Skyline Bankshares, Inc. Announces Second Quarter 2025 Results
Rhea-AI Summary
Skyline Bankshares (OTC QX: SLBK) reported strong Q2 2025 results, with net income of $3.8 million ($0.68 per share), up from $1.8 million ($0.33 per share) in Q2 2024. The company's performance shows significant improvement with a return on average assets (ROAA) of 1.21% and return on average equity (ROAE) of 16.01%.
Key highlights include net interest margin (NIM) of 4.27%, total assets growth of 20.52% year-over-year to $1.28 billion, and net loans increase of 23.26% to $1.02 billion. The integration of Johnson County Bank (acquired September 2024) is now complete, contributing to the company's expanded market presence.
Asset quality remains strong with nonperforming loans at 0.20% of total loans, and the allowance for credit losses maintained at 0.82% of total loans. Book value increased to $17.31 per share from $15.69 at year-end 2024.
Positive
- Net income increased 111% YoY to $3.8 million in Q2 2025
- Strong asset growth of 20.52% YoY to $1.28 billion
- Net interest margin improved to 4.27% from 3.72% YoY
- Excellent asset quality with nonperforming loans ratio of only 0.20%
- Book value per share increased to $17.31 from $15.69 in December 2024
- Successful completion of Johnson County Bank integration
Negative
- Increasing interest expense on deposits due to competitive pressure
- Rising noninterest expenses, up 10% YoY to $9.2 million
- Higher FDIC assessment costs due to deposit growth
News Market Reaction – SLBK
In the trading session that priced this news, SLBK gained 2.67%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FLOYD, Va. and INDEPENDENCE, Va., July 28, 2025 (GLOBE NEWSWIRE) -- Skyline Bankshares, Inc. (the “Company”) (OTC QX: SLBK) – the holding company for Skyline National Bank (the “Bank”) – announced its results of operations for the second quarter of 2025.
As previously announced, the Company acquired Johnson County Bank (“JCB”) on September 1, 2024, with the Company as the surviving corporation. For accounting purposes, the Company is considered the acquiror and JCB is considered the acquiree in the transaction. As such, all information contained herein as of and for periods prior to September 1, 2024 reflects the operations of the Company prior to the merger.
The Company recorded net income of
President and CEO Blake Edwards stated, “We are very pleased with our results for the second quarter and first half of 2025. Our strong second quarter earnings, as noted above, reflect our long-term strategy of growing the Skyline franchise and creating shareholder value through branching activity, organic growth in our legacy markets, and through acquisitions such as last year’s partnership with Johnson County Bank. Solid balance sheet growth has also been a mark of the first half of 2025 with total assets growing at an annualized rate of over
Highlights
- In connection with the acquisition of JCB, effective September 1, 2024, the Company acquired
$154.1 million in assets at fair value, including$87.2 million in loans. The Company also assumed$133.8 million of liabilities at fair value, including$125.3 million of total deposits with a core deposit intangible asset recorded of$3.4 million , and goodwill of$4.6 million . - Net income was
$3.8 million , or$0.68 per share, for the second quarter of 2025, compared to$1.8 million , or$0.33 per share, for the second quarter of 2024. - NIM was
4.27% for the second quarter of 2025, compared to4.15% in the first quarter of 2025, and3.72% in the second quarter of 2024. - Total assets increased
$65.2 million , or5.36% , to$1.28 billion at June 30, 2025 from$1.22 billion at December 31, 2024, and increased by$218.4 million , or20.52% , from$1.06 billion a year earlier. - Net loans were
$1.02 billion at June 30, 2025, an increase of$42.7 million , or4.38% , when compared to$976.4 million at December 31, 2024, and increased$192.4 million when compared to$826.7 million at June 30, 2024. - Total deposits were
$1.14 billion at June 30, 2025, an increase of$47.8 million , or4.38% , from$1.09 billion at December 31, 2024, and an increase of$191.9 million from$948.1 million at June 30, 2024. - Book value increased from
$15.69 per share at December 31, 2024 to$17.31 per share at June 30, 2025.
