Exhibit 99.1

Third Quarter Report

September 30, 2011

December 9, 2011

Dear Shareholder:

There is much to be thankful for, especially during periods like these. When the economy appears to be an unending challenge and many financial institutions continue to suffer, Uwharrie Capital Corp remains strong and focused on improving economic opportunities for our customers and our communities. We hold a special mission that does not define ourselves as just a bank, but as an economic engine providing both capital and intellect for facing and building a new sustainable economic future. While the economic recovery is still very fragile, we continue to build value for our shareholders and our communities. We are engaged in helping start new businesses and creating new sustainable jobs, while remaining committed to helping families and local businesses by providing the breadth of competitive products and leading-edge technology to meet their financial needs.

Times continue to be difficult for all banks for many reasons, especially in North Carolina. While the U.S. economy is weak, North Carolina’s is weaker. According to the Federal Reserve Bank, the year-over-year change in payrolls in North Carolina is less than one-fourth of the U.S. increase and less than half the South Carolina increase. This is due to the greater reliance our state has had on manufacturing and construction which were the hardest hit sectors in the recession. The reliance on these industries is a structural issue in that the skills of these industries are not easily transferable to other industries. Furthermore, in North Carolina we have lost our two most important job sources: textiles and furniture. Also, rural communities tend to be more reliant on government employment. North Carolina government employment is down nearly 3% – almost 3 times the decline in the U.S. As we have said before, a community banking organization reflects the local economies of the communities and markets we serve. Yet, we have faired well. Profits for the year-to-date period ending September 30, 2011 of $1.2 million were slightly less than for the same period of 2010 of $1.4 million.

Total assets increased slightly from $529.3 million at September 30, 2010 to $530.3 million at September 30, 2011. As has been reported in the national press, loan growth for the banking industry is marginal and our communities are experiencing the same issues. Loan balances outstanding shrunk slightly from $378.4 million at September 30, 2010 to $373.2 million for the same period 2011. Low interest rates on deposits are a result of a lack of loan demand and make it difficult for banks to earn a positive spread over deposit costs. Consumer, business and governmental deposits are also affected by the recession. The lack of lending opportunities and the slower economy accounted for a modest decrease in deposits of $1.4 million from September 2010 to September 2011 at the Company. In spite of this, our three banks continued to attract new relationships and increase market share in all three communities.

Community banks such as ours have never been more important to our small and medium-sized businesses and to the rebuilding of our local and national economies, just as they were in the

beginning – in the building of our great nation. It is therefore imperative that your Company continues to work diligently to create capital and support these local businesses to foster a sustainable, local economy which will bring new prosperity for the people, business enterprises and communities we serve.

It is our pleasure to enclose your Uwharrie Capital Corp 2012 Calendar. This year’s calendar is focused on service and filling stations that had an impact in shaping our communities. We hope you will enjoy the collection of nostalgic photographs of these business establishments along with a brief history of each. God bless you and your family during the holiday season and the coming year.

Going into this holiday season, we take the opportunity to express our many thanks to you, our shareholders, for the support you have provided in our collective commitment to maintaining the local community bank and improving the quality of life in our communities. Thank you for your participation and investment in this organization. These have been challenging times but your Company has maintained profitability, our capital is strong and our people are committed to meeting these challenges, while remaining focused on our Mission. Together we are making a difference.

Uwharrie Capital Corp and Subsidiaries

Consolidated Balance Sheets

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Income