Benchmark Bankshares, Inc. Reports First Quarter 2024 Results

May 15, 2024 - Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the quarter ending March 31, 2024. Net income for the first quarter of 2024 was $3.2 million, or $0.72 per share, compared to $4.5 million, or $1.00 per share, posted for the first quarter of 2023.

Highlights include:

  • Net interest income decreased $177 thousand, or 1.5%, to $11.4 million for the first quarter of 2024 from $11.6 million for the first quarter of 2023. Total interest income increased $2.3 million but was offset by an increase in interest expense of $2.5 million when comparing 2024 to 2023.
  • Total loans held for investment increased $34.2 million, or 3.4%, from December 31, 2023 and $90.8 million, or 11.0%, from March 31, 2023. Loan demand remains strong despite the interest rate environment.
  • Investment securities, available for sale, were $92.1 million as of March 31, 2024, compared to $95.0 million as of December 31, 2023 and $140.1 million as of March 31, 2023. The decrease in the portfolio was due primarily to normal cash flow and maturities, which was redeployed to fund loan growth.
  • Total deposits increased $13.9 million, or 1.3%, from December 31, 2023 and $38.9 million, or 3.8%, from March 31, 2023 and continue to provide a stable base for balance sheet growth. The mix of our deposit base shifted towards higher interest earning products, driving up interest expense.
  • Noninterest income for the first quarter of 2024 was $2.3 million, down from $2.6 million for the first quarter of 2023, due primarily to a debit card incentive recognized in 2023 which was not repeated in 2024.
  • The provision for credit losses was $129 thousand for the first quarter of 2024 compared to $287 thousand for the first quarter of 2023. The provision for credit losses for 2024 consisted of a provision for loans of $156 thousand and a release for unfunded commitments of $27 thousand. The allowance for credit losses on loans as a percentage of loans was 0.77% as of March 31, 2024 compared to 0.78% as of December 31, 2023 and 0.84% as of March 31, 2023.
  • Salaries and benefits expense increased $738 thousand, or 16.8%, to $5.1 million for the first quarter of 2024 compared to $4.4 million the first quarter of 2023. This increase was primarily due to the fourth quarter 2023 opening of our newest branch location in Wake Forest and increases in benefit costs, including health insurance premiums. A total of $75 thousand was expensed to the bank’s employee stock ownership plan each quarter, comparatively, to provide for plan liquidity needs and allow for future stock repurchases.
  • Non-performing assets to total assets was 0.21% on March 31, 2024, compared to 0.18% and 0.07% on December 31, 2023 and March 31, 2023, respectively.

As of March 31, 2024, total assets were $1.18 billion, an increase of $16.2 million, or 1.4%, over December 31, 2023, and $48.7 million, or 4.3%, over March 31, 2023.

Shareholders’ equity, net of unrealized gains and losses on investment securities, was $101.3 million as of March 31, 2024, an increase of $2.60 million, or 2.7%, over the December 31, 2023 balance of $98.7 million, and an increase of $10.3 million, or 11.3%, over the March 31, 2023 balance of $91.0 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements as of March 31, 2024

Key Financial Ratios (comparing the three months ended March 31, 2024 to 2023):

  • Return on average equity was 12.97% compared to 20.73%.
  • Return on average assets was 1.13% compared to 1.65%.
  • Earnings per common share decreased from $1.00 to $0.72.
  • Net interest margin decreased from 4.47% but remained strong at 4.28%.
  • Book value per share increased from $21.85 to $22.62 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]

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