Skyline Bankshares, Inc. Announces Third Quarter 2026 Results
Skyline expects competitive deposit pricing could increase deposit interest expense in the near term.
Sentiment and the balance of points
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Rhea-AI Summary
Skyline Bankshares (SLBK) reported third-quarter 2026 net income of $5.1 million, exceeding both the prior quarter and year-earlier quarter. Earnings per share were $0.90, versus $0.89 in the second quarter and $0.73 a year earlier. Nine-month net income reached $14.7 million, or $2.61 per share, versus $11.5 million, or $2.05 per share.
Net interest margin was 4.61%, versus 4.62% in the second quarter and 4.27% a year earlier. At September 30, total loans were $1.13 billion and deposits were $1.21 billion, up 9.17% and 3.69% year over year, respectively. Nonperforming loans fell to 0.11% of total loans from 0.45% at year-end. Quarterly noninterest expenses rose 5.26% year over year to $10.1 million. Equity declined $186 thousand sequentially to $115.1 million, reflecting earnings, $3.5 million in other comprehensive losses and $1.8 million in dividends.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter net income reached $5.1 million, or $0.90 per share, versus $4.1 million and $0.73 a year earlier.
- Moderate pointThird-quarter net interest income after credit-loss provision rose to $14.247 million, from $12.702 million a year earlier.
- Moderate pointTotal loans reached $1.13 billion, up 2.10% sequentially, 6.93% from year-end and 9.17% year over year.
- Moderate pointTotal deposits reached $1.21 billion, up 2.80% sequentially, 2.99% from year-end and 3.69% year over year.
- Moderate pointNonperforming loans fell to 0.11% of total loans, from 0.34% sequentially and 0.45% at year-end.
11 minor points
- Minor pointNine-month net income rose to $14.7 million, or $2.61 per share, from $11.5 million and $2.05.
- Minor pointThird-quarter annualized return on average assets improved to 1.50%, versus 1.25% a year earlier.
- Minor pointThird-quarter annualized return on average equity improved to 17.17%, versus 16.13% a year earlier.
- Minor pointThird-quarter net interest margin reached 4.61%, above 4.27% a year earlier but below 4.62% sequentially.
- Minor pointNine-month net interest income after credit-loss provision rose to $41.416 million, from $36.423 million.
- Minor pointThird-quarter noninterest income increased to $2.311 million, from $1.961 million a year earlier.
- Minor pointNine-month noninterest income increased to $6.511 million, from $5.648 million.
- Minor pointTotal assets reached $1.35 billion, up 1.52% sequentially, 4.55% from year-end and 3.49% year over year.
- Minor pointNonperforming assets fell to 0.09% of total assets, from 0.29% sequentially and 0.37% at year-end.
- Minor pointBook value reached $20.29 per share, above $19.00 at year-end but below $20.32 sequentially.
- Minor point. Forward-looking: it has not happened yet and may not happen.Skyline expects continued loan growth to benefit earning assets and loan yields.
Negative
- Moderate pointThird-quarter noninterest expenses rose 5.26% to $10.068 million, from $9.565 million a year earlier.
- Moderate pointInvestment securities declined to $98.0 million; the quarter included a $4.4 million increase in unrealized losses. 2.8% of market cap
- Minor pointNine-month noninterest expenses increased to $29.231 million, from $27.648 million.
- Minor pointThird-quarter credit-loss provision increased to $245 thousand, from $210 thousand sequentially and $189 thousand a year earlier.
- Minor pointNine-month credit-loss provision increased to $734 thousand, from $651 thousand.
2 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Skyline anticipates deposit interest expense could increase near term because of competitive pricing pressures.
- Minor pointStockholders’ equity fell $186 thousand sequentially to $115.1 million, despite increases from year-end and a year earlier.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FLOYD, Va. and INDEPENDENCE, Va., Oct. 27, 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 third 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 while continuing to invest in future growth, including the September opening of our newest branch in Dobson, North Carolina. In addition to our newest full-service branch, we welcomed Ryan High, Area Executive and Commercial Lender to the Skyline team. We are excited to bring our brand promise of “Always Our Best” to the businesses and people of Surry County, NC. We believe we remain well positioned for continued growth and success in the future and look forward to the opportunities ahead for the Skyline family.”
