-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PN6t2RxJEdAmyxXGgtEEpy1SAxAiUa78pKhQupRQOdP9PBUYg5iMnDoCvXCiKocB pT8Kd7Tw2el+NUj8wB21IA== 0000804563-00-000002.txt : 20000510 0000804563-00-000002.hdr.sgml : 20000510 ACCESSION NUMBER: 0000804563-00-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BENCHMARK BANKSHARES INC CENTRAL INDEX KEY: 0000804563 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 541460991 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-18445 FILM NUMBER: 622529 BUSINESS ADDRESS: STREET 1: 100 S BROAD ST CITY: KENBRIDGE STATE: VA ZIP: 23944 BUSINESS PHONE: 8046768444 MAIL ADDRESS: STREET 1: 100 S BROAD ST CITY: KENBRIDGE STATE: VA ZIP: 23944 10-Q 1 FIRST QUARTER 2000 10-Q Page 1 of 16 Form 10-Q U. S. Securities and Exchange Commission Washington, DC 20549 [X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2000. [ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to ______________ Commission File No. 000-18445 Benchmark Bankshares, Inc. (Name of Small Business Issuer in its Charter) Virginia 54-1460991 -------- ---------- (State or Other Jurisdiction of (I.R.S. Employer I.D. No.) Incorporation or Organization) 100 South Broad Street Kenbridge, Virginia 23944 (Address of Principal Executive Offices) Issuer's Telephone Number: (804)676-8444 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (1) Yes [X] No [ ] (2) Yes [X] No [ ] State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest applicable date: 3,006,225.559 Page 2 of 16 Form 10-Q Benchmark Bankshares, Inc. Part I - Table of Contents March 31, 2000 Part I Financial Information Item 1 Consolidated Balance Sheet Consolidated Statement of Income and Comprehensive Income Condensed Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations Item 3 Quantitative and Qualitative Disclosures about Market Risk Page 3 of 16 Form 10-Q Benchmark Bankshares, Inc. Consolidated Balance Sheet (Unaudited) (Audited) March 31, December 31, 2000 1999 ---- ---- Assets Cash and due from banks $ 7,135,057 $ 7,533,280 Securities Federal Agency obligations 13,352,527 13,322,152 State and municipal obligations 8,764,063 12,590,401 Mortgage backed securities 1,712,360 2,267,912 Other securities 195,490 137,000 Federal funds sold 2,903,000 - Loans 154,607,992 152,262,727 Less Unearned interest income (44,054) (64,643) Allowance for loan losses (1,547,024) (1,522,632) ------------- ------------- Net Loans 153,016,914 150,675,452 Premises and equipment - net 3,750,862 3,423,779 Accrued interest receivable 1,592,265 1,390,010 Deferred income taxes 656,264 642,481 Other real estate 807,808 667,808 Other assets 840,518 674,670 ------------- ------------- Total Assets $194,727,128 $193,324,945 ============= ============= Page 4 of 16 Form 10-Q Benchmark Bankshares, Inc. Consolidated Balance Sheet (Unaudited) (Audited) March 31, December 31, 2000 1999 ---- ---- Liabilities and Stockholders' Equity Deposits Demand (noninterest-bearing) $ 18,804,874 $ 16,213,541 NOW accounts 18,474,528 19,905,599 Money market accounts 7,022,264 8,046,212 Savings 10,144,608 9,763,624 Time, $100,000 and over 15,458,221 16,560,926 Other time 102,712,547 94,250,638 ------------- ------------- Total Deposits 172,617,042 164,740,540 Federal funds purchased - 7,035,000 Accrued interest payable 794,757 766,964 Accrued income tax payable 305,137 23,005 Dividends payable - 482,493 Other liabilities 315,124 229,197 ------------- ------------- Total Liabilities 174,032,060 173,277,199 Stockholders' Equity Common stock, par value $.21 per share, authorized 4,000,000 shares; issued and outstanding 03-31-00 3,016,658.418, issued and outstanding 12-31-99 3,015,577.591 shares 633,499 633,272 Capital surplus 4,490,590 4,501,508 Retained earnings 16,124,268 15,455,510 Unrealized security gains net of tax effect (553,289) (542,544) ------------- ------------- Total Stockholders' Equity 20,695,068 20,047,746 ------------- ------------- Total Liabilities and Stockholders' Equity $194,727,128 $193,324,945 ============= ============= Note: The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date. See notes to consolidated financial statements. Page 5 of 16 Form 10-Q Benchmark Bankshares, Inc. Consolidated Statement of Income and Comprehensive Income (Unaudited) Three Months Ended March 31, 2000 1999 ---- ---- Interest Income Interest and fees on loans $3,422,120 $3,139,622 Interest on U. S. Government obligations 250,126 197,679 Interest on State and municipal obligations 124,098 147,476 Interest on Federal funds sold 11,912 190,151 ----------- ----------- Total Interest Income 3,808,256 3,674,928 Interest Expense Interest on deposits 1,793,669 