EXHIBIT 99.1
Community Bancorp. Reports Second Quarter 2026 Earnings
Derby, VT: July 21, 2026 --- Community Bancorp. (NASDAQ:CMTV), the parent company of Community National Bank (the “Bank”), reported consolidated earnings for the second quarter ended June 30, 2026, of $4.9 million or $0.84 per share, an increase of $621,097 or 14.41% compared to $4.3 million or $0.72 per share reported for the second quarter of 2025. Earnings for the six months ended June 30, 2026 were $9.1 million, or $1.62 per share, also a significant increase of $1.5 million or 19.40% compared to $7.6 million or $1.34 per share in the same period in 2025.
Second Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):
(Unaudited)
| | | Year Ended | | | Quarter Ended | | | Year Ended | | | Quarter Ended | |
| | | June 30, 2026 | | | June 30, 2026 | | | June 30, 2025 | | | June 30, 2025 | |
| Return on average assets | | | 1.47 | % | | | 1.53 | % | | | 1.29 | % | | | 1.38 | % |
| Pre-tax, pre-provision net revenue return on average assets | | | 1.96 | % | | | 2.11 | % | | | 1.67 | % | | | 1.81 | % |
| Return on average shareholders' equity | | | 15.63 | % | | | 15.83 | % | | | 15.05 | % | | | 15.67 | % |
| Net Interest Margin | | | 3.88 | % | | | 4.00 | % | | | 3.36 | % | | | 3.47 | % |
| Efficiency Ratio | | | 54.2 | % | | | 52.8 | % | | | 57.3 | % | | | 55.8 | % |
| Noninterest expense to average assets | | | 2.31 | % | | | 2.37 | % | | | 2.24 | % | | | 2.29 | % |
| Dividend payout | | | 30.86 | % | | | 29.76 | % | | | 35.82 | % | | | 33.33 | % |
| Fully diluted tangible book value per common share (1) | | $ | 19.51 | | | $ | 19.51 | | | $ | 16.63 | | | $ | 16.63 | |
| Total capital to risk-weighted assets (2) | | | 16.05 | % | | | 16.05 | % | | | 14.85 | % | | | 14.85 | % |
| Total common equity tier 1 capital to risk-weighted assets (2) | | | 14.79 | % | | | 14.79 | % | | | 13.60 | % | | | 13.60 | % |
| Tier I Capital to Average Assets (2) | | | 10.63 | % | | | 10.63 | % | | | 10.06 | % | | | 10.06 | % |
| Tangible common equity to tangible assets (1) | | | 9.41 | % | | | 9.41 | % | | | 8.21 | % | | | 8.21 | % |
| Earnings per common share | | $ | 1.62 | | | $ | 0.84 | | | $ | 0.72 | | | $ | 1.34 | |
| Weighted average number of common shares used in computing earnings per share | | | 5,590,465 | | | | 5,594,749 | | | | 5,608,997 | | | | 5,612,675 | |
| | (1) | Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail. |
| | | |
| | (2) | Represents Bank-only ratios. Current period capital ratios are preliminary subject to finalization of the Bank’s June 30, 2026 FDIC Call Report. |
Total assets for the Company at June 30, 2026, were $1.17 billion, a decrease of $114.8 million from year end 2025, but $6.2 million or 0.53% higher compared to $1.17 billion as of June 30, 2025. The year-to-date change primarily reflects annual maturities of municipal non arbitrage relationships and lower cash balances used to pay off two maturing advances totaling $25.0 million, as well as a cyclical decrease in deposit balances. Contributing to the Company’s year-over-year growth in assets was growth in the Company's gross loan portfolio of $28.8 million, or 3.06%, compared to the 2025 period. Deposit balances increased $48.7 million, or 5.22%, compared to the same period in 2025 but decreased $89.0 million or 8.31% since year end 2025 reflecting cyclical changes. The year-over-year loan growth was primarily funded by a combination of cash, maturities of securities, as well as an increase in core and deposits.
The Company’s securities portfolio totaled $128 million as of June 30, 2026, an 11.45% decrease compared to $144.6 million as of December 31, 2025. The portfolio is classified as available-for-sale and is required to be reported at fair market value with the unrealized loss, net of a deferred tax adjustment, as an adjustment to total equity. Such unrealized losses reflect the interest rate environment, as current rates remain below the coupon rates on the securities, resulting in a fair market value lower than current book values. As of June 30, 2026, the adjustment to equity was $9.4 million, representing an improvement of $3.1 million from the adjustment to equity of $12.5 million on June 30, 2026 and $9.6 million as of December 31, 2025.
