Community Bancorp Boosts Wealth Management Stake, Eyes Vermont Growth
Ticker: CMTV · Form: 10-K · Filed: Mar 27, 2026 · CIK: 0000718413
Sentiment: mixed
Topics: Regional Banking, Wealth Management, Vermont Economy, Community Banking, Bank Holding Company, Financial Services, Competitive Landscape
TL;DR
**CMTV is doubling down on wealth management and strategic growth in key Vermont markets, making it a solid long-term play for regional banking exposure.**
AI Summary
Community Bancorp./VT (CMTV) reported a market value of voting stock held by non-affiliates at $90,019,415 as of June 30, 2025, based on a per share trade price of $17.65. The company, a registered bank holding company since 1983, primarily operates through its sole subsidiary, Community National Bank, which was founded in 1851. CMTV expanded its ownership in CFS Partners to 50% effective July 31, 2025, following the redemption of Guaranty Bancorp Inc.'s interest, enhancing its trust and wealth management services through CFSG. The Bank maintains eleven branch offices across northern and central Vermont and loan production offices in Chittenden County, Vermont, and Grafton County, New Hampshire, with a strategic focus on growth in Central Vermont and Chittenden County. As of December 31, 2025, the Bank employed 125 full-time and 9 part-time employees. CMTV established an LLC in 2024 to purchase federal New Markets Tax Credits (NMTCs), which is not consolidated for financial reporting. The company faces intense competition from larger banks, credit unions, and non-traditional financial service providers, emphasizing community orientation and personal relationships to compete effectively.
Why It Matters
CMTV's increased stake in CFS Partners to 50% signals a strategic move to bolster its wealth management offerings, potentially attracting more affluent clients and diversifying revenue streams beyond traditional banking. For investors, this could indicate a focus on higher-margin services, while employees at CFSG might see enhanced opportunities. The emphasis on expanding in Central Vermont and Chittenden County, areas with more robust economic activity, suggests a proactive approach to market share growth, positioning CMTV to better compete against larger regional banks and credit unions in a highly competitive landscape.
Risk Assessment
Risk Level: medium — CMTV operates in a highly competitive banking environment, facing significant competition from larger banks, credit unions, and non-traditional financial service firms, which could pressure margins and market share. Additionally, the company's earnings are susceptible to changes in federal and state laws and regulations, as well as actions by various regulatory authorities, creating an unpredictable operating environment.
Analyst Insight
Investors should consider CMTV's strategic focus on wealth management and expansion into economically robust Vermont markets as a potential growth driver. Monitor the company's ability to effectively compete against larger, tax-exempt credit unions and adapt to regulatory changes to assess long-term viability.
Key Numbers
- $90,019,415 — Aggregate market value of voting stock held by non-affiliates (As of June 30, 2025, based on a $17.65 per share trade price)
- 5,580,648 — Shares outstanding of common stock (As of March 18, 2026)
- 50% — CMTV's ownership interest in CFS Partners (Increased effective July 31, 2025, from one-third)
- 125 — Full-time employees of Community National Bank (As of December 31, 2025)
- 9 — Part-time employees of Community National Bank (As of December 31, 2025)
- 11 — Branch offices of Community National Bank (Located in northeastern and central Vermont)
- $12.5 million — Trust preferred securities issued by CMTV Statutory Trust I (Used for LyndonBank acquisition and regulatory capital in 2007)
Key Players & Entities
- Community Bancorp./VT (company) — Registrant
- Community National Bank (company) — Primary subsidiary of CMTV
- CFSG (company) — Affiliated non-depository trust company
- CFS Partners (company) — Vermont limited liability company owning CFSG
- Guaranty Bancorp Inc. (company) — Former co-owner of CFS Partners
- FRB (regulator) — Federal Reserve Board, supervising bank holding companies
- SEC (regulator) — Securities and Exchange Commission
- FDIC (regulator) — Federal Deposit Insurance Corporation
- LyndonBank (company) — Acquired by CMTV in 2007
- The NASDAQ Stock Market LLC (company) — Exchange where CMTV common stock is registered
FAQ
What is Community Bancorp./VT's primary business operation?
Community Bancorp./VT's primary business operation is conducted through its sole subsidiary, Community National Bank, which provides a broad range of loan and deposit services to individuals, businesses, nonprofit organizations, and municipalities in northern and central Vermont.
How has Community Bancorp./VT expanded its wealth management services?
Community Bancorp./VT expanded its wealth management services by increasing its ownership interest in CFS Partners to 50% effective July 31, 2025, following the redemption of Guaranty Bancorp Inc.'s membership interest. CFS Partners owns 100% of CFSG, an affiliated non-depository trust company.
What are the key growth markets for Community Bancorp./VT?
The key growth markets for Community Bancorp./VT are primarily in the Central Vermont and Chittenden County markets, where economic activity is more robust. The company is also focusing on expanding its presence in western New Hampshire, as evidenced by its loan production office in Lebanon, New Hampshire.
