Community Bancorp 8-K, filed Jan 25, 2021
Community Bancorp (CMTV)
8-K
2021-01-25
For: 2021-01-25
View Original
Added on
April 11, 2026
About this 8-K
Community Bancorp filed this 8-K on January 25, 2021.
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
(Date
of Report - Date of earliest event reported on)
(Exact
name of Registrant as Specified in its Charter)
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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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(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:
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.
Emerging
growth company ☐
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
January 25, 2021, 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 December 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 January 25,
2021.
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:
January 25, 2021
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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
Community
Bancorp. Reports Fourth Quarter and Full Year 2020
Earnings
Strong
Growth in Deposits, Earnings and Assets
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For
immediate release
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Derby,
VT: January 25, 2021 --- Community Bancorp., (OTCQX:CMTV) the
parent company of Community National Bank, announced today that its
earnings for the fourth quarter ended December 31, 2020, were
$3,174,510, or $0.60 per share, a 34% increase from $2,371,300, or
$0.45 per share, for the fourth quarter of 2019. Full-year earnings
for 2020 were $10,758,502, or $2.03 per share, a 22% increase from
$8,824,446, or $1.68 per share, in the year ago
period.
Total
assets at December 31, 2020 were $918,233,284 compared to
$737,955,319 at year end 2019, an increase of 24.4%. The asset
growth has been driven by an increase in loans in the amount of
$102.4 million year-over-year, largely attributable to the
origination of Paycheck Protection Program (“PPP”)
loans, with the balance of loan growth reflecting increases in
commercial loans and the residential loan portfolio. Community
National Bank, the Company’s subsidiary, participated in the
PPP administered by the Small Business Administration
(“SBA”) as part of the Coronavirus Aid, Relief and
Economic Security (“CARES”) Act. As of December 31,
2020, the PPP loan portfolio totaled $64.4 million.
Net
interest income increased $1,556,262, or 24.5%, and $2,599,922, or
10.1%, respectively for the fourth quarter and full year
comparative periods. While loan growth is providing a tailwind to
growth in interest income, that opportunity is offset by the impact
of the current low rate environment on new loan originations and
interest rate adjustments on adjustable rate loans, as well as the
mandated 1% interest rate on the PPP loans. Processing fees from
the SBA of $1,139,288 and $2,147,720, respectively for the fourth
quarter and full year comparative periods as well as a decrease in
interest expense of $435,992, or 28.2%, and $1,296,436, or 21.1%,
respectively for those same periods contributed to the increase in
net interest income compared to the periods ended December 31,
2019. Although deposit balances increased in 2020 by $167.3
million, or 27.2%, the lower interest rates and significant
increases in non-interest-bearing demand deposit accounts led to
the decrease in interest expense.
President
and CEO Kathryn Austin commented on the Company’s results:
“2020 was a year in which our Company and banking operations
proved successful despite many underlying challenges. The pandemic
impacted every aspect of our community and our business.
Ultimately, however, our approach to local banking provided a
genuine foundation for growth. We successfully met the need for
timely access to PPP loans for customers and non-customers, and
managed our expenses effectively during this period even as we
expanded our loan origination base. We will continue to invest in
the technology, infrastructure and human resources to support our
strategy of responsible, profitable growth going forward, confident
that our accomplishments in 2020 have positioned us even better in
our communities.”
The
provision for loan losses in 2020 was $1,589,000 compared to
$1,066,167 for 2019. Increases to the provision were partially due
to loan growth early in the year as well as adjustments to the
qualitative factors used to estimate the allowance for loan losses,
particularly factors related to the potential economic impact to
borrowers from the COVID-19 pandemic.
The
Company reported increases in non-interest income of $825,658 or
13.9% for 2020 and $118,725 or 7.4% for the fourth quarter over the
same periods in 2019. Contributing to this growth was an increase
in income from fees related to mortgage banking activity due to an
increase in originations and sales in the secondary market. Loan
originations that were subsequently sold in the secondary market
were $6.1 million for the fourth quarter, compared to $5.0 million
for the same period in 2019, resulting in gains on sale of loans of
$248,725 and $95,613 respectively for the fourth quarter comparison
periods. Loan originations of $36.6 million for 2020 compared to
$12.5 million for 2019 resulting in gains on sale of loans of
$977,686 and $182,599 for the year over year comparison
periods.
Non-interest
expenses for the fourth quarter of 2020 were $5.2 million, compared
to $4.7 million for the same period in 2019, an increase of 8.9%.
Non-interest expenses for the full year 2020 were $20.4 million,
compared to $19.9 million in 2019, an increase of
2.6%.
As
previously announced, the Company declared a quarterly cash
dividend of $0.19 per share payable February 1, 2021 to
shareholders of record as of January 15, 2021.
Community
National Bank is an independent bank that has been serving its
communities since 1851, with offices located in Vermont in Derby,
Derby Line, Island Pond, Barton, Newport, Troy, St. Johnsbury,
Montpelier, Barre, Lyndonville, Morrisville, Enosburg Falls,
Burlington and Lebanon, NH.
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.
For
more information, contact:
Kathryn
M. Austin, President & CEO at (802) 334-7915