Community Bancorp 8-K, filed Apr 22, 2020
Community Bancorp (CMTV)
8-K
2020-04-22
For: 2020-04-22
View Original
Added on
April 11, 2026
About this 8-K
Community Bancorp filed this 8-K on April 22, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
April
22, 2020
(Date
of Report - Date of earliest event reported on)
Community
Bancorp.
(Exact
name of Registrant as Specified in its Charter)
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Vermont
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000-16435
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03-0284070
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(State
of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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4811 US
Route 5, Derby, Vermont
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05829
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant's
Telephone Number: (802) 334-7915
Not Applicable
(Former
name, former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities
Act (17CFR 203.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act: NONE
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Title
of Each Class
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Trading
Symbol(s)
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Name of
each exchange on which registered
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(Not
Applicable)
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Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2
of the Securities Exchange Act of 1934.
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|
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Emerging
growth company ( )
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If an
emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act.
( )
Item 2.02. Results of Operations and Financial
Condition
As
provided in General Instruction B.2 to Form 8-K, the information
furnished in this Item 2.02 and in Exhibit 99.1 hereto shall not be
deemed filed for purposes of Section 18 of the Securities and
Exchange Act of 1934, as amended, nor shall it be deemed
incorporated by reference in any filing with the Securities and
Exchange Commission, except as shall be expressly provided by
specific reference in such filing.
On
April 22, 2020, Community Bancorp. issued a press release, a copy
of which is furnished as Exhibit 99.1 to this Report on Form 8-K,
announcing its earnings for the period ended March 31,
2020.
Item 9.01 Financial Statements and Exhibits
(d)
Exhibits
The
following Exhibit, referred to in Item 2.02 of this Report is
furnished, not filed, herewith:
Exhibit
99.1, Press Release dated April 22, 2020.
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 hereunto duly authorized.
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COMMUNITY
BANCORP.
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DATED:
April 22, 2020
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/s/
Kathryn M. Austin
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Kathryn
M. Austin, President &
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Chief
Executive Officer
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Exhibit
99.1
PRESS RELEASE
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Community
Bancorp. Reports Earnings and Dividend
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April
22, 2020
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Derby,
Vermont
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For
immediate release
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For
more information, contact: Kathryn Austin, President and CEO at
(802) 334-7915
Community
Bancorp., the parent company of Community National Bank, has
reported earnings for the first quarter ended March 31, 2020, of
$1,861,239 or $0.35 per share compared to $1,771,905 or $0.34 per
share for the first quarter of 2019.
Total
assets for the Company at the end of the quarter were $751,692,254
compared to $737,955,319 at year-end 2019 and $706,733,113 at the
end of the quarter a year ago. The increase in total consolidated
assets from year-end is due to an increase in the loan portfolio of
$27.4 million, mostly commercial loans. The year to date increase
in loans was funded with a decrease in cash of $9.9 million,
maturities and cash flow of $4.1 million from the investment
portfolio and an increase in deposits and borrowings of $12.0
million. Similarly, the $44.9 million increase in assets, year over
year, was due to an increase in loans of $55.5 million offset by a
decrease in overnight deposits of $11.7 million. The year over year
balance sheet growth was funded in a similar manner. Core deposit
growth provided the opportunity to pay off $25.0 million in
short-term brokered deposits. Total deposit balances have increased
$27.2 million, or 4.6%, year over year.
The
Company’s liquidity position was enhanced at quarter end with
a $20.0 million advance from a Borrow-in-Custody agreement with the
Federal Reserve Bank of Boston. This action was taken to strengthen
the Company’s liquidity position and ensure the ability to
manage through any unforeseen disruptions or potential gridlock in
the system due to challenges from the coronavirus. On March 16,
2020 the federal bank regulatory agencies released a statement
encouraging banks to use the Federal Reserve’s discount
window in an effort to support the liquidity and stability of the
banking system.
