# EDGAR Filing Document

**Accession Number:** 0001657642
**File Stem:** 0001437749-26-002607
**Filing Date:** 2026-2
**Character Count:** 32712
**Document Hash:** 24db390f097e34d4d635a2537bd58483
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-002607.hdr.sgml**: 20260202

**ACCESSION NUMBER**: 0001437749-26-002607

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260202

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260202

**DATE AS OF CHANGE**: 20260202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Skyline Bankshares, Inc.
- **CENTRAL INDEX KEY:** 0001657642
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 475486027
- **STATE OF INCORPORATION:** VA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-209052
- **FILM NUMBER:** 26585815

**BUSINESS ADDRESS:**
- **STREET 1:** 101 JACKSONVILLE CIRCLE
- **CITY:** FLOYD
- **STATE:** VA
- **ZIP:** 24091
- **BUSINESS PHONE:** 540-745-4191

**MAIL ADDRESS:**
- **STREET 1:** 101 JACKSONVILLE CIRCLE
- **CITY:** FLOYD
- **STATE:** VA
- **ZIP:** 24091

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Parkway Acquisition Corp.
- **DATE OF NAME CHANGE:** 20151104

?xml version='1.0' encoding='ASCII'? pkkw20260202_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

------

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **February 2, 2026**

------

**SKYLINE BANKSHARES, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Virginia** <br> (State or other jurisdiction<br> of incorporation) | **333-209052** <br> (Commission File Number) | **47-5486027** <br> (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **212 East Main Street** <br> **Floyd, Virginia** <br> (Address of principal executive offices) | **24091** <br> (Zip Code) |

---

Registrant's telephone number, including area code: **(540) 745-4191**

**Not Applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading<br> Symbol(s) | Name of each exchange<br> on which registered |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

---

| | |
|:---|:---|
| **Item 2.02**  | **Results of Operations and Financial Condition.**  |

---

On February 2, 2026, Skyline Bankshares, Inc. (the "Company") issued a press release reporting its financial results for the period ended December 31, 2025. A copy of the press release is being furnished as Exhibit 99.1 to this report and is incorporated by reference into this Item 2.02.

---

| | |
|:---|:---|
| **Item 9.01**  | **Financial Statements and Exhibits.**  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | |
|:---|:---|
| <u>Exhibit No.</u>  | <u>Description</u>  |
| 99.1 | [Press Release dated February 2, 2026 announcing financial results for the period ending December 31, 2025](ex_914924.htm)  |
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **SKYLINE BANKSHARES, INC.**  | **SKYLINE BANKSHARES, INC.**  |
|  | (Registrant) | (Registrant) |
| Date: February 2, 2026 | By: | /s/ Blake M. Edwards |
|  | Blake M. Edwards | Blake M. Edwards |
|  | President and Chief Executive Officer | President and Chief Executive Officer |

---

## Exhibit 99.1

Exhibit 99.1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

**Skyline Bankshares, Inc. Announces Fourth Quarter 2025 Results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

***FOR IMMEDIATE RELEASE***

For more information contact:

Blake Edwards, President & CEO – 276-773-2811

Lori Vaught, EVP & CFO – 276-773-2811

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

FLOYD, VA, and INDEPENDENCE, VA, February 2, 2026 (Globe Newswire) -- Skyline Bankshares, Inc. (the "Company") (OTC QX: SLBK) – the holding company for Skyline National Bank (the "Bank") – announced its results of operations for the fourth quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

The Company recorded net income of $4.4 million, or $0.79 per share, for the quarter ended December 31, 2025, compared to net income of $4.1 million, or $0.73 per share, for the third quarter of 2025 and net income of $2.5 million, or $0.45 per share, for the fourth quarter of 2024. For the year ended December 31, 2025, net income was $15.8 million, or $2.84 per share, compared to net income of $7.4 million, or $1.34 per share, for the year ended December 31, 2024. Fourth quarter 2025 earnings represented an annualized return on average assets ("ROAA") of 1.34% and an annualized return on average equity ("ROAE") of 16.60%, compared to 0.82% and 11.23%, respectively, for the same period last year. Excluding nonrecurring merger-related expenses of $923 thousand relating to the acquisition of Johnson County Bank, net income would have been $3.2 million, or $0.58 per share, for the fourth quarter of 2024. This would represent an annualized ROAA and ROAE of 1.06% and 14.54%, respectively, for the fourth quarter of 2024. Net interest margin ("NIM") was 4.39% for the fourth quarter of 2025, compared to 4.10% for the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

