Community Bancorp 8-K, filed Apr 21, 2021
Community Bancorp (CMTV)
8-K
2021-04-21
For: 2021-04-21
View Original
Added on
April 11, 2026
About this 8-K
Community Bancorp filed this 8-K on April 21, 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)
|
|
|
|
|
(State
of Incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
|
|
|
(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:
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
April 21, 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 March 31,
2021.
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 of Community Bancorp. dated April
21, 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.
|
|
COMMUNITY
BANCORP.
|
|
|
|
|
|
|
DATED:
April 21, 2021
|
/s/
Kathryn M. Austin
|
|
|
|
Kathryn
M. Austin, President &
|
|
|
|
Chief
Executive Officer
|
|
Exhibit
99.1
Community
Bancorp. Reports First Quarter 2021 Earnings;
Continued
Strong Growth in Deposits, Earnings and Assets
Derby,
VT: April 21, 2021 --- Community Bancorp., (OTCQX:CMTV) Community
National Bank, has reported earnings for the first quarter ended
March 31, 2021, of $3,025,701 or $0.57 per share, an increase of
$1,164,462, or 63% compared to $1,861,239 or $0.35 per share for
the first quarter of 2020.
Total
assets for the Company at the end of the quarter were $937,522,251
compared to $918,233,284 at year-end 2020 and $751,692,254 as of
March 31, 2020. The increase in total consolidated assets this year
has been driven by an increase in loans in the amount of $20.1
million, largely attributable to the origination of Paycheck
Protection Program (“PPP”) loans in the amount of $53
million and an increase in the available-for-sale investment
portfolio of $21.2 million. These increases were funded in part by
a decrease in overnight deposits of $26.9 million and an increase
in total deposits of $23.7 million. Similarly, the $185.8 million
increase in assets, year over year, reflects increased loans of
$95.1 million, the investment portfolio of $40.1 million and
overnight deposits of $47.7 million. Core deposit growth enabled
the Company to pay off $20.4 million in short-term borrowed funds,
reducing its total borrowing position to $2.3 million. Total
deposit balances have increased $187.8 million, or 30.4%, year over
year.
The
Company’s strong earnings reflect processing fees from the
SBA for the origination of PPP loans in the amount of $1.2 million
in the first quarter of 2021, of which there were none in the same
quarter in 2020. Interest expense decreased $621 thousand, or 42.1%
year over year, reflecting historically low rates and significant
increases in non-interest-bearing demand deposit accounts,
offsetting the impact of the significant increase in total deposit
balances. Lower interest rates on deposit accounts have not
resulted in any loss of accounts or lower balances in core deposit
accounts.
President
and CEO Kathryn Austin commented on the Company’s results:
“In the first quarter of 2021, our Company continued to
perform strongly as the economic and business trends seen in 2020
continued to affect our customer base. Despite the remaining
challenges associated with the pandemic, we successfully met the
needs for timely access to a second round of PPP loans for
customers and non-customers, as re-openings have begun. The
historically low-interest-rate environment reduced our interest
expense, while our careful management of loans enabled us to
minimize charge-off activity in this year’s first quarter,
despite a larger loan portfolio. We remain focused on executing our
strategy of responsible, profitable growth, confident that we are
even better positioned to serve our customers and
communities.”
The
provision for loan losses for the first three months ended March
31, 2021 was $267,497, compared to $376,503 for the same period in
2020. The year over year decrease primarily reflects negligible net
charge off activity this year, compared to higher than anticipated
loan charge off activity as well as loan growth during the first
quarter of 2020.
Total
non-interest income for the three months ended March 31, 2021 of
$1,572,231 increased 16% from $1,353,707 for the same period in
2020. Total non-interest expenses increased $272 thousand, or 5.3%
year over year, due to increases in salaries and benefits of 4.5%,
a 9.0% increase in occupancy partly due to a branch relocation and
renovation, and normal increases in other operating expenses of
5.2%
Equity
capital grew to $78.1 million, with a book value per share of
$14.36 as of March 31, 2021, compared to equity capital of $70.6
million and a book value of $13.14 as of March 31,
2020.
As
previously announced, the Company has declared a quarterly cash
dividend of $0.22 per share payable May 1, 2021 to shareholders of
record as of April 15, 2021.
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.
For
more information, contact:
Kathryn
Austin, President & CEO at (802) 334-7915