Highlights
- Net income was
$5.1 million , or$0.90 per share, for the third quarter of 2026, compared to$4.1 million , or$0.73 per share, for the third quarter of 2025. - NIM was
4.61% for the third quarter of 2026, compared to4.62% in the second quarter of 2026, and4.27% in the third quarter of 2025. - Total assets increased
$58.9 million , or4.55% , to$1.35 billion at September 30, 2026 from$1.29 billion at December 31, 2025, and increased by$45.7 million , or3.49% , from$1.31 billion a year earlier. - Net loans were
$1.12 billion at September 30, 2026, an increase of$72.7 million , or6.92% , when compared to$1.05 billion at December 31, 2025, and increased$94.3 million when compared to$1.03 billion at September 30, 2025. - Total deposits were
$1.21 billion at September 30, 2026, an increase of$35.2 million , or2.99% , compared to$1.18 billion at December 31, 2025, and an increase of$43.2 million from$1.17 billion at September 30, 2025. - Book value increased from
$19.00 per share at December 31, 2025 to$20.29 per share at September 30, 2026.
Third Quarter, First Nine Months of 2026 Income Statement Review
Net interest income after provision for credit losses in the third quarter of 2026 was
For the first nine months of 2026, net interest income after provision for credit losses was
Third quarter 2026 noninterest income was
For the nine months ended September 30, 2026 and 2025, noninterest income was
The increase of
Noninterest expense in the third quarter of 2026 was
For the nine-month period ended September 30, 2026, total noninterest expenses increased by
Net income before taxes increased by
Balance Sheet Review
Total assets increased in the third quarter of 2026 by
Total loans increased during the third 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 decreased 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 Exchange 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 September 30, 2026)
| Skyline Bankshares, Inc. Condensed Consolidated Balance Sheets September 30, 2026; June 30, 2026; December 31, 2025; September 30, 2025 | ||||||||||||||||
| September 30, | June 30, | December 31, | September 30, | |||||||||||||
| (dollars in thousands except share amounts) | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| (Unaudited) | (Unaudited) | (Audited) | (Unaudited) | |||||||||||||
| Assets | ||||||||||||||||
| Cash and due from banks | $ | 18,703 | $ | 19,529 | $ | 19,724 | $ | 24,260 | ||||||||
| Interest-bearing deposits with banks | 3,926 | 373 | 3,125 | 32,042 | ||||||||||||
| Federal funds sold | 396 | - | 343 | 240 | ||||||||||||
| Investment securities available for sale | 98,047 | 104,748 | 114,096 | 114,493 | ||||||||||||
| Restricted equity securities | 4,240 | 4,715 | 3,474 | 4,662 | ||||||||||||
| Loans | 1,131,498 | 1,108,258 | 1,058,198 | 1,036,439 | ||||||||||||
| Allowance for credit losses | (9,303 | ) | (9,150 | ) | (8,666 | ) | (8,547 | ) | ||||||||
| Net loans | 1,122,195 | 1,099,108 | 1,049,532 | 1,027,892 | ||||||||||||
| Cash value of life insurance | 27,808 | 27,558 | 27,169 | 27,013 | ||||||||||||
| Properties and equipment, net | 40,476 | 40,479 | 40,760 | 40,906 | ||||||||||||
| Accrued interest receivable | 4,862 | 4,824 | 4,541 | 4,135 | ||||||||||||
