Community Bancorp. Reports Fourth Quarter and Full Year 2025 Financial Results

Community Bancorp. Reports Fourth Quarter and Full Year 2025 Financial Results January 27, 2026 Community Bancorp. (OTCQX:CMTV), the parent company of Community National Bank (the "Bank"), reported consolidated earnings for the fourth quarter ended December 31, 2025, of $4.6 million or $0.83 per share, an increase of $536,850 or 13.10% compared to $4.1 million or $0.73 per share reported for the fourth quarter of 2024. Full year earnings for 2025 were $17 million or $3.01 per share, compared to $12.8 million or $2.28 per share for the prior year period, a significant increase of $4.2 million or 32.93%. On a per share basis, earnings increased 13.70% in the 2025 fourth quarter to $0.83 per share compared to the prior year period; on an annual basis, earnings per share of $3.01 increased 32.02% year-over-year. Full Year 2025 and Fourth Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs): (Unaudited) Year Ended Quarter Ended December 31, 2025 December 31, 2025 Return on average assets 1.41 % 1.49 % Pre-tax, pre-provision net revenue return on average assets(1) 1.81 % 1.91 % Return on average shareholders' equity 16.04 % 16.37 % Net Interest Margin 3.68 % 3.81 % Efficiency Ratio 57.0 % 56.5 % Noninterest expense to average assets 2.25 % 2.32 % Net loan (recoveries) charge-offs as a percentage of average loans 0.04 % 0.04 % Dividend payout 32.55 % 30.21 % Fully diluted tangible book value per common share (1) $ 18.29 $ 18.29 Total capital to risk-weighted assets (2) 15.20 % 15.20 % Total common equity tier 1 capital to risk-weighted assets (2) 13.95 % 13.95 % Tier I Capital to Average Assets (2) 10.28 % 9.90 % Tangible common equity to tangible assets (1) 8.00 % 8.00 % Earnings per common share $ 3.01 $ 0.83 Weighted average number of common shares used in computing earnings per share 5,602,905 5,586,738 Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail. Represents Bank-only ratios. Current period capital ratios are preliminary subject to finalization of the Bank's December 31, 2025 FDIC Call Report. Total assets for the Company at December 31, 2025, were $1.29 billion, an increase of $38.6 million from year end 2024, a 3.09% year-over-year increase. Contributing to the Company's year-over-year growth in assets was growth in the Company's gross loan portfolio of $37 million, or 4.02%, compared to year end 2024 as well as an increase in cash of $17 million or 15.43%. Deposit balances increased $69 million, or 6.89%, compared to the same period in 2024. 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 $144 million as of December 31, 2025, a 9.50% decrease compared to $160 million as of December 31, 2024. 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 December 31, 2025, the adjustment to equity was $9.6 million, representing an improvement of $6.2 million from the adjustment to equity of $15.8 million as of December 31, 2024. Total net interest income for the fourth quarter ended December 31, 2025, increased $1.5 million, or 15.98%, to $11 million, compared to $9.5 million for the same quarter in 2024. The year-over-year improvement reflects an increase of $1.2 million, or 9.26%, in interest and fees on loans due to strong loan growth and higher yields, offset by only slightly higher interest expense on deposits of $116,985, or 2.93%, and on repurchase agreements of $25,104, or 11.10%. Net interest income for the year ended December 31, 2025, increased $6.2 million or 18.03%, to $40.9 million, compared to $34.6 million for the year ended December 31, 2024, reflecting the same trends. The provision for credit losses for the fourth quarter ended December 31, 2025, was $382,807, compared to $27,504 for the same period in 2024. The charge off of a commercial loan in the amount of $299 thousand in the fourth quarter of 2025 resulted in net charge offs for the quarter of $296,594. This compares to net charge offs of $1,284 for the fourth quarter of 2024, due to a recovery of a loan previously charged off earlier in 2024. The recovery in 2024 resulted in a lower provision for the fourth quarter. The year-to-date provision for credit losses was $1.4 million, compared to $1.1 million for the same period in 2024. The $240,250 year-over-year increase was driven partly by the charge off of a commercial loan in 2025. The provision for credit losses for December 31, 2025, 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 fourth quarter ended December 31, 2025, of $2.2 million increased $407,715, or 23.04%, compared to $1.8 million for the same period in 2024. Total non-interest income for the year ended December 31, 2025, grew to $7.9 million, compared to $7.2 million for the year ended December 31, 2024, an increase of $727,089, or 10.12% year-over-year. Total non-interest expenses increased 13.19%, for the fourth quarter comparison period, and $1.5 million, or 6%, year-over-year. Equity capital increased to $113.7 million, with a book value per share of $20.36, as of December 31, 2025, compared to equity capital of $98.0 million and a book value per share of $17.24 as of December 31, 2024. This change includes a decrease of $6.2 million in unrealized losses in the investment portfolio year-over-year, due to changing bond rates, which increased the fair market value of the investment portfolio. 