CMTV 8-K
Community Bancorp /Vt (CMTV)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
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) |
| (Commission File Number) |
| (IRS Employer Identification No.) |
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(Address of Principal Executive Offices) |
| (Zip Code) |
Registrant’s Telephone Number: (
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(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:
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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:
Title of Each Class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
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| The |
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 April 21, 2026, 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, 2026.
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:
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| 2 |
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. |
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DATED: April 21, 2026 | /s/ Christopher Caldwell |
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| Christopher Caldwell, |
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| Chief Executive Officer |
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| 3 |
EXHIBIT 99.1
Community Bancorp. Reports First Quarter 2026 Earnings
|
| For immediate release |
Derby, VT: April 21, 2026 --- Community Bancorp. (NASDAQ:CMTV), the parent company of Community National Bank (the “Bank”), reported consolidated earnings for the first quarter ended March 31, 2026, of $4.4 million or $0.78 per share, an increase of $843,645 or 23.93% compared to $3.5 million or $0.62 per share reported for the first quarter of 2025.
First Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):
(Unaudited)
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|
| Quarter Ended |
| |
|
|
| March 31, 2026 |
| |
| Return on average assets |
|
| 1.42 | % |
| Pre-tax, pre-provision net revenue return on average assets |
|
| 1.83 | % |
| Return on average shareholders’ equity |
|
| 15.31 | % |
| Net Interest Margin |
|
| 3.81 | % |
| Efficiency Ratio |
|
| 57.4 | % |
| Noninterest expense to average assets |
|
| 2.29 | % |
| Dividend payout |
|
| 31.96 | % |
| Fully diluted tangible book value per common share (1) |
| $ | 18.81 |
|
| Total capital to risk-weighted assets (2) |
|
| 15.63 | % |
| Total common equity tier 1 capital to risk-weighted assets (2) |
|
| 14.38 | % |
| Tier I Capital to Average Assets (2) |
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| 10.17 | % |
| Tangible common equity to tangible assets (1) |
|
| 8.60 | % |
| Earnings per common share |
| $ | 0.78 |
|
| Weighted average number of common shares used in computing earnings per share |
|
| 5,586,133 |
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|
| (1) | Refer to the “Reconciliation of GAAP to Non-GAAP Measures” section of this document for additional detail. |
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| (2) | Represents Bank-only ratios. Current period capital ratios are preliminary subject to finalization of the Bank’s March 31, 2026 FDIC Call Report. |
Total assets for the Company at March 31, 2026, were $1.24 billion, a decrease of $52.3 million from year end 2025, but $47 million or 3.99% higher compared to $1.12 billion as of March 31, 2025. Contributing to the Company’s year-over-year growth in assets was growth in the Company’s gross loan portfolio of $43.6 million, or 4.64%, compared to the 2025 period. Deposit balances increased $38 million, or 3.89%, compared to the same period in 2025 The year-over-year loan growth was primarily funded by a combination of cash, maturities of securities, as well as an increase in core and brokered deposits.
The Company’s securities portfolio totaled $138 million as of March 31, 2026, a 4.67% decrease compared to $145 million as of December 31, 2025. As stated above, the cashflow from maturing securities was used to fund loan growth during the year. The portfolio is classified as available-for-sale and is required to be reported at fair market value with the unrealized loss, net of a deferred tax adjustment, as an adjustment to total equity. Such unrealized losses reflect the interest rate environment, as current rates remain below the coupon rates on the securities, resulting in a fair market value lower than current book values. As of March 31, 2026, the adjustment to equity was $9.8 million, representing an improvement of $3.6 million from the adjustment to equity of $13.4 million as of March 31, 2025.
| 1 |
Total net interest income for the first quarter ended March 31, 2026, increased $1.5 million, or 15.99%, to $11 million, compared to $9.4 million for the same quarter in 2025. The year-over-year improvement reflects an increase of $1.2 million, or 9.21%, in interest and fees on loans due to strong loan growth and higher yields, as well as higher interest on federal funds sold and overnight deposits of $335,150.
The provision for credit losses for the first quarter ended March 31, 2026, was $391,505, compared to $325,054 for the same period in 2025. The provision for credit losses for March 31, 2026, was determined under Accounting Standard No. 2016-13, Measurement of Credit Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses, or CECL.
Total non interest income for the first quarter ended March 31, 2026 was $1.7 million, an increase of $166,731, or 11%, from $1.6 million for the same period in 2025.
