Executive Summary

Q2 2025 delivered strong profitability with EPS of $0.68, ROAA 1.21%, ROAE 16.01%, and NIM expanding to 4.27%; operating revenue rose sequentially and year over year, supported by organic loan growth and contributions from the Johnson County Bank acquisition .
Balance sheet growth remained robust: assets reached $1.28B (+5.36% YTD), net loans $1.02B (+4.38% YTD), and deposits $1.14B (+4.38% YTD); book value per share increased to $17.31 .
Management highlighted ongoing deposit competition and indicated deposit costs could rise near term, while loan growth is expected to continue bolstering earning assets and yields; integration of Johnson County Bank is complete .
No formal quantitative guidance or earnings call transcript was available; Street coverage looks limited, with S&P Global showing actual Q2 revenue but no consensus EPS figures, implying minimal estimate-driven stock catalysts near term .

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded to 4.27% (vs. 4.15% in Q1 and 3.72% in Q2’24), reflecting improved earning asset yields and benefits from loan growth and the JCB acquisition .
Strong balance sheet growth: assets +$31.4M QoQ to $1.28B, loans +$27.2M QoQ to $1.03B, deposits +$25.6M QoQ to $1.14B; book value per share rose to $17.31 .
Management tone confident: “Our strong second quarter earnings… reflect our long-term strategy… integration of Johnson County Bank is now complete” — Blake Edwards, President & CEO .

What Went Wrong

Rising deposit competition pressured funding costs; management cautioned deposit interest expense could increase near term, especially in time deposits .
Noninterest expenses increased 10% YoY to $9.2M on higher salaries/benefits, data processing, FDIC assessments, and core deposit intangible amortization, partly tied to the JCB acquisition .
Dividend was not declared in Q2 (vs. $0.25 in Q1), which may disappoint income-focused holders absent explicit guidance on cadence .

Financial Results

Note: Operating Revenue is defined here as Net Interest Income after Provision for Credit Losses plus Noninterest Income (reflecting bank-sector “total operating revenue” convention) .

Metric	Q2 2024	Q1 2025	Q2 2025
Operating Revenue ($USD Millions)	$10.70	$13.33	$14.08
Diluted EPS ($USD)	$0.33	$0.64	$0.68
Net Interest Margin %	3.72%	4.15%	4.27%
ROAA %	0.69%	1.17%	1.21%
ROAE %	8.81%	15.85%	16.01%
Provision for Credit Losses ($USD Millions)	$0.07	$0.18	$0.28

KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Total Assets ($USD Billions)	$1.06	$1.25	$1.28
Net Loans ($USD Billions)	$0.83	$0.99	$1.02
Total Deposits ($USD Billions)	$0.95	$1.11	$1.14
NPLs / Total Loans (%)	0.19%	0.22%	0.20%
ACL / NPLs (%)	430.72%	367.90%	408.09%
Book Value per Share ($)	$15.01	$16.44	$17.31
Tangible Book Value per Share ($)	$14.30	$14.41	$15.32

Segment breakdown: Not applicable; the company does not report operating segments in the press release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Interest expense on deposits (outlook)	Near term (2H 2025)	Not provided	“Could increase… as competitive pressures for deposits may result in continued increases in rates on deposit offerings, especially on time deposits.”	Raised risk to deposit costs
Loan growth (outlook)	Ongoing	Not provided	“Management anticipates that this loan growth will continue to have a positive impact on both earning assets and loan yields.”	Positive
Dividend policy	Q2 2025	$0.25 per share in Q1 2025	$0.00 declared in Q2 2025	Lowered for Q2
Formal quantitative guidance (revenue, margins, OpEx, tax rate)	2025	Not provided	Not provided in 8-K/press materials	Maintained N/A

Earnings Call Themes & Trends

No earnings call transcript was available for Q2 2025; themes are derived from management remarks and forward-looking statements in press releases .

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Loan growth and integration	Q4: Core loan growth of $31.4M; core conversion completed in Nov; integration targeted by year-end . Q1: Continued organic loan growth and JCB contribution .	Integration of JCB now complete; loans +$27.2M QoQ; annualized core loan growth ~10.95% .	Improving
Deposit competition and pricing	Q4/Q1: Deposit costs rising; competitive pressures and mix shift to time deposits .	Management reiterates near-term pressure; deposit interest expense likely to increase; time deposits +$19.7M QoQ .	Worsening
Net interest margin	Q4: NIM 4.10% (up from Q3 3.78%) . Q1: NIM 4.15% .	NIM 4.27% .	Improving
Asset quality	Low NPLs, ACL ~0.82% of loans across periods .	NPL ratio 0.20%; ACL 0.82% of loans .	Stable
Technology/operations	Q4: Core conversion completed; integration underway .	Integration complete; operational execution emphasized .	Completed
Macro/regulatory	Forward-looking statements cite interest rates, regulations, tariffs/trade uncertainty .	Reiterated macro risks and regulatory environment .	Ongoing risk backdrop

Management Commentary

“Our strong second quarter earnings… reflect our long-term strategy of growing the Skyline franchise and creating shareholder value… The integration of Johnson County Bank is now complete…” — Blake Edwards, President & CEO .
“Our strong first quarter earnings… reflect the success of these ongoing efforts… our brand promise of being ‘Always our Best’” — Blake Edwards, President & CEO .
“Earnings were strong… core loan growth was $31.4 million… net interest margin increased to 4.10%… adjusted ROAA of 1.06%” — Blake Edwards, President & CEO (Q4 2024) .

Q&A Highlights

No Q2 2025 earnings call transcript or Q&A was available, suggesting limited Street engagement for this OTCQX community bank .

Estimates Context

Metric	Period	Consensus Mean	Actual	# of Estimates
Primary EPS	Q2 2025	N/A*	$0.68	N/A*
Revenue (Operating Revenue)	Q2 2025	N/A*	$14.08M*	N/A*

Values retrieved from S&P Global. Actual revenue reflects net interest income after provision plus noninterest income ($12.176M + $1.901M = $14.077M) . Given limited analyst coverage, no consensus means or estimate counts were available.*

Key Takeaways for Investors

Margin expansion and profitability: NIM rose to 4.27% with EPS at $0.68 and ROAE at 16.01%, indicating healthy earning asset yields and franchise strength .
Balance sheet momentum: Loans and deposits both grew ~4% YTD, supporting revenue growth and book value accretion to $17.31 per share .
Watch deposit pricing: Management flagged continued deposit competition; expect upward pressure on deposit costs and time-deposit mix to persist, a potential headwind to NIM if rates fall unevenly .
Integration complete: JCB integration de-risks operational execution and supports ongoing loan/deposit growth in the expanded footprint .
Asset quality remains a key support: NPLs at 0.20% and ACL coverage of NPLs at 408% provide resilience against credit normalization .
Income cadence: No Q2 dividend declared (vs. $0.25 in Q1), worth monitoring for income investors given improving profitability .
Limited sell-side coverage: With minimal consensus data, narrative and reported trends (NIM, loan growth, deposit costs) are likely to drive stock reaction more than headline beats/misses .

References:

Q2 2025 8-K press release and financials .
Q1 2025 8-K press release and financials .
Q4 2024 8-K press release and financials .
Company investor page and Q2 2025 press release online .

Skyline Bankshares, Inc. (SLBK)·Q2 2025 Earnings Summary