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Benchmark announces quarterly results

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.

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.

• 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 SBA.

• 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 12 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, 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.