as past due principal or interest; underlying assets that collateralize the debt security; other economic conditions and demographics; and the intent and ability of the Company to hold the investment until the loss position is recovered. Any unrealized losses were largely due to increases in market interest rates over the yields available at the time of purchase. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. At September 30, 2025, the Company did not intend to sell and believed it was not likely to be required to sell the available for sale securities that were in a loss position prior to full recovery.

The following tables show contractual maturities of the investment portfolio as of September 30, 2025:

		September 30, 2025
		Amortized Cost				Estimated Fair Value				Book Yield
		(dollars in thousands)
Securities available for sale:
Due within twelve months			2,675				2,614				1.45	%
Due after one but within five years			64,389				60,681				1.94	%
Due after five but within ten years			56,381				51,850				2.92	%
Due after ten years			255,445				239,775				3.88	%
		$	378,890			$	354,920				3.39	%

		September 30, 2025
		Amortized Cost				Estimated Fair Value				Book Yield
		(dollars in thousands)
Securities held to maturity:
Due after one but within five years			3,300				3,252				8.42	%
Due after five but within ten years			9,609				8,769				3.51	%
Due after ten years			9,114				7,995				3.39	%
		$	22,023			$	20,016				4.20	%

The portion of unrealized gains and losses for the three and nine months ended September 30, 2025 and 2024 related to equity securities still held at the reporting date is calculated as follows:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
		(dollars in thousands)
Gross proceeds from sales		$	—			$	—			$	—			$	—
Net gains (losses) recognized during the period on equity securities		$	7			$	31			$	(2	)		$	53
Less: Net gains (losses) recognized from equity securities sold during the period			—				—				—				—
Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date		$	7			$	31			$	(2	)		$	53

11

Note 6 – Loans Held for Investment

The composition of net loans held for investment by class as of September 30, 2025 and December 31, 2024 was as follows:

		September 30, 2025				December 31, 2024
		(dollars in thousands)
Commercial
Commercial		$	108,142			$	104,872
Real estate - commercial			254,498				245,569
Other real estate construction loans			51,214				50,940
Other loans			4,819				6,408
Noncommercial
Real estate 1-4 family construction			18,031				27,789
Real estate - residential			158,598				150,667
Home equity			71,541				68,287
Consumer loans			9,719				11,020
			676,562				665,552
Less:
Allowance for credit losses			(6,356	)			(5,824	)
Deferred loan costs net			828				825
Loans held for investment, net		$	671,034			$	660,553

Note 7 – Allowance for Credit Losses on Loans

The following tables summarize the activity related to the allowance for credit losses on loans for the three and nine months ended September 30, 2025 and 2024.

		Commercial Loans																Noncommercial Loans
		Commercial				Real estate commercial				Other real estate construction				Other loans				Real estate 1-4 family construction				Real estate residential				Home equity				Consumer				Total
		(dollars in thousands)
Balance, June 30, 2025		$	1,333			$	2,361			$	409			$	15			$	99			$	1,264			$	651			$	99			$	6,231
Provision for (recovery of) credit losses			65				(24	)			17				1				(11	)			2				128				14				192
Charge-offs			(10	)			—				—				—				—				—				(89	)			(37	)			(136	)
Recoveries			43				—				—				—				—				1				2				23				69
Net (charge-offs) recoveries			33				—				—				—				—				1				(87	)			(14	)			(67	)
Balance, September 30, 2025		$	1,431			$	2,337			$	426			$	16			$	88			$	1,267			$	692			$	99			$	6,356

		Commercial Loans																Noncommercial Loans
		Commercial				Real estate commercial				Other real estate construction				Other loans				Real estate 1-4 family construction				Real estate residential				Home equity				Consumer				Total
		(dollars in thousands)
Balance, June 30, 2024		$	1,454			$	2,208			$	368			$	10			$	42			$	962			$	669			$	195			$	5,908
Provision for (recovery of) credit losses			158				(21	)			(3	)			2				1				(190	)			(130	)			(40	)			(223	)
Charge-offs			(20	)			—				—				—				—				—				—				(22	)			(42	)
Recoveries			62				—				—				—				—				1				—				30				93
Net (charge-offs) recoveries			42				—				—				—				—				1				—				8				51
Balance, September 30, 2024		$	1,654			$	2,187			$	365			$	12			$	43			$	773			$	539			$	163			$	5,736

12

		Commercial Loans																Noncommercial Loans
		Commercial				Real estate commercial				Other real estate construction				Other loans				Real estate 1-4 family construction				Real estate residential				Home equity				Consumer				Total
		(dollars in thousands)
Balance, December 31, 2024		$	1,528			$	2,266			$	412			$	18			$	56			$	781			$	588			$	175			$	5,824
Provision for (recovery of) credit losses			(65	)			71				14				(2	)			32				484				190				(2	)			722
Charge-offs			(123	)			—				—				—				—				—				(89	)			(115	)			(327	)
Recoveries			91				—				—				—				—				2				3				41				137
Net (charge-offs) recoveries			(32	)			—				—				—				—				2				(86	)			(74	)			(190	)
Balance, September 30, 2025		$	1,431			$	2,337			$	426			$	16			$	88			$	1,267			$	692			$	99			$	6,356

		Commercial Loans																Noncommercial Loans
		Commercial				Real estate commercial				Other real estate construction				Other loans				Real estate 1-4 family construction				Real estate residential				Home equity				Consumer				Total
		(dollars in thousands)
Balance, December 31, 2023		$	1,493			$	2,057			$	389			$	9			$	31			$	796			$	582			$	204			$	5,561
Provision for (recovery of) credit losses			79				130				(24	)			3				12				(25	)			(43	)			50				182
Charge-offs			(37	)			—				—				—				—				—				(1	)			(140	)			(178	)
Recoveries			119				—				—				—				—				2				1				49				171
Net (charge-offs) recoveries			82				—				—				—				—				2				—				(91	)			(7	)
Balance, September 30, 2024		$	1,654			$	2,187			$	365			$	12			$	43			$	773			$	539			$	163			$	5,736

Past due loan information is used by management when assessing the adequacy of the allowance for credit losses. The following tables summarize the past due information of the loan portfolio by class as of the dates indicated:

September 30, 2025		Loans 30-89 Days Past Due				Nonaccrual Loans				Total Past Due Loans				Current Loans				Total Loans				Accruing Loans 90 Days or More Past Due
		(dollars in thousands)
Commercial		$	16			$	—			$	16			$	108,125			$	108,141			$	—
Real estate - commercial			—				—				—				254,596				254,596				—
Other real estate construction			—				—				—				51,214				51,214				—
Real estate 1-4 family construction			—				—				—				18,031				18,031				—
Real estate - residential			881				198				1,079				158,250				159,329				—
Home equity			75				205				280				71,261				71,541				—
Consumer loans			1				—				1				9,718				9,719				—
Other loans			—				—				—				4,819				4,819				—
Total		$	973			$	403			$	1,376			$	676,014			$	677,390			$	—

December 31, 2024		Loans 30-89 Days Past Due				Nonaccrual Loans				Total Past Due Loans				Current Loans				Total Loans				Accruing Loans 90 Days or More Past Due
		(dollars in thousands)
Commercial		$	9			$	88			$	97			$	104,773			$	104,870			$	—
Real estate - commercial			43				—				43				245,636				245,679				—
Other real estate construction			—				—				—				50,940				50,940				—
Real estate 1-4 family construction			—				—				—				27,789				27,789				—
Real estate - residential			429				64				493				150,891				151,384				—
Home equity			176				40				216				68,071				68,287				—
Consumer loan			42				—				42				10,978				11,020				—
Other loans			—				—				—				6,408				6,408				—
Total		$	699			$	192			$	891			$	665,486			$	666,377			$	—

Once a loan becomes 90 days past due, the loan is automatically transferred to a nonaccrual status. The exception to this policy is credit card loans that remain in accruing status 90 days or more until they are paid current or charged off.

The carrying value of foreclosed properties held as other real estate was $0 at September 30, 2025 and December 31, 2024. The Company had no foreclosed residential real estate and $136,000 of residential real estate in process of foreclosure at September 30,

13

2025. At December 31, 2024, the Company had no foreclosed residential real estate and $93,000 of residential real estate in process of foreclosure.

