Community Bancorp. 10-K Filing Summary
Business Context and Reporting Period
Company: Community Bancorp. (CMTV), a bank holding company organized in Vermont in 1982.
Reporting Period: Fiscal year ended December 31, 2025.
Operations: The Company operates primarily through its wholly-owned subsidiary, Community National Bank. It provides commercial, residential, and retail banking services in northeastern and central Vermont, with loan production offices in Chittenden County, VT, and Grafton County, NH. As of December 31, 2025, the Bank employed 125 full-time and 9 part-time employees.
Listing Status: Effective February 2, 2026, common stock began trading on the Capital Market tier of The Nasdaq Stock Market LLC (Symbol: CMTV), having previously traded on the OTC QX platform.
Key Financial Metrics
Note: Specific revenue, profit, cash flow, and margin figures are incorporated by reference to the 2025 Annual Report (Exhibit 13) and are not explicitly detailed in the provided text.
- Capital Adequacy: The Company and Bank met all Basel III regulatory capital requirements and the capital conservation buffer as of December 31, 2025.
- Company Capital Conservation Buffer: 7.49%
- Bank Capital Conservation Buffer: 7.38%
- Regulatory Status: The Bank was classified as "well capitalized" under FDICIA Prompt Corrective Action requirements.
- Goodwill: Approximately $11.6 million (from the 2007 LyndonBank acquisition); management concluded goodwill was not impaired as of December 31, 2025.
- FDIC Assessments: Total FDIC insurance assessment for 2025 was $613,343.
- Stock Repurchases (Q4 2025):
- Total shares purchased: 55,175
- Average price paid: $23.01 per share
- Shares remaining under plan: 185,762
- Deposit Composition (as of Dec 31, 2025):
- Purchased CDs (brokered): $30.5 million
- Reciprocal deposits (CDARS/ICS): $175.6 million total
Material Changes and Developments
- Trust Company Ownership: Effective July 31, 2025, the Company's ownership interest in CFS Partners (which owns the affiliated trust company CFSG) increased to 50% following the redemption of Guaranty Bancorp Inc.'s interest.
- Stock Listing: Transitioned from OTC QX to The Nasdaq Stock Market LLC Capital Market tier on February 2, 2026.
- Regulatory Framework: The Company and Bank do not utilize the Community Bank Leverage Ratio (CBLR) framework, opting instead for the standard Basel III risk-based capital framework.
- Community Reinvestment Act (CRA): The Bank received an "Outstanding" rating in its last examination (2023). The 2023 CRA regulations were rescinded in 2025, restoring the 1995 regulations.
Outlook, Risks, and Management Commentary
Management Outlook: Growth opportunities are focused on Central Vermont and Chittenden County markets where economic activity is robust. The Company is expanding its presence in New Hampshire. Management emphasizes long-term customer relationships and community ties to compete against larger banks and tax-exempt credit unions.
Key Risks:
- 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, exposing the Company to local economic downturns.
- Real Estate Concentration: High concentration of loans secured by real estate; deterioration in local real estate markets could increase credit risk and require higher Allowance for Credit Losses (ACL).
- Cybersecurity: Vulnerability to cyber-attacks, data breaches, and third-party vendor failures, which could disrupt operations and damage reputation.
- Liquidity: Reliance on deposit growth for funding; inability to attract deposits could force reliance on more expensive purchased deposits or borrowings.
Dividends: The Company generally pays quarterly cash dividends, but future payments depend on earnings, regulatory capital levels, and dividends received from the Bank subsidiary. No assurance is given that dividends will continue or remain at current rates.
Investor Verification Checklist
- Verify the specific revenue, net income, and net interest margin figures in the 2025 Annual Report (Exhibit 13), as these are not detailed in the 10-K text.
- Review the Allowance for Credit Losses (ACL) adequacy and non-performing asset trends in the financial statements, given the high concentration in real estate loans.
- Confirm the impact of the Nasdaq listing on trading volume and liquidity compared to the previous OTC QX platform.
- Assess the Company's exposure to interest rate changes and the effectiveness of its asset-liability management strategies.
- Monitor the status of the $11.6 million goodwill asset for potential future impairment charges.
- Review the details of the 50% ownership in CFS Partners and the associated trust and wealth management revenue streams.