UWHR · Uwharrie Capital Corp

Deposit Growth and Net Interest Income

Mortgage Banking and Noninterest Income

Credit Quality and Provision

The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. Individually assessed loans determined to be collateral dependent are evaluated based on the fair value of the underlying collateral. The provision for credit losses was not material to the quarter's results.

Expense Management and Capital Expenditures

Capital and Liquidity

The Company continues to maintain capital ratios that support its asset growth. Liquidity management addresses the ability to meet deposit withdrawals, repay borrowings, and fund new loans and investments. The Company has multiple funding sources beyond deposits to provide additional financial flexibility. Accumulated other comprehensive income or loss from unrealized gains and losses on investment securities available for sale is excluded from regulatory capital.