Community Bancorp. 10-K Filing Summary
Business Context and Reporting Period
Company: Community Bancorp. (Vermont)
Reporting Period: Fiscal year ended December 31, 2024
Business Overview: The Company is a registered bank holding company operating primarily through its wholly-owned subsidiary, Community National Bank. It provides a broad range of banking services including business banking, commercial and residential real estate lending, retail credit, and municipal banking. Operations are concentrated in northeastern and central Vermont, with loan production offices in Chittenden County, VT, and Grafton County, NH. The Company is classified as a non-accelerated filer and a smaller reporting company.
Employees: As of December 31, 2024, the Bank employed 128 full-time and 11 part-time employees. The holding company level had no employees.
Key Financial Metrics
Note: Specific revenue, profit, cash flow, and margin figures are incorporated by reference to the 2024 Annual Report (Exhibit 13) and are not explicitly detailed in the provided text. The following metrics are available from the filing text:
- Capital Adequacy: The Company and Bank met all Basel III regulatory capital requirements and the capital conservation buffer as of December 31, 2024.
- Company Capital Conservation Buffer: 6.85%
- Bank Capital Conservation Buffer: 6.76%
- Regulatory Status: The Bank was classified as "well capitalized" under FDICIA Prompt Corrective Action requirements.
- Goodwill: Approximately $11.6 million (created from the 2007 LyndonBank acquisition). Management concluded goodwill was not impaired as of December 31, 2024.
- FDIC Insurance Assessment: Total assessment for 2024 was $614,823.
- Brokered/Purchased Deposits: As of December 31, 2024, the Company held $235,500 in purchased deposits via CDARS and $13.6 million from another source. Reciprocal deposits totaled approximately $156.4 million ($2.5M CDARS, $44.4M ICS money market, $109.5M ICS demand).
- FHLB Investment: $1,951,200 in Federal Home Loan Bank of Boston stock.
- Stock Information:
- Shares Outstanding (as of March 19, 2025): 5,596,981
- Market Value of Non-Affiliate Voting Stock (as of June 30, 2024): $78,296,514
- Trading Symbol: CMTV (OTC QX)
Material Changes and Operational Highlights
- Stock Repurchase Plan: In July 2024, the Board authorized the repurchase of up to 275,000 shares (5% of outstanding stock). No shares were repurchased during the fourth quarter of 2024.
- Regulatory Compliance: The Company and Bank maintained compliance with all applicable capital requirements. The Bank received an "Outstanding" rating in its last Community Reinvestment Act (CRA) examination (completed in 2023).
- Internal Controls: Management concluded that disclosure controls and procedures, as well as internal control over financial reporting, were effective as of December 31, 2024.
- Legal Proceedings: No material pending legal proceedings were reported.
Guidance, Outlook, Risks, and Contingencies
Outlook and Management Commentary: The Company focuses on growth in Central Vermont and Chittenden County markets where economic activity is robust. Management emphasizes long-term customer relationships and community ties to compete against larger banks and tax-exempt credit unions. The Company does not provide specific forward-looking financial guidance in this text.
Key Risks Identified:
- Interest Rate Risk: Earnings depend on net interest income, which is sensitive to Federal Reserve monetary policy and general economic conditions.
- Geographic Concentration: Substantially all loans and deposits are generated in northeastern and central Vermont. Adverse local economic conditions could significantly impact the business.
- Real Estate Concentration: A high concentration of loans is secured by real estate. Deterioration in local real estate markets could increase credit risk and require higher Allowance for Credit Losses (ACL).
- Cybersecurity: The Company faces risks from cyber-attacks, data breaches, and third-party vendor failures. A comprehensive Information Security Program is in place, but no guarantee of prevention exists.
- Liquidity Risk: The Company relies primarily on deposit growth for funding. Inability to attract deposits could force reliance on more expensive purchased deposits or borrowings.
- Regulatory Changes: Changes in laws, regulations, or accounting standards (e.g., tax rate changes, CRA amendments) could increase costs or limit activities.
Investor Verification Checklist
- Financial Statements: Review the audited consolidated financial statements in Exhibit 13 (2024 Annual Report) for specific revenue, net income, and cash flow figures not detailed in the 10-K text.
- Asset Quality: Verify the specific composition of the loan portfolio, non-accrual loan levels, and the methodology used to calculate the Allowance for Credit Losses (ACL).
- Capital Ratios: Confirm the exact Common Equity Tier 1, Tier 1, and Total Risk-Based Capital ratios in Note 22 of the financial statements.
- Stock Liquidity: Assess the trading volume and liquidity of the common stock on the OTC QX market, noting the risk of price volatility due to low trading volume.
- Dividend Policy: Review the Company's history of dividend payments and the regulatory constraints on the Bank's ability to pay dividends to the holding company.
- Cybersecurity Posture: Evaluate the details of the Information Security Program and any history of security incidents not disclosed as material in this filing.