1,857,038 Interest on Federal funds purchased 54,727 - ----------- ----------- Total Interest Expense 1,848,396 1,857,038 ----------- ----------- Net Interest Income 1,959,860 1,817,890 Provision for Loan Losses 35,687 28,897 ----------- ----------- Net Interest Income after Provision 1,924,173 1,788,993 Noninterest Income Service charges, commissions, and fees on deposits 110,145 104,006 Other operating income 113,059 36,509 (Losses) on sale of securities (3,308) (547) ----------- ----------- Total Noninterest Income 219,896 139,968 Noninterest Expense Salaries and wages 626,170 553,104 Employee benefits 142,220 130,024 Occupancy expenses 70,206 51,563 Furniture and equipment expense 46,838 46,596 Other operating expenses 295,699 250,807 ----------- ----------- Total Noninterest Expense 1,181,133 1,032,094 ----------- ----------- Net Income before Taxes 962,936 896,867 Income Taxes 296,889 270,173 ----------- ----------- Net Income 666,047 626,694 Other Comprehensive Income, Net of Tax Unrealized holding gain (loss) arising during period (10,745) (47,679) ----------- ----------- Comprehensive Income $ 655,302 $ 579,015 =========== =========== Net Income per Share $ 0.22 $ 0.21 =========== =========== See notes to consolidated financial statements. Page 6 of 16 Form 10-Q Benchmark Bankshares, Inc. Condensed Consolidated Statement of Cash Flows (Unaudited) Three Months Ended March 31, 2000 1999 ---- ---- Cash Provided by Operating Activities $ 624,047 $ 896,367 Cash Provided by Financing Activities Decrease in Federal funds purchased (7,035,000) - Net increase in demand deposits and interest-bearing transaction accounts 1,160,262 1,733,891 Net increase (decrease) in savings and money market deposits (642,964) 1,580,674 Net increase in certificates of deposit 7,359,204 2,514,884 Decrease in dividends payable (482,433) (479,594) Sale of stock 55,934 159,851 Purchase of stock (66,625) - ----------- ------------ Total Cash Provided by Financing Activities 348,378 5,509,706 Cash Used in Investing Activities Purchase of securities (465,458) (4,995,750) Sale of securities 4,750,389 58,282 Maturity of securities - 2,295,000 Net increase in loans (2,365,854) (4,989,415) Purchase of premises and equipment (386,725) (34,568) ----------- ------------ Total Cash Provided (Used) by Investing Activities 1,532,352 (7,666,451) ----------- ------------ Increase (Decrease) in Cash and Cash Equivalents $2,504,777 $(1,260,378) =========== ============ See notes to consolidated financial statements. Page 7 of 16 Form 10-Q Benchmark Bankshares, Inc. Notes to Consolidated Financial Statements March 31, 2000 1. Basis of Presentation The accompanying consolidated financial statements and related notes of Benchmark Bankshares, Inc. and its subsidiary, Benchmark Community Bank, were prepared by management, which has the primary responsibility for the integrity of the financial information. The statements have been prepared in conformity with generally accepted accounting principles appropriate in the circumstances and include amounts that are based on management's best estimates and judgments. In meeting its responsibilities for the accuracy of its financial statements, management relies on the Company's internal accounting controls. The system provides reasonable assurances that assets are safeguarded and transactions are recorded to permit the preparation of appropriate financial information. The interim period financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary to a fair presentation of financial position, results of operation, and changes in financial position for the interim periods herein reported. 2. Significant Accounting Policies and Practices The accounting policies and practices of Benchmark Bankshares, Inc. conform to generally accepted accounting principles and general practice within the banking industry. Certain of the more significant policies and practices follow: (a) The consolidated financial statements of Benchmark Bankshares, Inc. and its wholly owned subsidiary, Benchmark Community Bank, include the accounts of both companies. All material inter-company balances and transactions have been eliminated in consolidation. (b) Use of Estimates in Preparation of Financial Statements. The preparation of the accompanying combined financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that directly affect the results of reported assets, liabilities, revenue, and expenses. Actual results may differ from these estimates. (c) Cash and Cash Equivalents. The term cash as used in the Condensed Consolidated Statement of Cash Flows refers to all cash and cash equivalent investments. For