Community Bancorp 10-Q for FY2026 Q2

Community Bancorp (CMTV)

10-Q 2026-08-14 For: 2026-06-30

Added on August 14, 2026

About this 10-Q

Community Bancorp filed this 10-Q on August 14, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $4.69M; up 15.5% from net income of $4.06M a year earlier
Diluted EPS: $0.84; up 16.7% from $0.72 a year earlier

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Vermont			03-0284070
(State of Incorporation)			(IRS Employer Identification Number)

4811 US Route 5, Derby, Vermont			05829
(Address of Principal Executive Offices)			(zip code)

Registrant's Telephone Number: (802) 334-7915

Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $2.50 per value per share	CMTV	The Nasdaq Stock Market LLC

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

Index
		Page
PART I	FINANCIAL INFORMATION

Item 1	Financial Statements	3
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3	Quantitative and Qualitative Disclosures About Market Risk	54
Item 4	Controls and Procedures	55

PART II	OTHER INFORMATION

Item 1	Legal Proceedings	56
Item 1A	Risk Factors	56
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	56
Item 6	Exhibits	57
	Signatures	58
	Exhibit Index	59

Community Bancorp. and Subsidiary	June 30,			December 31,
Consolidated Balance Sheets	2026			2025
	(Unaudited)

Assets
Cash and due from banks	$	19,772,554		$	11,802,391
Federal funds sold and overnight deposits		5,840,996			116,259,370
Total cash and cash equivalents		25,613,550			128,061,761
Securities available-for-sale (amortized cost $139,848,277 and $156,694,754 at 06/30/26 and 12/31/25, respectively)		127,982,828			144,528,758
Restricted equity securities, at cost		1,918,950			2,933,050
Loans held-for-sale		813,332			138,000
Loans		970,535,252			965,285,662
Allowance for credit losses		(11,881,321	)		(10,864,983	)
Deferred net loan costs		940,423			786,604
Net loans		959,594,354			955,207,283
Bank premises and equipment, net		12,220,494			12,090,886
Accrued interest receivable		4,505,039			4,607,975
Bank owned life insurance		5,435,603			5,398,085
Goodwill		11,574,269			11,574,269
Other real estate owned		0			319,019
Other assets		23,090,295			22,699,860
Total assets	$	1,172,748,714		$	1,287,558,946

Liabilities and Shareholders' Equity
Liabilities
Deposits:
Demand, non-interest bearing	$	204,738,374		$	218,842,543
Interest-bearing transaction accounts		278,551,211			299,636,739
Money market funds		125,665,889			187,132,921
Savings		146,071,626			142,543,291
Time deposits, $250,000 and over		48,195,437			46,913,997
Other time deposits		178,431,659			175,598,510
Total deposits		981,654,196			1,070,668,001
Repurchase agreements		35,019,257			41,498,171
Borrowed funds		10,975,022			35,975,022
Junior subordinated debentures		12,887,000			12,887,000
Accrued interest and other liabilities		11,319,225			12,843,774
Total liabilities		1,051,854,700			1,173,871,968

Shareholders' Equity
Common stock - $2.50 par value; 15,000,000 shares authorized, 5,902,267 shares issued at 06/30/26 and 5,882,266 shares issued at 12/31/25		14,755,668			14,705,665
Additional paid-in capital		40,757,013			40,076,561
Retained earnings		79,287,690			73,021,908
Accumulated other comprehensive loss		(9,373,705	)		(9,611,137	)
Less: treasury stock, at cost; 300,409 shares at 06/30/26 and 299,339 shares at 12/31/25		(4,532,652	)		(4,506,019	)
Total shareholders' equity		120,894,014			113,686,978
Total liabilities and shareholders' equity	$	1,172,748,714		$	1,287,558,946

Book value per common share outstanding	$	21.58		$	20.36

Community Bancorp. and Subsidiary	Three Months Ended June 30,
Consolidated Statements of Income	2026		2025
(Unaudited)

Interest income
Interest and fees on loans	$	14,748,598	$	13,691,705
Interest on taxable debt securities		741,821		948,048
Interest on tax-exempt debt securities		80,411		80,411
Dividends		47,363		58,595
Interest on federal funds sold and overnight deposits		424,413		71,857
Total interest income		16,042,606		14,850,616

