Skyline Bankshares, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Skyline Bankshares, Inc. reported a decrease in net income per share to $0.32 in 2023, despite significant total assets of $6.74 billion.</b>

AI Summary

Skyline Bankshares, Inc. (SLBK) filed a Annual Report (10-K) with the SEC on March 27, 2024. Skyline Bankshares, Inc. reported total assets of $6,739,000,000 for the fiscal year ended December 31, 2023. The company's total equity was $6,248,000,000 as of December 31, 2023. Net income per share was $0.32 for the fiscal year 2023, a decrease from $0.42 in 2022. Total debt was $0 for the fiscal year ended December 31, 2023. The company's operating margin was 8.13% for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking Skyline Bankshares, Inc., this filing contains several important signals. The decline in EPS from $0.42 in 2022 to $0.32 in 2023 suggests potential headwinds or increased expenses impacting profitability. The substantial total assets of $6.74 billion indicate a large operational scale, but the decrease in EPS warrants further investigation into the drivers of profitability.

Risk Assessment

Risk Level: medium — Skyline Bankshares, Inc. shows moderate risk based on this filing. The decrease in net income per share from $0.42 in 2022 to $0.32 in 2023 indicates a potential decline in profitability, which could be a concern for investors.

Analyst Insight

Investors should monitor Skyline Bankshares' upcoming earnings reports to understand the reasons behind the EPS decline and assess any potential recovery strategies.

Financial Highlights

operating Margin

8.13%

total Assets

6,739,000,000

total Debt

0

eps

0.32

Key Numbers

• 6,739,000,000 — Total Assets (As of December 31, 2023)
• 6,248,000,000 — Total Equity (As of December 31, 2023)
• 0.32 — Net Income Per Share (Fiscal Year 2023)
• 0.42 — Net Income Per Share (Fiscal Year 2022)
• 0 — Total Debt (As of December 31, 2023)
• 8.13 — Operating Margin (Fiscal Year 2023)

Key Players & Entities

• Skyline Bankshares, Inc. (company) — Filer name
• Parkway Acquisition Corp. (company) — Former company name
• VA (location) — State of incorporation
• FLOYD (location) — City of business address

FAQ

Risk Factors

• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the company's net interest income and the market value of its investment portfolio.
• Economic Conditions [medium — market]: Deterioration in general economic conditions could adversely affect the company's financial performance and the credit quality of its loan portfolio.
• Cybersecurity Risks [medium — operational]: The company is subject to risks associated with data breaches and cyberattacks, which could disrupt operations and damage its reputation.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.
• 2024-03-27: Filing Date — Date the 10-K was filed with the SEC.

Key Financial Figures

• $1.5 million — has the authority to approve loans from $1.5 million up to $2.5 million of total indebtednes
• $2.5 million — o approve loans from $1.5 million up to $2.5 million of total indebtedness to a single custo
• $4.0 million — o approve loans from $2.5 million up to $4.0 million of total indebtedness to a single custo
• $250,000 — ificates of deposit in denominations of $250,000 or less to be core deposits. These acco
• $38,930 — e in these markets ranged from a low of $38,930 in Alleghany County, to a high of $51,3
• $51,348 — 8,930 in Alleghany County, to a high of $51,348 in Yadkin County, based upon 2021 censu
• $44,360 — ehold incomes which range from a low of $44,360 in the City of Radford, to a high of $6
• $64,657 — 60 in the City of Radford, to a high of $64,657 in Davie County, according to the 2021
• $48,476 — household incomes ranged from a low of $48,476 in Roanoke City, to a high of $74,622 i
• $74,622 — f $48,476 in Roanoke City, to a high of $74,622 in Roanoke County, based on 2021 census
• $10 b — y institutions with assets of less than $10 billion, such as the Bank, and for large
• $50 billion — or large banks with assets of more than $50 billion. Among other matters, the Economic Gro
• $10 billion — total consolidated assets of less than $10 billion by instructing the federal banking regu
• $1 billion — ualifying holding company may have from $1 billion to $3 billion. This expansion also excl
• $3 billion — ing company may have from $1 billion to $3 billion. This expansion also excludes such hold

Filing Documents

• pkkw20231231_10k.htm (10-K) — 4468KB
• ex_642797.htm (EX-21.1) — 1KB
• ex_645491.htm (EX-23.1) — 2KB
• ex_642798.htm (EX-31.1) — 11KB
• ex_642799.htm (EX-31.2) — 11KB
• ex_642800.htm (EX-32.1) — 9KB
• pic1.jpg (GRAPHIC) — 6KB
• 0001437749-24-009598.txt (&nbsp;) — 19540KB
• slbk-20231231.xsd (EX-101.SCH) — 107KB
• slbk-20231231_cal.xml (EX-101.CAL) — 93KB
• slbk-20231231_def.xml (EX-101.DEF) — 794KB
• slbk-20231231_lab.xml (EX-101.LAB) — 654KB
• slbk-20231231_pre.xml (EX-101.PRE) — 855KB
• pkkw20231231_10k_htm.xml (XML) — 4707KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 13 Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 23 Item 3.

Legal Proceedings

Legal Proceedings 23 Item 4. Mine Safety Disclosures 23 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 Item 6. [Reserved] 25 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 48 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 102 Item 9A.

Controls and Procedures

Controls and Procedures 102 Item 9B. Other Information 103 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 103 Part III Item 10. Directors, Executive Officers and Corporate Governance 103 Item 11.

Executive Compensation

Executive Compensation 108 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 114 Item 13. Certain Relationships and Related Transactions, and Director Independence 116 Item 14. Principal Accountant Fees and Services 117 Part IV Item 15. Exhibits, Financial Statement Schedules 118 Item 16. Form 10-K Summary 119 i PART I Item 1. Business. General Skyline Bankshares, Inc. (the "Company"), is a bank holding company headquartered in Floyd, Virginia. The Company offers a wide range of retail and commercial banking services through its wholly-owned bank subsidiary, Skyline National Bank (the "Bank"). On January 1, 2023, the Company changed its name from Parkway Acquisition Corp. to Skyline Bankshares, Inc. to align its brand across the entire organization. The Company was incorporated as a Virginia corporation on November 2, 2015. The Company was formed as a business combination shell company for the purpose of completing a business combination transaction between Grayson Bankshares, Inc. ("Grayson") and Cardinal Bankshares Corporation ("Cardinal") in which Grayson and Cardinal merged with and into the Company, with the Company as the surviving corporation (the "Cardinal merger"), on July 1, 2016. Upon completion of the Cardinal merger, the Bank of Floyd, a wholly-owned subsidiary of Cardinal, was merged with and into the Bank (formerly Grayson National Bank), a wholly-owned subsidiary of Grayson. Effective March 13, 2017, the Bank changed its name to Skyline National Bank. On July 1, 2018, the Company acquired Great State Bank ("Great State"), based in Wilkesboro, North Carolina, through the merger of Great State with and into the Bank, with the Bank as the surviving bank. The Bank was organized under the laws of the United States in 1900 and now serves the Virginia counties of Grayson, Floyd, Carroll, Wythe, Pulaski, Montgomery, Roanoke, Patrick and Washington, and the North Carolina counties of Alleghany, Ashe, Burke,

View Full Filing

View this 10-K filing on SEC EDGAR