Benchmark Bankshares, Inc. Reports Earnings for Three and Nine Months Ended September 30, 2024

November 6, 2024 - Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the three and nine months ended September 30, 2024. Net income for the third quarter of 2024 was $5.7 million, or $1.27 per share, compared to $3.5 million, or $0.78 per share, posted for the third quarter of 2023. Net income for the first nine months of the year was $12.6 million, or $2.81 per share, compared to $11.9 million, or $2.63 per share, for the first nine months of 2023.

Highlights include:

  • Net interest income increased $1.8 million or 5.6%, to $35.6 million for the first nine months of 2024. Total interest income increased $7.8 million and was partially offset by an increase in interest expense of $6.0 million when comparing 2024 to 2023.
  • Total loans held for investment were $979.2 million as of September 30, 2024, an increase of $87.0 million, or 9.8% from December 31, 2023, and $113.7 million, or 13.1%, from September 30, 2023. Despite interest rate and economic environments, loan demand remains strong.

  • Investment securities, available for sale, were $84.8 million as of September 30, 2024, compared to $95.0 million as of December 31, 2023, and $96.9 million as of September 30, 2023. The change in the level of the portfolio was primarily due to maturities and normal cash flow partially redeployed to fund loan growth.

  • As of September 30, 2024, total deposits were $1.1 billion, increasing $33.3 million, or 3.2%, from December 31, 2023, and $86.6 million, or 8.7% from September 30, 2023. Total deposits continue to provide a stable base for balance sheet growth; however, interest expense continues to be impacted by deposit base shifts into higher interest-earning products.
  • For the first nine months of 2024, the provision for credit losses was $746 thousand compared to $90 thousand for the same period of 2023. The provision for credit losses for 2024 consisted of a provision for loans of $754 thousand and a release for unfunded commitments of $8 thousand. The increase in provision is due primarily to portfolio growth. The allowance for credit losses on loans as a percentage of loans was 0.79% as of September 30, 2024, compared to 0.78% as of June 30, 2024, and 0.80% as of September 30, 2023.
  • Salaries and benefits expense increased $1.9 million, or 14.1%, to $15.5 million for the nine months ended September 30, 2024, compared to $13.6 million the nine months ended September 30, 2023. This increase was primarily due to the opening of the newest branch location in Wake Forest during the fourth quarter of 2023, lower position vacancy levels, and increases in benefit costs, including health insurance premiums. A total of $253 thousand and $317 thousand was expensed to the bank’s employee stock ownership plan in 2024 and 2023, respectively, to provide for plan liquidity needs and allow for future stock repurchases.
  • Non-performing assets to total assets was 0.32% on September 30, 2024, compared to 0.22% and 0.16% on June 30, 2024, and September 30, 2023, respectively. The increase in non-performing assets during the third quarter of 2024 is due to one commercial real estate relationship which is expected to be resolved in late 2024 with no loss to the Company.

As of September 30, 2024, total assets were $1.2 billion, an increase of $44.5 million, or 3.8% over December 31, 2023, and $103.4 million, or 9.4%, over September 30, 2023.

Shareholders’ equity, net of unrealized gains and losses on investment securities, was $108.8 million as of September 30, 2024, an increase of $10.1 million, or 10.2%, over the December 31, 2023, balance of $98.7 million, and an increase of $14.7 million, or 15.7%, over the September 30, 2023, balance of $94.0 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements as of September 30, 2024.

Key Financial Ratios (comparing the nine months ended September 30, 2024 to 2023):

  • Return on average equity was 16.23% compared to 17.22%.
  • Return on average assets was 1.42% compared to 1.43%.
  • Earnings per common share increased 6.7% from $2.63 to $2.81.
  • Net interest margin decreased slightly from 4.34% to 4.32%.
  • Book value per share increased from $21.96 to $24.40 per share. The closing market price at quarter-end was $21.35 per share, or 87.5% 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 Operations

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

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