| Core deposit intangible | 2,550 | 2,708 | 3,043 | 3,217 | ||||||||||||
| Goodwill | 7,900 | 7,900 | 7,900 | 7,900 | ||||||||||||
| Deferred tax assets, net | 4,751 | 3,911 | 3,696 | 4,146 | ||||||||||||
| Other assets | 16,330 | 16,082 | 15,900 | 15,621 | ||||||||||||
| Total assets | $ | 1,352,184 | $ | 1,331,935 | $ | 1,293,303 | $ | 1,306,527 | ||||||||
| Liabilities | ||||||||||||||||
| Deposits | ||||||||||||||||
| Noninterest-bearing | $ | 379,479 | $ | 370,898 | $ | 371,001 | $ | 363,910 | ||||||||
| Interest-bearing | 833,880 | 809,460 | 807,164 | 806,263 | ||||||||||||
| Total deposits | 1,213,359 | 1,180,358 | 1,178,165 | 1,170,173 | ||||||||||||
| Borrowings | 15,000 | 27,676 | - | 26,500 | ||||||||||||
| Accrued interest payable | 562 | 526 | 531 | 644 | ||||||||||||
| Other liabilities | 8,174 | 8,100 | 6,943 | 7,330 | ||||||||||||
| Total liabilities | 1,237,095 | 1,216,660 | 1,185,639 | 1,204,647 | ||||||||||||
| Stockholders’ Equity | ||||||||||||||||
| Common stock and surplus | 34,172 | 34,107 | 33,984 | 33,658 | ||||||||||||
| Retained earnings | 97,760 | 94,503 | 86,617 | 82,225 | ||||||||||||
| Accumulated other comprehensive loss | (16,843 | ) | (13,335 | ) | (12,937 | ) | (14,003 | ) | ||||||||
| Total stockholders’ equity | 115,089 | 115,275 | 107,664 | 101,880 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,352,184 | $ | 1,331,935 | $ | 1,293,303 | $ | 1,306,527 | ||||||||
| Book value per share | $ | 20.29 | $ | 20.32 | $ | 19.00 | $ | 18.03 | ||||||||
| Tangible book value per share(1) | $ | 18.45 | $ | 18.45 | $ | 17.07 | $ | 16.06 | ||||||||
| Asset Quality Indicators | ||||||||||||||||
| Nonperforming assets to total assets | 0.09 | % | 0.29 | % | 0.37 | % | 0.17 | % | ||||||||
| Nonperforming loans to total loans | 0.11 | % | 0.34 | % | 0.45 | % | 0.22 | % | ||||||||
| Allowance for credit losses to total loans | 0.82 | % | 0.83 | % | 0.82 | % | 0.82 | % | ||||||||
| Allowance for credit losses to nonperforming loans | 760.05 | % | 240.03 | % | 180.17 | % | 381.39 | % | ||||||||
(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 | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | |||||||||||||||||
| (dollars in thousands except share amounts) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans and fees on loans | $ | 17,544 | $ | 16,866 | $ | 15,925 | $ | 50,639 | $ | 46,013 | ||||||||||
| Interest-bearing deposits in banks | 61 | 39 | 262 | 123 | 435 | |||||||||||||||
| Federal funds sold | 4 | 3 | 7 | 8 | 14 | |||||||||||||||
| Interest on securities | 571 | 577 | 638 | 1,752 | 1,973 | |||||||||||||||
| Dividends | 63 | 56 | 42 | 179 | 187 | |||||||||||||||
| 18,243 | 17,541 | 16,874 | 52,701 | 48,622 | ||||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 3,554 | 3,197 | 3,695 | 10,072 | 10,471 | |||||||||||||||
| Interest on borrowings | 197 | 200 | 288 | 479 | 1,077 | |||||||||||||||
| 3,751 | 3,397 | 3,983 | 10,551 | 11,548 | ||||||||||||||||
| Net interest income | 14,492 | 14,144 | 12,891 | 42,150 | 37,074 | |||||||||||||||
| Provision for credit losses | 245 | 210 | 189 | 734 | 651 | |||||||||||||||
| Net interest income after | ||||||||||||||||||||
