CMTV's Net Income Jumps 42% on Strong Loan Growth, Lower Borrowing Costs

TL;DR

**CMTV is a buy; strong loan growth and reduced borrowing costs are driving impressive profit gains.**

AI Summary

Community Bancorp./VT (CMTV) reported a strong financial performance for the nine months ended September 30, 2025, with net income increasing by 42.3% to $12,332,018 from $8,665,338 in the prior year. This was primarily driven by a significant 18.8% increase in net interest income, reaching $29,843,855 compared to $25,120,862 in the same period of 2024. Interest and fees on loans rose by $4,624,115 to $41,108,667. Total assets decreased slightly to $1,226,171,343 from $1,248,930,129 at December 31, 2024, mainly due to a $50,074,643 net decrease in cash and cash equivalents. The allowance for credit losses increased to $10,769,269 from $9,810,212, reflecting a more conservative stance. Earnings per common share improved to $2.18 from $1.55, and book value per common share outstanding increased to $19.64 from $17.24. The company also saw a substantial reduction in interest on borrowed funds by $1,900,725, contributing to the net interest income growth.

Why It Matters

CMTV's robust net income growth and improved earnings per share signal strong operational health, which is positive for investors. The increase in book value per common share to $19.64 from $17.24 indicates growing shareholder equity. For customers, the increase in loans to $961,882,509 suggests continued lending activity, supporting local economies. The competitive landscape for regional banks remains challenging, but CMTV's ability to significantly boost net interest income by $4,722,993 demonstrates effective asset-liability management and a competitive edge in its market.

Risk Assessment

Risk Level: low — The company's net income increased by 42.3% to $12,332,018 for the nine months ended September 30, 2025, demonstrating strong profitability. The allowance for credit losses also increased to $10,769,269 from $9,810,212, indicating a proactive approach to potential loan defaults, which mitigates credit risk.

Analyst Insight

Investors should consider CMTV for its strong earnings growth and improved efficiency. The significant increase in net interest income and earnings per share suggests a healthy financial trajectory, making it an attractive option for those seeking exposure to regional banking with solid fundamentals.

Financial Highlights

debt To Equity

N/A

revenue

$29,843,855

operating Margin

N/A

total Assets

$1,226,171,343

total Debt

$1,114,291,001

net Income

$12,332,018

eps

$2.18

gross Margin

N/A

cash Position

$60,865,559

revenue Growth

+18.8%

Revenue Breakdown

Key Numbers

• $12.33M — Net Income (Increased 42.3% from $8.67M in 2024 for the nine months ended September 30, 2025.)
• $29.84M — Net Interest Income (Increased 18.8% from $25.12M in 2024 for the nine months ended September 30, 2025.)
• $0.84 — Earnings per common share (Q3 2025) (Increased from $0.55 in Q3 2024.)
• $2.18 — Earnings per common share (YTD 2025) (Increased from $1.55 in YTD 2024.)
• $961.88M — Loans (Increased from $927.94M at December 31, 2024.)
• $10.77M — Allowance for Credit Losses (Increased from $9.81M at December 31, 2024.)
• $19.64 — Book Value per Common Share (Increased from $17.24 at December 31, 2024.)
• $4.91M — Total Interest Expense (Q3 2025) (Decreased from $5.31M in Q3 2024.)
• $1.48M — Interest on Borrowed Funds (YTD 2025) (Decreased from $3.38M in YTD 2024.)
• 5,604,612 — Shares Outstanding (As of November 4, 2025.)

Key Players & Entities

• Community Bancorp./VT (company) — Registrant
• Community National Bank (company) — Subsidiary of Community Bancorp./VT
• SEC (regulator) — U.S. Securities and Exchange Commission
• $12,332,018 (dollar_amount) — Net income for nine months ended September 30, 2025
• $8,665,338 (dollar_amount) — Net income for nine months ended September 30, 2024
• $29,843,855 (dollar_amount) — Net interest income for nine months ended September 30, 2025
• $25,120,862 (dollar_amount) — Net interest income for nine months ended September 30, 2024
• $961,882,509 (dollar_amount) — Total loans at September 30, 2025
• $10,769,269 (dollar_amount) — Allowance for credit losses at September 30, 2025
• $19.64 (dollar_amount) — Book value per common share outstanding at September 30, 2025

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [medium — financial]: The allowance for credit losses increased to $10,769,269 from $9,810,212, indicating a more conservative stance by management in anticipation of potential loan defaults. The net loan portfolio grew to $951,851,630 from $918,779,288.
• Interest Rate Sensitivity [medium — financial]: Fluctuations in interest rates can impact net interest income. The company experienced a significant reduction in interest on borrowed funds by $1,900,725, which positively contributed to net interest income, suggesting a favorable management of funding costs.
• Liquidity Management [low — operational]: Total cash and cash equivalents decreased by $50,074,643 to $60,865,559 from $110,940,202. While total assets saw a slight decrease, the company maintains a substantial deposit base of $1,008,300,163.
• Regulatory Compliance [medium — regulatory]: As a financial institution, Community Bancorp is subject to various banking regulations. While no specific new regulatory risks are detailed in this section, ongoing compliance with FDIC and other regulatory bodies is a constant operational requirement.