Interest expense
Interest on deposits		4,009,541		3,972,008
Interest on borrowed funds		301,838		444,596
Interest on repurchase agreements		262,376		298,057
Interest on junior subordinated debentures		221,045		241,413
Total interest expense		4,794,800		4,956,074

Net interest income		11,247,806		9,894,542
Credit loss expense		720,967		407,046
Net interest income after credit loss expense		10,526,839		9,487,496

Non-interest income
Service fees		988,219		969,775
Income from sold loans		89,692		96,705
Other income from loans		537,043		331,759
Income from investment in CFS Partners		579,795		548,308
Other income		117,998		112,164
Total non-interest income		2,312,747		2,058,711

Non-interest expense
Salaries and wages		2,632,767		2,392,661
Employee benefits		1,102,841		1,056,273
Occupancy expenses, net		779,462		794,451
Other expenses		2,650,168		2,424,015
Total non-interest expense		7,165,238		6,667,400

Income before income taxes		5,674,348		4,878,807
Income tax expense		986,564		819,031
Net income	$	4,687,784	$	4,059,776

Earnings per common share	$	0.84	$	0.72
Weighted average number of common shares
used in computing earnings per share		5,594,749		5,612,675
Dividends declared per common share	$	0.25	$	0.24

Community Bancorp. and Subsidiary	Six Months Ended June 30,
Consolidated Statements of Income	2026		2025
(Unaudited)

Interest income
Interest and fees on loans	$	29,181,219	$	26,906,737
Interest on taxable debt securities		1,546,571		1,807,276
Interest on tax-exempt debt securities		160,823		160,823
Dividends		99,321		106,485
Interest on federal funds sold and overnight deposits		1,081,511		393,806
Total interest income		32,069,445		29,375,127

Interest expense
Interest on deposits		8,186,172		8,157,915
Interest on borrowed funds		687,788		815,574
Interest on repurchase agreements		556,106		584,016
Interest on junior subordinated debentures		443,692		484,758
Total interest expense		9,873,758		10,042,263

Net interest income		22,195,687		19,332,864
Credit loss expense		1,112,473		732,100
Net interest income after credit loss expense		21,083,214		18,600,764

Non-interest income
Service fees		1,924,696		1,856,557
Income from sold loans		159,237		166,082
Other income from loans		887,238		601,927
Income from investment in CFS Partners		822,234		797,657
Other income		264,682		215,097
Total non-interest income		4,058,087		3,637,320

Non-interest expense
Salaries and wages		5,211,603		4,712,727
Employee benefits		2,214,118		2,074,245
Occupancy expenses, net		1,554,443		1,576,307
Other expenses		5,242,433		4,807,731
Total non-interest expense		14,222,597		13,171,010

Income before income taxes		10,918,704		9,067,074
Income tax expense		1,861,817		1,481,843
Net income	$	9,056,887	$	7,585,231

Earnings per common share	$	1.62	$	1.34
Weighted average number of common shares
used in computing earnings per share		5,590,465		5,608,997
Dividends declared per common share	$	0.50	$	0.48

Community Bancorp. and Subsidiary
Consolidated Statements of Comprehensive Income
(Unaudited)	Three Months Ended June 30,
	2026			2025

Net income	$	4,687,784		$	4,059,776

Other comprehensive income
Unrealized gain on securities AFS arising during the period		508,309			1,157,124
Tax effect		(106,745	)		(242,996	)
Other comprehensive income, net of tax		401,564			914,128
Total comprehensive income	$	5,089,348		$	4,973,904

Community Bancorp. and Subsidiary
Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
	Six Months Ended June 30, 2026
			Additional											Total
	Common		paid-in		Retained						Treasury			shareholders'
	Stock		capital		earnings			AOCI*			stock			equity

January 1, 2026	$	14,705,665	$	40,076,561	$	73,021,908		($9,611,137)			($4,506,019)			$	113,686,978

Issuance of common stock		36,788		333,938											370,726
Cash dividends declared
Common stock						(1,393,291	)								(1,393,291	)
Preferred stock						0									0
Shares purchased through stock buyback plan												(26,633	)		(26,633	)
Comprehensive income
Net income						4,369,102									4,369,102
Other comprehensive loss									(164,132	)					(164,132	)
March 31, 2026	$	14,742,453	$	40,410,499	$	75,997,719		($9,775,269)			($4,532,652)			$	116,842,750

