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 $0.48 per share, up 14.2% from the $2,135,004, or $0.42 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 $0.91 per share, a 5.7% increase from the $4,262,435, or $0.83 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%, up from the 12.34% 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% to 5.58%, 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% to 0.60% 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% is down from 4.70% 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.
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.