Skyline Bankshares, Inc. Announces Third Quarter 2025 Results

Core Insights - Skyline Bankshares, Inc. reported a net income of $4.1 million, or $0.73 per share, for Q3 2025, an increase from $3.8 million, or $0.68 per share, in Q2 2025 and $1.1 million, or $0.19 per share, in Q3 2024 [2][6] - For the first nine months of 2025, net income reached $11.5 million, or $2.05 per share, compared to $4.9 million, or $0.89 per share, for the same period in 2024 [2][6] - The company achieved an annualized return on average assets (ROAA) of 1.25% and return on average equity (ROAE) of 16.13% for Q3 2025, significantly up from 0.37% and 4.82% respectively in Q3 2024 [2][6] Financial Performance - Net interest income after provision for credit losses for Q3 2025 was $12.7 million, up from $9.2 million in Q3 2024, with total interest income increasing to $16.9 million from $13.7 million [5][8] - The net interest margin (NIM) improved to 4.27% in Q3 2025 compared to 3.78% in Q3 2024 [2][6] - Noninterest income for Q3 2025 was $2.0 million, slightly higher than $1.9 million in Q3 2024, driven by increased service charges and fees [9][10] Balance Sheet Highlights - Total assets increased by $88.9 million, or 7.30%, to $1.31 billion as of September 30, 2025, compared to $1.22 billion at December 31, 2024 [6][14] - Total loans reached $1.03 billion, an increase of $51.5 million, or 5.27%, from December 31, 2024, and up $82.6 million from $945.3 million at September 30, 2024 [6][15] - Total deposits rose to $1.17 billion, an increase of $78.0 million, or 7.14%, from December 31, 2024 [6][18] Equity and Dividends - Total stockholders' equity increased by $4.0 million, or 4.12%, to $101.9 million at September 30, 2025, compared to $97.9 million three months earlier [19] - The book value per share rose from $15.69 at December 31, 2024, to $18.03 at September 30, 2025 [19][28] - The company increased its semi-annual dividend to $0.27 per share, a 17.39% increase from $0.23 per share in Q3 2024 [3][6] Acquisition Impact - The acquisition of Johnson County Bank (JCB) contributed significantly to the company's growth, with $154.1 million in assets acquired, including $87.2 million in loans [6][8] - Merger-related expenses were noted, with $1.1 million incurred in Q3 2024, impacting net income calculations for that period [2][11] Asset Quality - The ratio of nonperforming loans to total loans was 0.22% at September 30, 2025, down from 0.26% at December 31, 2024, indicating strong asset quality [16][23] - The allowance for credit losses remained stable at approximately 0.82% of total loans as of September 30, 2025 [16][23]