The
increase in earning assets combined with a decrease in cost of
funds contributed to an increase in net interest income of $135,931
year over year. Lower market rates resulted in a decrease of 14
basis points in the yield on average earning assets and a decrease
of 9 basis points in the average rates paid on interest bearing
liabilities. These changes resulted in a net interest margin of
3.79% for the first quarter of 2020 compared to 3.85% for the same
period in 2019, indicating that the decrease in short term interest
rates will impact net interest income in future periods. The
decrease in rates paid on deposit accounts did not result in any
loss of accounts or balances in core deposit accounts.
The
provision for loan losses for the first three months ended March
31, 2020 was $376,503 compared to $212,503 for the same period in
2019. Although changes to qualitative factors to estimate the
impact to borrowers due to the government’s reaction to the
COVID-19 pandemic contributed somewhat to the increase, the
increase was mostly attributable to growth of the loan portfolio,
year over year.
Total
noninterest income for the three months ended March 31, 2020 of $1,
353,707 was up slightly from $1,318,700 for the same period in
2019. Total noninterest expenses decreased $63 thousand, or 1.2%
year over year, mostly due to decreases in operating expenses such
as marketing and consulting expenses, as well as some recovery of
collection fees from the resolution of secondary market
foreclosures. These decreases offset any moderate increases in
other expenses, year over year.
Equity
capital grew to $70.5 million, with a book value per share of
$13.14 as of March 31, 2020, compare to equity capital of $63.6
million and a book value of $11.97 as of March 31,
2019.
Community
National Bank, the subsidiary of the Company, participated in the
Paycheck Protection Program administered by the Small Business
Association as part of the Coronavirus Aid, Relief and Economic
Security Act. During this offering, Community National Bank
processed and received approval for 560 applications for a total of
over $87 million. These loans are being disbursed to borrowers this
week.
In
commenting on the Company’s earnings, President and CEO
Kathryn Austin said “The effects of the Covid-19 pandemic
have been immediate and impactful to many of our customers, and the
long term impact to our Company’s operational and financial
results is difficult to predict. We have focused on the
health and safety of our employees and our customers, following our
Pandemic and Business Continuity Plan and guidance from our State
and Federal governments, to ensure safe access to banking
services. We have participated in aspects of the CARES Act,
facilitating access to relief funds for businesses and
individuals. Business closures, lost jobs and operational
changes resulting from this public health crisis will likely have
long term impacts for our customers and our operations and
financial results in future periods.”
As
previously announced, the Company has declared a quarterly cash
dividend of $0.19 per share payable May 1, 2020 to shareholders of
record as of April 15, 2020.
Community
National Bank is an independent bank that has been serving its
communities since 1851, with offices located in Derby, Derby Line,
Island Pond, Barton, Newport, Troy, St. Johnsbury, Montpelier,
Barre, Lyndonville, Morrisville and Enosburg Falls.
Forward Looking Statements
This press release contains forward-looking statements, including,
without limitation, statements about the Company’s financial
condition, capital status, dividend payment practices, business
outlook and affairs. Although these statements are based on
management’s current expectations and estimates, actual
conditions, results, and events may differ materially from those
contemplated by such forward-looking statements, as they could be
influenced by numerous factors which are unpredictable and outside
the Company’s control. Factors that may cause actual results
to differ materially from such statements include, among others,
the following: (1) general economic or monetary conditions, either
nationally or regionally, continue to decline, resulting in a
deterioration in credit quality or diminished demand for the
Company’s products and services; (2) changes in laws or
government rules, or the way in which courts interpret those laws
or rules, adversely affect the financial industry generally or the
Company’s business in particular, or may impose additional
costs and regulatory requirements; (3) interest rates change in
such a way as to reduce the Company’s interest margins and
its funding sources; and (4) competitive pressures increase among
financial services providers in the Company’s northern New
England market area or in the financial services industry
generally, including pressures from nonbank financial service
providers, from increasing consolidation and integration of
financial service providers and from changes in technology and
delivery systems.