Second Quarter, First Half of 2025 Income Statement Review
Net interest income after provision for credit losses in the second quarter of 2025 was
For the first half of 2025, net interest income after provision for credit losses was
Second quarter 2025 noninterest income was
For the six months ended June 30, 2025 and 2024, noninterest income was
Noninterest expense in the second quarter of 2025 was
For the six-month period ended June 30, 2025, total noninterest expenses increased by
Net income before taxes increased by
Balance Sheet Review
Total assets increased in the second quarter of 2025 by
Total loans increased during the second quarter by
Asset quality has remained strong, with a ratio of nonperforming loans to total loans of
Investment securities decreased by
Total deposits increased in the second quarter of 2025 by
Total stockholders’ equity increased by
Forward-looking statements
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934 as amended. These include statements as to expectations regarding future financial performance and any other statements regarding future results or expectations. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by the use of words such as "believe," "expect," "intend," "anticipate," "estimate," or "project" or similar expressions. Our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to: changes in interest rates; general economic and financial market conditions; the effect of changes in banking, tax and other laws and regulations and interpretations or guidance thereunder; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the economic impact of duties, tariffs or other barriers or restrictions on trade, and any retaliatory counter measures, and the volatility and uncertainty arising therefrom; the quality and composition of the loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company’s market area; the implementation of new technologies; the ability to develop and maintain secure and reliable electronic systems; accounting principles, policies, and guidelines; disruptions to customer and employee relationships and business operations caused by the Johnson County Bank acquisition; the ability to achieve the cost savings and synergies contemplated by the acquisition within the expected timeframe, or at all; and other factors identified in Item 1A, “Risk Factors,” in the Company’s Annual Report on 10-K for the year ended December 31, 2024. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or clarify these forward‐looking statements, whether as a result of new information, future events or otherwise.
(See Attached Financial Statements for quarter ending June 30, 2025)
Skyline Bankshares, Inc.
Condensed Consolidated Balance Sheets
June 30, 2025; March 31, 2025; December 31, 2024; June 30, 2024
| June 30, | March 31, | December 31, | June 30, | ||||||||||||
| (dollars in thousands except share amounts) | 2025 | 2025 | 2024 | 2024 | |||||||||||
| (Unaudited) | (Unaudited) | (Audited) | (Unaudited) | ||||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 21,420 | $ | 21,298 | $ | 17,889 | $ | 17,983 | |||||||
| Interest-bearing deposits with banks | 22,738 | 16,130 | 1,562 | 12,071 | |||||||||||
| Federal funds sold | 516 | 456 | - | 402 | |||||||||||
| Investment securities available for sale | 114,460 | 118,483 | 118,287 | 120,694 | |||||||||||
| Restricted equity securities | 5,139 | 4,993 | 4,034 | 3,372 | |||||||||||
| Loans | 1,027,533 | 1,000,332 | 984,459 | 833,614 | |||||||||||
| Allowance for credit losses | (8,374 | ) | (8,160 | ) | (8,027 | ) | (6,870 | ) | |||||||
| Net loans | 1,019,159 | 992,172 | 976,432 | 826,744 | |||||||||||