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 December 31, 2024. President and CEO Christopher Caldwell commented on the Company's results: "Our earnings for 2025 represent the strong performance of Community National Bank. Our strong earnings performance is a direct result of disciplined approaches to the loan and deposit sides of our balance sheet. At the same time, our renewed focus on the customer resulted in deeper relationships amidst economic uncertainty. We continue to keep our focus on credit quality, efficient use of capital, and maximizing shareholder return as proven by our tangible book value going up by 20% and earnings per share increasing by 32% year-over-year. As we announce our 2025 earnings results, I want to extend my gratitude to everyone who has contributed to another year of growth and progress for our Company. Thanks to our dedicated team and loyal stakeholders, we navigated an ever-changing economic environment, delivered solid financial performance, and remained steadfast in our commitment to customer service and our core values. As we embark on the celebration of the Community National Bank's 175th anniversary, and on behalf of the entire leadership team, I want to take this opportunity to thank our communities for their unwavering support. We are excited about the journey ahead and confident that, together, we will write the next successful chapter in our Company's story." As previously announced, the Company declared a quarterly cash dividend of $0.25 per share payable February 1, 2026, to shareholders of record as of January 15, 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) December 31, December 31, 2025 2024 Assets Cash and due from banks $ 11,802,391 $ 9,875,427 Federal funds sold and overnight deposits 116,259,370 101,064,775 Total cash and cash equivalents 128,061,761 110,940,202 Securities available-for-sale (amortized cost $156,694,754 and $179,668,079 at 12/31/25 and 12/31/24, respectively 144,528,758 159,697,420 Restricted equity securities, at cost 2,933,050 2,629,350 Loans held-for-sale 138,000 0 Loans 965,285,662 927,940,805 Allowance for credit losses (10,864,983 ) (9,810,212 ) Deferred net loan costs 786,604 648,695 Net loans 955,207,283 918,779,288 Bank premises and equipment, net 12,090,886 12,072,985 Accrued interest receivable 4,607,975 4,472,474 Bank owned life insurance 5,398,085 5,318,354 Goodwill 11,574,269 11,574,269 Other real estate owned 319,019 0 Other assets 22,699,860 23,445,787 Total assets $ 1,287,558,946 $ 1,248,930,129 Liabilities and Shareholders' Equity Liabilities Deposits: Demand, non-interest bearing $ 218,842,543 $ 197,697,470 Interest-bearing transaction accounts 299,636,739 304,212,085 Money market funds 187,132,921 169,533,067 Savings 142,543,291 142,925,828 Time deposits, $250,000 and over 46,913,997 42,637,716 Other time deposits 175,598,510 144,638,592 Total deposits 1,070,668,001 1,001,644,758 Repurchase agreements 41,498,171 48,943,996 Borrowed funds 35,975,022 72,600,000 Junior subordinated debentures 12,887,000 12,887,000 Accrued interest and other liabilities 12,843,774 14,806,170 Total liabilities 1,173,871,968 1,150,881,924 Shareholders' Equity Preferred stock, 1,000,000 shares authorized, 0 shares issued and outstanding at 12/31/25, 15 shares issued at 12/31/24 ($100,000 liquidation value, per share) 0 1,500,000 Common stock - $2.50 par value; 15,000,000 shares authorized, 5,882,266 and 5,809,035 shares issued at December 31, 2025 and 2024, respectively 14,705,665 14,522,588 Additional paid-in capital 40,076,561 38,801,755 Retained earnings 73,021,908 61,623,460 Accumulated other comprehensive loss (9,611,137 ) (15,776,821 ) Less: treasury stock, at cost; 299,339 shares at 12/31/25 and 210,101 shares at 12/31/24 (4,506,019 ) (2,622,777 ) Total shareholders' equity 113,686,978 98,048,205 Total liabilities and shareholders' equity $ 1,287,558,946 $ 1,248,930,129 Book value per common share outstanding $ 20.36 $ 17.24 Community Bancorp. and Subsidiary Consolidated Statements of Income (unaudited) Quarter Ended Quarter Ended December 31, 2025 December 31, 2024 Interest income Interest and fees on loans $ 14,356,093 $ 13,139,494 Interest on taxable debt securities 866,904 846,912 Interest on tax-exempt debt securities 80,411 80,411 Dividends 62,229 58,463 Interest on federal funds sold and overnight deposits 722,240 851,445 Total