purposes of the statement, Federal funds sold, which have a one day maturity, are classified as cash equivalents. (d) Investment Securities. Pursuant to guidelines established in FAS 115, the Company has elected to classify a portion of its current portfolio as securities available-for-sale. This category refers to investments that are not actively traded but are not anticipated by management to be held-to-maturity. Typically, these types of investments will be utilized by management to meet short-term asset/liability management needs. The remainder of the portfolio is classified as held-to-maturity. This category refers to investments that are anticipated by management to be held until they mature. Page 8 of 16 For purposes of financial statement reporting, securities classified as available-for-sale are to be reported at fair market value (net of any tax effect) as of the date of the statements; however, unrealized holding gains or losses are to be excluded from earnings and reported as a net amount in a separate component of stockholders' equity until realized. Securities classified as held-to-maturity are recorded at cost. The resulting book value ignores the impact of current market trends. (e) Loans. Interest on loans is computed by methods which generally result in level rates of return on principal amounts outstanding (simple interest). Unearned interest on certain installment loans is recognized as income using the Rule of 78ths Method, which materially approximates the effective interest method. Loan fees and related costs are recognized as income and expense in the year the fees are charged and costs incurred. (f) Allowance for Loan Losses. The allowance for loan losses is increased by provisions charged to expense and decreased by loan losses net of recoveries. The provision for loan losses is based on the Bank's loan loss experience and management's detailed review of the loan portfolio which considers economic conditions, prior loan loss experience, and other factors affecting the collectivity of loans. Accrual of interest is discontinued on loans past due 90 days or more when collateral is inadequate to cover principal and interest or, immediately, if management believes, after considering economic and business conditions and collection efforts, that the borrower's financial condition is such that collection is doubtful. (g) Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed generally by the straight line basis over the estimated useful lives of the assets. Additions to premises and equipment and major betterments and replacements are added to the accounts at cost. Maintenance and repairs and minor replacements are expensed as incurred. Gains and losses on dispositions are reflected in current earnings. (h) Other Real Estate. As a normal course of business, the Bank periodically has to foreclose on property used as collateral on nonperforming loans. The assets are recorded at cost plus capital improvement cost. (i) Depreciation. For financial reporting, property and equipment are depreciated using the straight line method; for income tax reporting, depreciation is computed using statutory accelerated methods. Leasehold improvements are amortized on the straight line method over the estimated useful lives of the improvements. Income taxes in the accompanying financial statements reflect the depreciation method used for financial reporting and, accordingly, include a provision for the deferred income tax effect of depreciation which will be recognized in different periods for income tax reporting. (j) Earnings Per Share Earnings per share were computed by using the average shares outstanding for each period presented. The 2000 average shares have been adjusted to reflect the sale of 7,586 shares through the employee stock option plan at various dates during the period and the retirement of 6,500 shares on January 17, 2000. The 1999 average shares have been adjusted to reflect the sale of 13,833.651 shares of the Company's common stock through the dividend reinvestment plan on January 31, 1999, as well as the sale of 4,105 shares through the employee stock option plan at various dates during the period. The average shares of outstanding stock for the first quarter of 2000 and 1999 were 3,013,782.370 and 3,011,304.017, respectively. Page 9 of 16 (k) Income Taxes. Deferred income taxes are reported for temporary differences between items of income or expense reported in the financial statements and those reported for income tax purposes. Deferred taxes also reflect the impact of the unrealized security losses which are reflected on the balance sheet