Total net interest income for the second quarter ended June 30, 2026, increased $1.4 million, or 13.68%, to $11.2 million, compared to $9.9 million for the same quarter in 2025. The quarter-over-quarter improvement reflects an increase of $1.1 million, or 7.72%, in interest and fees on loans due to strong loan growth and higher yields, partially offset by higher interest on deposits expense of $37,533, or 0.94%. Net interest income for the six months ended June 30, 2026, increased $2.9 million or 14.81%, to $22.2 million, compared to $19.3 million for the same period in 2025, reflecting the same trends.
The provision for credit losses for the second quarter ended June 30, 2026, was $720,967 compared to $407,046 for the same period in 2025. The year-to-date provision for credit losses was $1.1 million, compared to $732,100 for the same period in 2025. The $380,373 year-over-year increase was driven primarily by strong loan growth. The provision for credit losses for June 30, 2026, was determined under Accounting Standard No. 2016-13, Measurement of Credit Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses, or CECL.
Total non-interest income for the second quarter ended June 30, 2026, of $2.6 million increased $247,125, or 10.71%, compared to $2.3 million for the same period in 2025. Total non-interest income for the six months ended June 30, 2026, grew to $4.1 million, compared to $3.6 million for the six months ended June 30, 2025, an increase of $420,767, or 11.57% year-over-year. Total non-interest expenses increased $497,838, or 7.47%, for the second quarter comparison period, and $1.1 million, or 7.98%, for the six months period year-over-year.
Equity capital increased to $120.9 million, with a book value per share of $21.58, as of June 30, 2026, compared to equity capital of $113.7 million and a book value per share of $20.36 as of December 31, 2025, and $106.3 million and book value per share of $18.69 as of June 30, 2025. This change includes a decrease of $237,432 in unrealized losses in the investment portfolio year to date and a decrease of $3.1 million year over year, due to changing bond rates, which increased the fair market value of the investment portfolio, as well as an increase of $6.3 million year to date and an increase of $12.8 million year over year in retained earnings. The unrealized loss position is considered temporary and does not impact the Company’s regulatory capital ratios. In the fourth quarter of 2025, the Company completed the optional redemption of all fifteen of the Company’s outstanding shares of its Series A Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. The preferred stock value of $1,500,000 was included in the Company’s equity capital as of June 30, 2025.
President and CEO Christopher Caldwell commented on the Company’s results: “Through the first half of 2026, the company continued its strong performance. Community banking thrives through relationship-based banking and this long-term approach to clients and our communities continues to serve us well. Our inclusion in both the ABA Nasdaq Community Bank Index and the Russell 2000 Index has increased the Company’s visibility among investors and may support broader market awareness of our stock over time. Tangible book value per share increased by 17% for the year-to-date period compared to the same period of 2025. Year-to-date earnings per share increased 20% compared to the same period last year, and 16% for the second quarter compared to the same quarter 2025. These results demonstrate the Company’s commitment to serving our customers as Vermont’s Community Bank. We are grateful for the trust that our communities, clients, and shareholders have placed in us.”
As previously announced, the Company declared a quarterly cash dividend of $0.25 per share payable August 1, 2026, to shareholders of record as of July 15, 2026.
About Community Bancorp.
Community Bancorp. is the parent holding company for Community National Bank, headquartered in Derby, Vermont. Community National Bank is an independent bank that has been serving its communities since 1851, with retail banking offices located in Derby, Derby Line, Island Pond, Barton, Newport, Troy, St. Johnsbury, Montpelier, Barre, Lyndonville, Morrisville and Enosburg Falls as well as loan offices located in Burlington, Vermont and Lebanon, New Hampshire
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements about the Company’s financial condition, capital status, dividend payment practices, business outlook and affairs. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Although these statements are based on management’s current expectations and estimates, actual conditions, results, and events may differ materially from those contemplated by such forward-looking statements, as they could be influenced by numerous factors which are unpredictable and outside the Company’s control. Factors that may cause actual results to differ materially from such statements include, among others, the following: (1) general national or regional economic conditions, national fiscal or monetary policies, or national or international tariff or trade conditions result in a deterioration of the credit quality of our loan portfolio or diminished demand for the Company’s products and services; (2) changes in laws or government rules, or the way in which courts interpret those laws or rules, adversely affect the financial industry generally or the Company’s business in particular, or may impose additional costs and regulatory requirements; (3) interest rates change in such a way as to reduce the Company’s interest margins and its funding sources; and (4) competitive pressures increase among financial services providers in the Company’s northern New England market area or in the financial services industry generally, including pressures from nonbank financial service providers, from increasing consolidation and integration of financial service providers and from changes in technology and delivery systems, and other factors that are listed from time to time in our financial filings with the SEC, including our Forms 10Q and 10K. The Company cautions you not to rely unduly on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results or events. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law.
Use of Non-GAAP Financial Measures
In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures such as pre-tax, pre-provision income; fully diluted tangible book value per common share and tangible common equity to tangible assets. Management believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found at the end of this document.
