Skyline Bankshares, Inc. Announces Second Quarter 2026 Results
Rhea-AI Summary
Skyline Bankshares (OTC QX: SLBK) reported second quarter 2026 net income of $5.0 million, or $0.89 per share, up from $3.8 million, or $0.68 per share, a year earlier. Six‑month 2026 net income rose to $9.6 million, or $1.71 per share, from $7.4 million, or $1.32 per share, in 2025.
Second quarter 2026 ROAA was 1.50% and ROAE 17.70%. Net interest margin increased to 4.62% versus 4.27% a year ago, as total cost of funds fell to 1.11%. Total assets reached $1.33 billion, net loans $1.10 billion, and total deposits $1.18 billion at June 30, 2026.
Book value per share increased to $20.32 from $19.00 at December 31, 2025. Asset quality indicators remained strong, with nonperforming loans at 0.34% of total loans and an allowance for credit losses of 0.83% of total loans.
Positive
- Quarterly EPS $0.89, up from $0.68 in Q2 2025
- Six‑month net income $9.6M vs. $7.4M in 2025
- Net interest margin 4.62%, up from 4.27% year over year
- Net loans $1.10B, up 4.72% since December 31, 2025
- ROAA 1.50% and ROAE 17.70% in Q2 2026
- Book value per share $20.32, up from $19.00 at year‑end 2025
Negative
- Total deposits down 0.35% from March 31 to June 30, 2026
- Noninterest‑bearing deposits fell $11.1M during the quarter
- Noninterest expense up 6.21% year over year in Q2 2026
- Borrowings at $27.7M vs. $0 at December 31, 2025
- Management notes potential near‑term increases in deposit interest expense
AI-generated analysis. How Rhea-AI works. Not financial advice.
FLOYD, Va. and INDEPENDENCE, Va., July 28, 2026 (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 2026.
The Company recorded net income of
President and CEO Blake Edwards stated, “We are pleased to report another quarter of record earnings for Skyline. Our net interest margin continued to expand slightly as our total cost of funds fell to
Highlights
- Net income was
$5.0 million , or$0.89 per share, for the second quarter of 2026, compared to$3.8 million , or$0.68 per share, for the second quarter of 2025. - NIM was
4.62% for the second quarter of 2026, compared to4.55% in the first quarter of 2026, and4.27% in the second quarter of 2025. - Total assets increased
$38.6 million , or2.99% , to$1.33 billion at June 30, 2026 from$1.29 billion at December 31, 2025, and increased by$49.1 million , or3.83% , from$1.28 billion a year earlier. - Net loans were
$1.10 billion at June 30, 2026, an increase of$49.6 million , or4.72% , when compared to$1.05 billion at December 31, 2025, and increased$79.9 million when compared to$1.02 billion at June 30, 2025. - Total deposits were
$1.18 billion at June 30, 2026, an increase of$2.2 million , or0.19% , compared to December 31, 2025, and an increase of$40.4 million from$1.14 billion at June 30, 2025. - Book value increased from
$19.00 per share at December 31, 2025 to$20.32 per share at June 30, 2026.
Second Quarter, First Half of 2026 Income Statement Review
Net interest income after provision for credit losses in the second quarter of 2026 was
For the first half of 2026, net interest income after provision for credit losses was
Second quarter 2026 noninterest income was
For the six months ended June 30, 2026 and 2025, noninterest income was
Noninterest expense in the second quarter of 2026 was
For the six-month period ended June 30, 2026, total noninterest expenses increased by
Net income before taxes increased by
Balance Sheet Review
Total assets increased in the second quarter of 2026 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 were
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 our plans or strategies, is inherently uncertain and subject to a number of risks. 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; the Company’s capital and liquidity; 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; and other factors identified in Item 1A, “Risk Factors,” in the Company’s Annual Report on 10-K for the year ended December 31, 2025. 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, 2026)
Skyline Bankshares, Inc.