only, pursuant to FAS 115 guidelines. The differences relate principally to the provision for loan losses, depreciation, and unrealized security losses. The table below reflects the components of the Net Deferred Tax Asset account as of March 31, 2000: Deferred tax assets resulting from loan loss reserves $436,175 Deferred tax asset resulting from deferred compensation 58,914 Deferred tax liabilities resulting from depreciation (123,852) Unrealized securities losses 285,027 --------- Net Deferred Tax Asset $656,264 ========= Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations FIRST QUARTER 2000 Earnings Summary Net income of $666,047 for the first quarter of 2000 increased $39,353 or 6.28% as compared to net income of $626,694 earned during the first quarter of 1999. Earnings per share of $.22 as of March 31, 2000 increased by $.01 or 4.76% over the same period in 1999. The annualized return on average assets of 1.35% increased 1.50% while the annualized return on average equity of 12.87% decreased .46% when comparing first quarter 2000 results with those of first quarter 1999. The Bank experienced growth in the first quarter of 2000 in both loans and deposits, but deposit growth rebounded somewhat from the slow growth performance record experienced in 1999. When comparing the results of the first quarter loan growth for the years 2000 and 1999, there was a significant increase in loans. The Bank experienced a significant level of growth in loans that was not matched with deposit growth. This activity resulted in an increase in the loan to deposit ratio to a level of 89.54% from 81.89% in the same quarter of the prior year. Interest Income and Interest Expense Total interest income of $3,808,256 for the first quarter of 2000 increased $133,328 or 3.63% over interest income of $3,674,928 recorded during the first quarter of 1999. The major area of increase was in interest and fees on loans, which was a direct result from the growth of the loan portfolio. Due to greater loan growth than deposit growth, the investment portfolio has changed as investments in short-term instruments began to reflect smaller investment balances. These short-term investments typically earn at a lesser rate than loans. Page 10 of 16 Total interest expense in the first quarter of 2000 decreased to a level of $1,848,396. This amounted to a decrease of $8,642 or .47% over the level reached during the first quarter of 1999. This decrease in interest expense resulted from lower cost in the marketplace. Provision for Loan Losses While the Bank's loan loss experience ratio remains low, management continues to set aside provisions to the loan loss reserve. During the first quarter of 2000, the Bank increased the loan loss reserve by $24,392 to a level of $1,547,024 or 1.00% of the outstanding loan balance. At year end 1999, the reserve level amounted to $1,522,632 or 1.00% of the outstanding loan balance net of unearned interest. Nonperforming Loans Nonperforming loans consist of loans accounted for on a non-accrual basis and loans which are contractually past due 90 days or more as to interest and/or principal payments regardless of the amount of collateral held. As of March 31, 2000, the Bank had $1,195,754 in nonperforming loans or .77% of the loan portfolio. The amount of non-secured loans in this category amounted to $3,484. Noninterest Income and Noninterest Expense Noninterest income of $219,896 increased $79,928 or 57.10% for the first quarter of 2000 as compared to the level of $139,968 reached during the first quarter of 1999. The increase results from an expanded customer base as the existing branches continue to grow in trade area business, and the three new offices start to see a measurable increase in customers served. Noninterest expense of $1,181,133 increased $149,039 or 14.41% for the first quarter of 2000 as compared to the level of $1,032,094 reached during the first quarter of 1999, as all areas of operation had additional expense related to the staffing and support required for an expanding customer base and the start-up of two new loan origination offices and a full-service branch. Off-Balance-Sheet Instruments/Credit Concentrations The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. Unless noted otherwise, the Bank does not require collateral or other security to support these financial instruments. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to facilitate the transaction of business between these parties where the exact financial amount of the transaction is unknown, but a limit can be projected. