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Uwharrie Capital Corp — Nine Months Ended September 30, 2026 Earnings Summary

UWHR

  • Financial Performance:

    • Total assets reached $1.23 billion as of September 30, 2026, an increase of $15 million compared to the same period in 2025.
    • Net income for the nine months ended September 30, 2026, was $10 million (specifically $9.988 million), representing a nearly 21% increase from $8.3 million (specifically $8.267 million) in the prior year period.
    • The loan portfolio grew by $27 million to $709 million (specifically $702.75 million in loans held for investment plus $6.588 million held for sale), supported by core deposit growth of $14 million year-over-year.
    • Total deposits increased to $1.118 billion from $1.104 billion in 2025.
    • Net interest income for the nine months ended September 30, 2026, was $30.163 million, up from $28.723 million in 2025.
    • Noninterest income totaled $10.065 million for the nine months ended September 30, 2026, compared to $8.371 million in 2025.
    • Total noninterest expense was $28.271 million for the nine months ended September 30, 2026, compared to $25.769 million in 2025.
    • Income before income taxes was $12.730 million for the nine months ended September 30, 2026, compared to $10.614 million in 2025.
    • Provision for credit losses resulted in a recovery of $773,000 for the nine months ended September 30, 2026, compared to a provision of $711,000 in 2025.
    • Book value per share was $8.19 in 2026, compared to $8.13 in 2025.
    • Long-term debt increased to $31.606 million from $29.219 million in 2025.

  • Business Segments and Product Lines:

    • Mortgage banking income decreased to $2.552 million for the nine months ended September 30, 2026, from $3.005 million in 2025.
    • Income from other service fees and commissions rose to $3.285 million for the nine months ended September 30, 2026, compared to $2.972 million in 2025.
    • Realized and unrealized gains on equity securities totaled $829,000 for the nine months ended September 30, 2026, compared to a loss of $2,000 in 2025.
    • Service charges on deposit accounts increased to $883,000 for the nine months ended September 30, 2026, from $802,000 in 2025.
    • Interchange and card transaction fees grew to $892,000 for the nine months ended September 30, 2026, compared to $809,000 in 2025.

  • Risks and Challenges:

    • Higher borrowing costs, elevated household and operating expenses, and continued economic uncertainty are affecting financial decisions in the communities served.
    • These conditions have reduced mortgage banking income.
    • Elevated funding costs and pressure on net interest margins are ongoing challenges.
    • Management notes that forward-looking statements are subject to significant risks and uncertainties, including credit quality trends and economic performance estimates.

  • Management Commentary and Tone:

    • President and CEO Roger L. Dick expressed gratitude for shareholder trust and support, emphasizing the company's four-decade focus on helping people prosper and communities grow.
    • Management described the progress as "encouraged" but acknowledged the challenges facing customers and businesses.
    • The company reaffirmed its focus on asset quality, liquidity, capital strength, and sustained profitability to manage current economic conditions.
    • The tone reflects a commitment to being good stewards of resources and managing the company with a strategic perspective.

  • Other Key Points:

    • The Board of Directors declared a 3% stock dividend payable on November 23, 2026, to shareholders of record as of November 5, 2026.
    • The stock dividend will be issued electronically in book-entry form, providing shareholders with the choice to retain shares or sell them for cash.
    • The 3% stock dividend was reflected in the adjustment of net income per share, book value per share, and weighted average shares outstanding for the 2026 and 2025 periods.
    • Noncontrolling interest remained flat at $10.655 million for both the 2026 and 2025 periods.
    • Deferred income tax assets increased to $10.180 million from $7.132 million in 2025.
    • Premises and equipment, net, increased to $17.355 million from $14.171 million in 2025.