The composition of nonaccrual loans by class as of September 30, 2025 and December 31, 2024 was as follows:

														Nine Months Ended
		September 30, 2025												September 30, 2025
		Nonaccrual Loans with No Allowance				Nonaccrual Loans with an Allowance				Total Nonaccrual Loans				Interest Income
		(dollars in thousands)
Commercial		$	—			$	—			$	—			$	—
Real estate - commercial			—				—				—				—
Other real estate construction			—				—				—				—
Real estate 1-4 family construction			—				—				—				—
Real estate - residential			—				198				198				12
Home equity			—				205				205				6
Consumer loans			—				—				—				—
Other loans			—				—				—				—
		$	—			$	403			$	403			$	18

														Nine Months Ended
		December 31, 2024												September 30, 2024
		Nonaccrual Loans with No Allowance				Nonaccrual Loans with an Allowance				Total Nonaccrual Loans				Interest Income
		(dollars in thousands)
Commercial		$	—			$	88			$	88			$	5
Real estate - commercial			—				—				—				—
Other real estate construction			—				—				—				—
Real estate 1-4 family construction			—				—				—				—
Real estate - residential			—				64				64				19
Home equity			—				40				40				2
Consumer loans			—				—				—				—
Other loans			—				—				—				—
		$	—			$	192			$	192			$	26

A loan may be individually assessed for determining the allowance for credit losses when it is determined that it does not share similar risk characteristics with other loans. Loans that are on nonaccrual status will be reviewed to determine if they will be individually, rather than collectively, assessed. If the loan is deemed to be collateral dependent and the relationship’s outstanding balance is $100,000 or greater, it will be individually assessed. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans require an analysis of the collateral. The fair value of the collateral is discounted by liquidation costs. If the discounted fair value of the collateral is greater than the amortized loan balance, no allowance is required. Otherwise the difference between the balance and the collateral is charged off if deemed uncollectible.

The following table details the amortized cost of collateral dependent loans and any related allowance at September 30, 2025 and December 31, 2024.

		September 30, 2025								December 31, 2024
		Amortized Cost				Allowance for Credit Losses				Amortized Cost				Allowance for Credit Losses
		(dollars in thousands)
Commercial		$	—			$	—			$	—			$	—
Real estate - commercial			—				—				—				—
Other real estate construction			—				—				—				—
Real estate 1-4 family construction			—				—				—				—
Real estate - residential			135				18				—				—
Home equity			—				—				—				—
Consumer loans			—				—				—				—
Other loans			—				—				—				—
Total		$	135			$	18			$	—			$	—

14

Management uses a risk-grading program to facilitate the evaluation of probable inherent loan losses and to measure the adequacy of the allowance for credit losses on loans. In this program, risk grades are initially assigned by the loan officers and reviewed and monitored by the lenders and credit administration. The program has nine risk grades summarized in six categories as follows:

Pass: Loans that are pass grade credits include loans that are fundamentally sound, with risk factors that are reasonable and acceptable. They generally conform to policy with only minor exceptions; any major exceptions are clearly mitigated by other economic factors.

Watch: Loans that are acceptable but show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss. These loans may deserve management’s attention.

Special Mention: Loans that exhibit potential weakness that deserves management’s close attention. Credits within this category exhibit risk that is increasing beyond the point where the loan would have been originally approved.

Substandard: Loans that are considered substandard are loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or the value of the collateral pledged. All nonaccrual loans are graded as substandard.

Doubtful: Loans that are considered to be doubtful have all weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make the collection or liquidation in full on the basis of current existing facts, conditions and values highly questionable and improbable.

Loss: Loans that are considered to be a loss are considered to be uncollectible and of such little value that their continuance as bankable assets is not warranted.

15

The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of September 30, 2025:

September 30, 2025		Term Loans by Year of Origination
		2025				2024				2023				2022				2021				Prior				Revolving				Total
		(dollars in thousands)
Commercial
Pass		$	35,409			$	20,594			$	10,796			$	11,179			$	7,619			$	9,681			$	12,661			$	107,939
Watch			121				36				3				—				—				—				42				202
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total commercial			35,530				20,630				10,799				11,179				7,619				9,681				12,703				108,141
Real estate - commercial
Pass			26,134				42,804				44,116				44,333				35,940				53,292				1,532				248,151
Watch			—				—				6,017				—				—				55				—				6,072
Special Mention			—				—				—				—				—				26				—				26
Substandard			—				—				—				—				—				347				—				347
Total real estate - commercial			26,134				42,804				50,133				44,333				35,940				53,720				1,532				254,596
Other real estate construction
Pass			8,994				16,781				13,433				3,817				1,823				4,734				1,632				51,214
Watch			—				—				—				—				—				—				—				—
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total other real estate construction			8,994				16,781				13,433				3,817				1,823				4,734				1,632				51,214
Real estate 1-4 family construction
Pass			8,476				9,555				—				—				—				—				—				18,031
Watch			—				—				—				—				—				—				—				—
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total real estate 1-4 family construction			8,476				9,555				—				—				—				—				—				18,031
Real estate - residential
Pass			28,203				22,750				32,319				29,996				20,650				21,533				2,123				157,574
Watch			323				—				—				—				201				561				—				1,085
Special Mention			—				—				101				—				118				23				—				242
Substandard			—				—				—				—				—				428				—				428
Total real estate - residential			28,526				22,750				32,420				29,996				20,969				22,545				2,123				159,329
Home equity
Pass			10				44				553				326				173				2,098				68,002				71,206
Watch			—				—				—				15				—				40				—				55
Special Mention			—				—				75				—				—				—				—				75
Substandard			—				—				—				100				105				—				—				205
Total home equity			10				44				628				441				278				2,138				68,002				71,541
Consumer loans
Pass			2,431				2,079				1,088				550				73				315				3,131				9,667
Watch			—				52				—				—				—				—				—				52
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total consumer loans			2,431				2,131				1,088				550				73				315				3,131				9,719
Other loans
Pass			66				631				—				1,598				1,095				1,429				—				4,819
Watch			—				—				—				—				—				—				—				—
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total other loans			66				631				—				1,598				1,095				1,429				—				4,819
Total Pass			109,723				115,238				102,305				91,799				67,373				93,082				89,081				668,601
Total Watch			444				88				6,020				15				201				656				42				7,466
Total Special Mention			—				—				176				—				118				49				—				343
Total Substandard			—				—				—				100				105				775				—				980
Total loans		$	110,167			$	115,326			$	108,501			$	91,914			$	67,797			$	94,562			$	89,123			$	677,390

During the nine months ended September 30, 2025, seventy-five loans totaling $10.2 million were converted from revolving to term loans.

16

The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of December 31, 2024:

December 31, 2024		Term Loans by Year of Origination
		2024				2023				2022				2021				2020				Prior				Revolving				Total
		(dollars in thousands)
Commercial
Pass		$	25,634			$	18,992			$	14,319			$	11,948			$	2,292			$	10,270			$	20,964			$	104,419
Watch			48				117				—				—				—				—				182				347
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				15				—				88				—				—				—				103
Total commercial			25,682				19,124				14,319				12,036				2,292				10,270				21,146				104,869
Real estate - commercial
Pass			38,684				55,090				48,600				30,383				20,722				48,127				3,040				244,646
Watch			—				—				—				—				—				63				—				63
Special Mention			—				—				—				561				—				32				—				593
Substandard			—				—				—				—				113				264				—				377
Total real estate - commercial			38,684				55,090				48,600				30,944				20,835				48,486				3,040				245,679
Other real estate construction
Pass			22,447				15,004				4,981				2,287				3,211				2,172				795				50,897
Watch			—				—				—				—				—				44				—				44
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total other real estate construction			22,447				15,004				4,981				2,287				3,211				2,216				795				50,941
Real estate 1-4 family construction
Pass			19,845				7,944				—				—				—				—				—				27,789
Watch			—				—				—				—				—				—				—				—
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total real estate 1-4 family construction			19,845				7,944				—				—				—				—				—				27,789
Real estate - residential
Pass			29,936				37,448				34,018				21,613				10,473				14,397				1,829				149,714
Watch			—				—				—				204				365				490				—				1,059
Special Mention			—				104				—				122				—				83				—				309
Substandard			—				—				—				—				—				302				—				302
Total real estate - residential			29,936				37,552				34,018				21,939				10,838				15,272				1,829				151,384
Home equity
Pass			57				255				159				192				402				1,679				65,158				67,902
Watch			—				—				—				—				—				84				140				224
Special Mention			—				—				100				—				—				20				—				120
Substandard			—				—				—				—				—				41				—				41
Total home equity			57				255				259				192				402				1,824				65,298				68,287
Consumer loans
Pass			3,934				1,944				985				170				70				320				3,586				11,009
Watch			11				—				—				—				—				—				—				11
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total consumer loans			3,945				1,944				985				170				70				320				3,586				11,020
Other loans
Pass			644				—				1,598				2,602				1,211				353				—				6,408
Watch			—				—				—				—				—				—				—				—
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Total other loans			644				—				1,598				2,602				1,211				353				—				6,408
Total Pass			141,181				136,677				104,660				69,195				38,381				77,318				95,372				662,784
Total Watch			59				117				—				204				365				681				322				1,748
Total Special Mention			—				104				100				683				—				135				—				1,022
Total Substandard			—				15				—				88				113				607				—				823
Total loans		$	141,240			$	136,913			$	104,760			$	70,170			$	38,859			$	78,741			$	95,694			$	666,377

17

The following tables present gross charge-offs by origination date as of September 30, 2025 and December 31, 2024:

