Benchmark reports earnings
Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based holding company for Benchmark Community Bank, announced unaudited results for the first quarter of 2020. Net income of $2,110,986 was up from the $2,100,083 earned during the first quarter of 2019, while earnings per share increased from $0.42 to $0.47 for the period.
“Lending activity through the first two months of the year was business as usual,” observed Jay A. Stafford, president and CEO. “However, March was a different story. The turmoil created by COVID-19 limited overall banking activity across our markets.
“Early efforts began in mid-March to serve our customers while providing a healthy environment for both our customers and employees have resulted in our continuing to be busy,” Stafford said. “We transitioned lobby operations to our drive-ups and immediately began assisting customers in connecting to our internet banking, BCB mobile app, and using our ATMs and telephone banking. Our night depositories are being processed throughout the business day rather than only in the mornings. Together these efforts are allowing us to continue serving our customers while trying to keep everyone healthy.” The federal government’s CARES Act adopted on March 27, 2020, provided an additional opportunity for the bank to serve business customers adversely impacted by the COVID-19 event.”
A change to the bank’s payroll accounting led to an increased accrual for payroll expenses of $166,000 for the quarter.
A total of $224,589 was provisioned to the loan loss reserve during the quarter. No provision was made during the first quarter of 2019.
Interest expense on borrowings, used to support the stock repurchase program, amounted to $78,062 for the period. No expense was recognized last year during the same period.
Total loans are up $16.54 million for the quarter, with total loans up by $60.76 million over the last 12 months.
Deposit growth during the first quarter amounted to $1.94 million, with total deposits up $7.74 million over the past 12 months.
A new full-service branch in Henderson, North Carolina was opened during the quarter, with preparation underway to move the downtown Farmville branch to a new location during the second quarter.
Key Financial Ratios:
Return on average equity (ROAE) increased from 11.76% to 12.08% and Return on average assets (ROAA) decreased from 1.28% to 1.19% for the quarter.
Yield on loans decreased from 5.57% to 5.46%.
The bank’s cost of funds increased from 0.56% to 0.63%.
Net interest margin was down from 4.64% to 4.49%.
Benchmark Community Bank, founded in 1971, is headquartered in Kenbridge, and is the company’s sole subsidiary which operates a total of 17 banking offices throughout central Southside Virginia and northern North Carolina. Additional information is available at the company’s website, www.BCBonline.com.