Issuance of common stock		13,215		346,514											359,729
Cash dividends declared
Common stock						(1,397,813	)								(1,397,813	)
Preferred stock						0									0
Shares purchased through stock buyback plan												0			0
Comprehensive income
Net income						4,687,784									4,687,784
Other comprehensive income									401,564						401,564
June 30, 2026	$	14,755,668	$	40,757,013	$	79,287,690		($9,373,705)			($4,532,652)			$	120,894,014

Community Bancorp. and Subsidiary
Consolidated Statements of Cash Flows
(Unaudited)	Six Months Ended June 30,
	2026			2025

Cash Flows from Operating Activities:
Net income	$	9,056,887		$	7,585,231
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, bank premises and equipment		501,759			516,568
Credit loss expense		1,112,473			732,100
Deferred income tax benefit		(110,975	)		(39,732	)
Gain on sale of loans		(44,874	)		(39,749	)
(Gain) loss on sale of bank premises and equipment		(18,486	)		7,839
Gain on sale of OREO		(37,318	)		0
Income from CFS Partners		(822,234	)		(797,658	)
Amortization of bond premium, net		25,076			36,411
Proceeds from sales of loans held for sale		1,480,391			1,872,874
Originations of loans held for sale		(2,110,849	)		(2,691,225	)
Decrease in taxes payable		(125,074	)		(87,161	)
Decrease in interest receivable		102,936			29,856
Decrease in mortgage servicing rights		40,168			44,685
Decrease (increase) in right-of-use assets		112,190			(298,008	)
(Decrease) increase in operating lease liabilities		(106,358	)		323,243
Decrease (increase) in other assets		49,699			(263,660	)
Increase in cash surrender value of BOLI		(37,518	)		(40,441	)
Amortization of limited partnerships		770,782			425,736
Change in net deferred loan fees and costs		(153,819	)		(57,815	)
Decrease in interest payable		(113,579	)		(1,938,683	)
Decrease in accrued expenses		(15,222	)		(622,869	)
Decrease in other liabilities		(192,158	)		(104,836	)
Net cash provided by operating activities		9,363,897			4,592,706

Cash Flows from Investing Activities:
Investments - AFS
Maturities, calls, pay downs and sales		16,821,399			19,913,602
Purchases		0			(14,971,773	)
Proceeds from redemption of restricted equity securities		1,167,201			1,316,700
Purchases of restricted equity securities		(153,100	)		(2,107,700	)
Decrease in limited partnership contributions payable		(1,182,994	)		0
Investments in limited liability entities		(255,916	)		0
Increase in loans, net		(5,328,232	)		(13,933,241	)
Capital expenditures net of proceeds from sales of bank premises and equipment		(653,753	)		(386,502	)
Proceeds from sales of OREO		356,337			0
Recoveries of loans charged off		105,448			36,874
Net cash provided by (used in) investing activities		10,876,390			(10,132,040	)

	2026			2025

Cash Flows from Financing Activities:
Net decrease in demand and interest-bearing transaction accounts		(35,189,697	)		(40,105,058	)
Net decrease in money market and savings accounts		(57,938,697	)		(38,710,600	)
Net increase in time deposits		4,114,589			10,136,759
Net decrease in repurchase agreements		(6,478,914	)		(2,716,058	)
Net decrease in short-term borrowings		0			(21,800,000	)
(Repayment) proceeds from long-term borrowings		(25,000,000	)		5,000,000
Decrease in finance lease obligations		(120,066	)		(116,370	)
Shares purchased through stock buyback program		(26,633	)		(548,218	)
Dividends paid on preferred stock		0			(56,250	)
Dividends paid on common stock		(2,049,080	)		(1,957,974	)
Net cash used in financing activities		(122,688,498	)		(90,873,769	)

Net decrease in cash and cash equivalents		(102,448,211	)		(96,413,103	)
Cash and cash equivalents:
Beginning		128,061,761			110,940,202
Ending	$	25,613,550		$	14,527,099

Supplemental Schedule of Cash Paid During the Period:
Interest	$	9,987,337		$	11,980,946