President and CEO Blake Edwards stated, "We are very pleased with our results for the fourth quarter and for the year ended December 31, 2025. Adjusted net income increased by $6.4 million, or 67.80%, in the year-over-year comparison when adjusted for nonrecurring, merger-related costs in 2024. Earnings for the twelve-month period ended December 31, 2025 increased to $2.84 per share compared to $2.50 per share for the twelve-month period ended September 30, 2025 as merger related costs in the fourth quarter of 2024 no longer impacted the calculation. Solid balance sheet growth was also a mark of 2025 with total assets increasing at a rate of 6%, while loans and deposits both increased by more than 7% during the year. It is worth noting that the increase in total assets came despite a reduction in borrowings of over $29.2 million."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Edwards continued, "Our net interest margin increased from 4.27% in the third quarter of 2025 to 4.39% in the fourth quarter. The aforementioned reduction in borrowings came as we grew our noninterest-bearing deposit accounts by $33.1 million, or 9.79%. This increase in low-cost deposits was accretive to margins throughout the year. Dividends were increased to $0.52 per share in 2025, representing an increase of 13.04%, when compared to the dividends of $0.46 per share paid in 2024."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Edwards concluded, "As we look to build on the success of 2025, our team will continue to focus on our long-term strategy of growing the Skyline franchise and creating shareholder value with an emphasis on relationship-banking and positioning ourselves as the bank of choice throughout our market area. I believe we remain well positioned for growth and success in the future and know that our employees will continue to deliver on our brand promise of being "Always our Best" for our customers each and every day."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

***Highlights***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

● In connection with the acquisition of JCB, effective September 1, 2024, the Company acquired $154.1 million in assets at fair value, including $87.2 million in loans. The Company also assumed $133.8 million of liabilities at fair value, including $125.3 million of total deposits with a core deposit intangible asset recorded of $3.4 million, and goodwill of $4.6 million.

● Net income was $4.4 million, or $0.79 per share, for the fourth quarter of 2025, compared to $2.5 million, or $0.45 per share, for the fourth quarter of 2024.

● NIM was 4.39% for the fourth quarter of 2025, compared to 4.27% in the third quarter of 2025, and 4.10% in the fourth quarter of 2024.

● Total assets increased $75.7 million, or 6.22%, to $1.29 billion at December 31, 2025 from $1.22 billion at December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

● Net loans were $1.05 billion at December 31, 2025, an increase of $73.1 million, or 7.49%, when compared to $976.4 million at December 31, 2024.

● Total deposits were $1.18 billion at December 31, 2025, an increase of $86.0 million, or 7.87%, from $1.09 billion at December 31, 2024.

● Book value increased from $15.69 per share at December 31, 2024 to $19.00 per share at December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

***Fourth Quarter and Year Ended December 31, 2025 Income Statement Review***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Net interest income after provision for credit losses in the fourth quarter of 2025 was $13.1 million, compared to $11.4 million in the fourth quarter of 2024. Total interest income was $17.1 million in the fourth quarter of 2025, representing an increase of $1.7 million in comparison to the $15.4 million in the fourth quarter of 2024. Interest income on loans increased in the quarterly comparison by $1.6 million, primarily due to organic loan growth. Management anticipates that this loan growth will continue to have a positive impact on both earning assets and loan yields. Interest expense on deposits increased by $58 thousand in the quarterly comparison, primarily due to an increase in interest-bearing deposits. Management anticipates that interest expense on deposits could increase in the near term as competitive pressures for deposits continues throughout the Bank's footprint. Interest on borrowings decreased by $122 thousand during the fourth quarter of 2025 due to a decrease in borrowings of $26.5 million during the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

