Community Bancorp. Reports First Quarter 2026 Earnings

Community Bancorp. Reports First Quarter 2026 Earnings 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) 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) 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 (1) Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail. (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. 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 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. Community Bancorp. And Subsidiary Consolidated Balance Sheets (unaudited) March 31, December 31, 2026 2025 Assets Cash and due from banks $ 9,512,920 $ 11,802,391 Federal funds sold and overnight deposits 55,086,179 116,259,370 Total cash and cash equivalents 64,599,099 128,061,761 Securities available-for-sale (amortized cost $150,158,141 and $156,694,754 at 03/31/26 and 12/31/25, respectively 137,784,382 144,528,758 Restricted equity securities, at cost 2,902,450 2,933,050 Loans held-for-sale 300,000 138,000 Loans 983,876,487 965,285,662 Allowance for credit losses (11,280,241 ) (10,864,983 ) Deferred net loan costs 852,511 786,604 Net loans 973,448,757 955,207,283 Bank premises and equipment, net 12,035,404 12,090,886 Accrued interest receivable 5,298,063 4,607,975 Bank owned life insurance 5,416,653 5,398,085 Goodwill 11,574,269 11,574,269 Other real estate owned - 319,019 Other assets 21,925,695 22,699,860 Total assets $ 1,235,284,772 $ 1,287,558,946 Liabilities and Shareholders' Equity Liabilities Deposits: Demand, non-interest bearing $ 199,316,812 $ 218,842,543 Interest-bearing transaction accounts 291,067,383 299,636,739 Money market funds 148,980,329 187,132,921 Savings 147,941,226 142,543,291 Time deposits, $250,000 and over 166,165,700 46,913,997 Other time deposits 64,295,307 175,598,510 Total deposits 1,017,766,757 1,070,668,001 Repurchase agreements 40,086,527 41,498,171 Borrowed funds 35,975,022 35,975,022 Junior subordinated debentures 12,887,000 12,887,000 Accrued interest and other liabilities 11,726,716 12,843,774 Total liabilities 1,118,442,022 1,173,871,968 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 Additional paid-in capital 40,410,499 40,076,561 Retained earnings 75,997,719 73,021,908 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 Book value per common share outstanding $ 20.88 $ 20.36 Community Bancorp. and Subsidiary Consolidated Statements of Income (unaudited) Quarter Ended Quarter Ended March 31, 2026 March 31, 2025 Interest income Interest and fees on loans $ 14,432,621 $ 13,215,032 Interest on taxable debt securities 804,751 859,231 Interest on tax-exempt debt securities 80,411 80,411 Dividends 51,958 47,890 Interest on federal funds sold and overnight deposits 657,098 321,948 Total interest income 16,026,839 14,524,512 Interest expense Interest on deposits 4,176,632 4,185,907 Interest on borrowed funds 385,950 370,977 Interest on repurchase agreements 293,730 285,959 Interest on junior subordinated debentures 222,647 243,345 Total interest expense 5,078,959 5,086,188 Net interest income 10,947,880 9,438,324 Credit loss expense 391,505 325,054 Net interest income after credit loss expense 10,556,375 9,113,270 Non-interest income Service fees 936,477 886,782 Income from sold loans 69,546 69,377 Other income from loans 350,194 270,167 Income from investment in CFS Partners 242,438 249,350 Other income 146,685 102,933 Total non-interest income 1,745,340 1,578,609 Non-interest expense Salaries and wages 2,578,836 2,320,066 Employee benefits 1,111,276 1,017,974 Occupancy expenses, net 774,981 781,856 Other expenses 2,592,267 2,383,716 Total non-interest expense 7,057,360 6,503,612 Income before income taxes 5,244,355 4,188,267 Income tax expense 875,253 662,810 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 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 % As of March 31, 2026 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 Fully Diluted Tangible Book Value per Common Share $ 18.81 $ 18.29 $ 17.58 $ 16.63 As of March 31, 2026 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 [email protected] SOURCE: Community Bancorp. Inc Vermont View the original press release on ACCESS Newswire