Benchmark Bankshares, Inc. report second quarter results
Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the three months and six months ended June 30. Net income for the three months ended June 30 was $2,405,949, or 48 cents per share, up 14.2 percent from the $2,135,004, or 42 cents per share, earned during the second quarter last year. Net income through the first six months of the year amounted to $4,506,033, or 91 cents per share, a 5.7 percent increase from the $4,262,435, or 83 cents per share, posted through the first six months of 2018.
Return on average equity through the first six months of the year was 12.49 percent, up from the 12.34 percent reported one year ago. The company has repurchased 426,774 shares of stock year-to-date, with 395,604 of those shares repurchased in June, providing a boost to both earnings per share and return on equity.
Total loans have increased by $4.6 million year-to-date and by $22.8 million over the past 12 months. This growth, along with an increase in loan yield from 5.40 percent to 5.58 percent, has increased interest and fees on loans from $13.2 million to $14.8 million when comparing the first six months of 2019 to the same period last year.
Total deposits of $623.7 million are up $54.8 million for the year and $79.6 million over the past 12 months. All but $13.9 million of this growth during 2019 is from interest-bearing accounts, increasing the bank’s cost of funds from 0.41 percent to 0.60 percent and increasing interest expense from $1.1 million to $1.8 million through the first six months of the year.
Overall, the bank’s net interest margin of 4.55 percent is down from 4.70 percent one year ago. With an unusual amount of deposit growth year-to-date, the bank has held a larger volume of federal funds sold, contributing to the decline in net interest margin. Overall, the bank’s net interest income increased from $12.9 million to $14.3 million through the first six months of the year.
Net charge offs for the first six months of the year amounted to $125,000, down from the $144,000 charged off in the first half of last year. Asset quality remains very strong and past due loans remain steady; however, management provisioned a total of $500,000 to the loan loss reserve to support recent loan growth. A total of $519,000 was provisioned to the reserve during the first six months of last year. The current loan loss reserve of $5.6 million is up from $5.2 million one year ago and equates to 1.04 percent of total loans.
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. It is the company’s sole subsidiary which operates 16 banking offices throughout central Southside Virginia and northern North Carolina. Additional information is available at the company’s website www.BCBonline.com.