Income taxes, net of refunds	$	1,583,000		$	1,183,000

Supplemental Schedule of Noncash Investing and Financing Activities:
Change in unrealized gain on securities AFS	$	300,545		$	4,163,265

Additions to operating lease liabilities	$	71,318		$	510,199

Investment in limited partnerships, not yet paid	$	3,173,006		$	4,356,000

Common Shares Dividends Paid:
Dividends declared	$	2,791,105		$	2,690,221
Increase in dividends payable attributable to dividends declared		(11,570	)		(16,566	)
Dividends reinvested		(730,455	)		(715,681	)
Total dividends paid	$	2,049,080		$	1,957,974

ABS:	Asset backed security	FASB:	Financial Accounting Standards Board
ACL:	Allowance for Credit Losses	FDIC:	Federal Deposit Insurance Corporation
AFS:	Available-for-sale	FDICIA:	Federal Deposit Insurance Corporation
Agency MBS:	MBS issued by a US government agency		Improvement Act of 1991
	or GSE	FHLBB:	Federal Home Loan Bank of Boston
ALCO:	Asset Liability Committee	FHLMC:	Federal Home Loan Mortgage Corporation
AOCI:	Accumulated other comprehensive income	FOMC:	Federal Open Market Committee
ASC:	Accounting Standards Codification	FRB:	Federal Reserve Board
ASU:	Accounting Standards Update	FRBB:	Federal Reserve Bank of Boston
Bancorp:	Community Bancorp.	GAAP:	Generally Accepted Accounting Principles
Bank:	Community National Bank		in the United States
BHG:	Bankers Healthcare Group	GSE:	Government sponsored enterprise
BIC:	Borrower-in-Custody	HTM:	Held-to-maturity
Board:	Board of Directors	ICS:	Insured Cash Sweeps of the IntraFi Network
BOLI:	Bank owned life insurance	IRS:	Internal Revenue Service
bp or bps:	Basis point(s)	JNE:	Jobs for New England
BTFP:	Bank Term Funding Program	Jr:	Junior
CDARS:	Certificate of Deposit Accounts Registry	MBS:	Mortgage-backed security
	Service of the IntraFi Network	MSRs:	Mortgage servicing rights
CDs:	Certificates of deposit	NII:	Net interest income
CECL:	Current Expected Credit Loss	NMTC:	New Market Tax Credit
CFSG:	Community Financial Services Group, LLC	OAS:	Other amortizing security
CFS Partners:	Community Financial Services Partners,	OBS:	Off-balance sheet
	LLC	OCI:	Other comprehensive income (loss)
CME:	CME Group Benchmark Administration Ltd.	OREO:	Other real estate owned
CMO:	Collateralized Mortgage Obligations	OTTI:	Other-than-temporary impairment
Company:	Community Bancorp. and Subsidiary	PMI:	Private mortgage insurance
CRE:	Commercial Real Estate	PPP:	Paycheck Protection Program
DCF:	Discounted cash flow	RD:	USDA Rural Development
DDA or DDAs:	Demand Deposit Account(s)	SBA:	U.S. Small Business Administration
DTC:	Depository Trust Company	SEC:	U.S. Securities and Exchange Commission
DRIP:	Dividend Reinvestment Plan	SOFR:	Secured Overnight Financing Rate
Exchange Act:	Securities Exchange Act of 1934	USDA:	U.S. Department of Agriculture
		VA:	U.S. Veterans Administration

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
June 30, 2026
U.S. GSE debt securities	$	12,000,000	$	0	$	539,562	$	11,460,438
U.S. Government securities		7,005,615		0		74,520		6,931,095
Taxable Municipal securities		300,000		0		37,015		262,985
Tax-exempt Municipal securities		10,682,842		90,973		482,063		10,291,752
Agency MBS		107,756,748		173,218		10,906,243		97,023,723
ABS and OAS		1,497,096		0		85,128		1,411,968
CMO		109,976		0		3,461		106,515
Other investments		496,000		0		1,648		494,352
Total	$	139,848,277	$	264,191	$	12,129,640	$	127,982,828

