KENBRIDGE, VA, January 31, 2023 - Benchmark Bankshares, Inc. (BMBN), the Kenbridge-based hold­ing company for Benchmark Community Bank, announced unaudited results for the quarter and year ending December 31, 2022. Net income for the fourth quarter of 2022 amounted to $3,938,784 or $0.87 per share, compared to $2,684,505, or $0.59 per share, posted for the fourth quarter of 2021.  Net income for the year amounted to $13,239,600, or $2.93 per share, a 15.08% increase over net income of $11,524,043, or $2.55 per share, earned in 2021. 

Notable Items:

• Net interest income increased by 17.99%, from $33.3 million to $39.3 million when comparing 2022 to 2021.
• Total loans held for investment increased by $171.8 million, or 26.6%, during the year as commercial loan demand remained strong despite rising interest rates during the year.
• Noninterest income for the year amounted to $8.6 million, down from $8.7 million, primarily due to a $935,730 decline in gains from the sale of loans as residential mortgage demand declined due to higher interest rates. 
• A total of $702,159 was expensed to the bank’s employee stock ownership plan during 2022 to provide for current plan liquidity needs and to allow for future stock repurchases.  The bank expensed $450,000 to the plan during 2021.
• A total of $1,018,067 was provisioned to the loan loss reserve during the year, compared to a provision of $330,384 last year. The allowance for loan losses as a percentage of loans was 0.84% as of December 31, 2022, down from 0.91% last December.
• The bank did not hold any foreclosed property as of December 31, 2022, while non-accrual loans decreased from $610,413 to $539,966 during the year.
• Interest expense on borrowings, used to support the company’s stock repurchase program, amounted to $126,657 for the year, compared to $188,412 recognized in 2021.  Total borrowings were reduced from $3.8 million to $2.7 million during 2022.
• A total of 6,550 common shares were repurchased during 2022 at an average price of $24.00 per share.  A total of 33,172 shares were repurchased at an average price of $19.48 during 2021.  The Company had 4,521,648 shares outstanding as of December 31, 2022.

As of December 31, 2022, total assets were $1.12 billion, an increase of $84.1 million, or 8.1%, over the December 31, 2021 balance of $1.04 billion. Over the past twelve months, total loans held for investment have increased by $171.8 million, or 26.6%, while total deposits have increased by $82.9 million, or 8.7%. 

Shareholders’ equity, net of unrealized gains and losses on investment securities, was $93.4. million as of December 31, 2022, an increase of $10.0. million, or 12.0%, over the December 31, 2021 balance of $83.3 million. All capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements as of December 31, 2022.

Key Financial Ratios:

• Comparing 2022 to 2021:
• Return on average equity increased from 14.12% to 15.83%.
• Return on average assets increased from 1.18% to 1.23%.
• Earnings per share increased from $2.55 to $2.93.
• Yield on loans decreased from 5.33% to 4.98%.
• The bank’s cost of funds decreased from 0.30% to 0.21%.
• Net interest margin increased from 3.63% to 3.89%.
• Book value of the company increased from $18.69 to $18.94 per share.

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.