CMTV's Net Income Soars 49% on Strong Loan Growth

Ticker: CMTV · Form: 10-Q · Filed: Aug 14, 2025 · CIK: 718413

Community Bancorp /Vt 10-Q Filing Summary
FieldDetail
CompanyCommunity Bancorp /Vt (CMTV)
Form Type10-Q
Filed DateAug 14, 2025
Risk Levelmedium
Pages14
Reading Time16 min
Sentimentmixed

Sentiment: mixed

Topics: Regional Banking, Earnings Growth, Deposit Outflows, Net Interest Income, Credit Quality, Shareholder Equity, Financial Performance

TL;DR

**CMTV is crushing earnings with loan growth, but watch those shrinking deposits – it's a mixed bag for long-term stability.**

AI Summary

Community Bancorp./VT (CMTV) reported a significant increase in net income for both the three and six months ended June 30, 2025. For the three months, net income rose by 48.8% to $4,059,776 from $2,728,186 in the prior year. For the six months, net income increased by 36.6% to $7,585,231 from $5,551,087. This growth was primarily driven by a substantial rise in net interest income, which increased by 22.1% to $9,894,542 for the three months and by 17.5% to $19,332,864 for the six months, largely due to higher interest and fees on loans, up 13.5% to $13,691,705 for the quarter. Total assets decreased by 6.6% to $1,166,586,233 at June 30, 2025, from $1,248,930,129 at December 31, 2024, mainly due to a $96.4 million net decrease in cash and cash equivalents. Deposits also saw a notable decline of 6.9% to $932,965,859 from $1,001,644,758. The company's allowance for credit losses increased to $10,549,531 from $9,810,212, reflecting a higher credit loss expense of $407,046 for the quarter. Shareholders' equity improved by 8.5% to $106,343,407, and book value per common share increased to $18.69 from $17.24.

Why It Matters

CMTV's robust net income growth, driven by increased loan interest, signals strong operational performance in a competitive banking landscape, particularly for a smaller reporting company. This could attract investors seeking regional bank exposure with solid earnings momentum. However, the significant decline in total deposits and cash equivalents, down $68.7 million and $96.4 million respectively, suggests potential liquidity challenges or strategic shifts in funding that investors should scrutinize. For employees, sustained profitability could mean job security and potential growth opportunities, while customers might see continued access to lending products. The broader market will watch if this trend of increased loan income can offset deposit outflows, a common challenge for smaller banks competing with larger institutions.

Risk Assessment

Risk Level: medium — The company faces a medium risk level due to a substantial decrease in total deposits by $68.7 million (6.9%) from $1,001,644,758 to $932,965,859 and a $96.4 million net decrease in cash and cash equivalents. While net income is up, this significant outflow of funds could impact future liquidity and funding costs, despite an increase in the allowance for credit losses to $10,549,531.

Analyst Insight

Investors should closely monitor CMTV's next earnings call for management's strategy on deposit retention and liquidity management. While the strong net income and EPS growth are positive, the significant decline in deposits and cash warrants caution; consider holding rather than buying until deposit trends stabilize.

Financial Highlights

revenue
$9,894,542
total Assets
$1,166,586,233
total Debt
$114,914,938
net Income
$4,059,776
eps
$0.72
cash Position
$14,527,099
revenue Growth
+22.1%

Revenue Breakdown

SegmentRevenueGrowth
Net Interest Income$9,894,542+22.1%

Key Numbers

Key Players & Entities

FAQ

What were Community Bancorp./VT's net income figures for the second quarter of 2025?

Community Bancorp./VT reported a net income of $4,059,776 for the three months ended June 30, 2025, which is a significant increase from $2,728,186 in the same period of 2024.

How did Community Bancorp./VT's total assets change from December 31, 2024, to June 30, 2025?

Total assets for Community Bancorp./VT decreased by $82,343,896, or 6.6%, from $1,248,930,129 at December 31, 2024, to $1,166,586,233 at June 30, 2025.

What was the trend in Community Bancorp./VT's total deposits during the first half of 2025?

Community Bancorp./VT experienced a decrease in total deposits, falling by $68,678,900, or 6.9%, from $1,001,644,758 at December 31, 2024, to $932,965,859 at June 30, 2025.

Did Community Bancorp./VT's net interest income improve in the second quarter of 2025?

Yes, Community Bancorp./VT's net interest income increased by $1,793,249, or 22.1%, to $9,894,542 for the three months ended June 30, 2025, compared to $8,101,293 in the prior year.

What is Community Bancorp./VT's book value per common share as of June 30, 2025?

As of June 30, 2025, Community Bancorp./VT's book value per common share outstanding was $18.69, an increase from $17.24 at December 31, 2024.

How much did Community Bancorp./VT spend on its stock buyback program in the first six months of 2025?

Community Bancorp./VT spent $548,218 on shares purchased through its stock buyback program during the six months ended June 30, 2025.

What was the credit loss expense for Community Bancorp./VT in the second quarter of 2025?

The credit loss expense for Community Bancorp./VT was $407,046 for the three months ended June 30, 2025, an increase from $331,582 in the same period of 2024.

What is the status of Community Bancorp./VT's regulatory filings?

Community Bancorp./VT has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days, indicating compliance with SEC regulations.

What new accounting standard might affect Community Bancorp./VT in the future?

The FASB issued ASU No. 2024-03, 'Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures,' effective for annual periods beginning after December 15, 2026, which will require Community Bancorp./VT to disclose specified information about certain costs and expenses.

How did Community Bancorp./VT's cash and cash equivalents change in the first six months of 2025?

Community Bancorp./VT experienced a net decrease in cash and cash equivalents of $96,413,103 during the six months ended June 30, 2025, bringing the total to $14,527,099 at period end.