interest income 16,087,877 14,976,725 Interest expense Interest on deposits 4,115,633 3,998,648 Interest on borrowed funds 458,102 978,982 Interest on repurchase agreements 251,193 226,089 Interest on junior subordinated debentures 232,896 262,501 Total interest expense 5,057,824 5,466,220 Net interest income 11,030,053 9,510,505 Credit loss expense 382,807 27,504 Net interest income after credit loss expense 10,647,246 9,483,001 Non-interest income Service fees 1,007,434 976,702 Income from sold loans 137,506 96,492 Other income from loans 506,816 314,561 Other income 525,176 381,462 Total non-interest income 2,176,932 1,769,217 Non-interest expense Salaries and wages 2,632,661 2,248,000 Employee benefits 1,140,134 1,035,404 Occupancy expenses, net 716,581 638,943 Other expenses 2,751,093 2,474,370 Total non-interest expense 7,240,469 6,396,717 Income before income taxes 5,583,709 4,855,501 Income tax expense 947,746 756,388 Net income $ 4,635,963 $ 4,099,113 Earnings per common share $ 0.83 $ 0.73 Weighted average number of common shares used in computing earnings per share 5,586,738 5,584,917 Dividends declared per common share $ 0.25 $ 0.24 Community Bancorp. and Subsidiary Consolidated Statements of Income (unaudited) Year Ended Year Ended December 31, 2025 December 31, 2024 Interest income Interest and fees on loans $ 55,464,761 $ 49,624,046 Interest on taxable debt securities 3,586,797 3,633,292 Interest on tax-exempt debt securities 321,646 321,645 Dividends 237,114 228,169 Interest on federal funds sold and overnight deposits 1,269,541 1,193,788 Total interest income 60,879,859 55,000,940 Interest expense Interest on deposits 16,039,463 14,115,544 Interest on borrowed funds 1,936,830 4,358,437 Interest on repurchase agreements 1,069,965 797,002 Interest on junior subordinated debentures 959,692 1,098,590 Total interest expense 20,005,950 20,369,573 Net interest income 40,873,909 34,631,367 Credit loss expense 1,373,661 1,133,411 Net interest income after credit loss expense 39,500,248 33,497,956 Non-interest income Service fees 3,866,744 3,811,141 Income from sold loans 405,978 370,360 Other income from loans 1,369,201 1,228,555 Other income 2,267,382 1,772,160 Total non-interest income 7,909,305 7,182,216 Non-interest expense Salaries and wages 9,778,049 9,352,000 Employee benefits 4,174,297 3,875,597 Occupancy expenses, net 3,041,242 2,739,657 Other expenses 10,011,389 9,509,838 Total non-interest expense 27,004,977 25,477,092 Income before income taxes 20,404,576 15,203,080 Income tax expense 3,436,595 2,438,630 Net income $ 16,967,981 $ 12,764,450 Earnings per common share $ 3.01 $ 2.28 Weighted average number of common shares used in computing earnings per share 5,602,905 5,553,052 Dividends declared per common share $ 0.98 $ 0.94 Community Bancorp. and Subsidiary Earnings Per Share ("EPS") (unaudited) (Dollars in thousands, except share data) For the Quarter Ended December 30, For the Year Ended December 30, 2025 2024 2025 2024 (In thousands, except per share data) Net income $ 4,636 $ 4,099 $ 16,968 $ 12,764 Less: dividends to preferred shareholders $ 12 $ 30 $ 97 $ 126 Net income available to common shareholders $ 4,624 $ 4,069 $ 16,871 $ 12,639 Weighted average number of common shares used in computing earnings per share 5,586,738 5,584,917 5,602,905 5,553,052 Earnings per common share $ 0.83 $ 0.73 $ 3.01 $ 2.28 Reconciliation of GAAP to Non-GAAP Measures (unaudited) Community Bancorp. and Subsidiary (Dollars in thousands, except share data) As of December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Computation of Fully Diluted Tangible Book Value per Common Share Total shareholders' equity $ 113,687 $ 111,880 $ 106,343 $ 102,905 Less: Preferred Stock - $ 1,500 $ 1,500 $ 1,500 Common shareholders' equity $ 113,687 $ 110,380 $ 104,843 $ 101,405 Less: Goodwill $ 11,574 $ 11,574 $ 11,574 $ 11,574 Other Intangibles - - - - Tangible common shareholders' equity $ 102,113 $ 98,806 $ 93,269 $ 89,831 Common shares issued and outstanding 5,582,867 5,619,491 5,608,914 5,618,168 Fully Diluted Tangible Book Value per Common Share $ 18.29 $ 17.58 $ 16.63 $ 15.99 As of December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Computation of Tangible Common Equity to Tangible Assets Common Equity $ 113,687 $ 110,380 $ 104,843 $ 101,405 Less: Goodwill $ 11,574 $ 11,574 $ 11,574 $ 11,574 Other Intangibles - - - - Tangible Common Equity $ 102,113 $ 98,806 $ 93,269 $ 89,831 Total Assets $ 1,287,559 $ 1,226,171 $ 1,166,586 $ 1,187,857 Less: Goodwill $ 11,574 $ 11,574 $ 11,574 $ 11,574 Other Intangibles - - - - Tangible Assets $ 1,275,985 $ 1,214,597 $ 1,155,012 $ 1,176,283 Tangible Common Equity to Tangible Assets 8.00 % 8.13 % 8.08 % 7.64 % For more information, contact: Investor Relations [email protected] SOURCE: Community Bancorp. Inc Vermont View the original press release on ACCESS Newswire