Industry Context

Community Bancorp operates within the community banking sector, characterized by a focus on local markets and personalized customer service. The industry is currently navigating a landscape of evolving interest rate environments and increasing digital competition. Banks are striving to balance loan growth with prudent risk management, particularly concerning credit quality and liquidity.

Regulatory Implications

As a regulated financial institution, Community Bancorp must adhere to stringent capital requirements, lending standards, and consumer protection laws set forth by bodies like the FDIC and Federal Reserve. Changes in monetary policy and regulatory frameworks can significantly impact profitability and operational strategies.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze the sustainability of net interest income growth.
3. Evaluate the impact of the decrease in cash and cash equivalents.

Key Dates

• 2025-09-30: Nine Months Ended — Reported net income of $12,332,018, a 42.3% increase year-over-year, driven by strong net interest income growth.
• 2025-09-30: Balance Sheet Date — Total assets stood at $1,226,171,343, with loans at $961,882,509 and total deposits at $1,008,300,163.
• 2024-12-31: Prior Year End Balance Sheet Date — Total assets were $1,248,930,129, providing a comparison point for asset changes.

Glossary

ACL

Allowance for Credit Losses (Represents the amount set aside by the bank to cover potential loan losses. An increase suggests a more cautious outlook on loan portfolio quality.)

AFS

Available-for-sale securities (Securities that are not classified as held-to-maturity or trading securities. Their value is marked to market, with unrealized gains/losses impacting Accumulated Other Comprehensive Income.)

BOLI

Bank owned life insurance (Life insurance policies owned by the bank on the lives of key individuals, often used for employee benefit plans or to offset costs associated with such plans.)

Net Interest Income

The difference between interest income generated by the bank and the interest paid out to its depositors and lenders. (A primary driver of profitability for banks. CMTV saw significant growth in this area.)

Book Value per Common Share

The net asset value of a company divided by the number of outstanding common shares. (Indicates the theoretical liquidation value per share. CMTV's book value per share increased to $19.64.)

Year-Over-Year Comparison

Compared to the prior year-end (December 31, 2024), Community Bancorp. has seen a notable increase in net income for the nine months ended September 30, 2025, up 42.3% to $12,332,018. This growth is primarily fueled by an 18.8% rise in net interest income. Total assets have slightly decreased to $1,226,171,343 from $1,248,930,129, largely due to a reduction in cash and cash equivalents. The company has also increased its allowance for credit losses, signaling a more conservative approach to risk management, while book value per common share has improved to $19.64 from $17.24.

Filing Documents

• cmtv_10q.htm (10-Q) — 3069KB
• cmtv_ex311.htm (EX-31.1) — 10KB
• cmtv_ex312.htm (EX-31.2) — 10KB
• cmtv_ex321.htm (EX-32.1) — 4KB
• cmtv_ex322.htm (EX-32.2) — 4KB
• cmtv_10qimg2.jpg (GRAPHIC) — 9KB
• 0001654954-25-013041.txt ( ) — 11307KB
• cmtv-20250930.xsd (EX-101.SCH) — 45KB
• cmtv-20250930_lab.xml (EX-101.LAB) — 301KB
• cmtv-20250930_cal.xml (EX-101.CAL) — 67KB
• cmtv-20250930_pre.xml (EX-101.PRE) — 277KB
• cmtv-20250930_def.xml (EX-101.DEF) — 161KB
• cmtv_10q_htm.xml (XML) — 3054KB

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 September 30, December 31, Consolidated Balance Sheets 2025 2024 (Unaudited) Assets Cash and due from banks $ 11,813,247 $ 9,875,427 Federal funds sold and overnight deposits 49,052,312 101,064,775 Total cash and cash equivalents 60,865,559 110,940,202 Securities available-for-sale (amortized cost $ 165,580,624 and $ 179,668,079 at 9/30/25 and 12/31/24, respectively) 152,248,319 159,697,420 Restricted equity securities, at cost 3,256,550 2,629,350 Loans held-for-sale 1,269,208 0 Loans 961,882,509 927,940,805 Allowance for credit losses ( 10,769,269 ) ( 9,810,212 ) Deferred net loan costs 738,390 648,695 Net loans 951,851,630 918,779,288 Bank premises and equipment, net 12,391,426 12,072,985 Accrued interest receivable 4,459,788 4,472,474 Bank owned life insurance 5,378,643 5,318,354 Goodwill 11,574,269 11,574,269 Other real estate owned 319,019 0 Other assets 22,556,932 23,445,787 Total assets $ 1,226,171,343 $ 1,248,930,129 Liabilities and Shareholders' Equity Liabilities Deposits: Demand, non-interest bearing $ 205,211,509 $ 197,697,470 Interest-bearing transaction accounts 284,204,977 304,212,085 Money market funds 155,502,114 169,533,067 Savings 143,737,440 142,925,828 Time deposits, $ 250,000 and over 43,064,201 42,637,716 Other time deposits 176,579,922 144,638,592 Total deposits 1,008,300,163 1,001,644,758 Repurchase agreements 34,178,676 48,943,996 Borrowed funds 46,275,022 72,600,000 Junior subordinated debentures 12,887,000 12,887,000 Accrued interest and other liabilities 12,650,140 14,806,170 Total liabilities 1,114,291,001 1,150,881,924 Shareholders' Equity Preferred stock, 1,000,000 shares authorized, 15 shares issued and outstand

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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