Risk Factors

Industry Context

Community Bancorp./VT operates within the highly competitive US regional banking sector. The industry is characterized by a focus on net interest margin, loan growth, and deposit gathering. Recent trends include rising interest rates benefiting net interest income, but also increasing funding costs and potential credit risks. Consolidation remains a theme, with smaller banks facing pressure from larger institutions and fintech competitors.

Regulatory Implications

As a bank holding company, CMTV is subject to stringent oversight from the Federal Reserve and state banking authorities. Compliance with capital adequacy ratios, liquidity requirements, and consumer protection laws is paramount. Any changes in regulatory policy, such as interest on reserve balances or capital requirements, could materially impact profitability and operations.

What Investors Should Do

  1. Monitor deposit trends and liquidity management.
  2. Analyze the drivers of increased credit loss expense.
  3. Evaluate the sustainability of net interest income growth.

Key Dates

Glossary

Net Interest Income
The difference between the interest income generated by a bank and the interest it pays out to its depositors and lenders. (This was the primary driver of CMTV's increased net income in Q2 2025.)
Allowance for Credit Losses (ACL)
An estimate of the losses expected to be incurred from a company's loan portfolio. (An increase in ACL suggests management's expectation of higher future loan defaults.)
Cash and cash equivalents
Includes cash on hand, balances with other banks, and short-term, highly liquid investments. (A significant decrease in this category was a major factor in the overall decline of total assets.)
Book value per common share
The value of a company's assets minus its liabilities, divided by the number of outstanding common shares. (An increase in book value per share indicates growth in the company's net worth attributable to shareholders.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Community Bancorp./VT has demonstrated robust net income growth, with Q2 2025 net income up 48.8% and H1 2025 up 36.6%. This was primarily fueled by a significant 22.1% increase in net interest income for the quarter, driven by loan growth. However, total assets and deposits have declined by 6.6% and 6.9% respectively, largely due to a substantial reduction in cash and cash equivalents. The allowance for credit losses has also increased, indicating a more cautious stance on credit risk.

Filing Stats: 4,123 words · 16 min read · ~14 pages · Grade level 18.3 · Accepted 2025-08-14 06:59:27

Filing Documents

Financial Statements

Financial Statements 3 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 4

Controls and Procedures

Controls and Procedures 51 PART II OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 52 Item 1A

Risk Factors

Risk Factors 52 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 6 Exhibits 53

Signatures

Signatures 54 Exhibit Index 55 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

ITEM 1. Financial Statements (Unaudited) The following are the unaudited consolidated financial statements for the Company. Community Bancorp. and Subsidiary June 30, December 31, Consolidated Balance Sheets 2025 2024 (Unaudited) Assets Cash and due from banks $ 12,368,725 $ 9,875,427 Federal funds sold and overnight deposits 2,158,374 101,064,775 Total cash and cash equivalents 14,527,099 110,940,202 Securities available-for-sale (amortized cost $ 174,689,840 and $ 179,668,079 at June 30, 2025 and December 31, 2024, respectively) 158,882,445 159,697,420 Restricted equity securities, at cost 3,420,350 2,629,350 Loans held-for-sale 858,100 0 Loans 941,762,995 927,940,805 Allowance for credit losses ( 10,549,531 ) ( 9,810,212 ) Deferred net loan costs 706,510 648,695 Net loans 931,919,974 918,779,288 Bank premises and equipment, net 12,313,292 12,072,985 Accrued interest receivable 4,442,618 4,472,474 Bank owned life insurance 5,358,795 5,318,354 Goodwill 11,574,269 11,574,269 Other assets 23,289,291 23,445,787 Total assets $ 1,166,586,233 $ 1,248,930,129 Liabilities and Shareholders' Equity Liabilities Deposits: Demand, non-interest bearing $ 201,784,574 $ 197,697,470 Interest-bearing transaction accounts 260,019,923 304,212,085 Money market funds 130,403,424 169,533,067 Savings 143,344,871 142,925,828 Time deposits, $ 250,000 and over 42,028,731 42,637,716 Other time deposits 155,384,336 144,638,592 Total deposits 932,965,859 1,001,644,758 Repurchase agreements 46,227,938 48,943,996 Borrowed funds 55,800,000 72,600,000 Junior subordinated debentures 12,887,000 12,887,000 Accrued interest and other liabilities 12,362,029 14,806,170 Total liabilities 1,060,242,826 1,150,881,924 Shareholders' Equity Preferred stock, 1,000,000 shares authorized, 15 shares issued and outstanding at 06/30/25 and 12/31/24 ($

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 1. Basis of Presentation and Consolidation and Certain Definitions Basis of Presentation and Consolidation. The interim consolidated financial statements of Community Bancorp. and Subsidiary are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments necessary for the fair presentation of the consolidated financial condition and results of operations of the Company and its subsidiary, Community National Bank (the Bank), contained herein have been made. The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, contained in the Company's Annual Report on Form 10-K. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for any other interim period or for the full annual period ending December 31, 2025. The Company is considered a "smaller reporting company" and a "non-accelerated filer" under the disclosure rules of the SEC. Accordingly, the Company has elected to provide smaller reporting company scaled disclosures where management deems it appropriate, and to provide its audited consolidated statements of income, comprehensive income, cash flows and changes in shareholders' equity for a two year, rather than a three year, period is considered a "smaller reporting company" under the disclosure rules of the SEC, as amended in 2018. In addition to the definitions provided elsewhere in this quarterly report, the definitions, acronyms and abbreviations identified below are used throughout this report, including in Part I. "Financial Information" and Part II. "Other Information" and are intended to aid the reader and provide a reference page when reviewing this report. ABS: Asset backed security FASB: Financial Accountin

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