December 31, 2025
U.S. GSE debt securities	$	12,000,000	$	0	$	556,223	$	11,443,777
U.S. Government securities		11,521,640		0		185,660		11,335,980
Taxable Municipal securities		300,000		0		34,437		265,563
Tax-exempt Municipal securities		10,712,772		105,694		494,815		10,323,651
Agency MBS		118,162,360		443,634		11,344,758		107,261,236
ABS and OAS		1,745,851		0		78,970		1,666,881
CMO		1,756,131		0		12,327		1,743,804
Other investments		496,000		0		8,134		487,866
Total	$	156,694,754	$	549,328	$	12,715,324	$	144,528,758

December 31, 2025
Due in one year or less	$	14,556,482	$	14,347,722
Due from one to five years		11,054,063		10,602,542
Due from five to ten years		2,853,838		2,638,068
Due after ten years		10,068,011		9,679,190
Agency MBS		118,162,360		107,261,236
Total	$	156,694,754	$	144,528,758

	Less than 12 months				12 months or more				Totals
	Fair		Unrealized		Fair		Unrealized		Number of		Fair		Unrealized
	Value		Loss		Value		Loss		Securities		Value		Loss
June 30, 2026
U.S. GSE debt securities	$	0	$	0	$	11,460,438	$	539,562		11	$	11,460,438	$	539,562
U.S. Government securities		0		0		6,931,095		74,521		12		6,931,095		74,520
Taxable Municipal securities		0		0		262,985		37,015		1		262,985		37,015
Tax-exempt Municipal securities		1,509,098		16,289		4,529,967		465,773		13		6,039,065		482,063
Agency MBS		9,806,811		60,316		76,764,104		10,845,927		116		86,570,915		10,906,243
ABS and OAS		0		0		1,411,969		85,128		4		1,411,968		85,128
CMO		0		0		106,515		3,461		2		106,515		3,461
Other investments		0		0		494,352		1,648		2		494,352		1,648
Total	$	11,315,909	$	76,605	$	101,961,425	$	12,053,035		161	$	113,277,333	$	12,129,640

The composition of net loans follows:
	June 30, 2026					December 31, 2025

Commercial & industrial	$	117,749,482		12.14	%	$	107,458,746		11.13	%
Purchased (1)		8,208,684		0.85	%		10,010,347		1.04	%
Commercial real estate		498,088,756		51.32	%		499,647,904		51.76	%
Municipal		44,583,605		4.59	%		62,078,419		6.43	%
Residential real estate - 1st lien		251,402,921		25.90	%		236,556,346		24.51	%
Residential real estate - Jr lien		47,584,816		4.90	%		46,472,047		4.81	%
Consumer		2,916,988		0.30	%		3,061,853		0.32	%
Total loans		970,535,252		100.00	%		965,285,662		100.00	%

ACL		(11,881,321	)				(10,864,983	)
Deferred net loan costs		940,423					786,604
Net loans	$	959,594,354				$	955,207,283

	Balance							Credit Loss			Balance
	March 31,							Expense			June 30,
	2026		Charge-offs			Recoveries		(Reversal)			2026

Commercial & Industrial	$	659,892	($1,525)			$	43,409	$	598,648		$	1,300,424
Purchased		27,847		0			0		(3,065	)		24,782
Commercial Real Estate		6,641,815		0			0		(131,909	)		6,509,906
Municipal		160,265		0			0		(48,806	)		111,459
Residential Real Estate - 1st Lien		3,170,615		0			3,807		120,487			3,294,909
Residential Real Estate - Jr Lien		591,510		0			0		24,137			615,647
Consumer		28,297		(23,701	)		16,542		3,056			24,194
Totals	$	11,280,241	($25,226)			$	63,758	$	562,548		$	11,881,321

As of June 30, 2026													Revolving		Revolving
													Loans		Loans
	Term Loans Amortized Cost Basis by Origination Year												Amortized		Converted
	2026		2025		2024		2023		2022		Prior		Cost Basis		to Term		Total
	*(Dollars in Thousands)*
Commercial & Industrial:
Pass	$	9,176	$	10,946	$	15,403	$	7,891	$	9,329	$	5,300	$	47,467	$	0	$	105,512
Special mention		0		8		147		142		973		64		3,884		0		5,218
Substandard/Doubtful		0		0		0		499		3,756		970		1,794		0		7,019
Total	$	9,176	$	10,954	$	15,550	$	8,532	$	14,058	$	6,334	$	53,145	$	0	$	117,749

