Exhibit 99.1

May 15, 2020

Dear Shareholder:

The first quarter of 2020 will permanently be remembered as a period of change. Covid-19 has brought many changes to our communities, affecting the ways we live, work and interact. Roughly 40% of our team is currently working from home, and we have become more accustomed to online meetings and conference calls. While our customers are adapting to accessing our branches predominately with our drive-thru facilities, we have seen a significant increase in online account opening and mobile banking activity. Our efforts to provide electronic services, compared to traditional brick and mortar services, have allowed us to social distance and continue to meet our customers’ needs while sustaining business operations.

A large focus during the first quarter and into the second quarter of 2020 for Uwharrie Bank, has been to help provide capital to the businesses that make up our local economies with the help of the Small Business Administration (SBA) Paycheck Protection Program (PPP). As a Preferred SBA lender, our team has been able to react quickly to the program’s requirements. This has helped our Main Street businesses gain access to funds they so badly need and put payroll dollars into the hands of families that depend on them. Additionally, we are providing various payment deferrals for current consumer and business customers to help them bridge the interruption of income they are experiencing during these financially turbulent times.

During the first quarter of 2020, the United States experienced a near overnight drop in short-term interest rates of 150 basis points and historical low interest rates all across the US Treasury yield curve. This has fueled a refinance boom for our mortgage division as families take advantage of both the decline in interest rates and lower home ownership cost. Income from mortgage production increased from $492,000 at March 31, 2019 to $1.1 million at March 31, 2020, a 116% improvement.

Uwharrie Investment Advisors (UIA), our wealth management division, showed improvement in revenue, as well as expense reductions in the first quarter of 2020, as compared to the same period last year. Our advisors are staying in close contact with our clients to help them manage the risk of their portfolios in these challenging markets. For the third consecutive year, UIA has been recognized by the Centre for Fiduciary Excellence (CEFEX) for demonstrating adherence to professional practices and remains in good standing.

As of the end of first quarter 2020, your Company’s earnings from all divisions before income tax and loan loss provisions were $1.0 million, an increase of $285,000 or 38% when compared to the same period in 2019. However, due to the increased risk and uncertainty associated with the effects of COVID-19, your Company added $632,000 to its provision for loan losses. The resulting Net Income Available to Common Shareholders after dividends for the first quarter 2020 was $187,000, compared to $550,000 reported for the same quarter 2019, a decrease of 66%. The Company grew assets from $656.8 million at December 31, 2019 to $674.7 million at March 31, 2020.

Although the damage of COVID-19 is wreaking havoc and changing our world, it has been good to see the many acts of kindness throughout our communities, and I am sure we will continue to see our neighbors and friends step up where there are needs. In the words of Winston Churchill, “Don’t let a good crisis go to waste,” so maybe we can find some good in all the chaos. For many of us, who are spending more time with loved ones, we know that the world is creating less pollution, and the sounds of the breeze and of birds are being heard in our cities as nature reclaims some of the space that we have occupied. Spiritually, we are witnessing an awakening, as we watch and listen to accounts of human caring and kindness.

It is unclear when a recovery will take place and what type of normalcy will resume when the economy returns and the pandemic is over; however, just know that your Company will continue to do its part in relief efforts and provide financial services for long term sustainability in our communities … we are all in this together!

Thank you for your continued support.

Sincerely,

UWHARRIE CAPITAL CORP

This Report may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of the Company's goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words “may," ”could," ”should,” “would,” “believe," ”anticipate," "estimate," "expect," “intend,” ”plan,” ”projects," ”outlook," or similar expressions. These statements are based upon the current belief and expectations of the Company‘s management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control).