| Cash value of life insurance | 26,829 | 26,649 | 26,743 | 22,697 | |||||||||||
| Other real estate owned | - | 140 | 140 | - | |||||||||||
| Properties and equipment, net | 37,190 | 35,342 | 34,663 | 31,932 | |||||||||||
| Accrued interest receivable | 4,234 | 4,009 | 4,013 | 3,676 | |||||||||||
| Core deposit intangible | 3,395 | 3,603 | 3,815 | 758 | |||||||||||
| Goodwill | 7,900 | 7,900 | 7,900 | 3,257 | |||||||||||
| Deferred tax assets, net | 4,680 | 5,060 | 5,593 | 5,285 | |||||||||||
| Other assets | 15,188 | 15,263 | 16,528 | 15,557 | |||||||||||
| Total assets | $ | 1,282,848 | $ | 1,251,498 | $ | 1,217,599 | $ | 1,064,428 | |||||||
| Liabilities | |||||||||||||||
| Deposits | |||||||||||||||
| Noninterest-bearing | $ | 352,550 | $ | 350,451 | $ | 337,918 | $ | 296,880 | |||||||
| Interest-bearing | 787,449 | 763,936 | 754,285 | 651,227 | |||||||||||
| Total deposits | 1,139,999 | 1,114,387 | 1,092,203 | 948,107 | |||||||||||
| Borrowings | 37,500 | 37,026 | 29,254 | 25,000 | |||||||||||
| Accrued interest payable | 614 | 699 | 950 | 655 | |||||||||||
| Other liabilities | 6,883 | 6,465 | 6,524 | 6,157 | |||||||||||
| Total liabilities | 1,184,996 | 1,158,577 | 1,128,931 | 979,919 | |||||||||||
| Stockholders’ Equity | |||||||||||||||
| Common stock and surplus | 33,607 | 33,556 | 33,507 | 33,213 | |||||||||||
| Retained earnings | 79,675 | 75,874 | 73,714 | 71,452 | |||||||||||
| Accumulated other comprehensive loss | (15,430 | ) | (16,509 | ) | (18,553 | ) | (20,156 | ) | |||||||
| Total stockholders’ equity | 97,852 | 92,921 | 88,668 | 84,509 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 1,282,848 | $ | 1,251,498 | $ | 1,217,599 | $ | 1,064,428 | |||||||
| Book value per share | $ | 17.31 | $ | 16.44 | $ | 15.69 | $ | 15.01 | |||||||
| Tangible book value per share(1) | $ | 15.32 | $ | 14.41 | $ | 13.62 | $ | 14.30 | |||||||
| Asset Quality Indicators | |||||||||||||||
| Nonperforming assets to total assets | 0.16 | % | 0.19 | % | 0.22 | % | 0.15 | % | |||||||
| Nonperforming loans to total loans | 0.20 | % | 0.22 | % | 0.26 | % | 0.19 | % | |||||||
| Allowance for credit losses to total loans | 0.82 | % | 0.82 | % | 0.82 | % | 0.82 | % | |||||||
| Allowance for credit losses to nonperforming loans | 408.09 | % | 367.90 | % | 313.19 | % | 430.72 | % | |||||||
(1) Tangible book value is a Non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangible assets, divided by shares outstanding, that the Company believes is a meaningful measure of capital adequacy because it provides a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. See “Reconciliation of Non-GAAP Financial Measures” at the end of this release.
Skyline Bankshares, Inc.
Condensed Consolidated Statement of Operations
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
| (dollars in thousands except share amounts) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
| Interest income | |||||||||||||||
| Loans and fees on loans | $ | 15,367 | $ | 14,721 | $ | 11,527 | $ | 30,088 | $ | 22,674 | |||||
| Interest-bearing deposits in banks | 126 | 47 | 84 | 173 | 148 | ||||||||||
| Federal funds sold | 5 | 2 | 4 | 7 | 8 | ||||||||||
| Interest on securities | 653 | 682 | 708 | 1,335 | 1,442 | ||||||||||
| Dividends | 113 | 32 | 77 | 145 | 114 | ||||||||||
| 16,264 | 15,484 | 12,400 | 31,748 | 24,386 | |||||||||||
| Interest expense | |||||||||||||||
| Deposits | 3,441 | 3,335 | 2,960 | 6,776 | 5,642 | ||||||||||
| Interest on borrowings | 363 | 426 | 337 | 789 | 774 | ||||||||||
| 3,804 | 3,761 | 3,297 | 7,565 | 6,416 | |||||||||||
| Net interest income | 12,460 | 11,723 | 9,103 | 24,183 | 17,970 | ||||||||||
