Skyline Bankshares, Inc. · OTC:SLBK
Skyline Bankshares — Parkway Acquisition — Raymond James Emerging Bank Symposium (September 2019)
16 slides from Skyline Bankshares's conference presentation, Sep 5, 2019
Slide 1: Presentation to Raymond James Emerging Bank Symposium
&9 Parkway Presentation to Raymond James Emerging Bank Symposium
Slide 2: Skyline National Bank
% Skyline National Bank Blake Edwards President & Chief Executive Officer wart linenationalbank.com 276.773.2811 Jonathan Kruckow Executive Vice President & Virginia State President 540.250.0280 Milo Cockerham Executive Vice President & Chief Retail Banking Officer 276.773.1107
Slide 3: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer ‘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 Secusities Aet of 1934 as amended, These include statements of expectations regarding our future res
Slide 4: Always our Best
Always our Best Growing community bank + Assets: $680 milion + Net Loans: $546 milion + Deposits: $599 millon + Network: 20 branches, 4 LPOs + Ticker: PKKW (OTC QX) + Market Cap: $74.0 millon as of 9/29/2019 + #1 Deposit share in home counties of Grayson ‘and Floyd, Virginia History: + 1900 - The Ba
Slide 5: Investment Rationale
Investment Rationale Price / TBV Unrecognized value ~ discount to peer oS am stitutions 119% + Improved scale and geography jem ahd + 2016 MOE Roanoke MSA + 2018 Acquistion — inereased NC presence in contiguous markets Organic growth opportunities available as the branch network is expanded Acquisit
Slide 6: Exurb and Rural Market Opportunities
&% Exurb and Rural Market Opportunities Current Markets Roanoke Blacksburg /NRV ‘Heatheare- Caron Clinic, Lewis Gale Hospitals Eavcation- Vigna Tech, Radford University, Roanoke Colege Industy-Balast Point, Norttokk Southem, Volo, Pepsico ‘Boone / Wilkes / Yadkin / Ashe Inde 'Heathcare- Appalachian
Slide 7: Condensed Balance Sheets
Condensed Balance Sheets re ne ewe er = 2019 2019 2018 2018 «Paty rman? gett. on inuls et __st _au —_28— loans of over 12% for MRO. Cash and Cash Equivalents 9S 33.062 $ 3869 $ 40007 $ 14,763 aban ti owasonees = oa ee tomo om Gos acm oe + Fates inettimetsf@4s eatonen | || covbmmet in uae Sapeotivani
Slide 8: Condensed Income Statements
Condensed Income Statements Net Interest Margin ThreeMonths Ended __ Six Months Ended “ur june30, June 30, Jun bial 2019 "20182018 | 204 = ‘aay &548 Interest income S 76005 5818S 151308 11,088 410% terest Expense 0 40g 1.270 765 ex 3.80% Provision for Loan Losses, 26 ot ste 45 “otal Nonnterest Incom
Slide 9: Loan Portfolio
>) Loan Portfolio /— Data as of June 0, 2018 >) Diverse portfolio by loan type, industry, and ‘geography 50% variable ~ 41% fixed Weighted average yield of 6.20% Granular small business and reall portfolio: + Average balance 1-4 family RE is $70.21 ‘Average balance CRE loans is $261,638 Locally focu
Slide 10: Deposit Mix
>) Deposit Mix Data as of June 30, 2019 (— >) Cost of funds 44 bps (FDIC peer group average 1.12 bps) Core deposits to total deposts: 83% (FDIC peer group average 77%) Core deposits to total assets: 94% Noninterest-bearing deposits: 27% No brokered deposts or internet-based funding ‘Well positioned
Slide 11: Stock Performance
Stock Performance XS ‘Current Shares Outstanding: 6,199,275 at 6730/2018 Current Price: $11.95 (as of 8/29/2018) TRV: $11.68 (as of 6/30/2019) Price/TBV: 102% ‘Shareholder Base: + @ 1676 registered holders Largely retail 3oftop § shareholders are represented on the board Added PKKW stock as @ 401k i
Slide 12: Selected Public Peer Group
Selected Public Peer Group + Headquarters: Virginia & North Carolina + LTMROAA: 0.50% to 2.00% + Total Assets: $500M - $1.08 + Excludes Merger Targets FS. Cas Fence Sts, wt 100 az tt 9 100 96 4% G4 0m Oo” RSS Fuge nko, ra me tame 2m 80 94 om fom am 754 Om Om OT) Hak ttm ene Free Grip, be wD 29 16 86
Slide 13: Moving Forward
&% Moving Forward * Quality + Growth + Organic + LPOs + Branch expansion + Small bank acquisition + Performance
Slide 14: Leadership
Leadership / Board of Directors, \ ‘Age __Experionco + 14Members (an tems) Phomas Jackson jirman of the | Henpcinr Saciees Eaten, 1 1" ‘+ Independent Chair & Vice-Chair L. inna bien ofthe Boars Cotege of Wiliam and Mary. 1.0. % u TEonafiees “ames Shon WeeChaimman othe Vignia Tech| i ; + Managomert T
Slide 15: Parkway Acquisition Corp.
S) Parkway Acquisition Corp. www. Skylin Holding Company for Skyline National Bank Questions? "You'llalways receive our best, and that’sa promise." ‘Blake Edwards, President and CEO ~ 276-773-2811 - bedwords@skylinenotionolbank.com Jonathan kr ang 540250 20 ~ eRe TAOS ‘Milo Cockerham, Retail Banking
Slide 16: Skyline National Bank
S Skyline National Bank ALWAYS OUR BEST
Parkway Acquisition — Raymond James Emerging Bank Symposium (September 2019) on 6ix