SB
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)
Margin and Returns
Balance Sheet and Credit KPIs
Estimates vs. Actuals (S&P Global)
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
Earnings Call Themes & Trends
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 .