Community Bancorp. And Subsidiary
Consolidated Balance Sheets (unaudited)
| | | June 30, | | | December 31, | |
| | | 2026 | | | 2025 | |
| Assets | | | | | | |
| Cash and due from banks | | $ | 19,772,554 | | | $ | 11,802,391 | |
| Federal funds sold and overnight deposits | | | 5,840,996 | | | | 116,259,370 | |
| Total cash and cash equivalents | | | 25,613,550 | | | | 128,061,761 | |
| Securities available-for-sale (amortized cost $139,848,277 and $156,694,754 at 06/30/26 and 12/31/25, respectively | | | 127,982,828 | | | | 144,528,758 | |
| Restricted equity securities, at cost | | | 1,918,950 | | | | 2,933,050 | |
| Loans held-for-sale | | | 813,332 | | | | 138,000 | |
| Loans | | | 970,535,252 | | | | 965,285,662 | |
| Allowance for credit losses | | | (11,881,321 | ) | | | (10,864,983 | ) |
| Deferred net loan costs | | | 940,423 | | | | 786,604 | |
| Net loans | | | 959,594,354 | | | | 955,207,283 | |
| Bank premises and equipment, net | | | 12,220,494 | | | | 12,090,886 | |
| Accrued interest receivable | | | 4,505,039 | | | | 4,607,975 | |
| Bank owned life insurance | | | 5,435,603 | | | | 5,398,085 | |
| Goodwill | | | 11,574,269 | | | | 11,574,269 | |
| Other real estate owned | | | - | | | | 319,019 | |
| Other assets | | | 23,090,295 | | | | 22,699,860 | |
| Total assets | | $ | 1,172,748,714 | | | $ | 1,287,558,946 | |
| Liabilities and Shareholders' Equity | | | | | | | | |
| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Demand, non-interest bearing | | $ | 204,738,374 | | | $ | 218,842,543 | |
| Interest-bearing transaction accounts | | | 278,551,211 | | | | 299,636,739 | |
| Money market funds | | | 125,665,889 | | | | 187,132,921 | |
| Savings | | | 146,071,626 | | | | 142,543,291 | |
| Time deposits, $250,000 and over | | | 48,195,437 | | | | 46,913,997 | |
| Other time deposits | | | 178431659 | | | | 175,598,510 | |
| Total deposits | | | 981,654,196 | | | | 1,070,668,001 | |
| Repurchase agreements | | | 35,019,257 | | | | 41,498,171 | |
| Borrowed funds | | | 10,975,022 | | | | 35,975,022 | |
| Junior subordinated debentures | | | 12,887,000 | | | | 12,887,000 | |
| Accrued interest and other liabilities | | | 11,319,225 | | | | 12,843,774 | |
| Total liabilities | | | 1,051,854,700 | | | | 1,173,871,968 | |
| Shareholders' Equity | | | | | | | | |
| Common stock - $2.50 par value; 15,000,000 shares authorized, 5,902,267 shares issued at 06/30/26, 5,882,266 shares issued at 12/31/25 | | | 14,755,668 | | | | 14,705,665 | |
| Additional paid-in capital | | | 40,757,013 | | | | 40,076,561 | |
| Retained earnings | | | 79,287,690 | | | | 73,021,908 | |
| Accumulated other comprehensive loss | | | (9,373,705 | ) | | | (9,611,137 | ) |
| Less: treasury stock, at cost; 300,409 shares at 06/30/26 and 299,399 shares at 12/31/25 | | | (4,532,652 | ) | | | (4,506,019 | ) |
| Total shareholders' equity | | | 120,894,014 | | | | 113,686,978 | |
| Total liabilities and shareholders' equity | | $ | 1,172,748,714 | | | $ | 1,287,558,946 | |
| | | | | | | | | |
| Book value per common share outstanding | | $ | 21.58 | | | $ | 20.36 | |
Community Bancorp. and Subsidiary
Consolidated Statements of Income (unaudited)
| | | Quarter Ended | | | Quarter Ended | |
| | | June 30, 2026 | | | June 30, 2025 | |
| Interest income | | | | | | |
| Interest and fees on loans | | $ | 14,748,598 | | | $ | 13,691,705 | |
| Interest on taxable debt securities | | | 741,821 | | | | 948,048 | |
| Interest on tax-exempt debt securities | | | 80,411 | | | | 80,411 | |
| Dividends | | | 47,363 | | | | 58,595 | |
| Interest on federal funds sold and overnight deposits | | | 424,413 | | | | 71,857 | |
| Total interest income | | | 16,042,606 | | | | 14,850,616 | |
| Interest expense | | | | | | | | |
| Interest on deposits | | | 4,009,541 | | | | 3,972,008 | |
| Interest on borrowed funds | | | 301,838 | | | | 444,596 | |
