Community Bancorp 8-K, filed Jan 22, 2020
Community Bancorp (CMTV)
8-K
2020-01-22
For: 2020-01-22
View Original
Added on
April 11, 2026
About this 8-K
Community Bancorp filed this 8-K on January 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
January
22, 2020
(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
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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))
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 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 December 31,
2019.
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 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:
January 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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January
22, 2020
|
|
Derby,
Vermont
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For
immediate release
|
For
more information, contact: Kathy Austin, President and CEO at (802)
334-7915
Community
Bancorp. has reported consolidated earnings for the fourth quarter
ended December 31, 2019, of $2,371,300 or $0.45 per share compared
to $2,142,603 or $0.41 per share for the fourth quarter of 2018.
The Company’s earnings of $8,824,446 or $1.68 per share for
the full year compares to $8,397,532 or $1.61 per share in
2018.
Total
assets for the Company at year-end 2019 were $737,955,319 compared
to $720,347,498 at year-end 2018, an increase of 2.44%. The
increase in assets was due to an increase in loans of $28.5 million
offset by a decrease in interest bearing and overnight deposits of
$19.3 million, with the increase in loans continuing to be
attributable to growth in commercial loans. On December 31, 2019
loans totaled $606,988,937 compared to $578,450,517 on December 31,
2018, an increase of 4.93%. Funding for the increase in earning
assets was from an increase in demand deposits, interest bearing
deposits and borrowings of $10.0 million and from the decrease in
overnight deposits.
A
series of increases in the fed funds rate in 2018 had a positive
impact on net interest margin that continued into the first part of
2019 as assets were replace at, and repriced to, the higher rates.
Later the impact was felt on rates paid on wholesale funds and
pressure to increase rates on deposit accounts began to result in
increased interest expense. In the third quarter, the fed funds
rate decreased by 50 basis points which then resulted in
compression of the margin with a net interest margin of 3.75% for
the fourth quarter versus 3.99% for the year. Interest income
increased by $99,678, or 1.28%, for the fourth quarter and
increased $2,644,205, or 9.08%, for the year. A $440 thousand
prepayment penalty received in the second quarter of 2019 also
contributed to the increase in interest income. The changes in fed
funds rate had a significant impact on the larger deposit base with
an increase in interest expense of $90,898, or 6.24% for the
quarter and $1,658,033, or 36.97%, year to date. This resulted in
an increase in net interest income of 8,780, or 0.14% for the
quarter and $986,172, or 4.00%, year to date.
The
loan growth and higher than anticipated charge off activity
required a loan loss provision of $299,499 for the fourth quarter
and $1,066,167 for the year compared to $210,000 and $780,000 for
the comparative periods in 2018. The charge off activity was mostly
related to several loans that had been in foreclosure for a period
of time and required further write down at liquidation or when
booked as Other Real Estate Owned.
The
Company’s noninterest income increased $43,212, or 2.78%, for
the quarter and a decrease of $235,242, or 3.81% year to date. The
year to date decrease in noninterest income is attributable to a
one-time gain on sale of property of $263,118 which was directly
related to the sale of a condominium unit to the Company’s
affiliate, CFSG in 2018.
Total
noninterest expense decreased $403,023, or 7.77% for the quarter
and $13,746, or 0.07% year to date. The decrease for the quarter
was partly due to a one-time bonus paid at the end of the third
quarter in 2018 to all employees, except the executive officers.
Also contributing to the decrease for the quarter was a decrease in
Other Expenses due to the distribution of deposit-insurance
assessment credits issued by the FDIC. Credits issued to the
Community National Bank equal $164,007. The
Company recorded a write down of $78,447 on an Other Real Estate
Owned property in the fourth quarter of 2018 compared to no write
down in the fourth quarter of 2019.
Overall
the Company reported a return on average assets of 1.24% for the
year ended December 31, 2019 compared to 1.24% for 2018. Capital
grew to $68,894,679 with a book value of $12.86 per share on
December 31, 2019 compared to $62,603,711 with a book value of
$11.72 per share on December 31, 2018.
In
commenting on the Company’s earnings, Chief Executive Officer
Kathy Austin said “Given the challenges that the low rate
environment presents and the compression of our net interest margin
in the latter part of the year, we are pleased with our 2019
results. The growth of the loan portfolio combined with responsibly
managing our cost of funds is largely what made it possible. The
continued success at managing our overhead costs further supports
our positive results. I want to thank the entire Community National
Bank team for a successful year and a job well
done.”
As
previously announced, the Company has declared a quarterly cash
dividend of $0.19 per share payable February 1, 2020 to
shareholders of record as of January 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.