Thu, May 15, 4:26 PM (39 days ago)
**Skyline Bankshares, Inc. (SLBK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue & Profit:** Q1 2025 net income was $3.573M ($0.64 per share), up from $2.051M ($0.37 per share) in Q1 2024. - **Profit Margins:** Net interest margin (NIM) was 4.15% in Q1 2025, up from 4.10% in Q4 2024 and 3.64% in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $4.917M in Q1 2025, up from $2.768M in Q1 2024. - **Earnings Changes:** Q1 2025 earnings represented an annualized return on average assets (ROAA) of 1.17% and return on average equity (ROAE) of 15.85%, compared to 0.79% and 9.94%, respectively, in Q1 2024. **Quarterly Performance & Trends:** - **Assets & Loans:** Total assets increased by $33.9M (2.78%) to $1.25B in Q1 2025. Net loans increased by $15.8M (1.61%) to $992.2M, with core loan growth at an annualized rate of 6.60%. - **Deposits:** Total deposits increased by $22.2M (2.03%) to $1.11B in Q1 2025. - **Asset Quality:** Nonperforming loans were 0.22% of total loans in Q1 2025, down from 0.26% in Q4 2024. The allowance for credit losses remained at approximately 0.82% of total loans. - **Investment Securities:** Investment securities increased by $196K to $118.5M in Q1 2025, with a decrease in unrealized losses and paydowns. **Uncertainties & Future Operations:** - **Economic Conditions:** The regional economy is diverse but influenced by manufacturing and agricultural segments. Future additions to the allowances may be necessary based on changes in local economic conditions. - **Regulatory Examinations:** Regulatory agencies may require the Bank to recognize additions to the allowances based on their judgments about available information. - **Market Risk:** The Company is exposed to market risks, including interest rate risk, credit risk, and liquidity risk. The Company manages these risks through various strategies, including diversification, hedging, and maintaining adequate capital and liquidity. **Acquisition Impact:** - **JCB Acquisition:** On September 1, 2024, the Company completed its merger with Johnson County Bank (JCB), acquiring $154.1M in assets, including $87.2M in loans, and assuming $133.8M in liabilities, including $125.3M of deposits. Goodwill of $4.6M was recorded. **Forward-Looking Statements:** - The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the Company include changes in interest rates, general economic and financial market conditions, changes in banking, tax, and other laws and regulations, and other risks identified in the Company's filings. **Ticker:** SLBK