Skyline Bankshares, Inc. · OTC:SLBK
Skyline Bankshares — Investor Presentation (September 2024)
25 slides from Skyline Bankshares's investor presentation, Sep 5, 2024
Slide 1: Skyline Bankshares, Inc.
Exhibit 99.1 &} Skyline Holding Company for
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer Raters Bank This presentation 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
Slide 3: Our Values
Our Values ‘Smart Young-at-Heart Inspired Energetic Skyline Kind Local Nonconforming po SkylineNational.@ank
Slide 4: Highlights and History
Highlights and History GROWING COMMUNITY BANK TICKER SLBK ore Qx) as of June 30, 2024 assets: $1.064 billion Highlights: wae as of oe Loans: $834 million MARKET 9 64,2 MITION Agus 5, 2024 Deposits: $948 mittion Cea #4 deposit iv Home counties oF 2 Ipo's share GRAYSON AND FLOYD, VIRGINIA 1916 2015, 2
Slide 5: Demonstrated History of Successful Expansion
Demonstrated History of Successful Expansion mal eee | esee| cae » [Ee os eee | bor, [pekeas| Gates ees SST] Ge | ee Bank of Floyd ‘Bank July 1, 2018 July 6, 2020 CPP prOgIM — tay a5, ao20 July 27,2023 saunas oe tie ‘Sieve cooeow Ganesan SOD = ori we, Seed, (in thousands) (Rrass ieee (EES ‘$1,000,00
Slide 6: Investment Rationale
Investment Rationale Ds VAL to peer institution IMPROVED SCALE AND GEOGRAPHY + 2016 MOE — Roanoke and New River Valleys + 2018 Acquisition — Increased NC presence + 2024 Pending Acquisition — Establishes TN presence ORGANIC GROWTH OPPORTUNITIES in existing and Contiguous markets GROWTH POTENTIAL for
Slide 7: Resilient, Low-Cost Funding Base
Resilient, Low-Cost Funding Base FEF FSF SSF SF FHF FPL CI HPF II PIII I IIE IIIS Cost of B Deposits —Fed Funds pa SkylineNational.Bank
Slide 8: Strong and Improving Financial Performance
Strong and Improving Financial Performance Earnings Per Share Efficiency Ratio (%) .if. 2015 (@2 2024 Annualized (02 2024 Annualized Core Return on Average Assets (%) Return on Average Tangible Common Equity (%) 32 2015 22 2024 Annualized 2015 (02 2024 Annualized Source SAP Capit SkylineNational.Ban
Slide 9: Dominant Deposit Market Share in Core Markets
Dominant Deposit Market Share in Core Markets Market Branchesin Depositsin Deposit County Rank Market Market ($M) Market Share _ Franchise Floyd 1 2 $158 54.1% 17.5% Grayson 1 5 153 78.4% 17.0% Carroll 2 2 131 33.5% 14.5% Wilkes 6 1 73 85% 8.1% Galax (City) 4 1 57 13.5% 6.3% idkin 6 1 50 10.1% 5.6%
Slide 10: Investment Rationale
Investment Rationale MEDIAN PRICE/TBV MEDIAN PRICE/LTM EARNINGS 120.4% 8.9x 91.6% 92.1% 90.1% 8.2x 82x ; 7 SLBK Virginia North Carolina Southeast us SLBK Virginia North Carolina Southeast RAYMOND JAMES: cena poo
Slide 11: Selected Public Peer Group
Selected Public Peer Group ‘carers cnUSiTS HEADQUARTERS: Vepie North Carona {TM ROA (24s) —159% TOTALASSETS:S20M 5158 ow )198% Bank Overview Financial and Perfomance Figures ‘Trading Data tam tat emg) exszoat at tuccae! ow oat at ase “Phe gn tow “Cap ees “tos tov “Ate Yale Company tame sa Ter eS) eo
Slide 12: Markets Served
Markets Served Q Current Markets Roanoke / Blacksburg /NRV “Heater — Carton Cine Li Gl Hot “Caucoon Vigna Tech Redford Unversity Roanoke cotese “Indy Balest Pont Nook Souther evo, Pe = Hence -Apahien Reina Heaters Sym + Education ~ Appalachian State Univer “Ingosty Tse, Lowes, Ge Avion Un, ya Indepe
Slide 13: Johnson County Bank: Skyline's Entrance Into the Tennessee Market
