Benchmark Bankshares, Inc. Reports Earnings for Three and Six Months Ended June 30, 2023

July 26, 2023 - KENBRIDGE, VA – Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the three- and six-month periods ending June 30, 2023. Net income for the second quarter amounted to $3,860,138, a 21.86% increase from the $3,167,623 posted for the second quarter of 2022, while earnings per share increased from $0.70 to $0.85 for the quarter. Net income for the first six months of the year amounted to $8,390,870, a 61.50% increase from the $5,195,532 earned last year, while earnings per share increased from $1.15 to $1.86 for the period.

Notable Items:

  • Interest income increased from $18.2 million to $25.3 million when comparing the first six months of 2023 to the same period last year, while interest expense rose from $998,296 to $2.6 million during the same period. The result was a 32.58% increase in net interest income, which increased from $17.2 million to $22.8 million.
  • The Bank has experienced mark-to-market gains of $86,413 year-to-date, compared to losses of $595,477 through the first six months of 2022.
  • Non-accrual loans have increased from $636,529 to $880,118. The bank does not hold any foreclosed property as of June 30, 2023.
  • A total of $257,766 was provisioned to the loan loss reserve during the first six months of 2023, compared to a provision of $220,826 during the same period last year. The allowance for loan losses as a percentage of net loans was 0.83% on June 30, 2023, compared to 0.84% last June.
  • Interest expense on borrowings, used to support the company’s stock repurchase program, amounted to $46,957 year-to-date. Interest expense of $67,296 was recognized last year during the same period.
  • A total of 4,539 common shares have been repurchased year-to-date at an average price of $24.00 per share. A total of 6,550 shares were repurchased at an average price of $24.00 during the first six months of 2022. The Company had 4,521,257 shares outstanding as of June 30, 2023.

As of June 30, 2023, total assets were $1.12 billion, an increase of $61.8 million over the June 30, 2022, balance of $1.06 billion. Over the past twelve months, total loans have increased by $120.9 million, while total deposits have increased by $49.7 million. Shareholders’ equity, net of unrealized gains on investment securities, was $99.6 million on June 30, 2023, an increase of $12.7 million, or 14.6%, over the June 30, 2022, balance of $86.8 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements as of June 30, 2023.

Key Financial Ratios:

  • Return on average equity (ROAE) increased from 12.52% to 18.21% and return on average assets (ROAA) increased from 0.99% to 1.52% year to date.
  • Yield on loans increased from 4.90% to 5.31%, while the bank’s cost of funds increased from 0.19% to 0.51%.
  • Net interest margin has increased from 3.47% to 4.39% as a result of rising interest rates and growth in both loans and investments.
  • Current book value of the Company is $20.52 per share, compared to $17.68 one year ago. The closing market price at quarter-end was $22.95 per share, or 111.9% of book value.

The common stock of Benchmark Bankshares, Inc. trades on the OTC Pink marketplace under the symbol BMBN. Any stockbroker can assist with purchases of the company's stock, as well as with sales of holdings. Benchmark Community Bank, founded in 1971, is headquartered in Kenbridge, VA. It is the company's sole subsidiary which operates seventeen banking offices throughout central Southside Virginia and northern North Carolina.

Consolidated Statements of Financial Condition & Condensed Consolidated Statement of Earnings

Contact: Helen Person, VP/Director of Marketing & Public Relations
(434) 676-2666 ext. 1103
[email protected]

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