Index

Notices

The next annual shareholders' meeting is scheduled for May 19, 2011.

To view the proxy statement and the latest outside auditor's "Report on Audit of Financial Statements", visit https://materials.proxyvote.com/08160E.

Benchmark Bankshares' Code of Ethics.

Financial Highlights

Stock Information

The company's stock currently trades under the symbol, BMBN.OB, on the NASDAQ Over-the-Counter Bulletin Board. Any stockbroker can assist you with buying additional shares. The bank, as part of a previously approved stock repurchase plan, is authorized to repurchase shares of its common stock. Should you wish to facilitate the sale of any of your shares directly to the bank, please contact Neil Burke, Chief Financial Officer, by calling (434) 676-9054, extension 1111.

Stock Quote

How to Purchase Shares of Benchmark Stock

To purchase shares of Benchmark Bankshares, the holding company for Benchmark Community Bank, you must contact a stock brokerage firm. The bank does not have any stock for sale directly.

Financial Release Summaries

July 16, 2010: Benchmark Bankshares Inc., parent company of its wholly owned subsidiary Benchmark Community Bank, reported consolidated net income of $1,008,552, or $0.38 per share, for the second quarter of 2010 and $1,958,509, or $0.75 per share, for the first six months of the year. This compares to net income of $921,463, or $0.35 per share, earned during the second quarter of 2009 and $1,850,028, or $0.71 per share, earned through the first six months of last year. Return on average assets amounted to 1.00% and return on average equity amounted to 10.79% through the first six months of the year, compared to 0.98% and 10.20%, respectively, posted one year ago. (read full release)

April 22, 2010: Benchmark Bankshares, Inc. (BMBN.OB), the Kenbridgebased holding company for Benchmark Community Bank, announced earnings of $949,956, or $0.37 per share for the first quarter of 2010. This compares to $928,565, or $0.35 per share earned during the first quarter of 2009. Return on average equity for the quarter was 10.56% and return on average assets was 0.99%, compared to 11.00% and 1.01%, respectively, reported for the first quarter of 2009. (read full release)

February 9, 2010: Benchmark Bankshares, Inc. (BMBN.OB), the Kenbridge-based holding company for Benchmark Community Bank, announced earnings of $3,903,768, or $1.49 per share. This compares to $3,921,984, or $1.48 per share earned during 2008. Return on average equity for 2009 was 11.14% and return on average assets was 1.02%, compared to 11.82% and 1.08%, respectively, reported in 2008. Earnings for the fourth quarter of 2009 amounted to $961,192, or $0.37 per share, compared to $918,841, or $0.35 per share, posted one year ago. (read full release)

December 18, 2009: Benchmark Bankshares, Inc. (BMBN.OB), the Kenbridge-based holding company for Benchmark Community Bank, recently announced the declaration of a semi-annual dividend of $0.28 per share to holders of common stock of the company. This brings the total dividend payout for 2009 to $0.56 per share. The record date for shareholders entitled to payment of the dividend will be the close of business, 4:00 P.M., on January 11, 2010, with payment to occur by January 31, 2010. (read full release)

October 19, 2009: Benchmark Bankshares Inc., parent company of its wholly owned subsidiary Benchmark Community Bank, reported consolidated net income of $1,092,548, or $0.42 per share, for the third quarter of 2009 and $2,942,576, or $1.12 per share, for the first nine months of the year. This compares to net income of $989,323, or $0.38 per share, earned during the third quarter of 2008 and $3,003,144, or $1.13 per share, through the first nine months of last year. Return on average assets amounted to 1.04% and return on average equity amounted to 11.35% through the first nine months of the year, compared to 1.12% and 12.21%, respectively, posted one year ago. (read full release)

July 10, 2009: Benchmark Bankshares Inc., parent company of its wholly owned subsidiary Benchmark Community Bank, reported consolidated net income of $921,463, or $0.35 per share, for the second quarter of 2009 and $1,850,028, or $0.71 per share, for the first six months of the year. This compares to net income of $1,035,912, or $0.39 per share, earned during the second quarter of 2008 and $2,013,820, or $0.76 per share, through the first six months of last year. Return on average assets amounted to 0.98% and return on average equity amounted to 10.20% through the first six months of the year, compared to 1.14% and 12.31%, respectively, posted one year ago.