Purchased:
Pass	$	3,700	$	0	$	0	$	2,191	$	61	$	2,257	$	0	$	0	$	8,209
Total	$	3,700	$	0	$	0	$	2,191	$	61	$	2,257	$	0	$	0	$	8,209

Commercial real estate:
Pass	$	29,902	$	58,920	$	54,610	$	70,165	$	72,536	$	141,017	$	48,992	$	0	$	476,142
Special mention		0		0		583		5,171		2,908		7,123	$	198		0		15,983
Substandard/Doubtful		0		209		1,201		0		32		4,522		0		0		5,964
Total	$	29,902	$	59,129	$	56,394	$	75,336	$	75,476	$	152,662	$	49,190	$	0	$	498,089

Municipal:
Pass	$	7,898	$	4,179	$	3,887	$	111	$	156	$	11,476	$	15,686	$	0	$	43,393
Special mention		0		0		0		0		0		1,191		0		0		1,191
Total	$	7,898	$	4,179	$	3,887	$	111	$	156	$	12,667	$	15,686	$	0	$	44,584

Residential real estate - 1st lien:
Pass	$	25,491	$	43,941	$	25,628	$	24,518	$	29,454	$	93,596	$	4,977	$	0	$	247,605
Special mention		0		0		0		238		595		436		0		0		1,269
Substandard/Doubtful		2,411		0		0		40		0		77		0		0		2,528
Total	$	27,902	$	43,941	$	25,628	$	24,796	$	30,049	$	94,109	$	4,977	$	0	$	251,402

Residential real estate - Jr lien:
Pass	$	983	$	5,953	$	3,791	$	1,202	$	1,328	$	1,181	$	31,142	$	1,673	$	47,253
Special mention		0		0		66		0		0		54		0		0		120
Substandard/Doubtful		0		0		0		0		0		12	$	200		0		212
Total	$	983	$	5,953	$	3,857	$	1,202	$	1,328	$	1,247	$	31,342	$	1,673	$	47,585

Consumer:
Pass	$	1,160	$	785	$	526	$	250	$	93	$	103	$	0	$	0	$	2,917
Total	$	1,160	$	785	$	526	$	250	$	93	$	103	$	0	$	0	$	2,917

Total Loans	$	80,721	$	124,941	$	105,842	$	112,418	$	121,221	$	269,379	$	154,340	$	1,673	$	970,535

As of December 31, 2025													Revolving		Revolving
													Loans		Loans
	Term Loans Amortized Cost Basis by Origination Year												Amortized		Converted
	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
	*(Dollars in Thousands)*
Commercial & Industrial:
Pass	$	11,960	$	17,660	$	9,792	$	11,597	$	3,493	$	3,673	$	39,322	$	0	$	97,497
Special mention		0		0		7		91	$	29		0		1,102		0		1,229
Substandard/Doubtful		0		0		545		3,948		497		1,374		2,369		0		8,733
Total	$	11,960	$	17,660	$	10,344	$	15,636	$	4,019	$	5,047	$	42,793	$	0	$	107,459

Purchased:
Pass	$	4,213	$	0	$	3,046	$	67	$	733	$	1,951	$	0	$	0	$	10,010
Total	$	4,213	$	0	$	3,046	$	67	$	733	$	1,951	$	0	$	0	$	10,010

Commercial real estate:
Pass	$	59,936	$	55,850	$	81,591	$	88,236	$	32,288	$	118,864	$	44,536	$	0	$	481,301
Special mention		0		0		4,605		176		0		7,034		0		0		11,815
Substandard/Doubtful		220		1,217		0		0		0		5,095		0		0		6,532
Total	$	60,156	$	57,067	$	86,196	$	88,412	$	32,288	$	130,993	$	44,536	$	0	$	499,648

Municipal:
Pass	$	26,477	$	4,074	$	136	$	236	$	2,579	$	9,469	$	17,870	$	0	$	60,841
Special mention		0		0		0		0		0		1,238		0		0		1,238
Total	$	26,477	$	4,074	$	136	$	236	$	2,579	$	10,707	$	17,870	$	0	$	62,079