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. There is a fee charged for this service. Page 11 of 16 As of March 31, 2000, the Bank had $1,897,489 outstanding letters of credit. This represents a $71,500 or 3.92% increase over the year end level. These instruments are based on the financial strength of the customer and the existing relationship between the Bank and the customer. The maturities of these letters are as follows: March 31, 2000 $1,289,171 2001 607,318 2002 3,000 Liquidity As of the end of the first quarter of 2000, $54,895,587 or 35.51% of gross loans will mature or are subject to repricing within one year. These loans are funded in part by $28,216,807 in certificates of deposit of $100,000 or more of which $15,458,221 mature in one year or less. Currently, the Bank has a maturity average ratio for the next twelve months of 114.31% when comparing earning asset and certificates of deposit maturities. At year end 1999, $55,137,045, or 39.44% of gross loans, were scheduled to mature or were subject to repricing within one year and $13,285,923 in certificates of deposit were scheduled to mature during 2000. Capital Adequacy Total stockholder equity was $20,695,068 or 10.63% of total assets as of March 31, 2000. This compared to $20,047,746 or 10.37% of total assets as of December 31, 1999. Primary capital (stockholders' equity plus loan loss reserves) of $22,242,092 represents 11.42% of total assets as of March 31, 2000 as compared to $21,570,378 or 11.16% of total assets as of December 31, 1999. The increase in the equity position resulted from steady earnings with no dividends payable in the first quarter plus the sale of additional stock through the dividend reinvestment and the incentive stock option plans. Page 12 of 16 Item 3 Quantitative and Qualitative Disclosures about Market Risk Through the nature of the banking industry, market risk is inherent in the Company's operation. A majority of the business is built around financial products, which are sensitive to changes in market rates. Such products, categorized as loans, investments, and deposits are utilized to transfer financial resources. These products have varying maturities, however, and this provides an opportunity to match assets and liabilities so as to offset a portion of the market risk. Management follows an operating strategy that limits the interest rate risk by offering only shorter-term products that typically have a term of no more than five years. By effectively matching the maturities of inflows and outflows, management feels it can effectively limit the amount of exposure that is inherent in its financial portfolio. As a separate issue, there is also the inherent risk of loss related to loans and investments. The impact of loss through default has been considered by management through the utilization of an aggressive loan loss reserve policy and a conservative investment policy that limits investments to higher quality issues; therefore, only the risk of interest rate variations is considered in the following analysis. The Company does not currently utilize derivatives as part of its investment strategy. The tables below present principal amounts of cash flow as it relates to the major financial components of the Company's balance sheet. The cash flow totals represent the amount that will be generated over the life of the product at its stated interest rate. The present value discount is then applied to the cash flow stream at the current market rate for the instrument to determine the current value of the individual category. Through this two-tiered analysis, management has attempted to measure the impact not only of a rate change, but also the value at risk in each financial product category. Only financial instruments that do not have price adjustment capabilities are herein presented. In Table One, the cash flows are spread over the life of the financial products in annual increments as of March 30 each year with the final column detailing the present value discounting of the cash flows at current market rates. Fair Value of Financial Assets Benchmark Bankshares, Inc. March 31, 2000
Current Categories 2001 2002 2003 2004 2005 Thereafter Value ---------- ---- ---- ---- ---- ---- ---------- ----- Loans Commercial $23,946,612 $ - $ - $ - $ - $ - $23,946,612 Mortgage 26,317,541 19,098,121 19,330,781 22,977,222 20,541,955 6,424,102 91,826,960 Simple Interest I/L 12,438,020 8,740,558 5,187,637 2,734,731 1,336,066 66,659 25,047,772 Rule of 78ths I/L 450,137 166,402 43,646 6,043 - - 569,469 Investments U. S. Government Agencies 863,810 863,810 1,363,810 2,820,410 3,645,273 7,849,218 13,087,802 Municipals Nontaxable 568,586 934,101 472,179 1,556,745 265,436 5,341,528 7,795,089 Taxable 61,693 63,693 61,693 61,693 556,572 157,250 936,371 Mortgage Backed Securities 279,202 254,750 233,068 213,761 196,493 807,882 1,712,360