September 30, 2025		Gross Loan Charge-offs by Year of Origination
		2025				2024				2023				2022				2021				Prior				Revolving				Total
		(dollars in thousands)
Commercial
Commercial		$	—			$	9			$	—			$	16			$	88			$	—			$	10			$	123
Real estate - commercial			—				—				—				—				—				—				—				—
Other real estate construction			—				—				—				—				—				—				—				—
Other loans			—				—				—				—				—				—				—				—
Noncommercial
Real estate 1-4 family construction			—				—				—				—				—				—				—				—
Real estate - residential			—				—				—				—				—				—				—				—
Home equity			—				—				—				—				—				89				—				89
Consumer loans			—				33				4				2				—				2				74				115
Total charge-offs		$	—			$	42			$	4			$	18			$	88			$	91			$	84			$	327

December 31, 2024		Gross Loan Charge-offs by Year of Origination
		2024				2023				2022				2021				2020				Prior				Revolving				Total
		(dollars in thousands)
Commercial
Commercial		$	—			$	10			$	—			$	137			$	164			$	—			$	10			$	321
Real estate - commercial			—				—				—				—				—				—				—				—
Other real estate construction			—				—				—				—				—				—				—				—
Other loans			—				—				—				—				—				—				—				—
Noncommercial
Real estate 1-4 family construction			—				—				—				—				—				—				—				—
Real estate - residential			—				—				—				—				—				—				—				—
Home equity			—				—				—				—				—				1				—				1
Consumer loans			12				51				7				12				7				4				65				158
Total charge-offs		$	12			$	61			$	7			$	149			$	171			$	5			$	75			$	480

Loans that are in nonaccrual status or 90 days past due and still accruing are considered to be nonperforming. At both September 30, 2025 and December 31, 2024 there were no loans 90 days past due and still accruing. The following tables show the breakdown between performing and nonperforming loans by class at September 30, 2025 and December 31, 2024:

September 30, 2025		Performing				Non- Performing				Total
		(dollars in thousands)
Commercial		$	108,141			$	—			$	108,141
Real estate - commercial			254,596				—				254,596
Other real estate construction			51,214				—				51,214
Real estate 1-4 family construction			18,031				—				18,031
Real estate - residential			159,131				198				159,329
Home equity			71,336				205				71,541
Consumer loans			9,719				—				9,719
Other loans			4,819				—				4,819
Total		$	676,987			$	403			$	677,390

December 31, 2024		Performing				Non- Performing				Total
		(dollars in thousands)
Commercial		$	104,782			$	88			$	104,870
Real estate - commercial			245,679				—				245,679
Other real estate construction			50,940				—				50,940
Real estate 1-4 family construction			27,789				—				27,789
Real estate - residential			151,320				64				151,384
Home equity			68,247				40				68,287
Consumer loans			11,020				—				11,020
Other loans			6,408				—				6,408
Total		$	666,185			$	192			$	666,377

18

Modifications to Borrowers Experiencing Financial Difficulty

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses due to the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. The Company rarely modifies loans by providing principal forgiveness. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. In some cases, the Company will modify a loan by providing multiple types of concessions. Typically one type of concession is granted initially. If the borrower continues to experience financial difficulty, another concession may be granted. Types of concessions include term extensions beyond customary terms, capitalization of accrued interest, interest rate reductions to below current market rates, payment deferrals or principal forgiveness.

There were no loans modified for borrowers experiencing financial difficulty during the nine months ended September 30, 2025 or during the twelve months ended December 31, 2024. As such, the Company did not have any loans made to borrowers experiencing financial difficulty that were modified during the nine months ended September 30, 2025 or during the twelve months ended December 31, 2024 that subsequently defaulted. A default on a modified loan is defined as being past due 90 days or being out of compliance with the modification agreement. The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

Note 8 - Leases

Operating leases in which we are the lessee are recorded as operating lease right of use (“ROU”) assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on our consolidated balance sheets. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental collateralized borrowing rate at the lease commencement date. ROU assets are further adjusted for any lease incentives. Operating lease expense, which is composed of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in the net occupancy expense in the consolidated statements of income. We do not currently have any finance leases in which we are the lessee.

Our leases relate to four office locations, three of which are branch locations, with remaining terms of one to four years. Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of September 30, 2025, operating lease ROU assets were $813,000 and the operating lease liability was $877,000, compared to operating lease ROU assets of $1.1 million and an operating lease liability of $1.2 million at December 31, 2024. Lease costs associated with all leases was $106,000 and $317,000 for the three and nine months ended September 30, 2025, respectively.

The table below summarizes other information related to our operating leases:

		Nine Months Ended September 30,
		2025				2024
		(in thousands except percent and period data)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	340			$	333
Right-of-use assets obtained in exchange for new operating lease liabilities			—				—
Weighted-average remaining lease term - operating leases, in years			2.4				3.3
Weighted-average discount rate - operating leases			2.74	%			2.63	%

19

The table below summarizes the maturity of remaining lease liabilities:

		September 30, 2025
		(dollars in thousands)
2025		$	115
2026			416
2027			260
2028			97
2029			20
Thereafter			-
Total lease payments			908
Less: Interest			(31	)
Present value of lease liabilities		$	877

Note 9 - Commitments and Contingencies

The Company’s subsidiary bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, lines of credit and standby letters of credit. These instruments involve elements of credit risk in excess of amounts recognized in the accompanying financial statements.

The Bank’s risk of loss with unfunded loans and lines of credit or standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments under such instruments as it does for on-balance sheet instruments. The amount of collateral obtained, if any, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, real estate and time deposits with financial institutions. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Credit card commitments are unsecured.

At September 30, 2025 and December 31, 2024, outstanding financial instruments whose contract amounts represent credit risk were approximately:

		September 30, 2025				December 31, 2024
		(dollars in thousands)
Commitments to extend credit		$	216,327			$	224,708
Credit card commitments			26,219				26,715
Standby letters of credit			8,000				8,141
Total commitments		$	250,546			$	259,564

The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancelable. The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans. The allowance for credit losses for unfunded loan commitments of $179,000 and $167,000 at September 30, 2025 and December 31, 2024, respectively, is separately classified on the balance sheet within Other Liabilities.

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the nine months ended September 30, 2025.

		Total Allowance for Credit Losses - Unfunded Loan Commitments
		(dollars in thousands)
Balance, December 31, 2024		$	167
Provision for credit losses			12
Balance, September 30, 2025		$	179

20

Note 10 – Fair Value Disclosures

Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation.

ASC 820 defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which those assets or liabilities are sold and considers assumptions that market participants would use when pricing those assets or liabilities. Fair values determined using Level 1 inputs rely on active and observable markets to price identical assets or liabilities. In situations where identical assets and liabilities are not traded in active markets, fair values may be determined based on Level 2 inputs, which exist when observable data exists for similar assets and liabilities. Fair values for assets and liabilities for which identical or similar assets and liabilities are not actively traded in observable markets are based on Level 3 inputs, which are considered to be unobservable.

Among the Company’s assets and liabilities, investment securities available for sale and mortgage banking derivatives are reported at their fair values on a recurring basis. Certain other assets are adjusted to their fair value on a nonrecurring basis, including other real estate owned, individually evaluated loans, loans held for sale, which are carried at the lower of cost or market, and loan servicing rights, where fair value is determined using similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Deposits, short-term borrowings and long-term obligations are not reported at fair value.

Prices for U.S. Treasury and marketable equity securities are readily available in the active markets in which those securities are traded, and the resulting fair values are shown in the Level 1 input column. Prices for government agency securities, mortgage-backed securities, asset-backed securities and state, county and municipal securities are obtained for similar securities, and the resulting fair values are shown in the Level 2 input column. Prices for all other non-marketable investments are determined based on various assumptions that are not observable. The fair values for these investment securities are shown in the Level 3 input column. Non-marketable investment securities, which are carried at their purchase price, include those that may only be redeemed by the issuer. The changes in securities between Level 1 and Level 2 were related to the purchase and sale of several securities and not the transfer of securities.

Mortgage banking derivatives, which are composed of interest rate lock commitments, or IRLCs, mortgage forward sales commitments and to-be-announced mortgage-backed securities trades (TBAs), are recorded at fair value on a recurring basis. Fair value of the IRLCs is based on projected pull-through rates and anticipated margins based on changes in market interest rates. The Company considers these to be Level 3 valuations. The fair value of mortgage forward sales commitments and TBAs is based on the gain or loss that would occur if the Company were to pair-off the transaction at the measurement date and is considered to be a Level 2 input.

The Company does not record loans at fair value on a recurring basis. However, certain nonaccrual loans are individually evaluated in connection with determining the allowance for credit losses. If the loan is deemed to be collateral dependent and the relationship’s outstanding balance is $100,000 or greater, it will be individually evaluated. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans require an analysis of the collateral. The fair value of the collateral is based on appraised values discounted by liquidation costs which the Company considers Level 3 valuations.

