August 26, 2024 - Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the three and six months ended June 30, 2024. Net income for the second quarter of 2024 was $3.7 million, or $0.82 per share, compared to $3.9 million, or $0.86 per share, posted for the second quarter of 2023. Net income for the first six months of the year was $6.9 million, or $1.54 per share, compared to $8.4 million, or $1.86 per share, for the first six months of 2023.
Highlights include:
- Net interest income increased $522 thousand or 2.3%, to $23.3 million for the first six months of 2024 from $22.8 million for the first six months of 2023. Total interest income increased $4.9 million and was partially offset by an increase in interest expense of $4.4 million when comparing 2024 to 2023.
- Total loans held for investment were $959.6 million as of June 30, 2024, an increase of $67.0 million, or 7.6% from December 31, 2023 and $114.8 million, or 13.7%, from June 30, 2023. Despite the interest rate environment, loan demand remains strong.
- Investment securities, available for sale, were $77.5 million as of June 30, 2024, compared to $95.0 million as of December 31, 2023 and $104.5 million as of June 30, 2023. The decrease in the portfolio was primarily due to maturities and normal cash flow, which was redeployed to fund loan growth.
- Total deposits provide a stable base for balance sheet growth. As of June 30, 2024, total deposits were $1.1 billion, increasing $35.3 million, or 3.4%, from December 31, 2023 and $69.2 million, or 6.8% from June 30, 2023. Interest expense was impacted by continued deposit base shifts into higher interest earning products.
- For the first six months of 2024, the provision for credit losses was $466 thousand compared to $258 thousand for the same period of 2023. The provision for credit losses for 2024 consisted of a provision for loans of $504 thousand and a release for unfunded commitments of $38 thousand. The allowance for credit losses on loans as a percentage of loans was 0.78% as of June 30, 2024 compared to 0.77% as of March 31, 2024 and 0.83% as of June 30, 2023.
- Salaries and benefits expense increased $1.4 million, or 16.3%, to $10.3 million for the six months ended June 30, 2024 compared to $8.9 million the six months ended June 30, 2023. This increase was primarily due to opening of our 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 $178 thousand and $150 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 0.22% on June 30, 2024, compared to 0.21% and 0.17% on March 31, 2024 and June 30, 2023, respectively.
As of June 30, 2024, total assets were $1.2 billion, an increase of $40.6 million, or 3.5% over December 31, 2023, and $80.2 million, or 7.2%, over June 30, 2023.
Shareholders’ equity, net of unrealized gains and losses on investment securities, was $102.6 million as of June 30, 2024, an increase of $3.9 million, or 3.0%, over the December 31, 2023 balance of $98.7 million, and an increase of $9.9 million, or 10.6%, over the June 30, 2023 balance of $92.8 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements as of June 30, 2024.
Key Financial Ratios (comparing the twelve months ended June 30, 2024 to 2023):
- Return on average equity was 13.45% compared to 18.61%.
- Return on average assets was 1.19% compared to 1.52%.
- Earnings per common share decreased from $1.86 to $1.54.
- Net interest margin decreased from 4.39% but remained strong at 4.31%.
- Book value per share increased from $21.83 to $23.00 per share. The closing market price at quarter-end was $21.15 per share, or 92.0% 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
helen.person@bcbforlife.bank