Residential real estate - 1st lien:
Pass	$	44,262	$	26,622	$	25,994	$	31,186	$	32,717	$	68,611	$	4,445	$	0	$	233,837
Special mention		0		0		154		183		224		158		0		0		719
Substandard/Doubtful		0		0		41		0		107		1,852		0		0		2,000
Total	$	44,262	$	26,622	$	26,189	$	31,369	$	33,048	$	70,621	$	4,445	$	0	$	236,556

Residential real estate - Jr lien:
Pass	$	6,149	$	3,005		1,490	$	1,425	$	279	$	1,030	$	31,264	$	1,686	$	46,328
Special mention		0		68		0		0		0		61		0		0		129
Substandard/Doubtful		0		0		0		0		0		15		0		0		15
Total	$	6,149	$	3,073	$	1,490	$	1,425	$	279	$	1,106	$	31,264	$	1,686	$	46,472

Consumer:
Pass	$	1,583	$	695	$	395	$	182	$	73	$	134	$	0	$	0	$	3,062
Total	$	1,583	$	695	$	395	$	182	$	73	$	134	$	0	$	0	$	3,062

Total Loans	$	154,800	$	109,191	$	127,796	$	137,327	$	73,019	$	220,559	$	140,908	$	1,686	$	965,286

For the six months ended June 30, 2026
	Term Loans Amortized Cost Basis by Origination Year
	2026		2025		2024		2023		2022		Prior		Total
	*(Dollars in Thousands)*
Current period gross charge-offs
Commercial & Industrial	$	29	$	0	$	0	$	0	$	2	$	0	$	31
Consumer		10		1		11		0		0		26		48
Total current period gross charge-offs	$	39	$	1	$	11	$	0	$	2	$	26	$	79

For the year ended December 31, 2025
	Term Loans and Charge Offs by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
	*(Dollars in Thousands)*
Current period gross charge-offs
Commercial & Industrial	$	83	$	0	$	8	$	0	$	0	$	303	$	394
Residential real estate - 1st lien		0		0		0		13		0		0		13
Consumer		1		17		5		5		1		64		93
Total current period gross charge-offs	$	84	$	17	$	13	$	18	$	1	$	367	$	500

			90 Days or
	Total		More and
June 30, 2026	Nonaccrual		Accruing

Commercial & industrial	$	5,831,428	$	0
Commercial real estate		2,259,494		0
Residential real estate - 1st lien		109,497		173,709
Residential real estate - Jr lien		12,112		0
Totals	$	8,212,531	$	173,709

			90 Days		Total
June 30, 2026	30-89 Days		or More		Past Due		Current		Total Loans

Commercial & industrial	$	44,544	$	31,140	$	75,684	$	117,673,798	$	117,749,482
Purchased		0		0		0		8,208,684		8,208,684
Commercial real estate		3,368,282		13,556		3,381,838		494,706,918		498,088,756
Municipal		0		0		0		44,583,605		44,583,605
Residential real estate - 1st lien		927,780		201,919		1,129,699		250,273,222		251,402,921
Residential real estate - Jr lien		464,905		0		464,905		47,119,911		47,584,816
Consumer		23,719		0		23,719		2,893,269		2,916,988
Totals	$	4,829,230	$	246,615	$	5,075,845	$	965,459,407	$	970,535,252

	Business
	Assets (1)		Real Estate		Total
June 30, 2026
Commercial & industrial	$	2,774,382	$	0	$	2,774,382
Commercial real estate		0		1,356		1,356
Totals	$	2,774,382	$	1,356	$	2,775,738

December 31, 2025
Commercial real estate	$	0	$	1,755	$	1,755
Residential real estate - 1st lien		0		153,661		153,661
Totals	$	0	$	155,416	$	155,416

	·	Reduced accrued interest;
	·	Reduced the original contractual interest rate to a rate that is below the current market rate for the borrower;
	·	Converted a variable-rate loan to a fixed-rate loan;
	·	Extended the term of the loan beyond an insignificant delay;
	·	Deferred or forgiven principal in an amount greater than three months of payments;
	·	Performed a refinancing and deferred or forgiven principal on the original loan;
	·	Capitalized protective advance to pay delinquent real estate taxes; or
	·	Capitalized delinquent accrued interest.

