Exhibit 99.1

First Quarter Report

March 31, 2012

June 11, 2012

Dear Shareholder:

At Uwharrie Capital Corp, we are pleased to report to our shareholders and friends that your Company continues to perform well with strong liquidity, capital and vision. Our first quarter results reflect the resolve of your Boards of Directors and your management to remain focused on conventional ideals of doing the right thing, building financial strength, delivering quality products and developing meaningful relationships. Net income for the period ending March 31, 2012 was $700 thousand compared to $209 thousand for the same period 2011. Net income available to shareholders, which takes into consideration the payment of dividends on preferred stock issued by the Company, was $539 thousand as of March 31, 2012, compared to $48 thousand as of March 31, 2011.

While these results have made for a very strong first quarter, much better than what has become “normal” in the banking industry, the economic challenges facing our communities and our neighbors have not passed yet. Economic conditions continue to negatively impact bank lending and there is little bank loan demand in the United States today. This is certainly true for the Carolinas as well. Assets were $519 million for the period ending March 31, 2012, a decrease of 1.8% from the same period last year with net loans held decreasing to $350 million, down 5.4%.

Being diversified in our business model has helped us to outperform our peers throughout this recession. Our mortgage business has been exceptionally strong, aided by the low interest rate environment, generating $809 thousand during the first quarter of 2012, compared to $383 thousand for the same period 2011. Our Wealth Management area continues to see an increase of new customers transferring their relationships due to referrals from satisfied customers, our valued shareholders and our board members.

Your Company continues to lead the way with new products and services. In the past decade, there have been two major changes in technology that have forever altered how banking business is conducted. As you might recall, we were on the forefront in implementing Remote Deposit Capture in 2005 and Mobile Banking in 2010. Now, there is a third…Mobile Deposit Capture. Our customers can use their Smartphone to take pictures of checks they want to deposit and submit the deposit in seconds. Even though we are not a huge company, we are a leader in technology and we know that the introduction of these and other services will continue to give us a competitive advantage.

By attracting new relationships and enhancing the ones we have, we will continue to create sustainable jobs and opportunities in our communities, improve the value of your investment with our Company and improve the overall quality of life for ourselves, our neighbors and our region. We thank you for your continued support and we remain committed to focusing on our shareholders’ and our communities’ best interest, as we move forward through these challenging times. We believe in community banking and the future of serving the needs of our neighbors and friends and together, we are making a difference.

Sincerely,

UWHARRIE CAPITAL CORP

/s/ Roger L. Dick

Roger L. Dick

President and Chief Executive Officer

Uwharrie Capital Corp and Subsidiaries

Consolidated Balance Sheets

Uwharrie Capital Corp and Subsidiaries

Consolidated Statements of Income