Benchmark Bankshares, Inc. Reports 16% Increase in Earnings for Year Ended December 31, 2023

February 6, 2024 - Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the quarter and year ending December 31, 2023. Net income for the fourth quarter of 2023 was $3.5 million, or $0.78 per share, compared to $3.9 million, or $0.87 per share, posted for the fourth quarter of 2022. Net income for the year was to $15.4 million, or $3.41 per share, a 16.2% increase over net income of $13.2 million, or $2.93 per share, earned in 2022.

Highlights include:

  • Net interest income increased $5.4 million or 13.8%, to $44.7 million for 2023 from $39.3 million for 2022. Total interest income increased $11.6 million but was partially offset by an increase in interest expense of $6.1 million when comparing 2023 to 2022.
  • Total loans held for investment increased $76.3 million, or 9.4%, during the year as loan demand remained strong despite the interest rate environment.
  • Investment securities, available for sale, were $96.1 million as of December 31, 2023 compared to $138.9 million as of December 31, 2022. The decrease was due primarily to maturities and normal cash flow which was redeployed to fund loan growth.
  • Total deposits increased $24.4 million, or 2.4%, from December 31, 2022 to December 31, 2023, and continued to provide a stable base for balance sheet growth.
  • Noninterest income for 2023 was $9.4 million, up from $8.6 million for 2022, due primarily to increases in debit card, bank-owned life insurance, and trading revenue partially offset by lower gains on sale of loans and a bargain purchase gain recognized in 2022 and not repeated in 2023.
  • The provision for credit losses was $1.0 million for 2022 compared to a $3 thousand recapture of provision for credit losses for 2023. The provision for credit losses for 2023 consisted of a provision for loans of $351 thousand and a recapture for unfunded commitments of $354 thousand. The allowance for credit losses on loans as a percentage of loans was 0.78% as of December 31, 2023, down from 0.84% as of December 31, 2022.
  • A total of $492 thousand was expensed to the bank’s employee stock ownership plan during 2023 to provide for plan liquidity needs and allow for future stock repurchases. The Company expensed $702 thousand to the plan during 2022.
  • Non-performing assets to total assets was 0.18% and 0.11% on December 31, 2023 and 2022, respectively.
  • A total of 31,907 common shares were repurchased during 2023 at an average price of $23.60 per share. A total of 6,550 shares were repurchased at an average price of $24.00 during 2022. The Company had 4,493,890 shares outstanding as of December 31, 2023.

As of December 31, 2023, total assets were $1.16 billion, an increase of $37.7 million, or 3.4%, over December 31, 2022 total assets of $1.12 billion.

Shareholders’ equity, net of unrealized gains and losses on investment securities, was $98.7 million as of December 31, 2023, an increase of $13.0 million, or 15.2%, over the December 31, 2022 balance of $85.7 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements as of December 31, 2023.

Key Financial Ratios (comparing the twelve months ended 2023 to 2022):

  • Return on average equity increased from 15.83% to 16.44%.
  • Return on average assets increased from 1.23% to 1.38%.
  • Earnings per common share increased from $2.93 to $3.41.
  • Net interest margin increased from 3.89% to 4.29%.
  • Book value per share increased from $18.94 to $21.96 per share.

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 Operations and Comprehensive Income

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

Back to News & Reports