SLBK · Skyline Bankshares, Inc.

Skyline Bankshares delivered strong Q1 2026 results with net income rising 28.77% year-over-year to $4.6 million, or $0.82 per share, fueled by higher net interest income of $13.2 million after a modest $101 thousand increase in provision for credit losses. Total interest income grew $1.4 million to $16.9 million, driven primarily by $1.5 million higher loan interest from organic growth, while interest expense on deposits held steady at $3.3 million and borrowings expense fell $344 thousand on reduced borrowings. Noninterest income increased to $2.0 million, boosted by $145 thousand more service charges and $77 thousand in mortgage fees, excluding a prior-year life insurance item. Noninterest expense rose 5.72% to $9.4 million, led by $334 thousand higher salaries and benefits from personnel additions and $68 thousand in occupancy costs. Balance sheet expansion supported performance: total assets reached $1.31 billion (up 1.29% QoQ, 4.67% YoY), net loans hit $1.08 billion (up 2.65% QoQ), and deposits grew to $1.18 billion (up 0.54% QoQ). Asset quality remained solid with nonperforming loans at 0.44% of total loans and allowance at 0.82%. Management highlighted continued execution of growth strategies, NIM expansion from 4.39% in Q4 2025, and a 20% dividend hike to $0.30 per share, with CEO Blake Edwards emphasizing team efforts building on 2025's record year. No formal guidance provided, but management anticipates ongoing positive loan growth impact and potential near-term deposit expense increases from competition.