Condensed Consolidated Balance Sheets
June 30, 2026; March 31, 2026; December 31, 2025; June 30, 2025
| June 30, | March 31, | December 31, | June 30, | ||||||||||||
| (dollars in thousands except share amounts) | 2026 | 2026 | 2025 | 2025 | |||||||||||
| (Unaudited) | (Unaudited) | (Audited) | (Unaudited) | ||||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 19,529 | $ | 19,699 | $ | 19,724 | $ | 21,420 | |||||||
| Interest-bearing deposits with banks | 373 | 137 | 3,125 | 22,738 | |||||||||||
| Federal funds sold | - | - | 343 | 516 | |||||||||||
| Investment securities available for sale | 104,748 | 106,142 | 114,096 | 114,460 | |||||||||||
| Restricted equity securities | 4,715 | 3,812 | 3,474 | 5,139 | |||||||||||
| Loans | 1,108,258 | 1,086,279 | 1,058,198 | 1,027,533 | |||||||||||
| Allowance for credit losses | (9,150 | ) | (8,914 | ) | (8,666 | ) | (8,374 | ) | |||||||
| Net loans | 1,099,108 | 1,077,365 | 1,049,532 | 1,019,159 | |||||||||||
| Cash value of life insurance | 27,558 | 27,058 | 27,169 | 26,829 | |||||||||||
| Properties and equipment, net | 40,479 | 40,503 | 40,760 | 37,190 | |||||||||||
| Accrued interest receivable | 4,824 | 4,515 | 4,541 | 4,234 | |||||||||||
| Core deposit intangible | 2,708 | 2,874 | 3,043 | 3,395 | |||||||||||
| Goodwill | 7,900 | 7,900 | 7,900 | 7,900 | |||||||||||
| Deferred tax assets, net | 3,911 | 3,784 | 3,696 | 4,680 | |||||||||||
| Other assets | 16,082 | 16,140 | 15,900 | 15,188 | |||||||||||
| Total assets | $ | 1,331,935 | $ | 1,309,929 | $ | 1,293,303 | $ | 1,282,848 | |||||||
| Liabilities | |||||||||||||||
| Deposits | |||||||||||||||
| Noninterest-bearing | $ | 370,898 | $ | 381,952 | $ | 371,001 | $ | 352,550 | |||||||
| Interest-bearing | 809,460 | 802,535 | 807,164 | 787,449 | |||||||||||
| Total deposits | 1,180,358 | 1,184,487 | 1,178,165 | 1,139,999 | |||||||||||
| Borrowings | 27,676 | 6,623 | - | 37,500 | |||||||||||
| Accrued interest payable | 526 | 521 | 531 | 614 | |||||||||||
| Other liabilities | 8,100 | 8,155 | 6,943 | 6,883 | |||||||||||
| Total liabilities | 1,216,660 | 1,199,786 | 1,185,639 | 1,184,996 | |||||||||||
| Stockholders’ Equity | |||||||||||||||
| Common stock and surplus | 34,107 | 34,043 | 33,984 | 33,607 | |||||||||||
| Retained earnings | 94,503 | 89,517 | 86,617 | 79,675 | |||||||||||
| Accumulated other comprehensive loss | (13,335 | ) | (13,417 | ) | (12,937 | ) | (15,430 | ) | |||||||
| Total stockholders’ equity | 115,275 | 110,143 | 107,664 | 97,852 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 1,331,935 | $ | 1,309,929 | $ | 1,293,303 | $ | 1,282,848 | |||||||
| Book value per share | $ | 20.32 | $ | 19.42 | $ | 19.00 | $ | 17.31 | |||||||
| Tangible book value per share(1) | $ | 18.45 | $ | 17.52 | $ | 17.07 | $ | 15.32 | |||||||
| Asset Quality Indicators | |||||||||||||||
| Nonperforming assets to total assets | 0.29 | % | 0.36 | % | 0.37 | % | 0.16 | % | |||||||
| Nonperforming loans to total loans | 0.34 | % | 0.44 | % | 0.45 | % | 0.20 | % | |||||||
| Allowance for credit losses to total loans | 0.83 | % | 0.82 | % | 0.82 | % | 0.82 | % | |||||||
| Allowance for credit losses to nonperforming loans | 240.03 | % | 187.51 | % | 180.17 | % | 408.09 | % | |||||||
(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) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Interest income | ||||||||||||||
| Loans and fees on loans | $ | 16,866 | $ | 16,229 | $ | 15,367 | $ | 33,095 | $ | 30,088 | ||||
| Interest-bearing deposits in banks | 39 | 23 | 126 | 62 | 173 | |||||||||