Equity capital increased to $116.8 million, with a book value per share of $20.88, as of March 31, 2026, compared to equity capital of $113.7 million and a book value per share of $20.36 as of December 31, 2025. This change includes an increase of $164,132 in unrealized losses in the investment portfolio year to date and a decrease of $3.6 million year over year, due to changing bond rates, which increased the fair market value of the investment portfolio, as well as an increase of $2.9 million in the current year first quarter and an increase of $12.2 million year over year in retained earnings. The unrealized loss position is considered temporary and does not impact the Company’s regulatory capital ratios. In the fourth quarter of 2025, the Company completed the optional redemption of all fifteen of the Company’s outstanding shares of its Series A Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. The preferred stock value of $1,500,000 was included in the Company’s equity capital as of March 31, 2025.
President and CEO Christopher Caldwell commented on the Company’s results: “The first quarter of 2026 was a continuation of the strong performance of our bank. We continue to stress the value of relationship banking throughout our footprint. This quarter we were able to uplist to the Nasdaq Capital Markets exchange. This move has generated improved liquidity and price for our shareholders. Our performance continues to help us provide a strong return to our shareholders and our communities. We are pleased to see our tangible book value increase in the first quarter by 4% while our quarter earnings per share increased by 26% compared to March 31, 2025. We remain committed to running a bank that our communities find helpful and beneficial while supporting our investors’ trust in our company”.
As previously announced, the Company declared a quarterly cash dividend of $0.25 per share payable May 1, 2026, to shareholders of record as of April 26, 2026.
About Community Bancorp.
Community Bancorp. is the parent holding company for Community National Bank, headquartered in Derby, Vermont. 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
| 2 |
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements about the Company’s financial condition, capital status, dividend payment practices, business outlook and affairs. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” 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 national or regional economic conditions, national fiscal or monetary policies, or national or international tariff or trade conditions result in a deterioration of the credit quality of our loan portfolio 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. The Company cautions you not to rely unduly on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results or events. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law.
Use of Non-GAAP Financial Measures
In addition to evaluating the Company’s results of operations in accordance with generally accepted accounting principles in the United States (“GAAP”), management supplements this evaluation with certain non-GAAP financial measures such as pre-tax, pre-provision income; fully diluted tangible book value per common share and tangible common equity to tangible assets. Management believe these non-GAAP financial measures help investors better understand the Company’s operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found at the end of this document.
| 3 |
Community Bancorp. And Subsidiary
Consolidated Balance Sheets (unaudited)
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| March 31, |
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| December 31, |
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| 2026 |
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| 2025 |
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| Assets |
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| Cash and due from banks |
| $ | 9,512,920 |
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| $ | 11,802,391 |
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| Federal funds sold and overnight deposits |
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| 55,086,179 |
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| 116,259,370 |
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| Total cash and cash equivalents |
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| 64,599,099 |
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| 128,061,761 |
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| Securities available-for-sale (amortized cost $150,158,141 and $156,694,754 at 03/31/26 and 12/31/25, respectively |
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| 137,784,382 |
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| 144,528,758 |
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| Restricted equity securities, at cost |
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| 2,902,450 |
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| 2,933,050 |
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| Loans held-for-sale |
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| 300,000 |
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| 138,000 |
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| Loans |
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| 983,876,487 |
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| 965,285,662 |
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| Allowance for credit losses |
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| (11,280,241 | ) |
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| (10,864,983 | ) |
| Deferred net loan costs |
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| 852,511 |
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| 786,604 |
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| Net loans |
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| 973,448,757 |
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| 955,207,283 |
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| Bank premises and equipment, net |
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| 12,035,404 |
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| 12,090,886 |
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| Accrued interest receivable |
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| 5,298,063 |
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| 4,607,975 |
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| Bank owned life insurance |
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| 5,416,653 |
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| 5,398,085 |
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| Goodwill |
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| 11,574,269 |
|
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| 11,574,269 |
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| Other real estate owned |
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| - |
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|
| 319,019 |
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| Other assets |
