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Skyline Bankshares, Inc. (SLBK)·Q3 2025 Earnings Summary

Executive Summary

  • EPS was $0.73, up sequentially from $0.68 and sharply higher vs. $0.19 in Q3 2024; ROAA was 1.25% and ROAE 16.13%, reflecting operating leverage and credit stability .
  • Net interest margin held at 4.27% (flat QoQ, +49 bps YoY), aided by organic loan growth and the JCB acquisition; deposit pricing pressure remains a near‑term headwind .
  • Balance sheet growth continued: loans +$8.9M QoQ to $1.04B, deposits +$30.2M QoQ to $1.17B, book value per share rose to $18.03 .
  • Dividend increased 17.39% YoY to $0.27 per share (semi‑annual), a supportive capital return catalyst .
  • No sell‑side EPS or revenue consensus available; investors should rely on company KPIs and directional commentary for modeling changes (S&P Global data unavailable for EPS/Revenue consensus)*.

What Went Well and What Went Wrong

What Went Well

  • Earnings quality and returns improved: ROAA 1.25% and ROAE 16.13% in Q3 2025; NIM remained 4.27% with YoY expansion .
  • Quote: “We are very pleased with our results for the third quarter and first nine months of 2025… Solid balance sheet growth has also been a mark of the first nine months of 2025…” — Blake Edwards, President & CEO .
  • Dividend raised to $0.27 per share; book value per share increased to $18.03, underpinned by earnings and OCI improvement .

What Went Wrong

  • Deposit costs trending higher: interest expense on deposits rose by $288K YoY in Q3; management anticipates further near‑term increases amid competitive pressures .
  • Operating expense mix elevated: salaries/benefits +$462K YoY due to JCB integration and personnel additions; FDIC assessments +$88K; data processing +$120K .
  • Continued shift toward higher‑cost deposits: time deposits increased $12.2M in the quarter as customers sought higher returns, pressuring funding costs .

Financial Results

Income Statement and EPS (GAAP)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Total Interest Income ($USD)$13.712M $15.484M $16.264M $16.874M
Net Interest Income ($USD)$9.931M $11.723M $12.460M $12.891M
Provision for Credit Losses ($USD)$738K $178K $284K $189K
Noninterest Income ($USD)$1.851M $1.786M $1.901M $1.961M
Noninterest Expense ($USD)$9.625M $8.863M $9.220M $9.565M
Net Income ($USD)$1.057M $3.573M $3.801M $4.076M
Diluted EPS ($USD)$0.19 $0.64 $0.68 $0.73

Margin and Returns

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Net Interest Margin %3.78% 4.15% 4.27% 4.27%
ROAA % (Annualized)0.37% 1.17% 1.21% 1.25%
ROAE % (Annualized)4.82% 15.85% 16.01% 16.13%

Balance Sheet and Credit KPIs

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Total Assets ($USD)$1.2065B $1.2176B $1.2515B $1.2828B $1.3065B
Net Loans ($USD)$945.3M $976.4M $992.2M $1,019.2M $1,027.9M
Total Deposits ($USD)$1.0859B $1.0922B $1.1144B $1.1400B $1.1702B
Borrowings ($USD)$25.0M $29.3M $37.0M $37.5M $26.5M
Book Value/Share ($USD)$15.72 $15.69 $16.44 $17.31 $18.03
Tangible Book Value/Share ($USD)$13.60 $13.62 $14.41 $15.32 $16.06
NPL / Total Loans %0.18% 0.26% 0.22% 0.20% 0.22%
ACL / Total Loans %0.82% 0.82% 0.82% 0.82% 0.82%

Estimates vs. Actuals (S&P Global)

MetricQ3 2025 ConsensusQ3 2025 Actual
Primary EPS Consensus Mean ($USD)Unavailable*$0.73
Revenue Consensus Mean ($USD)Unavailable*$14.663M*