For the year ended December 31, 2025, net interest income after provision for credit losses was $49.5 million compared to $38.4 million for the year ended December 31, 2024. Interest income increased by $12.2 million, primarily due to an increase of $12.2 million in interest income on loans. Interest expense on deposits increased by $1.5 million for the year ended December 31, 2025 compared to the same period last year. As previously discussed, this is a reflection of the increased competitive pressures for deposits in addition to the $52.9 million increase in interest-bearing deposits during 2025. Interest on borrowings decreased by $193 thousand in the year-over-year comparison.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Fourth quarter 2025 and 2024 noninterest income was comparable at $2.1 million. The increase of $72 thousand in the quarter over quarter comparison was primarily due to an increase in service charges and fees of $94 thousand offset by a decrease of $29 thousand in the cash value of life insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

For the year ended December 31, 2025 and 2024, noninterest income was $7.8 million and $7.3 million, respectively. Included in noninterest income for the year 2025 was $60 thousand from life insurance contracts. Included in noninterest income for the year 2024 was $221 thousand from life insurance contracts and a net realized security loss of $141 thousand. The net security loss resulted from the recognition of unamortized premiums on a called bond. Excluding these items, noninterest income increased by $520 thousand in the year-over-year comparison, primarily because of an increase in service charges and fees of $526 thousand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Noninterest expense in the fourth quarter of 2025 was $9.6 million compared with $10.3 million in the fourth quarter of 2024, a decrease of $665 thousand or 6.46%. Salary and benefits increased by $532 thousand in the quarterly comparison due to routine personnel additions and salary adjustments, as well as increased benefit costs. Merger related expenses related to the acquisition of Johnson County Bank were $923 thousand for the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

For the year ended December 31, 2025, total noninterest expenses increased by $1.0 million compared to the same period in 2024. Salary and benefit cost increased by $1.7 million due to the increase in employees resulting from the JCB acquisition combined with routine increases year-over-year. Occupancy and equipment expenses increased by $231 thousand, and data processing increased by $464 thousand in the year-over-year comparison. FDIC assessments increased by $243 thousand and the core deposit intangible amortization increased by $290 thousand. Merger related expenses related to the acquisition of Johnson County Bank were $2.4 million for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Net income before taxes increased by $2.5 million in the quarterly comparison, causing an increase in income tax expense of $598 thousand. In the year-over-year comparison, net income before taxes increased by $10.7 million, resulting in an increase in income tax expense of $2.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

***Balance Sheet Review***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Total assets decreased in the fourth quarter of 2025 by $13.2 million, or 1.01%, to $1.29 billion at December 31, 2025 from $1.31 billion at September 30, 2025, and increased by $75.7 million, or 6.22%, from $1.22 billion at December 31, 2024. The change in total assets during the quarter can be primarily attributed to the loan growth of $21.8 million and deposit growth of $8.0 million and a decrease in borrowings of $26.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Total loans increased during the fourth quarter by $21.8 million, or 2.10%, to $1.06 billion at December 31, 2025 from $1.04 billion at September 30, 2025, and increased by $73.7 million, or 7.49%, compared to $984.5 million at December 31, 2024. Core loan growth during the fourth quarter of 2025 was at an annualized rate of 8.39%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Asset quality has remained strong, with a ratio of nonperforming loans to total loans of 0.45% at December 31, 2025 compared to 0.26% at December 31, 2024. The increase in the ratio of nonperforming loans to total loans was primarily related to one loan relationship going into nonaccrual status during the quarter. Based on discounted appraisal values, management does not expect any credit losses on the relationship at this time. The allowance for credit losses remained comparable at approximately 0.82% of total loans as of December 31, 2025 and December 31, 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Investment securities decreased by $397 thousand during the fourth quarter to $114.1 million at December 31, 2025 from $114.5 million at September 30, 2025, and decreased by $4.2 million from $118.3 million at December 31, 2024. The decrease in the fourth quarter of 2025 was the result of $1.7 million in paydowns and maturities, and a decrease in unrealized losses of $1.3 million due to the changes in interest rates during the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Total deposits increased in the fourth quarter of 2025 by $8.0 million, or 0.68%, to $1.18 billion at December 31, 2025 from $1.17 billion at September 30, 2025, and increased $86.0 million, or 7.87%, compared to $1.09 billion at December 31, 2024. Noninterest bearing deposits increased by $7.1 million and interest-bearing deposits increased by $901 thousand during the quarter. Lower cost interest-bearing deposits increased by $14.9 million during the quarter offset by a decrease in higher cost time deposits of $14.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