President and CEO Mike Walker commented, “The overall core operation of our business remains solid, and we are pleased with our year-to-date performance in light of the current state of the economy. Both deposits and loans are up, interest spread between loans and deposits is increasing, and we have been able to effectively manage the income and expense items that we can control. The biggest story for 2009 for us, like many banks, is the impact of FDIC insurance premiums on the profitability of our institution.” He further added, “Although Benchmark did not contribute to the wide-spread problems being faced by the banking industry, we are paying the price through higher FDIC premiums and a special assessment imposed on all banks during the second quarter. For Benchmark, that special premium amounted to $174,707. This amount, combined with higher base premiums during 2009, increased our FDIC insurance expense from $17,029 to $294,205 when comparing the first six months of 2009 to the first six months of 2008.” (read full release)

February 5, 2009: Benchmark Bankshares, Inc. (BMBN.OB), the Kenbridge-based holding company for Benchmark Community Bank, recently announced earnings of $3,921,984, or $1.48 per share for 2008. This compares to $3,943,582, or $1.46 per share, earned during 2007. Return on average equity for 2008 was 11.82% and return on average assets was 1.08%, compared to 12.60% and 1.21%, respectively, reported in 2007. Earnings for the fourth quarter of 2008 amounted to $918,841, or $0.35 per share, compared to $1,005,703, or $0.38 per share, posted one year ago. (read full release)

December 24, 2008: Benchmark Bankshares, Inc. (BMBN.OB), the Kenbridge-based holding company for Benchmark Community Bank, recently announced the declaration of a semi-annual dividend of $0.28 per share to holders of common stock of the company. This brings the total dividend payout for 2008 to $0.56 per share, an increase of $0.03, or 5.7%, over the $0.53 per share paid during 2007. The record date for shareholders entitled to payment of the dividend will be the close of business, 4:00 P.M., on January 12, 2009, with payment to occur by January 31, 2009.

October 10, 2008: Benchmark Bankshares Inc., parent company of its wholly owned subsidiary, Benchmark Community Bank, reported net income of $989,323 or $0.38 per share for the third quarter of 2008, compared to $1,072,190, or $0.40 per share, earned during the third quarter of 2007. Earnings through the first nine months of 2008 amounted to $3,003,143, or $1.13 per share, compared to $2,937,879, or $1.08 per share, earned during the same period one year ago.

July 18, 2008: Benchmark Bankshares Inc., parent company of its wholly owned subsidiary Benchmark Community Bank, reported net income of $1,035,912 or $0.39 per share for the second quarter of 2008, compared to $999,394, or $0.37 per share, earned during the second quarter of 2007. Earnings through the first six months of 2008 amounted to $2,013,820, or $0.76 per share, compared to $1,865,690, or $0.69 per share, earned during the same period one year ago.

April 28, 2008: Benchmark Bankshares Inc., parent company of its wholly owned subsidiary Benchmark Community Bank, reported consolidated net income of $977,908, or $0.37 per share, for the first quarter of 2008, compared to $866,296, or $0.32 per share, earned during the first quarter of 2007.  Return on average assets amounted to 1.12% and return on average equity amounted to 12.05% for the quarter, both of which were higher than the 1.11% and 11.47%, respectively, posted one year ago.

February 1, 2008: Benchmark Bankshares, Inc. (BMBN.OB), the Kenbridge-based holding company for Benchmark Community Bank, recently announced earnings of $3.94 million for 2007, a 3.5% over net income of $3.81 million reported during 2006, while earnings per share increased from $1.39 to $1.46.  Return on average equity for 2007 was 12.60% and return on average assets was 1.21%, compared to 13.00% and 1.25%, respectively, reported in 2006.  Earnings for the fourth quarter of 2007 amounted to $1.01 million, or $0.38 per share, compared to $904 thousand, or $0.33 per share, posted one year ago.

December 21, 2007: Benchmark Bankshares, Inc. (BMBN.OB), the Kenbridge-based holding company for Benchmark Community Bank, recently announced the declaration of a semi-annual dividend of $0.27 per share to holders of common stock of the company. Combined with a mid-year dividend of $0.26, total dividends paid during 2007 amount to $0.53 per share, a 6.00% increase over the $0.50 per share paid last year. The record date for shareholders entitled to payment of the dividend will be the close of business, 2:00 P.M., on January 10, 2008, with payment to occur by January 31, 2008.

Quarterly Reports

2nd Quarter 2010
1st Quarter 2010

3rd Quarter 2009
2nd Quarter 2009
1st Quarter 2009

3rd Quarter 2008
2nd Quarter 2008
1st Quarter 2008

3rd Quarter 2007
2nd Quarter 2007
1st Quarter 2007

3rd Quarter 2006
2nd Quarter 2006
1st Quarter 2006