Values marked with an asterisk were retrieved from S&P Global. EPS/Revenue consensus were unavailable for SLBK in Q3 2025; revenue actual shown reflects S&P’s standardized figure and may differ from company presentation*.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per share (semi‑annual)Q3 2025$0.23 (paid Q3 2024) $0.27 (payable Sep 22, 2025) Raised
Loan growth (directional)Near‑termNot providedManagement anticipates continued loan growth benefiting earning assets and yields Maintained positive outlook
Deposit interest expense (directional)Near‑termNot providedCould increase in near term due to competitive pressures Raised (cost outlook)
Formal revenue/expense/tax guidanceQ3 2025None providedNone providedMaintained (no formal guidance)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Deposit pricing pressureQ1: Higher deposit costs from JCB integration and competitive offerings . Q2: Anticipates continued increases, especially time deposits .Management anticipates deposit interest expense could increase near term as competition persists .Persistent headwind
Loan growthQ1: Organic growth; annualized core loan growth 6.60% . Q2: Annualized core loan growth 10.95% .Loans +$8.9M QoQ; management expects continued positive impact on earning assets/yields .Positive, moderating QoQ
Integration of JCBQ2: Integration complete; team executed well .Ongoing benefits reflected in NIM and balance growth (intangible amortization continues) .Synergies realized
NIM trajectoryQ1: 4.15% . Q2: 4.27% .4.27% (flat QoQ, +49 bps YoY) .Stable at higher level
Asset qualityNPL/Loans improved to 0.20% in Q2 .NPL/Loans 0.22%; ACL/Loans steady at 0.82% .Stable/benign
Capital & book valueBook value/share $16.44 in Q1, $17.31 in Q2 .Book value/share $18.03; tangible $16.06 .Strengthening capital metrics

Management Commentary

  • “Adjusted net income increased by $5.3 million, or 84.71%, in the nine month comparison when adjusted for nonrecurring, merger related costs… Solid balance sheet growth… total assets growing at an annualized rate of 10% while loans… over 7% and deposits… over 9%.” — Blake Edwards, President & CEO .
  • “During the quarter, we increased our semi‑annual dividend to $0.27 per share, which represents an increase of 17.39%… compared to… $0.23 … in the third quarter of 2024.” — Blake Edwards .
  • “Our strong second quarter earnings… reflect our long‑term strategy… and through acquisitions such as last year’s partnership with Johnson County Bank. The integration of Johnson County Bank is now complete…” — Blake Edwards (Q2) .
  • “Our entire Skyline team has worked tirelessly… strong first quarter earnings… reflect the success of these ongoing efforts.” — Blake Edwards (Q1) .

Q&A Highlights

  • No Q3 2025 earnings call transcript or Q&A was available in the document set; we searched for earnings‑call‑transcript and found none [List: 0 documents].

Estimates Context

  • EPS: No Primary EPS Consensus Mean available; result $0.73 (company reported). Model updates should rely on company KPIs and margin trajectory (S&P Global consensus unavailable)* .
  • Revenue: S&P Global shows standardized Q3 2025 actual revenue of $14.663M; no revenue consensus available*. Company presentation emphasizes NII, noninterest income, and NIM as core drivers *.
  • Target price and recommendation: No S&P Global consensus target or recommendation available for SLBK*.

Values noted with an asterisk were retrieved from S&P Global.

Key Takeaways for Investors

  • Operating momentum intact: sequential EPS growth and stable elevated NIM support earnings durability despite rising deposit competition .
  • Balance sheet expansion remains a tailwind: QoQ increases in loans and deposits with strong credit quality metrics (low NPLs; steady ACL coverage) reduce downside risk .
  • Cost vigilance needed: deposit interest expense and certain operating lines (salaries, data processing, FDIC) are rising; monitor mix shift to time deposits .
  • Capital return: dividend raised to $0.27 semi‑annual; book value per share up meaningfully—supportive for valuation and investor confidence .
  • Near‑term modeling: in absence of sell‑side coverage, anchor on NIM stability, loan growth pace, and deposit beta assumptions; consider modest upward pressure on funding costs .
  • Medium‑term thesis: proven integration of JCB and organic growth in legacy markets, with benign credit, positions SLBK for sustained ROE >16% at current run‑rate, contingent on deposit pricing discipline and macro rates .
  • Catalysts: continued dividend actions, further NIM resilience, and evidence of deposit cost normalization could re‑rate shares; conversely, an acceleration in deposit pricing pressure is the key risk .