Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the fourth quarter and year ended December 31, 2024. Net income for the fourth quarter of 2024 was $4.5 million, or $1.00 per share, compared to $3.5 million, or $0.78 per share, posted for the fourth quarter of 2023. Net income for the year was $15.9 million, or $3.55 per share, compared to $15.4 million, or $3.41 per share, earned in 2023.
Highlights include:
- Total loans held for investment were $996.5 million as of December 31, 2024, an increase of $104.2 million, or 11.7%, from December 31, 2023. Despite interest rate and economic environments, loan demand remained strong throughout the year.
- Investment securities, available for sale, were $79.1 million as of December 31, 2024, compared to $95.0 million as of December 31, 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 December 31, 2024, total deposits were $1.1 billion, increasing $49.3 million, or 4.7%, from December 31, 2023. Total deposits provide a stable funding base for balance sheet growth; however, interest expense continues to be impacted by deposit base shifts into higher interest earning products.
- Net interest income increased $3.7 million or 8.4%, to $48.5 million for 2024 from $44.7 million for 2023. Total interest income increased $10.5 million and was partially offset by an increase in interest expense of $6.8 million when comparing 2024 to 2023.
- For 2024, the provision for credit losses was $917 thousand compared to a release of $3 thousand for 2023. The provision for credit losses for 2024 consisted of a provision for loans of $929 thousand and a release for unfunded commitments of $12 thousand. The increase in provision was due primarily to portfolio growth. The allowance for credit losses on loans as a percentage of loans was 0.79% as of December 31, 2024 compared to 0.78% as of December 31, 2023.
- Salaries and benefits expense increased $2.0 million, or 10.6%, to $20.6 million for the year ended December 31, 2024 compared to $18.6 million for 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 $328 thousand and $492 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 0.31% on December 31, 2024, compared to 0.18% on December 31, 2023. The increase in non-performing assets during 2024 is primarily due to one commercial real estate relationship amounting to $1.8 million, which is expected to be resolved in early 2025 with no loss to the Company.
- A total of 40,795 common shares were repurchased during 2024 at an average price of $26.30 per share. A total of 31,907 common shares were repurchased at an average price of $23.60 during 2023.
As of December 31, 2024, total assets were $1.2 billion, an increase of $61.3 million, or 5.3%, over December 31, 2023.
Shareholders’ equity, net of unrealized gains and losses on investment securities, was $109.4 million as of December 31, 2024, an increase of $10.7 million, or 10.9%, over the December 31, 2023 balance of $98.7 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements as of December 31, 2024.
Key Financial Ratios (comparing the years ended December 31, 2024 to 2023):
- Earnings per common share increased 4.1%, from $3.41 to $3.55.
- Return on average equity was 15.06% compared to 16.44%.
- Return on average assets was 1.33% compared to 1.38%.
- Net interest margin increased to 4.35% from 4.29%.
- Book value per share increased from $21.96 to $24.51 per share. The closing market price at quarter-end was $26.00 per share, or 106.1% 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