Foreclosed assets are adjusted to fair value upon transfer of the loans to other real estate owned. Real estate acquired in settlement of loans is recorded initially at the estimated fair value of the property less estimated selling costs at the date of foreclosure. The initial recorded value may be subsequently reduced by additional allowances, which are charged to earnings if the estimated fair value of the property less estimated selling costs declines below the initial recorded value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The Company typically bases the fair value of the collateral on appraised values, which the Company considers Level 3 valuations.

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate, based on secondary market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. These loans are recorded in Level 2.

21

The following tables provide fair value information for assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:

		September 30, 2025
		(dollars in thousands)
		Total				Level 1				Level 2				Level 3
Securities available for sale:
U.S. Treasury		$	23,850			$	23,850			$	—			$	—
U.S. government agencies			48,280				—				48,280				—
GSE - Mortgage-backed securities and CMOs			171,808				—				171,808				—
Asset-backed securities			21,589				—				21,589				—
State and political subdivisions			85,528				—				85,528				—
Corporate bonds			3,865				—				3,865				—
Equity securities			332				332				—				—
Mortgage banking derivatives			944				—				49				895
Total assets at fair value on a recurring basis		$	356,196			$	24,182			$	331,119			$	895
Mortgage banking derivatives		$	52			$	—			$	52			$	—
Total liabilities at fair value on a recurring basis		$	52			$	—			$	52			$	—

		December 31, 2024
		(dollars in thousands)
		Total				Level 1				Level 2				Level 3
Securities available for sale:
U.S. Treasury		$	29,894			$	29,894			$	—			$	—
U.S. government agencies			41,729				—				41,729				—
GSE - Mortgage-backed securities and CMOs			152,789				—				152,789				—
Asset-backed securities			23,578				—				23,578				—
State and political subdivisions			79,253				—				79,253				—
Corporate bonds			5,743				—				5,743				—
Equity securities			334				334				—				—
Mortgage banking derivatives			795				—				204				591
Total assets at fair value on a recurring basis		$	334,115			$	30,228			$	303,296			$	591
Mortgage banking derivatives		$	—			$	—			$	—			$	—
Total liabilities at fair value on a recurring basis		$	—			$	—			$	—			$	—

The following table provides a rollforward for recurring Level 3 fair value measurements:

	September 30, 2025
	Mortgage banking derivatives: Interest rate lock commitments				Total
	(dollars in thousands)
Balance at December 31, 2024	$	591			$	591
Change in fair value:
Included in income from mortgage banking		304				304
Change in observability of significant inputs:
Included in income from mortgage banking		—				—
Balance at September 30, 2025	$	895			$	895

The fair value of mortgage IRLCs at September 30, 2025 was calculated based on a notional amount of $31.7 million. Significant unobservable inputs are used to determine the fair value of these derivatives. At September 30, 2025, such inputs included anticipated margins to be earned based on market movement from the original lock date and a weighted average projected pull-through rate of 90.2% determined by loan product, loan stage, and loan purpose. The fair value of mortgage IRLCs at December 31, 2024 was calculated based on a notional amount of $32.4 million. Significant unobservable inputs were the same as those used for the nine months ended September 30, 2025 and assumed a weighted average projected pull-through rate of 90.1% at December 31, 2024. Changes in interest rates and other assumptions could significantly change these estimated values.

22

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets, such as other real estate owned and individually evaluated loans, that are measured at the lower of cost or market value that were recognized at fair value less cost to sell at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2025. There were no assets for which a nonrecurring fair value adjustment was required as of December 31, 2024.

		September 30, 2025
		(dollars in thousands)
		Total				Level 1				Level 2				Level 3
Individually evaluated loans		$	118			$	—			$	—			$	118
Total assets at fair value on a nonrecurring basis		$	118			$	—			$	—			$	118

The following table provides quantitative information about Level 3 fair value measurements:

September 30, 2025
		Valuation Technique		Unobservable Input		General Range
Nonrecurring measurements:
Individually evaluated loans		Discounted appraisals		Collateral discounts and estimated costs to sell		10 - 25%

Note 11 – Fair Values of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The fair value estimates presented at September 30, 2025 and December 31, 2024 are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price at which a liability could be settled. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The estimated fair values disclosed in the following table do not represent market values of all assets and liabilities of the Company and should not be interpreted to represent the underlying value of the Company.

The following tables reflect a comparison of carrying amounts and the estimated fair value of the financial instruments as of September 30, 2025 and December 31, 2024:

September 30, 2025		Carrying Value				Estimated Fair Value				Level 1				Level 2				Level 3
		(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents		$	111,018			$	111,018			$	111,018			$	—			$	—
Securities available for sale			354,920				354,920				23,850				331,070				—
Securities held to maturity			21,977				20,016				—				10,508				9,508
Equity securities			332				332				332				—				—
Loans held for investment, net			671,034				648,487				—				—				648,487
Loans held for sale			5,083				5,083				—				5,083				—
Restricted stock			1,779				1,779				1,779				—				—
Loan servicing assets			3,799				7,449				—				7,449				—
Mortgage banking derivatives			944				944				—				49				895
Accrued interest receivable			4,700				4,700				—				—				4,700
FINANCIAL LIABILITIES
Deposits		$	1,104,053				1,103,766				—				1,103,766				—
Short-term borrowings			43				43				—				43				—
Long-term borrowings			29,219				26,723				—				—				26,723
Mortgage banking derivatives			52				52				—				52				—
Accrued interest payable			444				444				—				—				444

23

December 31, 2024		Carrying Value				Estimated Fair Value				Level 1				Level 2				Level 3
		(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents		$	52,267			$	52,267			$	52,267			$	—			$	—
Securities available for sale			332,986				332,986				29,894				303,092				—
Securities held to maturity			26,745				24,561				—				10,735				13,826
Equity securities			334				334				334				—				—
Loans held for investment, net			660,553				629,111				—				—				629,111
Loans held for sale			4,561				4,561				—				4,561				—
Restricted stock			1,709				1,709				1,709				—				—
Loan servicing assets			3,903				7,323				—				7,323				—
Mortgage banking derivatives			795				795				—				204				591
Accrued interest receivable			4,355				4,355				—				—				4,355
FINANCIAL LIABILITIES
Deposits		$	1,030,236			$	1,029,696			$	—			$	1,029,696			$	—
Short-term borrowings			1,414				1,414				—				1,414				—
Long-term borrowings			29,161				25,725				—				—				25,725
Accrued interest payable			505				505				—				—				505

At September 30, 2025 the Company’s subsidiary bank had outstanding standby letters of credit and commitments to extend credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed; therefore, the fair value is the fee the Bank is expected to receive. This amount is deemed immaterial by management. See Note 9 (Commitments and Contingencies) to the Company’s Notes to Consolidated Financial Statements.

Note 12 – Mortgage Banking Derivatives

The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding, otherwise known as Interest Rate Lock Commitments (IRLCs). IRLCs on mortgage loans that will be held for resale are considered to be derivatives and must be accounted for at fair value on the balance sheet. Accordingly, such commitments are recorded at fair value in the mortgage banking derivatives asset or liability with changes in fair value recorded in income from mortgage banking within the consolidated statement of income. Fair value is based on anticipated margins determined by market movement from the original lock date and projected pull-through rates on a loan-by-loan basis based on loan product, loan stage, and loan purpose.

During the term of the IRLC, the Company is exposed to the risk that the interest rate will change from the rate quoted to the borrower. In an effort to mitigate interest rate risk, the Company also enters into mortgage forward sales commitments on a mandatory basis for future delivery of residential mortgage loans after an interest rate lock is committed to the borrower. Mandatory commitments require that the loan must be delivered to the investor or a pair-off fee be paid. These forward commitments are recorded at fair value in the mortgage banking derivatives asset or liability, and changes in fair value are recorded to income from mortgage banking within the consolidated statement of income. The fair value of the forward commitments is based on the gain or loss that would occur if the Company were to pair-off the transaction at the measurement date.

The Company also enters into purchase and sale agreements of to-be-announced mortgage-backed securities trades (TBAs). A TBA trade is a contract to buy or sell mortgage-backed securities on a specific date while the underlying mortgages are not announced until just prior to settlement. These TBA trades provide an economic hedge against the effect of changes in interest rates resulting from IRLCs. TBAs are accounted for as derivatives when either of the following conditions exist: (i) when settlement of the TBA trade is not expected to occur at the next regular settlement date (which is typically the next month) or (ii) a mechanism exists to settle the contract on a net basis. As a result, these instruments are recorded at fair value in the mortgage banking derivatives asset or liability with changes in fair value recorded in income from mortgage banking within the consolidated statement of income. The fair value of the TBA trades is based on the gain or loss that would occur if the Company were to pair-off the trade at the measurement date.

24

The following table reflects the notional amount and fair value of mortgage banking derivatives included in the balance sheet at fair value as of September 30, 2025 and December 31, 2024.