| Provision for credit losses | 284 | 178 | 71 | 462 | 164 | ||||||||||
| Net interest income after | |||||||||||||||
| Provision for credit losses | 12,176 | 11,545 | 9,032 | 23,721 | 17,806 | ||||||||||
| Noninterest income | |||||||||||||||
| Service charges on deposit accounts | 606 | 584 | 544 | 1,190 | 1,095 | ||||||||||
| Other service charges and fees | 1,016 | 916 | 909 | 1,932 | 1,758 | ||||||||||
| Net realized losses on securities | - | - | - | - | (141 | ) | |||||||||
| Mortgage origination fees | 82 | 35 | 46 | 117 | 101 | ||||||||||
| Increase in cash value of life insurance | 180 | 174 | 151 | 354 | 297 | ||||||||||
| Life insurance income | - | 60 | 3 | 60 | 221 | ||||||||||
| Other income | 17 | 17 | 17 | 34 | 38 | ||||||||||
| 1,901 | 1,786 | 1,670 | 3,687 | 3,369 | |||||||||||
| Noninterest expenses | |||||||||||||||
| Salaries and employee benefits | 4,850 | 4,500 | 4,348 | 9,350 | 8,669 | ||||||||||
| Occupancy and equipment | 1,405 | 1,479 | 1,393 | 2,884 | 2,804 | ||||||||||
| Data processing expense | 873 | 848 | 686 | 1,721 | 1,335 | ||||||||||
| FDIC Assessments | 238 | 246 | 144 | 484 | 288 | ||||||||||
| Advertising | 250 | 244 | 240 | 494 | 457 | ||||||||||
| Bank franchise tax | 132 | 132 | 99 | 264 | 198 | ||||||||||
| Director fees | 102 | 93 | 68 | 195 | 126 | ||||||||||
| Professional fees | 248 | 302 | 171 | 550 | 392 | ||||||||||
| Telephone expense | 118 | 124 | 129 | 242 | 236 | ||||||||||
| Core deposit intangible amortization | 208 | 212 | 79 | 420 | 159 | ||||||||||
| Merger related expenses | - | - | 357 | - | 357 | ||||||||||
| Other expense | 796 | 683 | 668 | 1,479 | 1,337 | ||||||||||
| 9,220 | 8,863 | 8,382 | 18,083 | 16,358 | |||||||||||
| Net income before income taxes | 4,857 | 4,468 | 2,320 | 9,325 | 4,817 | ||||||||||
| Income tax expense | 1,056 | 895 | 506 | 1,951 | 952 | ||||||||||
| Net income | $ | 3,801 | $ | 3,573 | $ | 1,814 | $ | 7,374 | $ | 3,865 | |||||
| Net income per share | $ | 0.68 | $ | 0.64 | $ | 0.33 | $ | 1.32 | $ | 0.70 | |||||
| Weighted average shares outstanding | 5,584,704 | 5,584,704 | 5,553,579 | 5,584,704 | 5,559,074 | ||||||||||
| Dividends declared per share | $ | 0.00 | $ | 0.25 | $ | 0.00 | $ | 0.25 | $ | 0.23 | |||||
Skyline Bankshares, Inc.
Reconciliation of Non-GAAP Financial Measures
| In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and understanding the Company’s financial condition, capital position and financial results. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. The non-GAAP financial measure presented in this document includes tangible book value per share. The following tables present calculations underlying non-GAAP financial measures. | |||||||||||||||
| June 30, | March 31, | December 31, | June 30, | ||||||||||||
| (dollars in thousands except share amounts) | 2025 | 2025 | 2024 | 2024 | |||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Tangible Common Equity | |||||||||||||||
| Total stockholders’ equity (GAAP) | $ | 97,852 | $ | 92,921 | $ | 88,668 | $ | 84,509 | |||||||
| Less: Goodwill | (7,900 | ) | (7,900 | ) | (7,900 | ) | (3,257 | ) | |||||||
| Less: Core deposit intangible | (3,395 | ) | (3,603 | ) | (3,815 | ) | (758 | ) | |||||||
| Tangible common equity (non-GAAP) | $ | 86,557 | $ | 81,418 | $ | 76,953 | $ | 80,494 | |||||||
| Common stock shares outstanding | 5,651,704 | 5,651,704 | 5,651,704 | 5,629,204 | |||||||||||
| Tangible book value per share | $ | 15.32 | $ | 14.41 | $ | 13.62 | $ | 14.30 | |||||||
For more information contact:
Blake Edwards, President & CEO – 276-773-2811
Lori Vaught, EVP & CFO – 276-773-2811