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| 21,925,695 |
|
|
| 22,699,860 |
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| Total assets |
| $ | 1,235,284,772 |
|
| $ | 1,287,558,946 |
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| Liabilities and Shareholders’ Equity |
|
|
|
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|
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| Liabilities |
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| Deposits: |
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|
|
|
|
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| Demand, non-interest bearing |
| $ | 199,316,812 |
|
| $ | 218,842,543 |
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| Interest-bearing transaction accounts |
|
| 291,067,383 |
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|
| 299,636,739 |
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| Money market funds |
|
| 148,980,329 |
|
|
| 187,132,921 |
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| Savings |
|
| 147,941,226 |
|
|
| 142,543,291 |
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| Time deposits, $250,000 and over |
|
| 166,165,700 |
|
|
| 46,913,997 |
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| Other time deposits |
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| 64,295,307 |
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|
| 175,598,510 |
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| Total deposits |
|
| 1,017,766,757 |
|
|
| 1,070,668,001 |
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| Repurchase agreements |
|
| 40,086,527 |
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|
| 41,498,171 |
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| Borrowed funds |
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| 35,975,022 |
|
|
| 35,975,022 |
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| Junior subordinated debentures |
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| 12,887,000 |
|
|
| 12,887,000 |
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| Accrued interest and other liabilities |
|
| 11,726,716 |
|
|
| 12,843,774 |
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| Total liabilities |
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| 1,118,442,022 |
|
|
| 1,173,871,968 |
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| Shareholders’ Equity |
|
|
|
|
|
|
|
|
| Common stock - $2.50 par value; 15,000,000 shares authorized, 5,896,981 shares issued at 03/31/26, 5,882,266 shares issued at 12/31/25 and 5,830,269 shares issued at 03/31/25 |
|
| 14,742,453 |
|
|
| 14,705,665 |
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| Additional paid-in capital |
|
| 40,410,499 |
|
|
| 40,076,561 |
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| Retained earnings |
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| 75,997,719 |
|
|
| 73,021,908 |
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| Accumulated other comprehensive loss |
|
| (9,775,269 | ) |
|
| (9,611,137 | ) |
| Less: treasury stock, at cost; 300,409 shares at 03/31/26 and 212,101 shares at 12/31/25 and 03/31/25 |
|
| (4,532,652 | ) |
|
| (4,506,019 | ) |
| Total shareholders’ equity |
|
| 116,842,750 |
|
|
| 113,686,978 |
|
| Total liabilities and shareholders’ equity |
| $ | 1,235,284,772 |
|
| $ | 1,287,558,946 |
|
|
|
|
|
|
|
|
|
|
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| Book value per common share outstanding |
| $ | 20.88 |
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| $ | 20.36 |
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| 4 |
Community Bancorp. and Subsidiary
Consolidated Statements of Income (unaudited)
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|
| Quarter Ended |
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| Quarter Ended |
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|
|
| March 31, 2026 |
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| March 31, 2025 |
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| Interest income |
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|
|
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| Interest and fees on loans |
| $ | 14,432,621 |
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| $ | 13,215,032 |
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| Interest on taxable debt securities |
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| 804,751 |
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|
| 859,231 |
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| Interest on tax-exempt debt securities |
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| 80,411 |
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|
| 80,411 |
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| Dividends |
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| 51,958 |
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|
| 47,890 |
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| Interest on federal funds sold and overnight deposits |
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| 657,098 |
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|
| 321,948 |
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| Total interest income |
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| 16,026,839 |
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| 14,524,512 |
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| Interest expense |
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|
|
|
|
|
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| Interest on deposits |
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| 4,176,632 |
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|
| 4,185,907 |
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| Interest on borrowed funds |
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| 385,950 |
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|
| 370,977 |
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| Interest on repurchase agreements |
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| 293,730 |
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|
| 285,959 |
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| Interest on junior subordinated debentures |
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| 222,647 |
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| 243,345 |
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| Total interest expense |
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| 5,078,959 |
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|
| 5,086,188 |
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| Net interest income |
|
| 10,947,880 |
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|
| 9,438,324 |
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| Credit loss expense |
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| 391,505 |
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|
| 325,054 |
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| Net interest income after credit loss expense |
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| 10,556,375 |
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|