	Notional Amount				Fair Value
	(dollars in thousands)
Balance at September 30, 2025
Included in mortgage banking derivative assets:
Interest rate lock commitments	$	31,745			$	895
Forward sales commitments		1,778				49
Included in mortgage banking derivative liabilities:
To-be-announced mortgage-backed securities trades		30,000				52
Balance at December 31, 2024
Included in mortgage banking derivative assets:
Interest rate lock commitments	$	32,352			$	591
Forward sales commitments		2,173				44
To-be-announced mortgage-backed securities trades		25,500				160

Note 13 – Recent Accounting Pronouncements and Other Changes

The Inflation Reduction Act of 2022 (“IRA”) created a new nondeductible 1% excise tax on repurchases of corporate stock by
certain publicly traded corporations or their specified affiliates after December 31, 2022. The tax is imposed on the fair value of the
stock of a covered corporation that is repurchased in a given year, less the fair market value of any stock issued in that year. A
“covered corporation” is any domestic corporation whose stock is traded on an established securities market, such as an OTC market.
The excise tax applies to all of the stock of a covered corporation regardless of whether the corporation has profits or losses. The IRA
contains several exceptions to the excise tax, including, but not limited to, any repurchase of stock: in which the total value of the
repurchased stock in a given year does not exceed $1,000,000; that is contributed to an employer-sponsored retirement plan or other
similar stock compensation plan; or that is taxed as a dividend. The impact of the IRA on our consolidated financial statements is
dependent on the extent of stock repurchases.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances income tax disclosure requirements. Under the new guidance, entities must disclose additional information in specified categories for federal, state and foreign income taxes with respect to the reconciliation of the effective tax rate to the statutory rate (rate reconciliation). Greater detail is also required about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold. Additionally, the amendments require that entities must disaggregate income taxes paid, net of refunds received, for federal, state and foreign taxes and further disaggregate for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. The quantitative threshold is equal to 5% or more of the amount determined by multiplying pretax income (loss) from continuing operations by the applicable statutory rate. Public business entities must apply the guidance to annual periods beginning after December 15, 2024. ASU 2023-09 became effective for the Company on January 1, 2025. Entities may apply the amendments prospectively or may elect retrospective application. The Company does not expect the adoption of the ASU to have a material impact on the Company's financial statements.

In November 2024, the FASB issued ASU 2024-03 “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” requiring public business entities to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted, and the amendments should be applied prospectively. The Company is currently evaluating the impact of this ASU but does not expect it to have a material effect on its consolidated financial statements.

On July 4, 2025, President Trump signed into law the legislation formally titled “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” and commonly referred to as the One Big Beautiful Bill (“the Act”). The Company is currently evaluating income tax implications of the Act. The Company does not expect the Act to have a material impact on the Company's financial statements.

From time to time the FASB issues exposure drafts of proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts.

25

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.

26

		Banking, Mortgage and Wealth Management				Other				Consolidated
		(dollars in thousands)
For the Three Months Ended September 30, 2025
Interest income		$	14,695			$	5			$	14,700
Interest expense			4,481				331				4,812
Net interest income			10,214				(326	)			9,888
Noninterest income			2,847				59				2,906
Noninterest expense			8,722				139				8,861
Pre-tax, pre-provision income			4,339				(406	)			3,933
Provision for (recovery of) credit losses			176				—				176
Provision for income taxes			951				(84	)			867
Net income (loss)		$	3,212			$	(322	)		$	2,890
For the Nine Months Ended September 30, 2025
Interest income		$	42,823			$	15			$	42,838
Interest expense			13,106				1,009				14,115
Net interest income			29,717				(994	)			28,723
Noninterest income			8,240				131				8,371
Noninterest expense			25,353				416				25,769
Pre-tax, pre-provision income			12,604				(1,279	)			11,325
Provision for (recovery of) credit losses			711				—				711
Provision for income taxes			2,607				(260	)			2,347
Net income (loss)		$	9,286			$	(1,019	)		$	8,267
Total assets as of September 30, 2025		$	1,211,240			$	4,586			$	1,215,826
For the Three Months Ended September 30, 2024
Interest income		$	14,119			$	5			$	14,124
Interest expense			4,712				354				5,066
Net interest income			9,407				(349	)			9,058
Noninterest income			2,442				87				2,529
Noninterest expense			7,697				123				7,820
Pre-tax, pre-provision income			4,152				(385	)			3,767
Provision for (recovery of) credit losses			(230	)			—				(230	)
Provision for income taxes			1,038				(76	)			962
Net income (loss)		$	3,344			$	(309	)		$	3,035
For the Nine Months Ended September 30, 2024
Interest income		$	40,088			$	15			$	40,103
Interest expense			12,646				1,045				13,691
Net interest income			27,442				(1,030	)			26,412
Noninterest income			6,911				173				7,084
Noninterest expense			23,151				383				23,534
Pre-tax, pre-provision income			11,202				(1,240	)			9,962
Provision for (recovery of) credit losses			171				—				171
Provision for income taxes			2,408				(248	)			2,160
Net income (loss)		$	8,623			$	(992	)		$	7,631
Total assets as of December 31, 2024		$	1,123,764			$	5,044			$	1,128,808

27

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Caution Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements generally relate to estimates with respect to the financial condition, results of operations and business of the Company that are subject to various factors that could cause actual results to differ materially from these estimates. These factors include, but are not limited to: increases in our past due loans and provision for credit losses that may result from local and/or broader economic effects, including the impacts of inflation and constraints on the availability of credit that may impact our borrowers; declines in general economic conditions, including increased stress in the financial markets; changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services. Any use of “we” or “our” in the following discussion refers to the Company on a consolidated basis.

Comparison of Financial Condition at September 30, 2025 and December 31, 2024.

During the nine months ended September 30, 2025, the Company’s total assets increased $87.0 million, from $1.13 billion to $1.22 billion.

Cash and cash equivalents increased $58.7 million during the nine months ended September 30, 2025, from $52.3 million to $111.0 million. The increase in cash and cash equivalents is the result of growth in deposits.

Investment securities consist of securities available for sale and securities held to maturity. For the nine-month period ended September 30, 2025, investment securities increased $17.1 million from $359.8 million at December 31, 2024 to $376.9 million at September 30, 2025. At September 30, 2025, the Company had net unrealized losses on securities available for sale of $24.0 million, compared to net unrealized losses of $32.1 million at December 31, 2024, an improvement of $8.1 million. During the first nine months of 2025, a $22,000 recovery was recorded against the allowance for credit losses on securities held to maturity, bringing the balance to $46,000 at September 30, 2025 compared to $68,000 at December 31, 2024. The amortized cost basis of securities held to maturity totaled $22.0 million and $26.8 million at September 30, 2025 and December 31, 2024, respectively.

At September 30, 2025, equity securities had deteriorated slightly in value from $334,000 at December 31, 2024 to $332,000, making an almost complete recovery from the volatility in the equity market earlier in the year.

Loans held for sale increased $522,000 from December 31, 2024 to $5.1 million at September 30, 2025. Loans held for investment increased from $666.4 million at December 31, 2024 to $677.4 million at September 30, 2025, an increase of $11.0 million. The Company experienced a net decrease in loans categorized as “Real Estate - 1-4 Family Construction,” “Consumer,” and “Commercial - Other.” All other loan sectors experienced a net increase during the nine months ended September 30, 2025.

The allowance for credit losses on loans was $6.4 million at September 30, 2025, which represented 0.94% of total loans held for investment, compared to $5.8 million, or 0.87% of total loans held for investment, at December 31, 2024. Additional discussion regarding the allowance is included in the Asset Quality section below.

Other changes in the Company’s consolidated assets are primarily related to deferred tax assets, which decreased $1.9 million from $9.0 million at December 31, 2024 to $7.1 million at September 30, 2025 as a result of the improvement in fair value of the available for sale securities portfolio. Annual Company contributions, supplemented by positive market adjustments, increased the balance of supplemental executive retirement plans (“SERPs”), included in Other Assets, by $640,000 during the nine months ended September 30, 2025. Also included in Other Assets, accounts receivable increased $777,000 during the same period as a result of larger payments receivable on U.S. government agency securities.

Customer deposits, our primary funding source, experienced a $73.8 million increase during the nine-month period ended September 30, 2025, increasing from $1.03 billion to $1.10 billion. The overall increase in deposits is attributable to organic deposit growth. Demand noninterest-bearing checking accounts increased $14.9 million and interest checking and money market accounts increased $34.1 million, primarily from growth in public funds accounts, during the nine-month period ended September 30, 2025. Savings deposits increased $8.0 million and time deposits increased $17.0 million during the nine months ended September 30, 2025.