What is the market value of voting stock held by non-affiliates for Community Bancorp./VT?
As of June 30, 2025, the aggregate market value of the voting stock held by non-affiliates of Community Bancorp./VT was $90,019,415, based on a per share trade price of $17.65.
How many employees does Community National Bank have?
As of December 31, 2025, Community National Bank employed 125 full-time employees and 9 part-time employees, totaling 134 employees.
What regulatory bodies supervise Community Bancorp./VT?
Community Bancorp./VT is subject to ongoing regulation, supervision, and examination by the Federal Reserve Board (FRB) as a registered bank holding company, and by the SEC in connection with securities issuance and reporting.
What are the main competitive challenges for Community Bancorp./VT?
Community Bancorp./VT faces significant competition from other banks and credit unions, including three of the largest banks in Vermont, as well as non-traditional competitors like insurance companies and brokerage firms. Competition from tax-exempt credit unions, which have a pricing advantage, has also intensified.
Does Community Bancorp./VT consolidate its statutory business trust or tax credit entity?
No, Community Bancorp./VT does not consolidate its statutory business trust (CMTV Statutory Trust I) or its tax credit entity LLC for financial reporting purposes, as the company is not deemed the primary beneficiary for either Variable Interest Entity (VIE).
What types of lending services does Community National Bank offer?
Community National Bank offers a broad range of lending services including business banking, commercial real estate lending, residential real estate lending (conventional, FHA/VA, fixed-rate, adjustable-rate, home equity), retail credit (personal, auto, boat/RV loans), and municipal and institutional banking.
What is the 'Source of Strength Doctrine' and how does it apply to Community Bancorp./VT?
Under the Dodd-Frank Act, the 'Source of Strength Doctrine' requires Community Bancorp./VT, as a bank holding company, to serve as a source of financial strength to its subsidiary bank, Community National Bank, and to maintain financial flexibility and capital-raising capacity to assist the bank if needed.
Risk Factors
- Intense Competition [high — market]: CMTV faces significant competition from larger banks, credit unions, and non-traditional financial service providers. This intense competitive landscape necessitates a strong focus on community orientation and personal relationships to retain and attract customers.
- Cybersecurity Risk [high — operational]: The company acknowledges cybersecurity risks, as indicated by the dedicated section in the filing. Protecting customer data and maintaining the integrity of its digital infrastructure are critical operational concerns.
- Bank Holding Company Regulations [medium — regulatory]: As a registered bank holding company, CMTV is subject to various federal and state banking regulations. Compliance with these regulations is essential to avoid penalties and maintain operational stability.
Industry Context
Community Bancorp./VT operates in the highly competitive banking sector, facing pressure from larger national banks, local credit unions, and emerging non-traditional financial service providers. Its strategy relies on leveraging its community focus and personalized customer relationships to differentiate itself.
Regulatory Implications
As a registered bank holding company, CMTV is subject to stringent federal and state banking regulations. Compliance with these rules is paramount to its operations and financial stability, with potential for penalties or restrictions if not met.
What Investors Should Do
- Monitor competitive pressures and CMTV's ability to maintain market share in key growth areas like Central Vermont and Chittenden County.
- Evaluate the impact of the increased ownership in CFS Partners on the company's trust and wealth management services and overall profitability.
- Assess the company's cybersecurity posture and its preparedness for potential digital threats.
Key Dates
- 1983-10-01: Became a registered bank holding company — Established the current corporate structure, with Community National Bank as its sole subsidiary.
- 2007-12-31: Acquisition of LyndonBank — Expanded branch network into new counties and increased market presence.
- 2024-01-01: Establishment of LLC for NMTCs — Created a separate entity for purchasing federal New Markets Tax Credits, which is not consolidated for financial reporting.
- 2025-07-31: Increased ownership in CFS Partners to 50% — Enhanced trust and wealth management services through CFSG following the redemption of Guaranty Bancorp Inc.'s interest.
Glossary
- Bank Holding Company
- A company that owns or controls one or more banks. These companies are subject to specific regulations. (CMTV is a registered bank holding company, meaning it operates under a specific regulatory framework.)
- New Markets Tax Credits (NMTCs)
- A federal program designed to encourage investment in low-income communities. (CMTV established an LLC to purchase these credits, indicating a strategy for community development investment.)
- Trust Preferred Securities
- A type of hybrid security that combines features of both debt and equity, often used by financial institutions for regulatory capital. (CMTV issued $12.5 million in these securities, which were used for a past acquisition and regulatory capital.)
Year-Over-Year Comparison
Information comparing key metrics to the previous year, such as revenue growth, margin changes, or new risks, is not available in the provided text. The filing details the company's current structure, operations, and strategic initiatives, but lacks year-over-year comparative financial data.