Total stockholders' equity increased by $5.8 million, or 5.68%, to $107.7 million at December 31, 2025, from $101.9 million three months earlier, and increased $19.0 million, or 21.42%, from $88.7 million at December 31, 2024. The change during the quarter was due to earnings of $4.4 million and $1.1 million in other comprehensive income. Book value increased from $15.69 per share at December 31, 2024 to $19.00 per share at December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

**Forward-looking statements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934 as amended. These include statements as to expectations regarding future financial performance and any other statements regarding future results or expectations. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by the use of words such as "believe," "expect," "intend," "anticipate," "estimate," or "project" or similar expressions. Our ability to predict results, or the actual effect of our plans or strategies, is inherently uncertain and subject to a number of risks. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to: changes in interest rates; general economic and financial market conditions; the effect of changes in banking, tax and other laws and regulations and interpretations or guidance thereunder; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the economic impact of duties, tariffs or other barriers or restrictions on trade, and any retaliatory counter measures, and the volatility and uncertainty arising therefrom; the quality and composition of the loan and securities portfolios; demand for loan products; deposit flows; the Company's capital and liquidity; competition; demand for financial services in the Company's market area; the implementation of new technologies; the ability to develop and maintain secure and reliable electronic systems; accounting principles, policies, and guidelines; and other factors identified in Item 1A, "Risk Factors," in the Company's Annual Report on 10-K for the year ended December 31, 2024. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

*(See Attached Financial Statements for quarter ending December 31, 2025)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

**Skyline Bankshares, Inc.**

**Condensed Consolidated Balance Sheets**

**December 31, 2025; September 30, 2025; December 31, 2024**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**  | **September 30,**  | **December 31,**  |
| **(dollars in thousands except share amounts)**  | **2025**  | **2025**  | **2024**  |
|  | *(Unaudited)*  | *(Unaudited)*  | *(Audited)*  |
| ***Assets***  |  |  |  |
| Cash and due from banks | $19724 | $24260 | $17889 |
| Interest-bearing deposits with banks | 3125 | 32042 | 1562 |
| Federal funds sold | 343 | 240 | - |
| Investment securities available for sale | 114096 | 114493 | 118287 |
| Restricted equity securities | 3474 | 4662 | 4034 |
| Loans | 1058198 | 1036439 | 984459 |
| Allowance for credit losses | (8666) | (8547) | (8027) |
| Net loans | 1049532 | 1027892 | 976432 |
| Cash value of life insurance | 27169 | 27013 | 26743 |
| Other real estate owned | - | - | 140 |
| Properties and equipment, net | 40760 | 40906 | 34663 |
| Accrued interest receivable | 4541 | 4135 | 4013 |
| Core deposit intangible | 3043 | 3217 | 3815 |
| Goodwill | 7900 | 7900 | 7900 |
| Deferred tax assets, net | 3696 | 4146 | 5593 |
| Other assets | 15900 | 15621 | 16528 |
| Total assets | $1293303 | $1306527 | $1217599 |
| ***Liabilities***  |  |  |  |
| Deposits |  |  |  |
| Noninterest-bearing | $371001 | $363910 | $337918 |
| Interest-bearing | 807164 | 806263 | 754285 |
| Total deposits | 1178165 | 1170173 | 1092203 |
| Borrowings | - | 26500 | 29254 |
| Accrued interest payable | 531 | 644 | 950 |
| Other liabilities | 6943 | 7330 | 6524 |
| Total liabilities | 1185639 | 1204647 | 1128931 |
| ***Stockholders***'***Equity***  |  |  |  |
| Common stock and surplus | 33984 | 33658 | 33507 |
| Retained earnings | 86617 | 82225 | 73714 |
| Accumulated other comprehensive loss | (12937) | (14003) | (18553) |
| Total stockholders' equity | 107664 | 101880 | 88668 |
| Total liabilities and stockholders' equity | $1293303 | $1306527 | $1217599 |
| Book value per share | $19.00 | $18.03 | $15.69 |
| Tangible book value per share<sup>(1)</sup>  | $17.07 | $16.06 | $13.62 |
| ***Asset Quality Indicators***  |  |  |  |
| Nonperforming assets to total assets | 0.37% | 0.17% | 0.22% |
| Nonperforming loans to total loans | 0.45% | 0.22% | 0.26% |
| Allowance for credit losses to total loans | 0.82% | 0.82% | 0.82% |
| Allowance for credit losses to nonperforming loans | 180.17% | 381.39% | 313.19% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

