cmtv_8k.htm

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

July 24, 2023

(Date of Report - Date of earliest event reported on)

Community Bancorp.

(Exact name of Registrant as Specified in its Charter)

Vermont		000-16435		03-0284070
(State of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

4811 US Route 5, Derby, Vermont		05829
(Address of Principal Executive Offices)		(Zip Code)

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

Title of Each Class

Trading Symbol(s)

Name of each exchange

on which registered

(Not Applicable)

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 July 24, 2023, 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 June 30, 2023.

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 July 24, 2023.

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.

	COMMUNITY BANCORP.

DATED: July 24, 2023	/s/ Kathryn M. Austin
	Kathryn M. Austin, President &
	Chief Executive Officer

EXHIBIT 99.1

Community Bancorp. Reports Second Quarter 2023 Earnings;

Higher Earnings Reflect Continued Strong Growth in Loans

For immediate release

Derby, VT: July 24, 2023 --- Community Bancorp., (OTCQX:CMTV) Community National Bank reported earnings for the second quarter ended June 30, 2023, of $3.2 million or $0.58 per share, an increase of $175,187 or 5.80% compared to $3.0 million or $0.56 per share for the second quarter of 2022. Year to date earnings for 2023 are $6.5 million or $1.19 per share, an increase of $1.1 million or 20.43% compared to $5.4 million or $1.00 per share a year ago.

Total assets for the Company on June 30, 2023 were $1.03 billion, compared to $1.06 billion at year-end 2022, and $1.00 billion as of June 30, 2022. The year-over-year asset growth was driven by continued growth in the Company's loan portfolio of $78.0 million, or 11.10%, compared to the 2022 period. The asset growth was offset by a decrease in cash and overnight deposits of $47.7 million, or 71.16%. Borrowed funds for the second quarter ended June 30, 2023 increased $40 million, to offset the loan growth as well as a decrease in deposit balances of $20.7 million, or 2.38%, compared to June 30, 2022.

Total net interest income for the second quarter ended June 30, 2023 increased $431,678, or 5.51%, to $8.2 million, compared to $7.8 million for the same quarter in 2022. The year over year improvement reflects an increase of $2,384,258 or 31.25%, in interest and fees on loans due to loan growth and higher interest rates, offset by an increase in interest on deposits expense of $1,638,926, or 279.94%, due to higher interest rates. Net interest income for the six months ended June 30, 2023 increased $1,396,815, or 9.07%, to $16.8 million compared to $15.4 million for the same period in 2022, reflecting the same trends.

The provision for credit losses for the second quarter ended June 30, 2023 was $281,142, compared to $337,500 for the same period in 2022. The year-to-date provision for credit losses was also lower, at $567,668, compared to $1,200,000 for the same period in 2022. The $632,332 year over year decrease was driven primarily by a write-down on a single non-performing loan totaling $667,474 in March 2022.

Total non-interest income for the second quarter ended June 30, 2023 of $1.8 million increased $204,135, or 12.49%, compared to $1.6 million for the same period in 2022. Total non-interest income for the six months ended June 30, 2023 was $3.6 million compared to $3.3 million for the six months ended June 30, 2022, an increase of $276,483, or 8.33% year over year. Total non-interest expenses increased $429,459, or 7.90% for the second quarter comparison period, and $855,574, or 7.86%, year over year.

Equity capital increased to $80.5 million, with a book value per share of $14.44 as of June 30, 2023, compared to equity capital of $75.2 million and a book value of $13.55 as of December 31, 2022. This improvement reflects a decrease of $1.2 million in unrealized losses in the investment portfolio, caused by changing bond rates, which increased the fair market value of the investment portfolio. The unrealized loss position is considered temporary and does not impact the Company’s regulatory capital ratios.

President and CEO Kathryn Austin commented on the Company’s results: “We are very pleased with our continued success in the first half of 2023, with another quarter of strong results, including year over year growth in assets and excellent loan growth despite a higher rate environment. Our focus on serving our customers effectively and within our established risk management framework is illustrated by the continued growth in the Bank’s earnings. These results also underscore the sustained vitality of our northern New England economy despite macroeconomic challenges. We remain highly responsive to our customers’ needs for important consumer and commercial financial services, which remain in high demand in the communities we serve throughout Vermont and New Hampshire. As always, we are grateful for our committed employees and their dedication to our growing customer base.”

As previously announced, the Company declared a quarterly cash dividend of $0.23 per share payable August 1, 2023 to shareholders of record as of July 15, 2023.

About Community National Bank

Community National Bank is an independent bank that has been serving its communities since 1851, with retail banking offices located in Derby, Derby Line, Island Pond, Barton, Newport, Troy, St. Johnsbury, Montpelier, Barre, Lyndonville, Morrisville and Enosburg Falls as well as loan offices located in Burlington, Vermont and Lebanon, New Hampshire

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, and other factors that are listed from time to time in our financial filings with the SEC, including our Forms 10Q and 10K. We disclaim any responsibility to update our forward looking statements, which are valid only as of the date of this release, should circumstances change.

For more information, contact:

Investor Relations

[email protected]