Community Bancorp 8-K, filed Jul 22, 2020
Community Bancorp (CMTV)
8-K
2020-07-22
For: 2020-07-22
View Original
Added on
April 11, 2026
About this 8-K
Community Bancorp filed this 8-K on July 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
July
22, 2020
(Date
of Report - Date of earliest event reported on)
Community
Bancorp.
(Exact
name of Registrant as Specified in its Charter)
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Vermont
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000-16435
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03-0284070
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|
(State
of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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4811 US
Route 5, Derby, Vermont
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05829
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(Address
of Principal Executive Offices)
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(Zip
Code)
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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
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Title
of Each Class
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Trading
Symbol(s)
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Name of
each exchange on which registered
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(Not
Applicable)
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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.
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|
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Emerging
growth company ( )
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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
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 June 30,
2020.
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 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:
July 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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PRESS
RELEASE
Exhibit 99.1
Community
Bancorp. Reports Earnings and Dividend
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July
22, 2020
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For
immediate release
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For
more information, contact: Kathryn M. Austin, President & CEO
at (802) 334-7915
Trading
Symbol: CMTV
(Traded
on the OTCQX)
Derby,
VT: Community Bancorp., the parent company of Community National
Bank, has reported earnings for the second quarter ended June 30,
2020, of $2,842,310 or $0.54 per share compared to $2,419,298 or
$0.46 per share for the second quarter of 2019. Year to date
earnings for 2020 are $4,703,550 or $0.89 per share compared to
$4,191,203 or $0.80 per share a year ago.
Total
assets at June 30, 2020 were $822,980,551 compared to $737,955,319
at year end and $679,538,291 at June 30, 2019. The year-over-year
asset growth has been driven by an increase in loans in the amount
of $153.5 million offset by a decrease in cash of $5.6 million and
a decrease in the investment portfolio of $3.5 million. The loan
growth year over year is partly attributable to the origination of
Paycheck Protection Program (PPP) loans. Community National Bank,
the subsidiary of the Company, participated in the Paycheck
Protection Program administered by the Small Business Association
as part of the Coronavirus Aid, Relief and Economic Security
(CARES) Act. As of June 30, 2020, Community National Bank
originated 786 loans with a total of over $98.5
million.
Net
interest income increased 4.0% and 3.2% for the quarter to date and
year to date comparative periods. With the Federal Reserve’s
150 basis point reduction in short term interest rates in March,
any increase in interest income for the quarter from loan volume
was offset by a decrease in yields earned on loans resulting in a
decrease in interest income of $70,981 for the second quarter of
2020 compared to the second quarter of 2019. The decrease in short
term rates resulted in a decrease in rates paid on deposit
accounts, borrowed funds and debentures for a decrease in interest
expense of $340,044 for the quarter comparison period and $402,191
for the six months ended June 30, 2020 compared to the six months
ended June 30, 2019.
Current
year to date provision for loan losses was $684,002 compared to
$354,169 for the same period in 2019. Increases to the provision
were partially due to loan growth early in the year as well as
adjustments to the qualitative factors used to estimate the
allowance for loan losses, particularly factors related to the
economic impact to borrowers from the COVID pandemic.
The
Company reported increases in year to date non-interest income of
$362,970 or 13.2% and $327,964 or 22.9% for the second quarter over
the same periods in 2019. Contributing to the increase in
non-interest income is an increase in income from fees related to
mortgage banking activity due to an increase in originations and
sales in the secondary market. The increase in these fees year over
year were $304,977 or 131.6% for the first six months of 2020 and
$267,601 or 207.9% for the quarter.
Non-interest
expenses decreased for the first six months of 2020 $154,312 or
1.5% over the same period last year due in part to write downs of
two OREO properties for a total of $95,008 in the second quarter of
2019 compared to a gain of $24,000 in the first six months of 2020.
Also contributing to the decrease in non-interest expenses are
decreases in travel expenses, marketing expenses, and consulting
expenses as a direct result of the current pandemic
situation.
President
and CEO Kathryn Austin commented on the second quarter results.
“During these unprecedented times, our bankers provided a
sense of stability, ensuring access to essential banking services.
We facilitated 786 PPP loans with an average loan size of $125,421,
with 644, or 82% of those loans under $150,000. This was vital
relief for small businesses and non-profit organizations in our
communities. We provided consumers access to relief payments,
information on assistance programs, and forbearance to
borrowers.
We are
pleased with the second quarter results. It is difficult to predict
the long term effects of the pandemic on the economy, our
borrowers, and the Company’s financial results. We will
continue to support our customers and communities in the days
ahead.
While
the pandemic necessitated a pivot almost overnight to a work
environment and delivery methods we had not experienced, our
employees quickly adjusted, and we rightly assumed our role in the
relief and recovery effort. I could not be more proud of our team
and the amazing work they’ve done for our customers,
shareholders and communities. It is a proud moment to be a
community banker, and we are proud to be Vermont’s Community
Bank.”
As
previously announced, the Company has declared a quarterly cash
dividend of $0.19 per share payable August 1, 2020 to shareholders
of record as of July 15, 2020.
Community
National Bank is an independent bank that has been serving its
communities since 1851, with offices located in Vermont in Derby,
Derby Line, Island Pond, Barton, Newport, Troy, St. Johnsbury,
Montpelier, Barre, Lyndonville, Morrisville, Enosburg Falls,
Burlington and Lebanon, NH.
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.