| 9,113,270 |
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| Non-interest income |
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|
|
|
|
|
|
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| Service fees |
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| 936,477 |
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|
| 886,782 |
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| Income from sold loans |
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| 69,546 |
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|
| 69,377 |
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| Other income from loans |
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| 350,194 |
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| 270,167 |
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| Income from investment in CFS Partners |
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| 242,438 |
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|
| 249,350 |
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| Other income |
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| 146,685 |
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|
| 102,933 |
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| Total non-interest income |
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| 1,745,340 |
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|
| 1,578,609 |
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| Non-interest expense |
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| Salaries and wages |
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| 2,578,836 |
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| 2,320,066 |
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| Employee benefits |
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| 1,111,276 |
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| 1,017,974 |
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| Occupancy expenses, net |
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| 774,981 |
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|
| 781,856 |
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| Other expenses |
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| 2,592,267 |
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|
| 2,383,716 |
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| Total non-interest expense |
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| 7,057,360 |
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|
| 6,503,612 |
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| Income before income taxes |
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| 5,244,355 |
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|
| 4,188,267 |
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| Income tax expense |
|
| 875,253 |
|
|
| 662,810 |
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| Net income |
| $ | 4,369,102 |
|
| $ | 3,525,457 |
|
| Earnings per common share |
| $ | 0.78 |
|
| $ | 0.62 |
|
| Weighted average number of common shares used in computing earnings per share |
|
| 5,586,133 |
|
|
| 5,605,278 |
|
| Dividends declared per common share |
| $ | 0.25 |
|
| $ | 0.24 |
|
| 5 |
Community Bancorp. and Subsidiary
Earnings Per Share (“EPS”) (unaudited)
(Dollars in thousands, except share data)
|
|
| For the Quarter Ended March 31, |
| |||||
|
|
| 2026 |
|
| 2025 |
| ||
|
|
| (In thousands, except per share data) |
| |||||
| Net income |
| $ | 4,369 |
|
| $ | 3,525 |
|
| Less: dividends to preferred shareholders |
|
| – |
|
| $ | 30 |
|
| Net income available to common shareholders |
| $ | 4,369 |
|
| $ | 3,495 |
|
| Weighted average number of common shares used in computing earnings per share |
|
| 5,586,133 |
|
|
| 5,605,278 |
|
| Earnings per common share |
| $ | 0.78 |
|
| $ | 0.62 |
|
Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
Community Bancorp. and Subsidiary
(Dollars in thousands, except share data)
|
|
| Quarter Ended |
| |
|
|
| March 31, 2026 |
| |
| Computation of Pre-tax, pre-provision net revenue |
|
|
| |
| Net interest income |
| $ | 10,948 |
|
| Non-interest income |
| $ | 1,745 |
|
| Less: Non-interest expense |
| $ | 7,057 |
|
| Pre-tax, pre-provision net revenue |
| $ | 5,636 |
|
|
|
|
|
|
|
| Computation of Pre-tax, pre-provision net revenue return on average assets |
|
|
|
|
| Pre-tax, pre-provision net revenue |
| $ | 5,636 |
|
| Average Assets |
| $ | 1,249,845 |
|
| Pre-tax, pre-provision net revenue return on average assets |
|
| 1.83 | % |
| 6 |
|
|
| As of |
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|
|
| March 31, 2026 |
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| December 31, 2025 |
|
| September 30, 2025 |
|
| June 30, 2025 |
| ||||
| Computation of Fully Diluted Tangible Book Value per Common Share |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Total shareholders’ equity |
| $ | 116,843 |
|
| $ | 113,687 |
|
| $ | 111,880 |
|
| $ | 106,343 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred Stock |
|
| – |
|
|
| – |
|
| $ | 1,500 |
|
| $ | 1,500 |
|
| Common shareholders’ equity |
| $ | 116,843 |
|
| $ | 113,687 |
|
| $ | 110,380 |
|
| $ | 104,843 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Goodwill |
| $ | 11,574 |
|
| $ | 11,574 |
|
| $ | 11,574 |
|
| $ | 11,574 |
|
| Other Intangibles |
|
| – |
|
|
| – |
|
|
| – |
|
|
| – |
|
| Tangible common shareholders’ equity |
| $ | 105,269 |
|
| $ | 102,113 |
|
| $ | 98,806 |
|
| $ | 93,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares issued and outstanding |
|
| 5,596,572 |
|
|
| 5,582,867 |
|
|
| 5,619,491 |
|
|
| 5,608,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Fully Diluted Tangible Book Value per Common Share |
| $ | 18.81 |
|
| $ | 18.29 |
|
| $ | 17.58 |
|
| $ | 16.63 |
|
|
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| As of |
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|
|
| March 31, 2026 |
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| December 31, 2025 |
|
| September 30, 2025 |
|
| June 30, 2025 |
| ||||
| Computation of Tangible Common Equity to Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Common Equity |
| $ | 116,843 |
|
| $ | 113,687 |
|
| $ | 110,380 |
|
| $ | 104,843 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Goodwill |
| $ | 11,574 |
|
| $ | 11,574 |
|
| $ | 11,574 |
|
| $ | 11,574 |
|
| Other Intangibles |
|
| – |
|
|
| – |
|
|
| – |
|
|
| – |
|
| Tangible Common Equity |
| $ | 105,269 |
|
| $ | 102,113 |
|
| $ | 98,806 |
|
| $ | 93,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
| $ | 1,235,285 |
|
| $ | 1,287,559 |
|
| $ | 1,226,171 |
|
| $ | 1,166,586 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Goodwill |
| $ | 11,574 |
|
| $ | 11,574 |
|
| $ | 11,574 |
|
| $ | 11,574 |
|
| Other Intangibles |
|
| – |
|
|
| – |
|
|
| – |
|
|
| – |
|
| Tangible Assets |
| $ | 1,223,711 |
|
| $ | 1,275,985 |
|
| $ | 1,214,597 |
|
| $ | 1,155,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Common Equity to Tangible Assets |
|
| 8.60 | % |
|
| 8.00 | % |
|
| 8.13 | % |
|
| 8.08 | % |
For more information, contact:
Investor Relations
| 8 |