Page 13 of 16
Current Categories 2001 2002 2003 2004 2005 Thereafter Value ---------- ---- ---- ---- ---- ---- ---------- ----- Certificates of Deposits < 182 days 2,246,139 - - - - - 2,207,797 182 - 364 days 5,058,205 - - - - - 4,874,133 1 year - 2 years 32,765,485 12,244,107 - - - - 43,896,888 2 years - 3 years 7,305,114 3,703,837 4,623,171 - - - 14,122,050 3 years - 4 years 1,294,038 1,963,900 1,119,342 2,972,965 - - 5,209,125 4 years - 5 years 1,125,865 964,443 648,254 937,917 9,046 - 3,199,814 5 years 11,126,780 5,692,704 6,386,914 12,408,320 12,671,292 207,940 39,687,511 7 years 1,232 4,943 216 216 216 8,719 11,219
In Table Two, the cash flows are present value discounted by predetermined factors to measure the impact on the financial products portfolio at six and twelve month intervals. Variable Interest Rate Disclosure Benchmark Bankshares, Inc. March 31, 2000
Valuation of Securities No Valuation of Securities Given an Interest Rate Change In Given an Interest Rate Decrease of (x) Basis Points Interest Increase of (x) Basis Points Categories (200 BPS) (100 BPS) Rate 100 BPS 200 BPS ---------- --------- --------- ---- ------- ------- Loans Commercial $ - $ - $23,946,612 $ - $ - Mortgage 96,821,271 94,266,665 91,826,960 89,495,328 87,265,378 Simple Interest I/L 25,966,790 25,499,709 25,047,772 24,610,297 24,186,643 Rule of 78ths I/L 583,657 576,479 569,469 562,624 555,936 Investments U. S. Government Securities 13,836,008 13,524,328 13,087,802 12,480,802 11,927,190 Municipals Nontaxable 8,571,395 8,214,839 7,795,089 7,309,501 6,844,286 Taxable - - 936,371 - - Mortgage Backed Securities 1,885,680 1,799,020 1,712,360 1,625,699 1,539,039 Certificates of Deposit < 182 days 2,224,258 2,216,000 2,207,797 2,199,647 2,191,551 182 - 364 days 4,946,164 4,909,913 4,874,133 4,838,814 4,803,949 1 year - 2 years 44,998,088 44,441,020 43,896,888 43,365,261 42,845,727 2 years - 3 years 14,614,152 14,364,347 14,122,050 13,886,953 13,658,762 3 years - 4 years 5,520,799 5,361,734 5,209,125 5,062,645 4,921,983 4 years - 5 years 3,343,944 3,270,543 3,199,814 3,131,628 3,065,865 5 years 42,077,522 40,855,044 39,687,511 38,571,813 37,505,049 7 years 12,203 11,694 11,219 10,774 10,356
Only financial instruments that do not have daily price adjustment capabilities are herein presented. Page 14 of 16 Form 10-Q Benchmark Bankshares, Inc. March 31, 2000 Part II Other Information Item 1 Legal Proceedings None Item 2 Changes in Securities None Item 3 Defaults Upon Senior Securities None Item 4 Submission of Matters to a Vote of Security Holders None Item 5 Other Information Independent Accountant's Review Report Item 6 Report on Form 8-K No reports on Form 8-K have been filed during the quarter ended March 31, 2000. Page 15 of 16 INDEPENDENT ACCOUNTANT'S REVIEW REPORT Board of Directors Benchmark Bankshares, Inc. Kenbridge, Virginia We have reviewed the accompanying 10Q filing including the balance sheet of Benchmark Bankshares, Inc. (a corporation) as of March 31, 2000 and the related statements of income and cash flows for the three month period then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of Benchmark Bankshares, Inc. A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The additional required information included in the 10Q filing for March 31, 2000 is presented only for supplementary analysis purposes. Such information has been subjected to the inquiry and analytical procedures applied in the review of the basic financial statements, and we are not aware of any material modifications that should be made thereto. Creedle, Jones, and Alga, P. C. Certified Public Accountants May 8, 2000 Page 16 of 16 Form 10-Q Benchmark Bankshares, Inc. March 31, 2000 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Benchmark Bankshares, Inc. (Registrant) Date: May 8, 2000 Ben L. Watson, III President & CEO Date: May 8, 2000 Janice W. Pernell Cashier and Treasurer EX-27 2 FDS --
9 (Replace this text with the legend) 0000804563 Benchmark Bankshares, Inc. 1 $ 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 1 7,135,057 0 2,903,000 0 18,583,123 5,245,827 4,948,474 154,607,992 1,547,024 194,727,128 172,617,042 0 1,415,018 0 0 0 633,499 20,061,569 194,727,128 3,422,120 374,224 11,912 3,808,256 1,793,669 1,848,396 1,959,860 35,687 (3,308) 1,181,133 962,936 666,047 0 0 666,047 .22 .22 4.17 785,350 415,404 470,000 11,587,094 1,522,632 33,789 22,360 1,547,024 1,547,024 0 706,604
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