Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the first quarter ended March 31, 2025. Net income for the first quarter of 2025 was $4.6 million, or $1.03 per share, compared to $3.2 million, or $0.72 per share, posted for the first quarter of 2024.
Highlights include:
- Total loans held for investment were $1.0 billion as of March 31, 2025, an increase of $24.7 million, or 2.5% from December 31, 2024. Despite uncertainty in economic and interest rate environments, loan demand remained strong during the first quarter.
- As of March 31, 2025, total deposits were $1.2 billion, increasing $51.2 million, or 4.6%, from December 31, 2024. Total deposits provide a stable funding base for balance sheet growth; however, deposit base shifts into higher interest earning products continues to impact interest expense.
- Net interest income increased $1.9 million or 16.8%, to $13.3 million for the first quarter of 2025 from $11.4 million as compared to the same period in 2024. Total interest income increased $2.4 million and was partially offset by an increase in interest expense of $369 thousand when comparing the first quarters of 2025 and 2024.
- For the first quarter of 2025, the provision for credit losses was $440 thousand compared to $129 thousand for first quarter of 2024. The provision for credit losses for the first quarter of 2025 consisted of a provision for loans of $429 thousand and $11 thousand for unfunded commitments. The increase in provision was due primarily to portfolio growth and slightly higher net charge-offs during the first quarter of 2025. The allowance for credit losses on loans as a percentage of loans was 0.79% as of March 31, 2025 and December 31, 2024, respectively.
- Salaries and benefits expense decreased $184 thousand, or 3.6%, to $5.0 million for the three months ended March 31, 2025 from $5.1 million for the comparative 2024 period. This decrease was primarily due to a decrease in benefit costs, including health insurance premiums, partially offset by lower position vacancy levels. A total of $75 thousand was expensed to the bank’s employee stock ownership plan in the first quarter of 2025 and 2024, respectively, to provide for plan liquidity needs and allow for future stock repurchases.
- Non-performing assets to total assets was 0.13% on March 31, 2025, compared to 0.31% on December 31, 2024. The decrease in non-performing assets during the first quarter of 2025 is primarily due to the resolution with no loss to the Company of one commercial real estate relationship amounting to $1.8 million.
As of March 31, 2025, total assets were $1.3 billion, an increase of $60.7 million, or 5.0%, over December 31, 2024.
Shareholders’ equity, net of unrealized gains and losses on investment securities, was $114.8 million as of March 31, 2025, an increase of $5.4 million, or 4.9%, over the December 31, 2024 balance of $109.4 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements as of March 31, 2025.
Key Financial Ratios (comparing the three months ended March 31, 2025 to 2024):
- Earnings per common share increased 44.1%, from $0.72 to $1.03.
- Return on average equity was 16.50% compared to 12.86%.
- Return on average assets was 1.50% compared to 1.12%.
- Net interest margin increased to 4.64% from 4.25%.
- Book value per share increased from $24.43 to $25.72 per share. The closing market price at quarter-end was $24.92 per share, or 96.9% 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 & Consolidated Statement of Operations
Contact: Helen Person, VP/Director of Marketing & Public Relations
(434) 676-2666 ext. 1103
helen.person@bcbforlife.bank