Total short-term borrowings decreased $1.4 million for the nine-month period ended September 30, 2025 due to the closing of a master note account during the third quarter that carried a balance of at least $1.1 million. At September 30, 2025, the Company had $29.2 million in long-term debt outstanding, which consists solely of its junior subordinated debt securities, net of unamortized debt issuance costs. During the third quarter of 2019, the Company issued $10.0 million in subordinated debt securities with a final

28

maturity date of September 30, 2029 that became redeemable by the Company on September 30, 2024. This junior subordinated debt pays interest quarterly at an annual fixed rate of 5.25%. During the third quarter of 2021, the Company issued $12.0 million and $8.0 million of 10-year and 15-year fixed-to-floating rate subordinated debt securities, respectively. The 10-year subordinated notes mature on September 3, 2031, though they are redeemable at the Company’s option on or after September 3, 2026, and initially pay interest quarterly at an annual rate of 3.5%. From and including September 3, 2026 to but excluding September 3, 2031, or up to any early redemption date, the interest rate on the 10-year subordinated notes will reset quarterly to an annual rate equal to the then-current three-month secured overnight financing rate (“SOFR”), plus 283 basis points payable quarterly in arrears. The 15-year subordinated notes mature on September 3, 2036, though they are redeemable at the Company’s option on or after September 3, 2031, and initially pay interest quarterly at an annual rate of 4.0%. From and including September 3, 2031 to but excluding September 3, 2036, or up to any early redemption date, the interest rate on the 15-year subordinated notes will reset quarterly to an annual rate equal to the then-current three-month SOFR plus 292 basis points payable quarterly in arrears. The subordinated debt has been structured to qualify as and is included in the calculation of the Company’s Tier 2 capital. Once the remaining term to maturity drops under five years, the Company must impose a twenty percent annual reduction of the amount of the proceeds from the sale of these securities that are eligible to be counted as Tier 2 capital. Of the subordinated debt that remains outstanding at September 30, 2025, $25.4 million qualifies as Tier 2 capital. The Company also has a $3.0 million line of credit of which $3.0 million was available to use at September 30, 2025.

Other changes in the Company’s liabilities are related to an increase of $1.2 million in other liabilities from December 31, 2024 to September 30, 2025, $955,000 of which is related to the accrual of reserves for payables due throughout 2025. As with SERP assets mentioned above, SERP liabilities increased $640,000 during the same period. These increases were offset by a decrease of $319,000 in lease liability as leases approach expiration.

At September 30, 2025, total shareholders’ equity was $71.0 million, an increase of $13.3 million from December 31, 2024. Net income for the nine-month period ended September 30, 2025 was $8.3 million, which positively contributed to shareholders’ equity. Improvement in the unrealized loss position of the available for sale securities portfolio also contributed to the increase in shareholders’ equity during the same nine-month period. During the nine months ended September 30, 2025, the Company repurchased 89,547 shares of common stock at a total cost of $844,000, and the Company paid $422,000 in dividends attributable to noncontrolling interest. See Note 3 (Noncontrolling Interest) to the Company’s Notes to Consolidated Financial Statements for additional discussion of the noncontrolling interest.

Results of Operations for the Three Months Ended September 30, 2025 and 2024.

Net Income and Net Income Available to Common Shareholders

Uwharrie Capital Corp reported net income of $2.9 million for the three months ended September 30, 2025, compared to $3.0 million for the three months ended September 30, 2024. Net income available to common shareholders was $2.7 million, or $0.38 per common share, for the three months ended September 30, 2025, compared to $2.9 million, or $0.39 per common share, for the three months ended September 30, 2024. Net income available to common shareholders is net income less dividends on the aforementioned noncontrolling interest.

Net Interest Income

Net interest income for the three months ended September 30, 2025 was $9.9 million, an $830,000 increase from the $9.1 million reported for the comparative period in 2024. During the third quarter of 2025, the average yield on our interest-earning assets increased 1 basis point to 5.19% from the same period in 2024, and the average rate we paid for our interest-bearing liabilities decreased 23 basis points to 2.32%. These changes resulted in an interest rate spread of 2.86% as of September 30, 2025, compared to 2.63% as of September 30, 2024. The Company’s net interest margin was 3.50% and 3.34% for the comparable periods in 2025 and 2024, respectively.

29

The following table presents average balance sheet and a net interest income analysis for the three months ended September 30, 2025 and 2024, respectively:

		Average Balance								Income/Expenses								Rate/Yield
		2025				2024				2025				2024				2025				2024
		(dollars in thousands)
Interest-earning assets:
Taxable securities		$	306,918			$	314,789			$	2,883			$	3,066				3.73	%			3.87	%
Non-taxable securities (1)			59,796				57,538				330				307				2.81	%			2.66	%
Short-term investments			78,139				76,883				682				780				3.46	%			4.04	%
Equity securities			325				324				5				5				6.10	%			6.14	%
Taxable loans			671,609				627,215				10,650				9,836				6.29	%			6.24	%
Non-taxable loans (1)			17,202				16,466				150				130				4.44	%			3.93	%
Total interest-earning assets			1,133,989				1,093,215				14,700				14,124				5.19	%			5.18	%
Interest-bearing liabilities:
Interest-bearing deposits			791,955				755,728				4,481				4,659				2.24	%			2.45	%
Short-term borrowed funds			73				5,723				1				70				5.43	%			4.87	%
Long-term debt			29,208				29,429				330				338				4.48	%			4.57	%
Total interest bearing liabilities			821,236				790,880				4,812				5,067				2.32	%			2.55	%
Net interest spread		$	312,753			$	302,335			$	9,888			$	9,057				2.86	%			2.63	%
Net interest margin (1) (% of earning assets)																			3.50	%			3.34	%

(1)Yields related to securities and loans exempt from income taxes are stated on a fully tax-equivalent basis, assuming a 21% effective tax rate.

Provision for (Recovery of) Credit Losses

The provision for credit losses was $176,000 for the three months ended September 30, 2025, compared to a recovery of $230,000 for the same period in 2024. There were net loan charge-offs of $67,000 for the three months ended September 30, 2025, as compared to net loan recoveries of $51,000 during the same period of 2024. Refer to the Asset Quality section below for further information.

Noninterest Income

The Company places significant emphasis on diversification of revenue sources rather than relying solely upon interest income. Total noninterest income increased by $377,000 for the three-month period ended September 30, 2025, as compared to the same period in 2024. Income associated with market adjustments on SERP accounts increased by $359,000 during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Interchange fees, or “swipe” fees, are charges that merchants pay to us and other card-issuing banks for processing electronic payment transactions. Interchange and card transaction fees consist of income from check card usage, point-of-sale income from PIN-based debit card transactions, ATM service fees, and credit card usage. A comparison of gross interchange and card transaction fees net of associated network costs for the reported periods is presented in the table below:

		Three Months Ended September 30,
		2025				2024
		(dollars in thousands)
Income from debit card transactions		$	636			$	587
Income from credit card transactions			169				174
Gross interchange and transaction fee income			805				761
Network costs - debit card			342				313
Network costs - credit card			211				181
Total		$	252			$	267

Noninterest Expense

Noninterest expense for the three months ended September 30, 2025 increased by $1.0 million from the same period in 2024. Salaries and benefits, the largest component of noninterest expense, increased $429,000 due to wage and benefit increases during 2025. Expense associated with market adjustments on SERP accounts increased by $359,000 during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Total other noninterest expense increased $68,000 for the three months ended September 30, 2025, compared to the same period in 2024. The table below reflects the composition of other noninterest expense for the referenced periods.

30

		Three Months Ended September 30,
		2025				2024
		(dollars in thousands)
Office supplies and printing		$	18			$	19
Franchise and other taxes			42				28
Employee education			34				33
Shareholder relations expense			53				48
Telephone and data lines			39				51
Postage			65				61
Director fees and expense			77				67
Dues and subscriptions			114				90
Armored transport service			35				30
Other			207				189
Total		$	684			$	616

Income Tax Expense

The Company had income tax expense of $867,000 for the three months ended September 30, 2025 at an effective tax rate of 23.1% compared to income tax expense of $962,000 with an effective tax rate of 24.1% in the comparable 2024 period. Income taxes computed at the statutory rate are primarily affected by the state income tax expense offset by the eligible amount of interest earned on state and municipal securities, tax-free municipal loans and income earned on bank-owned life insurance. For the three months ended September 30, 2024, the effective tax rate was higher due to an adjustment for increased interest expense disallowance resulting from compliance with the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”).

Results of Operations for the Nine Months Ended September 30, 2025 and 2024.

Net Income and Net Income Available to Common Shareholders

Uwharrie Capital Corp reported net income of $8.3 million for the nine months ended September 30, 2025, as compared to $7.6 million for the nine months ended September 30, 2024, an increase of $636,000. Net income available to common shareholders was $7.8 million, or $1.08 per common share, for the nine months ended September 30, 2025, compared to $7.2 million, or $0.97 per common share, for the nine months ended September 30, 2024. Net income available to common shareholders is net income less dividends on the aforementioned noncontrolling interest.