(1) Tangible book value is a Non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding, that the Company believes is a meaningful measure of capital adequacy because it provides a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. See "Reconciliation of Non-GAAP Financial Measures" at the end of this release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

**Skyline Bankshares, Inc.**

**Condensed Consolidated Statement of Operations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **September 30,**  | **December 31,**  | **December 31,**  | **December 31,**  |
| **(dollars in thousands except share amounts)**  | **2025**  | **2025**  | **2024**  | **2025**  | **2024**  |
|  | *(Unaudited)*  | *(Unaudited)*  | *(Unaudited)*  | *(Unaudited)*  | *(Audited)*  |
| ***Interest income***  |  |  |  |  |  |
| Loans and fees on loans | $16151 | $15925 | $14541 | $62164 | $49974 |
| Interest-bearing deposits in banks | 232 | 262 | 92 | 667 | 390 |
| Federal funds sold | 4 | 7 | 4 | 18 | 37 |
| Interest on securities | 630 | 638 | 692 | 2603 | 2871 |
| Dividends | 110 | 42 | 109 | 297 | 264 |
|  | 17127 | 16874 | 15438 | 65749 | 53536 |
| ***Interest expense***  |  |  |  |  |  |
| Deposits | 3659 | 3695 | 3601 | 14130 | 12650 |
| Interest on borrowings | 146 | 288 | 268 | 1223 | 1416 |
|  | 3805 | 3983 | 3869 | 15353 | 14066 |
| Net interest income | 13322 | 12891 | 11569 | 50396 | 39470 |
| ***Provision for credit losses***  | 217 | 189 | 214 | 868 | 1116 |
| Net interest income after provision for credit losses | 13105 | 12702 | 11355 | 49528 | 38354 |
| ***Noninterest income***  |  |  |  |  |  |
| Service charges on deposit accounts | 665 | 651 | 624 | 2506 | 2317 |
| Other service charges and fees | 1199 | 1050 | 1146 | 4181 | 3844 |
| Net realized losses on securities | - | - | - | - | (141) |
| Mortgage origination fees | 69 | 52 | 68 | 238 | 277 |
| Increase in cash value of life insurance | 156 | 184 | 185 | 694 | 643 |
| Life insurance income | - | - | - | 60 | 221 |
| Other income | 48 | 24 | 42 | 106 | 124 |
|  | 2137 | 1961 | 2065 | 7785 | 7285 |
| ***Noninterest expenses***  |  |  |  |  |  |
| Salaries and employee benefits | 5108 | 4987 | 4576 | 19445 | 17770 |
| Occupancy and equipment | 1518 | 1465 | 1445 | 5867 | 5636 |
| Data processing expense | 898 | 864 | 940 | 3483 | 3019 |
| FDIC Assessments | 238 | 241 | 279 | 963 | 720 |
| Advertising | 273 | 304 | 252 | 1071 | 965 |
| Bank franchise tax | 124 | 132 | 136 | 520 | 466 |
| Director fees | 102 | 103 | 148 | 400 | 326 |
| Professional fees | 230 | 304 | 276 | 1084 | 856 |
| Telephone expense | 118 | 115 | 120 | 475 | 473 |
| Core deposit intangible amortization | 174 | 178 | 216 | 772 | 482 |
| Merger-related expenses | - | - | 923 | - | 2423 |
| Other expense | 850 | 872 | 987 | 3201 | 3145 |
|  | 9633 | 9565 | 10298 | 37281 | 36281 |
| Net income before income taxes | 5609 | 5098 | 3122 | 20032 | 9358 |
| ***Income tax expense***  | 1217 | 1022 | 619 | 4190 | 1933 |
| Net income | $4392 | $4076 | $2503 | $15842 | $7425 |
| ***Net income per share***  | $0.79 | $0.73 | $0.45 | $2.84 | $1.34 |
| ***Weighted average shares outstanding***  | 5588188 | 5584704 | 5557156 | 5585582 | 5557210 |
| ***Dividends declared per share***  | $0.00 | $0.27 | $0.00 | $0.52 | $0.46 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