| Provision for credit losses | 14,247 | 13,934 | 12,702 | 41,416 | 36,423 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges on deposit accounts | 730 | 696 | 651 | 2,076 | 1,841 | |||||||||||||||
| Other service charges and fees | 1,174 | 1,121 | 1,050 | 3,290 | 2,982 | |||||||||||||||
| Net realized losses on securities | (1 | ) | - | - | (1 | ) | - | |||||||||||||
| Mortgage origination fees | 128 | 151 | 52 | 391 | 169 | |||||||||||||||
| Increase in cash value of life insurance | 250 | 206 | 184 | 635 | 538 | |||||||||||||||
| Life insurance income | - | - | - | - | 60 | |||||||||||||||
| Other income | 30 | 39 | 24 | 120 | 58 | |||||||||||||||
| 2,311 | 2,213 | 1,961 | 6,511 | 5,648 | ||||||||||||||||
| Noninterest expenses | ||||||||||||||||||||
| Salaries and employee benefits | 5,270 | 5,227 | 4,987 | 15,331 | 14,337 | |||||||||||||||
| Occupancy and equipment | 1,650 | 1,528 | 1,465 | 4,725 | 4,349 | |||||||||||||||
| Data processing expense | 940 | 915 | 864 | 2,751 | 2,585 | |||||||||||||||
| FDIC Assessments | 184 | 205 | 241 | 638 | 725 | |||||||||||||||
| Advertising | 319 | 293 | 304 | 876 | 798 | |||||||||||||||
| Bank franchise tax | 150 | 150 | 132 | 450 | 396 | |||||||||||||||
| Director fees | 105 | 103 | 103 | 322 | 298 | |||||||||||||||
| Professional fees | 214 | 223 | 304 | 661 | 854 | |||||||||||||||
| Telephone expense | 131 | 94 | 115 | 340 | 357 | |||||||||||||||
| Core deposit intangible amortization | 158 | 166 | 178 | 493 | 598 | |||||||||||||||
| Other expense | 947 | 889 | 872 | 2,644 | 2,351 | |||||||||||||||
| 10,068 | 9,793 | 9,565 | 29,231 | 27,648 | ||||||||||||||||
| Net income before income taxes | 6,490 | 6,354 | 5,098 | 18,696 | 14,423 | |||||||||||||||
| Income tax expense | 1,418 | 1,368 | 1,022 | 4,037 | 2,973 | |||||||||||||||
| Net income | $ | 5,072 | $ | 4,986 | $ | 4,076 | $ | 14,659 | $ | 11,450 | ||||||||||
| Net income per share | $ | 0.90 | $ | 0.89 | $ | 0.73 | $ | 2.61 | $ | 2.05 | ||||||||||
| Weighted average shares outstanding | 5,617,204 | 5,617,204 | 5,584,704 | 5,617,204 | 5,584,704 | |||||||||||||||
| Dividends declared per share | $ | 0.32 | $ | 0.00 | $ | 0.27 | $ | 0.62 | $ | 0.52 | ||||||||||
| 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. | ||||||||||||||||
| September 30, | June 30, | December 31, | September 30, | |||||||||||||
| (dollars in thousands except share amounts) | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Tangible Common Equity | ||||||||||||||||
| Total stockholders’ equity (GAAP) | $ | 115,089 | $ | 115,275 | $ | 107,664 | $ | 101,880 | ||||||||
| Less: Goodwill | (7,900 | ) | (7,900 | ) | (7,900 | ) | (7,900 | ) | ||||||||
| Less: Core deposit intangible | (2,550 | ) | (2,708 | ) | (3,043 | ) | (3,217 | ) | ||||||||
| Tangible common equity (non-GAAP) | $ | 104,639 | $ | 104,667 | $ | 96,721 | $ | 90,763 | ||||||||
| Common stock shares outstanding | 5,672,204 | 5,672,204 | 5,666,204 | 5,651,704 | ||||||||||||
| Book value per share (GAAP) | $ | 20.29 | $ | 20.32 | $ | 19.00 | $ | 18.03 | ||||||||
| Tangible book value per share (non-GAAP) | $ | 18.45 | $ | 18.45 | $ | 17.07 | $ | 16.06 | ||||||||
For more information contact:
Blake Edwards, President & CEO – 276-773-2811
Lori Vaught, EVP & CFO – 276-773-2811
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