Johnson County Bank: Skyline’s Entrance Into the Tennessee Market Commentary Acquisition Details * on Aa 17, 204 Soe scien na ment to acquire Johnson County Bank (\ICB*) in @ S250M ates tarsacion ‘an attractive eastern Tennessee market - Expands on Skyline's current lending and deposi relationships
Slide 14: New Markets are Target Rich
New Markets are Target Rich Number of Banks with $100M - $1B in Assets + Tennessee has nearly 2x the number of banks between $100M and $18 in assets as Virginia and = North Carolina combined + We actively call on potential bank targets and merger partners in both our legacy and new markets: Legacy M
Slide 15: Financial Information
an¢cial: Information Skyline ALWAYS OUR BEST
Slide 16: Condensed Balance Sheets
Condensed Balance Sheets + Investment securities at 6/30/2024 ™M securities > Modified duration 5.9 > @ $545 milion with th average maturity of 3.5 year + Core loan growth: > 7.99% for year ended 6/30/2024 + Loan-to-deposit ratio of 87% (as of 6/30/2024) + High percentage of noninterest- bearing dep
Slide 17: Condensed Income Statements
Condensed Income Statements Net Interest Margin (thousands, except per share data) Interest Income 4.00% — 5 749, 3.86% a nee 2% Interest Expense 3.50% Provision for Loan Losses Noninterest income 3.00% Noninterest Expense Nt Income Before Taxes 2021 2022-20281 2024 022024 ee Nt Income Efficiency Ra
Slide 18: Loan Portfolio
Loan Portfolio Data as of June 30, 2024 Other cap 2% 6% Diverse portfolio — by loan type, industry, and geography Farmland 5% 84% adjustableivariable - 16% fixed Weighted average yield of 5.66% 1-4 Family Granular small business and retail portfolio: + Average balance 1-4 family RE is $73,196 + Aver
Slide 19: Commercial Real Estate
Commercial Real Estate Data as of June 30, 2024 Office includes, but not limited to: + Professional Services + Personal Services + Offices of Real Estate Agents and Brokers + Property Managers + Insurance Agencies + Investment Services and Portfolio Management + Child Care Services, + Motor Vehicle
Slide 20: Deposit Portfolio
Deposit Portfolio Data as of June 30, 2024 Time Deposits it > $250K Geographic diversity — Individual market pricing potential Time Deposits 10% < $250K Cost of funds Q2: 137 bps Noninterest DAS Core deposits to total deposits: 90% Core deposits to total assets: 81% (FDIC peer group average 73%) Non
Slide 21: Skyline Family — Overview
Skyline Family — Overview Culture + "Always our Best Corporate Governance +14 Directors with annual terms + Independent Chair & Vice-Chair +7 Committees Management Team + Market knowledge + Complimentary skills in core functions + Depth with builtin succession + M&A experience ~ 2 deals closed succe
Slide 22: Skyline Family — Leadership
Skyline Family — Leadership pa 20 POSITION EDUCATION ch Board liam and M: the Board ty Hill Chief Executive Officer Ragford University Chief Financial Officer Chief Risk Officer Chief Operations Officer VA State President Chief Retail Banking Officer NC State President Radford University Emory and H
Slide 23: Moving Forward
Moving Forward ————
Slide 24: Thank you for the opportunity to share the Skyline story.
Thank you for the opportunity to share the Skyline story. We are happy to answer any questions you might have. BLAKE EDWARDS President and CEO bedwards@skylinenationalbank.com 1.276.773.2811 & Skyline Bankshares, Inc. Holding Company for % Skyline Nationa! Bank ALWAYS OUR BEST
Slide 25: Skyline National Bank
Skyline National Bank ALWAYS OUR BEST 1.866.773.2811 | SkylineNational.Bank
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