Net Interest Income

Net interest income for the nine months ended September 30, 2025 was $28.7 million, a $2.3 million increase from the $26.4 million reported for the comparative period in 2024. During the first nine months of 2025, the average yield on our interest-earning assets increased 9 basis points to 5.20% from the same period in 2024, and the average rate we paid for our interest-bearing liabilities decreased 6 basis points to 2.34%. These changes resulted in a higher interest rate spread of 2.86% as of September 30, 2025, compared to 2.71% as of September 30, 2024. The Company’s net interest margin was 3.50% and 3.38% for the comparable periods in 2025 and 2024, respectively.

31

The following table presents average balance sheet and a net interest income analysis for the nine months ended September 30, 2025 and 2024, respectively:

		Average Balance								Income/Expenses								Rate/Yield
		2025				2024				2025				2024				2025				2024
		(dollars in thousands)
Interest-earning assets:
Taxable securities		$	306,157			$	310,912			$	8,536			$	8,998				3.73	%			3.87	%
Non-taxable securities (1)			58,681				57,475				949				929				2.78	%			4.08	%
Short-term investments			66,070				63,949				1,834				2,116				3.71	%			4.42	%
Equity securities			323				323				15				15				6.21	%			6.20	%
Taxable loans			664,845				608,021				31,135				27,651				6.26	%			6.07	%
Non-taxable loans (1)			15,184				17,085				369				394				4.17	%			5.82	%
Total interest-earning assets			1,111,260				1,057,765				42,838				40,103				5.20	%			5.11	%
Interest-bearing liabilities:
Interest-bearing deposits			776,661				728,587				13,106				12,484				2.26	%			2.29	%
Short-term borrowed funds			904				5,694				24				206				3.55	%			4.83	%
Long-term debt			29,189				29,222				985				1,001				4.51	%			4.58	%
Total interest-bearing liabilities			806,754				763,503				14,115				13,691				2.34	%			2.40	%
Net interest spread		$	304,506			$	294,262			$	28,723			$	26,412				2.86	%			2.71	%
Net interest margin (1) (% of earning assets)																			3.50	%			3.38	%

(1)Yields related to securities and loans exempt from income taxes are stated on a fully tax-equivalent basis, assuming a 21% effective tax rate.

Provision for Credit Losses

The provision for credit losses was $711,000 for the nine months ended September 30, 2025, compared to a provision of $171,000 for the same period in 2024. There were net loan charge-offs of $190,000 for the nine months ended September 30, 2025, as compared to net loan charge-offs of $7,000 during the same period of 2024. Refer to the Asset Quality section below for further information.

Noninterest Income

The Company places significant emphasis on diversification of revenue sources rather than relying solely upon interest income. Total noninterest income increased by $1.3 million for the nine-month period ended September 30, 2025, as compared to the same period in 2024. The primary factor contributing to the overall improvement in noninterest income was an increase of $704,000 in income from mortgage banking. This improvement is the result of increased volume in the mortgage loan pipeline. Another driver of the overall increase was a $529,000 increase in income associated with market adjustments on SERP accounts during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Interchange fees, or “swipe” fees, are charges that merchants pay to us and other card-issuing banks for processing electronic payment transactions. Interchange and card transaction fees consist of income from check card usage, point-of-sale income from PIN-based debit card transactions, ATM service fees, and credit card usage. A comparison of gross interchange and card transaction fees net of associated network costs for the reported periods is presented in the table below:

		Nine Months Ended September 30,
		2025				2024
		(dollars in thousands)
Income from debit card transactions		$	1,821			$	1,739
Income from credit card transactions			515				524
Gross interchange and transaction fee income			2,336				2,263
Network costs - debit card			944				882
Network costs - credit card			583				504
Total		$	809			$	877

Noninterest Expense

Noninterest expense for the nine months ended September 30, 2025 increased by $2.2 million from the same period in 2024, to $25.8 million. Salaries and employee benefits contributed $1.2 million to the increase in noninterest expense due to wage increases and more commissions paid on increased production in the mortgage division during the first nine months of 2025. Additionally, expense associated with market adjustments on SERP accounts increased by $529,000 during the nine-month period ended September 30, 2025, compared to the same period in 2024.

32

Total other noninterest expense increased $89,000 for the nine months ended September 30, 2025, compared to the same period in 2024. The table below reflects the composition of other noninterest expense for the referenced periods.

		Nine Months Ended September 30,
		2025				2024
		(dollars in thousands)
Office supplies and printing		$	75			$	56
Franchise and other taxes			132				89
Employee education			95				107
Shareholder relations expense			145				144
Telephone and data lines			133				154
Postage			198				178
Director fees and expense			237				210
Dues and subscriptions			330				265
Armored transport service			106				95
Other			507				571
Total		$	1,958			$	1,869

Income Tax Expense

The Company had income tax expense of $2.3 million for the nine months ended September 30, 2025 at an effective tax rate of 22.1% compared to income tax expense of $2.2 million with an effective tax rate of 22.1% in the comparable 2024 period. Income taxes computed at the statutory rate are primarily affected by the state income tax expense offset by the eligible amount of interest earned on state and municipal securities, tax-free municipal loans and income earned on bank-owned life insurance.

Asset Quality

The Company’s allowance for credit losses on loans is established through charges to earnings in the form of a provision for credit losses. The allowance is increased by provisions charged to operations and recoveries of amounts previously charged off and is reduced by recovery of provisions and loans charged off. Management continuously evaluates the adequacy of the allowance for credit losses. In evaluating the adequacy of the allowance, management considers the following: the growth, composition and industry diversification of the portfolio; historical loan loss experience; current delinquency levels; adverse situations that may affect a borrower’s ability to repay; estimated value of any underlying collateral; prevailing economic conditions; and other relevant factors.

The allowance for credit losses on loans represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company’s credit administration function, through a review process, periodically validates the accuracy of the initial risk grade assessment. In addition, as a given loan’s credit quality improves or deteriorates, the credit administration department has the responsibility to change the borrower’s risk grade accordingly.

The Company individually reviews loans when it is determined that it does not share similar risk characteristics with other loans and with total relationship exposure greater than or equal to $100,000 that are determined to be collateral dependent. When management determines that foreclosure is probable and the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting date adjusted for selling costs as appropriate. This evaluation is inherently subjective, as it requires material estimates, including internal and external appraisal services. In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for credit losses on loans and may require additions for estimated losses based upon judgments different from those of management.

The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company
evaluates credit risk in the Consumer segment based upon consumer credit scores and collateral and the Commercial segment based
upon loan risk grade and collateral. The allowance for credit losses for each segment is calculated using a Non-Discounted Cash Flow methodology. Management uses a risk-grading program designed to evaluate the credit risk in the loan portfolio. In this program, risk grades are initially assigned by loan officers and then reviewed and monitored by credit administration. This process includes the maintenance of an internally classified loan list that is designed to help management assess the overall quality of the loan portfolio and the adequacy of the allowance for credit losses on loans. In establishing the appropriate classification for specific assets, management considers, among other factors, the estimated value of the underlying collateral, the borrower’s ability to repay, the borrower’s payment history, and the current delinquent status.

33

Additionally, the allowance for credit losses calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending management experience and risk tolerance, loan review and audit results, asset quality and portfolio trends, loan portfolio growth, industry concentrations, trends in underlying collateral, external factors and economic conditions not already captured.

At September 30, 2025, the level of our individually assessed loans, which includes all collateral dependent loans in nonaccrual status with total relationship exposure greater than or equal to $100,000, was $136,000. The allowance for credit losses related to individually evaluated loans was $18,000 at September 30, 2025.

The allowance, expressed as a percentage of gross loans held for investment, increased seven basis points from 0.87% at December 31, 2024 to 0.94% at September 30, 2025. During the second quarter of 2025, the Company implemented a change in estimate of the allowance model which altered the allocation of these percentages between the collectively assessed population and qualitative factors. The collectively assessed portion decreased from 0.75% at December 31, 2024 to 0.53% at September 30, 2025, and the qualitative factors portion increased from 0.12% to 0.41% over the same period. The increase in the allowance was driven by an increase in the national unemployment rate forecast used in the commercial regression model. Additionally, while total loans decreased during the third quarter of 2025, newly originated loans had a higher forecasted loss rate due to a longer projected duration than the loans that were fully repaid during the same quarter. The ratio of nonaccrual loans to total loans increased from 0.03% at December 31, 2024 to 0.06% at September 30, 2025, and was related to the $211,000 increase in nonaccrual loans. Four loans totaling $360,000 were converted to nonaccrual during the first nine months of 2025, offset by paydowns of $20,000, two loans totaling $88,000 were charged off, and one loan totaling $40,000 was moved to other real estate owned and subsequently sold.

Other real estate owned was $0 at September 30, 2025 and December 31, 2024.