Filing Stats: 4,583 words · 18 min read · ~15 pages · Grade level 16.6 · Accepted 2026-03-27 09:03:51
Key Financial Figures
- $2.50 — nge on which registered Common Stock, $2.50 Per value per share CMTV The NASDAQ
- $17 — r share trade price on June 30, 2025 of $17.65, as reported on the OTC Link ATS sys
- $12.5 million — iness trust, for the purpose of issuing $12.5 million of trust preferred securities. This fun
- $10 billion — anking organization must have less than $10 billion in total consolidated assets and must m
Filing Documents
- cmtv_10k.htm (10-K) — 467KB
- cmtv_ex13.htm (EX-13) — 3160KB
- cmtv_ex21.htm (EX-21) — 1KB
- cmtv_ex23.htm (EX-23) — 3KB
- cmtv_ex311.htm (EX-31.1) — 13KB
- cmtv_ex312.htm (EX-31.2) — 13KB
- cmtv_ex321.htm (EX-32.1) — 5KB
- cmtv_ex322.htm (EX-32.2) — 5KB
- cmtv_ex97.htm (EX-97) — 21KB
- cmtv_ex23img8.jpg (GRAPHIC) — 2KB
- cmtv_ex23img6.jpg (GRAPHIC) — 4KB
- cmtv_ex13img10.jpg (GRAPHIC) — 6KB
- cmtv_ex13img11.jpg (GRAPHIC) — 2KB
- cmtv_ex13img12.jpg (GRAPHIC) — 4KB
- cmtv_10kimg1.jpg (GRAPHIC) — 4KB
- cmtv_ex23img7.jpg (GRAPHIC) — 6KB
- 0001654954-26-002870.txt ( ) — 16217KB
- cmtv-20251231.xsd (EX-101.SCH) — 108KB
- cmtv-20251231_lab.xml (EX-101.LAB) — 583KB
- cmtv-20251231_cal.xml (EX-101.CAL) — 92KB
- cmtv-20251231_pre.xml (EX-101.PRE) — 524KB
- cmtv-20251231_def.xml (EX-101.DEF) — 286KB
- cmtv_10k_htm.xml (XML) — 4088KB
Business
Business 3 Item 1A
Risk Factors
Risk Factors 13 Item 1B Unresolved Staff Comments 20 Item 1C Cybersecurity Risk 20 Item 2
Properties
Properties 20 Item 3
Legal Proceedings
Legal Proceedings 21 Item 4 Mine Safety Disclosures 21 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6 [Reserved] 22 Item 7
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 22 Item 8
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 22 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 23 Item 9A
Controls and Procedures
Controls and Procedures 23 Item 9B Other Information 23 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 23 PART III Item 10 Directors, Executive Officers and Corporate Governance 24 Item 11
Executive Compensation
Executive Compensation 24 Item 12
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 24 Item 13 Certain Relationships and Related Transactions, and Director Independence 24 Item 14 Principal Accountant Fees and Services 24 PART IV Item 15 Exhibits and Financial Statement Schedules 25 Item 16 Form 10-K Summary 26
Signatures
Signatures 27 Exhibit Index 28 2 Table of Contents PART I Note Regarding Definitions and Acronyms: Capitalized terms and acronyms used in the discussion below and not otherwise defined have the meaning ascribed to them in Note 1 of the Company's audited consolidated financial statements filed pursuant to Part II, Item 8 of this report and contained in Exhibit 13 to this report.
The Business
Item 1. The Business Organization and Operation The Company . The Company ("we", "us", "our") was organized under the laws of the State of Vermont in 1982 and became a registered bank holding company under the Bank Holding Company Act of 1956, as amended, in October 1983 when Community National Bank, headquartered in Derby, Vermont, reorganized into a holding company structure. The Bank is the Company's only subsidiary and principally all of our business operations are presently conducted through it. Therefore, the following narrative and the other information about the Company contained in this report are based primarily on the Bank's operations. The Bank; Banking Services . Community National Bank was organized in 1851 as the Peoples Bank, and was subsequently reorganized as the National Bank of Derby Line in 1865. In 1975, after 110 continuous years of operation as the National Bank of Derby Line, the Bank acquired the Island Pond National Bank and changed its name to "Community National Bank." On December 31, 2007, the Company completed its acquisition of LyndonBank, a Vermont bank headquartered in Lyndonville, Vermont, in a cash merger transaction. As a result of the merger, we expanded our existing branch network in Caledonia and Orleans Counties and extended it into Lamoille and Franklin Counties. In addition to our main office in Derby, we currently maintain eleven branch offices in northeastern and central Vermont and loan production offices in Chittenden County, in northwestern Vermont, and Grafton County, in western New Hampshire. The opportunities for growth continue to be primarily in the Central Vermont and Chittenden County markets where economic activity is more robust than in our Orleans and Caledonia County markets, and where we are increasing our presence and market share. We are also focusing on expanding our presence in the neighboring state of New Hampshire, as reflected in the opening of our loan production office in Lebanon, New Hampshi