| Federal funds sold | 3 | 1 | 5 | 4 | 7 | |||||||||
| Interest on securities | 577 | 604 | 653 | 1,181 | 1,335 | |||||||||
| Dividends | 56 | 60 | 113 | 116 | 145 | |||||||||
| 17,541 | 16,917 | 16,264 | 34,458 | 31,748 | ||||||||||
| Interest expense | ||||||||||||||
| Deposits | 3,197 | 3,321 | 3,441 | 6,518 | 6,776 | |||||||||
| Interest on borrowings | 200 | 82 | 363 | 282 | 789 | |||||||||
| 3,397 | 3,403 | 3,804 | 6,800 | 7,565 | ||||||||||
| Net interest income | 14,144 | 13,514 | 12,460 | 27,658 | 24,183 | |||||||||
| Provision for credit losses | 210 | 279 | 284 | 489 | 462 | |||||||||
| Net interest income after | ||||||||||||||
| Provision for credit losses | 13,934 | 13,235 | 12,176 | 27,169 | 23,721 | |||||||||
| Noninterest income | ||||||||||||||
| Service charges on deposit accounts | 696 | 650 | 606 | 1,346 | 1,190 | |||||||||
| Other service charges and fees | 1,121 | 995 | 1,016 | 2,116 | 1,932 | |||||||||
| Mortgage origination fees | 151 | 112 | 82 | 263 | 117 | |||||||||
| Increase in cash value of life insurance | 206 | 179 | 180 | 385 | 354 | |||||||||
| Life insurance income | - | - | - | - | 60 | |||||||||
| Other income | 39 | 51 | 17 | 90 | 34 | |||||||||
| 2,213 | 1,987 | 1,901 | 4,200 | 3,687 | ||||||||||
| Noninterest expenses | ||||||||||||||
| Salaries and employee benefits | 5,227 | 4,834 | 4,850 | 10,061 | 9,350 | |||||||||
| Occupancy and equipment | 1,528 | 1,547 | 1,405 | 3,075 | 2,884 | |||||||||
| Data processing expense | 915 | 896 | 873 | 1,811 | 1,721 | |||||||||
| FDIC Assessments | 205 | 249 | 238 | 454 | 484 | |||||||||
| Advertising | 293 | 264 | 250 | 557 | 494 | |||||||||
| Bank franchise tax | 150 | 150 | 132 | 300 | 264 | |||||||||
| Director fees | 103 | 114 | 102 | 217 | 195 | |||||||||
| Professional fees | 223 | 224 | 248 | 447 | 550 | |||||||||
| Telephone expense | 94 | 115 | 118 | 209 | 242 | |||||||||
| Core deposit intangible amortization | 166 | 169 | 208 | 335 | 420 | |||||||||
| Other expense | 889 | 808 | 796 | 1,697 | 1,479 | |||||||||
| 9,793 | 9,370 | 9,220 | 19,163 | 18,083 | ||||||||||
| Net income before income taxes | 6,354 | 5,852 | 4,857 | 12,206 | 9,325 | |||||||||
| Income tax expense | 1,368 | 1,251 | 1,056 | 2,619 | 1,951 | |||||||||
| Net income | $ | 4,986 | $ | 4,601 | $ | 3,801 | $ | 9,587 | $ | 7,374 | ||||
| Net income per share | $ | 0.89 | $ | 0.82 | $ | 0.68 | $ | 1.71 | $ | 1.32 | ||||
| Weighted average shares outstanding | 5,617,204 | 5,617,204 | 5,584,704 | 5,617,204 | 5,584,704 | |||||||||
| Dividends declared per share | $ | 0.00 | $ | 0.30 | $ | 0.00 | $ | 0.30 | $ | 0.25 | ||||
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) | 2026 | 2026 | 2025 | 2025 | |||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Tangible Common Equity | |||||||||||||||
| Total stockholders’ equity (GAAP) | $ | 115,275 | $ | 110,143 | $ | 107,664 | $ | 97,852 | |||||||
| Less: Goodwill | (7,900 | ) | (7,900 | ) | (7,900 | ) | (7,900 | ) | |||||||
| Less: Core deposit intangible | (2,708 | ) | (2,874 | ) | (3,043 | ) | (3,395 | ) | |||||||
| Tangible common equity (non-GAAP) | $ | 104,667 | $ | 99,369 | $ | 96,721 | $ | 86,557 | |||||||
| Common stock shares outstanding | 5,672,204 | 5,672,204 | 5,666,204 | 5,651,704 | |||||||||||
| Book value per share (GAAP) | $ | 20.32 | $ | 19.42 | $ | 19.00 | $ | 17.31 | |||||||
| Tangible book value per share (non-GAAP) | $ | 18.45 | $ | 17.52 | $ | 17.07 | $ | 15.32 | |||||||
For more information contact:
Blake Edwards, President & CEO – 276-773-2811
Lori Vaught, EVP & CFO – 276-773-2811
