Benchmark Bankshares, Inc. Declares Increase to Semi-Annual Dividend

July 27, 2020 - Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based hold­ing company for Benchmark Community Bank, announced unaudited results for the three- and six-month periods ending June 30, 2020. Net income for the second quarter amounted to $2,533,893, a 5.3% increase from the $2,406,449 posted for the second quarter of 2019, while earnings per share increased from $0.48 to $0.57 for the period. Net income for the first six months of the year amounted to $4,644,879, up 3.1% from the $4,506,033 earned last year, while earnings per share increased from $0.91 to $1.03.

Notable Items:

  • Net interest income increased by 4.1%, from $14.7 million to $14.8 million, when comparing the first six months of 2020 to the same period last year.
  • Noninterest income increased from $3.2 million to $3.7 million as the bank’s mortgage demand and financial services business remained strong.
  • The bank has made 923 loans, totaling $45.5 million, under the Paycheck Protection Program as of June 30, 2020. These loans carry a required interest rate of 1.00%, which will also put downward pressure on net interest margin; however, fees earned from these loans will provide additional income during 2020 and beyond as these loans are paid off or forgiven by the Small Business Administration.
  • A total of $471,596 was provisioned to the loan loss reserve during the first six months of 2020, compared to a provision of $499,811 during the same period last year. The allowance for loan losses as a percentage of net loans was 0.90% at June 30, 2020 compared to 1.04% last June.
  • Interest expense on borrowings, used to support the company’s stock repurchase program, amounted to $147,247 year-to-date. No expense was recognized last year during the same period.
  • A total of 58,774 common shares have been repurchased year-to-date at an average price of $16.72 per share. A total of 426,774 shares were repurchased at an average price of $19.97 during the first six months of 2019. Total shares outstanding as of June 30, 2020 were 4,463,318.

As of June 30, 2020, total assets were $790.8 million, an increase of $88.5 million, or 13.4%, over the June 30, 2019 balance of $702.3 million. Over the past twelve months, total loans have increased by $85.7 million, or 16.1%, while total deposits have increased by $83.5 million, or 13.4%. Shareholders’ equity, net of unrealized gains on investment securities, was $70.2 million at June 30, 2020, an increase of $3.9 million, or 5.9%, over the June 30, 2019 balance of $66.2 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at June 30, 2020.

Key Financial Ratios:

  • Return on average equity (ROAE) increased from 12.49% to 13.19% and Return on average assets (ROAA) decreased from 1.33% to 1.27% year to date.
  • Yield on loans decreased from 5.58% to 5.42%.
  • The bank’s cost of funds decreased from 0.60% to 0.54%.
  • Net interest margin has declined from 4.55% to 4.40%.
  • Current book value of the company is $16.01 per share compared to $14.51 one year ago.

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. Additional information is available at the company’s website, www.bcbonline.com


Contact: Helen Person, VP/Director of Marketing
434-676-2666 ext. 1103
helen.person@bcbonline.com

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