**Skyline Bankshares, Inc.**

**Reconciliation of Non-GAAP Financial Measures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and understanding the Company's financial condition, capital position and financial results. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. The non-GAAP financial measure presented in this document includes tangible book value per share, and the following items adjusted for merger related expenses: net income, return on average assets, return on average equity, and net income per share. For periods that are shorter than twelve months, the Company annualizes net income for the return on average assets and the return on average equity. The following tables present calculations underlying non-GAAP financial measures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**  | **September 30,**  | **December 31,**  |
| **(dollars in thousands except share amounts)**  | **2025**  | **2025**  | **2024**  |
|  | *(Unaudited)*  | *(Unaudited)*  | *(Unaudited)*  |
| ***Tangible Common Equity***  |  |  |  |
| Total stockholders' equity (GAAP) | $107664 | $101880 | $88668 |
| Less: Goodwill | (7900) | (7900) | (7900) |
| Less: Core deposit intangible | (3043) | (3217) | (3815) |
| Tangible common equity (non-GAAP) | $96721 | $90763 | $76953 |
| Common stock shares outstanding | 5666204 | 5651704 | 5651704 |
| Book value per share (GAAP) | $19.00 | $18.03 | $15.69 |
| Tangible book value per share (non-GAAP) | $17.07 | $16.06 | $13.62 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **September 30,**  | **December 31,**  | **December 31,**  | **December 31,**  |
| **(dollars in thousands except share amounts)**  | **2025**  | **2025**  | **2024**  | **2025**  | **2024**  |
|  | *(Unaudited)*  | *(Unaudited)*  | *(Unaudited)*  | *(Unaudited)*  | *(Unaudited)*  |
| ***Adjusted Net Income***  |  |  |  |  |  |
| Net income (GAAP) | $4392 | $4076 | $2503 | $15842 | $7425 |
| Add: |  |  |  |  |  |
| Merger related expenses | - | - | 923 | - | 2423 |
| Tax effect of merger related expenses | - | - | (184) | - | (407) |
| Total adjustments | - | - | 739 | - | 2016 |
| Adjusted net income | $4392 | $4076 | $3242 | $15842 | $9441 |
| Adjusted net income, annualized for ratio calculation (non-GAAP) | $17424 | $16171 | $12898 | $15842 | $9441 |
| Net income, annualized for ratio calculation | $17424 | $16171 | $9958 | $15842 | $7425 |
| Average total assets | $1303483 | $1293025 | $1213167 | $1273515 | $1109465 |
| Average total equity | $104936 | $100252 | $88684 | $98012 | $85460 |
| Weighted average shares outstanding | 5588188 | 5584704 | 5557156 | 5585582 | 5557210 |
| Return on average assets (GAAP) | 1.34% | 1.25% | 0.82% | 1.24% | 0.67% |
| Adjusted return on average assets (non-GAAP) | 1.34% | 1.25% | 1.06% | 1.24% | 0.85% |
| Return on average equity (GAAP) | 16.60% | 16.13% | 11.23% | 16.16% | 8.69% |
| Adjusted return on average equity (non-GAAP) | 16.60% | 16.13% | 14.54% | 16.16% | 11.05% |
| Net income per share | $0.79 | $0.73 | $0.45 | $2.84 | $1.34 |
| Adjusted net income per share | $0.79 | $0.73 | $0.58 | $2.84 | $1.70 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>