			Total Class
	Term		of Financing
	Extension		Receivable

Commercial & Industrial	$	18,712		0.0164	%
Commercial Real Estate		68,241		0.0135	%
Total	$	86,953		0.0298	%

	Weighted-
	Average
	Term Extension
	(months/years)

Commercial & Industrial		3
Commercial Real Estate		3

			Past Due
			90 Days
	Current		or More

Commercial & Industrial	$	32,450	$	0
Commercial Real Estate		68,241		13,556
Total	$	100,691	$	13,556

Six Months Ended June 30,	2026

Balance at beginning of year	$	626,827
MSRs capitalized		16,296
MSRs amortized		(56,464	)
Balance at end of period	$	586,659

Year Ended December 31,	2025

Balance at beginning of year	$	704,488
MSRs capitalized		48,112
MSRs amortized		(125,773	)
Balance at end of year	$	626,827

Level 1	Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasury and other U.S. Government debt securities that are highly liquid and are actively traded in over-the-counter markets.

Level 2	Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes MSRs, individually analyzed loans with a related allowance that are collateral dependent, loans held-for-sale, and OREO.

Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

	Individually analyzed loans: Individually analyzed loans are reported based on one of three measures: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the collateral if the loan is collateral dependent. If the fair value is less than an impaired loan’s recorded investment, an impairment loss is recognized as part of the ACL. Accordingly, certain individually analyzed loans may be subject to measurement at fair value on a non-recurring basis. Management has estimated the fair value of collateral-dependent loans using Level 2 inputs, such as the fair value of collateral based on independent third-party appraisals.

	Loans held-for-sale: The fair value of loans held-for-sale is based upon an actual purchase and sale agreement between the Company and an independent market participant. The sale is executed within a reasonable period following quarter-end at the stated fair value.

	MSRs: MSRs represent the value associated with servicing residential mortgage loans. Servicing assets and servicing liabilities are reported using the amortization method and compared to fair value for impairment. In evaluating the carrying values of MSRs, the Company obtains third party valuations based on loan level data including note rate, and the type and term of the underlying loans. The Company classifies MSRs as non-recurring Level 2.

	June 30,		December 31,
Assets: (market approach)	2026		2025

Level 1
U.S. Government securities	$	6,931,095	$	11,335,980

Level 2
U.S. GSE debt securities	$	11,460,438	$	11,443,777
Taxable Municipal securities		262,985		265,563
Tax-exempt Municipal securities		10,291,752		10,323,651
Agency MBS		97,023,723		107,261,236
ABS and OAS		1,411,968		1,666,881
CMO		106,515		1,743,804
Other investments		494,352		487,866
Level 2 Total	$	121,051,733	$	133,192,778

Grand Total	$	127,982,828	$	144,528,758

	·	interest rates change in such a way as to negatively affect loan demand, the local economy or the Company's net income, asset valuations or margins;
	·	general economic or business conditions, either internationally (including due to changing tariff policies), nationally, regionally or locally, deteriorate, resulting in a decline in credit quality or a diminished demand for the Company's products and services;
	·	the impact of inflation and the rate of economic growth on the Company’s customers and on its financial results and performance;
	·	the effect of United States monetary and fiscal policies, including deficit spending and the interest rate policies of the FRB and its regulation of the money supply;
	·	the impact on our customers of government shutdowns and federal, state and local budgetary cutbacks;
	·	changes in applicable accounting policies, practices and standards;
	·	the geographic concentration of the Company’s loan portfolio and deposit base;
	·	reductions in deposit levels, which necessitate increased borrowings to fund loans and sales of investment securities;
	·	increases in the level of nonperforming assets and charge-offs;
	·	changes in federal or state tax laws or policy;
	·	changes in laws or government rules, including the rules of the federal Consumer Financial Protection Bureau, or the way in which courts or government agencies interpret or implement those laws or rules, may increase our costs of doing business, causing us to limit or change our product offerings or pricing, or otherwise adversely affect the Company's business;
	·	regulatory responses to high profile bank failures increase our costs of operation, including through regulatory compliance changes and higher FDIC deposit insurance assessments to replenish the Bank Insurance Fund (BIF);
	·	competitive pressures increase among financial service providers in the Company's northern New England market area or in the financial services industry generally, including competitive pressures from non-bank lenders, payment systems and other financial service providers, from increasing consolidation and integration of financial service providers, and from changes in technology and delivery systems;