Uwharrie Capital Corp Reports $3.9 Million Net Income in Q2 2026, Up from $2.8 Million

Uwharrie Capital Corp reported a net income of $3.9 million for the second quarter of 2026, a significant increase from $2.8 million in the same period of 2025. This translates to earnings of $0.53 per share, up from $0.37 per share year-over-year. For the first half of 2026, the company achieved a net income of $7.1 million, compared to $5.4 million in the prior year, reflecting a strong performance driven by increased net interest income and noninterest income. Total interest income rose to $14.9 million in the second quarter, up from $14.3 million, while interest expense increased slightly to $4.7 million from $4.6 million, resulting in a net interest income of $10.2 million, compared to $9.7 million in the previous year.

The company’s total assets grew by $25.8 million to $1.22 billion as of June 30, 2026, primarily due to an increase in cash and cash equivalents, which rose to $91.7 million from $73.3 million at the end of 2025. Customer deposits also saw a notable increase of $18.3 million, reaching $1.10 billion, driven by organic growth in demand noninterest-bearing accounts. Loans held for investment increased to $692.2 million, up from $689.6 million, with growth across most loan sectors except for real estate commercial and residential loans.

Uwharrie Capital Corp made strategic moves during the quarter, including participation in Visa Inc.'s exchange offer, which resulted in a gain of $827,000. The company exchanged its Visa Class B-1 common stock for Class B-3 and Class C common stock, enhancing its equity securities portfolio. The total equity securities increased to $878,000, reflecting the fair value of the Class C shares received. Additionally, the company reported a recovery of credit losses of $424,000 for the quarter, contrasting with a provision of $254,000 in the same quarter last year, indicating improved asset quality.

Operationally, the company maintained a strong capital position, with total shareholders' equity rising to $81.1 million, an increase of $5.5 million from the end of 2025. The allowance for credit losses on loans decreased to $6.0 million, representing 0.86% of total loans held for investment, down from 0.93% at the end of the previous year. The company’s nonaccrual loans increased to $771,000, up from $378,000, reflecting a slight uptick in credit risk. Looking ahead, Uwharrie Capital Corp remains focused on leveraging its growth in deposits and loans while managing credit quality and operational efficiency to sustain its financial performance.