As of September 30, 2025, management believed the level of the allowance for credit losses on loans was appropriate in light of the risk inherent in the loan portfolio. While management believes that it uses the best information available to establish the allowance for credit losses on loans, future adjustments may be necessary and results of operations could be adversely affected if circumstances differ from the assumptions used in making the determinations. Furthermore, while management believes it has established the allowance in conformity with generally accepted accounting principles, there can be no assurance that banking regulators, in reviewing the Company’s loan portfolio, will not require an adjustment to the allowance for credit losses on loans. In addition, because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing allowance is adequate or that increases will not be necessary, should the quality of any loans deteriorate because of the factors discussed herein. Any material increase in the allowance for credit losses on loans may adversely affect the Company’s financial condition, results of operations and the value of its securities.

The following table shows the comparison of nonperforming assets at September 30, 2025 and December 31, 2024:

Nonperforming Assets

(dollars in thousands)

		September 30, 2025				December 31, 2024
		(dollars in thousands)
Nonperforming assets:
Accruing loans past due 90 days or more		$	—			$	—
Nonaccrual loans			403				192
Other real estate owned			—				—
Total nonperforming assets		$	403			$	192
Allowance for credit losses on loans		$	6,356			$	5,824
Nonaccrual loans to total loans			0.06	%			0.03	%
Allowance for credit losses on loans to total loans			0.94	%			0.87	%
Allowance for credit losses on loans to nonaccrual loans			1577.17	%			3033.33	%

Liquidity and Capital Resources

The objective of the Company’s liquidity management policy is to ensure the availability of sufficient cash flows to meet all financial commitments and to capitalize on any opportunities for expansion. Liquidity management addresses the ability to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature and to fund new loans and investments as opportunities arise.

34

The Company’s primary sources of internally generated funds are principal and interest payments on loans, cash flows generated from operations and cash flow generated by investments. Growth in deposits is typically the primary source of funds for loan growth. Estimated uninsured deposits, including deposits collateralized by pledged assets, represented 42.0% and 38.8% of total deposits at September 30, 2025 and December 31, 2024, respectively. The Company and its subsidiary bank have multiple funding sources, in addition to deposits, that can be used to increase liquidity and provide additional financial flexibility. At September 30, 2025, these sources were the subsidiary bank’s established federal funds lines with correspondent banks aggregating $38.0 million, with available credit of $38.0 million; an established borrowing relationship with the FHLB, with available credit of $145.1 million; and access to borrowings from the FRB discount window, with available credit of $26.5 million. The Company also has a $3.0 million line of credit with TIB The Independent BankersBank, N.A. The line is held by the holding company and is secured with 100% of the outstanding common shares of the Company’s subsidiary bank. As of September 30, 2025, $3.0 million remained available for use on the line of credit.

The following table summarizes the Company’s interest-earning cash and cash equivalents as of the periods indicated.

		September 30, 2025				December 31, 2024
		(dollars in thousands)
Interest-earning cash and cash equivalents			100,250				42,554
Interest-earning cash and cash equivalents as a percent of:
Total loans held for investment			14.8	%			6.4	%
Total earning assets			8.6	%			4.0	%
Total deposits			9.1	%			4.1	%

Banks and bank holding companies, as regulated institutions, must meet required levels of capital. The Federal Reserve, the primary federal regulator of the Company and its subsidiary bank, has adopted minimum capital regulations or guidelines that categorize components and the level of risk associated with various types of assets.

The Company continues to maintain capital ratios that support its asset growth. The federal bank regulatory agencies have implemented regulatory capital rules known as “Basel III.” The Basel III rules require a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.50%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.00%, a minimum ratio of total capital to risk-weighted assets of 8.00%, and a minimum Tier 1 leverage ratio of 4.00%. There is also a capital conservation buffer that requires banks to hold common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. The Company’s accumulated other comprehensive income or loss, resulting from unrealized gains and losses, net of income tax, on investment securities available for sale, is excluded from regulatory capital. As of September 30, 2025, the Company’s subsidiary bank continued to exceed minimum capital standards and remained well-capitalized under the applicable rules.

The Company’s subsidiary bank has a net total of $10.7 million in outstanding Fixed Rate Noncumulative Perpetual Preferred Stock. The preferred stock qualifies as Tier 1 capital at the Bank and pays dividends at an annual rate of 5.30%. The net total of $10.7 million is presented as noncontrolling interest at the Company level and qualifies as Tier 1 capital at the Company. At September 30, 2025, the Company had $29.2 million, net of unamortized debt issuance costs of $173,000, in subordinated debt outstanding, of which $25.4 million qualifies as Tier 2 capital at the Company level. The Company has made all interest and dividend payments in a timely manner.

Off-Balance Sheet Arrangements

Off-balance sheet arrangements include transactions, agreements or other contractual arrangements to which an unconsolidated entity of the Company is a party and pursuant to which the Company has obligations, including an obligation to provide guarantees on behalf of an unconsolidated entity, or retains an interest in assets transferred to an unconsolidated entity. We currently have no off-balance sheet arrangements of this kind.

Derivative financial instruments include futures contracts, forward contracts, interest rate swaps, options contracts, and other financial instruments with similar characteristics. We have not engaged in significant derivative activities through September 30, 2025, with the exception of mortgage banking derivatives. See Note 12 (Mortgage Banking Derivatives) to the Company’s Notes to Consolidated Financial Statements for additional discussion of mortgage banking derivatives.

Contractual Obligations

The timing and amount of our contractual obligations has not changed materially since our 2024 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 6, 2025.

35

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Disclosure under this item is not required for smaller reporting companies.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

At the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Securities Exchange Act (“Exchange Act”) Rule 13a-15.

Based upon that evaluation, the principal executive officer and principal financial officer concluded that in their opinion, the Company’s disclosure controls and procedures were effective (1) to provide reasonable assurance that information required to be disclosed by the Company in the reports filed or submitted by it under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) to provide reasonable assurance that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow for timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Management of the Company has evaluated, with the participation of the Company’s principal executive officer and principal financial officer, changes in the Company’s internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the third quarter of 2025. In connection with such evaluation, the Company has determined that there were no changes in the Company’s internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company reviews its disclosure controls and procedures, which may include its internal control over financial reporting, on an ongoing basis, and may from time to time make changes aimed at enhancing their effectiveness and ensuring that the Company’s systems evolve with its business.

36

Part II. OTHER INFORMATION

Item 1. Legal Proceedings.

Neither the Company nor its subsidiaries, nor any of their properties are subject to any material legal proceedings. From time to time, the Company’s subsidiary bank is engaged in ordinary routine litigation incidental to its business.

Item 1A. Risk Factors.

Disclosure under this item is not required for smaller reporting companies.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table sets forth information with respect to shares of common stock repurchased by the Company during the three months ended September 30, 2025.

		(a) Total Number of Shares Purchased				(b) Average Price Paid per Share				(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Program(1)				(d) Maximum Dollar Value (in thousands) of Shares that May Yet Be Purchased Under the Plans
July 1, 2025 Through July 31, 2025			—			$	—				—			$	—
August 1, 2025 Through August 31, 2025			11,200			$	9.71				—			$	—
September 1, 2025 Through September 30, 2025			13,458			$	10.29				—			$	—
Total			24,658			$	10.03				—			$	—

(1)Trades of the Company’s common stock are quoted on the OTCQX Market from time to time. The Company also has in place a Stock Repurchase Plan that provides liquidity to its shareholders in the event a willing buyer is not available to purchase shares that are offered for sale. The Company is under no obligation to purchase shares offered; however, it will accommodate such offers as its Stock Repurchase Plan allows.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

37

Item 6. Exhibits.

Set forth below is the exhibit index for this quarterly report:

Exhibit Number		Description of Exhibit
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101		Interactive data files providing financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025, in inline XBRL (eXtensible Business Reporting Language) (filed herewith)
104		Cover page interactive data file (formatted in inline XBRL and contained in Exhibit 101)

38

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

				UWHARRIE CAPITAL CORP
				(Registrant)
Date:		November 4, 2025		By:		/s/ Roger L. Dick
				Roger L. Dick
				President and Chief Executive Officer
Date:		November 4, 2025		By:		/s/ Heather H. Almond
				Heather H. Almond
				Principal Financial Officer

39

FAQ

How did UWHR perform in Q3 2025?

Net income was $2.89 million and diluted EPS was $0.38. Net interest income was $9.89 million.

What are Uwharrie Capital’s assets and deposits?

Total assets were $1.216 billion and total deposits were $1.104 billion as of September 30, 2025.

What is the loan portfolio size and credit quality at UWHR?

Loans held for investment were $677.39 million. Nonaccrual loans were $403 thousand with an ACL of $6.36 million.

Did UWHR’s comprehensive income change due to securities marks?

Yes. Unrealized gains on AFS securities added $3.06 million to other comprehensive income in Q3 2025.

What was UWHR’s year-to-date EPS?

For the nine months ended September 30, 2025, diluted EPS was $1.08 compared with $0.97 in 2024.

Did Uwharrie announce any shareholder actions?

The Board declared a 3% stock dividend on October 28, 2025.

How did shareholders’ equity change?

Shareholders’ equity increased to $70.97 million from $57.68 million at December 31, 2024.