| Interest on repurchase agreements | | | 262,376 | | | | 298,057 | |
| Interest on junior subordinated debentures | | | 221,045 | | | | 241,413 | |
| Total interest expense | | | 4,794,800 | | | | 4,956,074 | |
| Net interest income | | | 11,247,806 | | | | 9,894,542 | |
| Credit loss expense | | | 720,967 | | | | 407,046 | |
| Net interest income after credit loss expense | | | 10,526,839 | | | | 9,487,496 | |
| Non-interest income | | | | | | | | |
| Service fees | | | 988,219 | | | | 969,775 | |
| Income from sold loans | | | 89,692 | | | | 96,705 | |
| Other income from loans | | | 537,043 | | | | 331,759 | |
| Income from investment in CFS Partners | | | 579,795 | | | | 548,307 | |
| Other income | | | 117,998 | | | | 112,165 | |
| Total non-interest income | | | 2,312,747 | | | | 2,058,711 | |
| Non-interest expense | | | | | | | | |
| Salaries and wages | | | 2,632,767 | | | | 2,392,661 | |
| Employee benefits | | | 1,102,841 | | | | 1,056,273 | |
| Occupancy expenses, net | | | 779,462 | | | | 794,451 | |
| Other expenses | | | 2,650,168 | | | | 2,424,015 | |
| Total non-interest expense | | | 7,165,238 | | | | 6,667,400 | |
| Income before income taxes | | | 5,674,348 | | | | 4,878,807 | |
| Income tax expense | | | 986,564 | | | | 819,031 | |
| Net income | | $ | 4,687,784 | | | $ | 4,059,776 | |
| Earnings per common share | | $ | 0.84 | | | $ | 0.72 | |
| Weighted average number of common shares used in computing earnings per share | | | 5,594,749 | | | | 5,612,675 | |
| Dividends declared per common share | | $ | 0.25 | | | $ | 0.24 | |
| | | Year Ended | | | Year Ended | |
| | | June 30, 2026 | | | June 30, 2025 | |
| Interest income | | | | | | |
| Interest and fees on loans | | $ | 29,181,219 | | | $ | 26,906,737 | |
| Interest on taxable debt securities | | | 1,546,571 | | | | 1,807,276 | |
| Interest on tax-exempt debt securities | | | 160,823 | | | | 160,823 | |
| Dividends | | | 99,321 | | | | 106,485 | |
| Interest on federal funds sold and overnight deposits | | | 1,081,511 | | | | 393,806 | |
| Total interest income | | | 32,069,445 | | | | 29,375,127 | |
| Interest expense | | | | | | | | |
| Interest on deposits | | | 8,186,172 | | | | 8,157,915 | |
| Interest on borrowed funds | | | 687,788 | | | | 815,574 | |
| Interest on repurchase agreements | | | 556,106 | | | | 584,016 | |
| Interest on junior subordinated debentures | | | 443,692 | | | | 484,758 | |
| Total interest expense | | | 9,873,758 | | | | 10,042,263 | |
| Net interest income | | | 22,195,687 | | | | 19,332,864 | |
| Credit loss expense | | | 1,112,473 | | | | 732,100 | |
| Net interest income after credit loss expense | | | 21,083,214 | | | | 18,600,764 | |
| Non-interest income | | | | | | | | |
| Service fees | | | 1,924,696 | | | | 1,856,557 | |
| Income from sold loans | | | 159,237 | | | | 166,082 | |
| Other income from loans | | | 887,238 | | | | 601,927 | |
| Income from investment in CFS Partners | | | 822,234 | | | | 797,658 | |
| Other income | | | 264,682 | | | | 215,096 | |
| Total non-interest income | | | 4,058,087 | | | | 3,637,320 | |
| Non-interest expense | | | | | | | | |
| Salaries and wages | | | 5,211,603 | | | | 4,712,727 | |
| Employee benefits | | | 2,214,118 | | | | 2,074,245 | |
| Occupancy expenses, net | | | 1,554,443 | | | | 1,576,307 | |
| Other expenses | | | 5,242,433 | | | | 4,807,731 | |
| Total non-interest expense | | | 14,222,597 | | | | 13,171,010 | |
| Income before income taxes | | | 10,918,704 | | | | 9,067,074 | |
| Income tax expense | | | 1,861,817 | | | | 1,481,843 | |
| Net income | | $ | 9,056,887 | | | $ | 7,585,231 | |
| Earnings per common share | | $ | 1.62 | | | $ | 1.34 | |
| Weighted average number of common shares used in computing earnings per share | | | 5,590,465 | | | | 5,608,997 | |
| Dividends declared per common share | | $ | 0.50 | | | $ | 0.48 | |
Community Bancorp. and Subsidiary
Earnings Per Share (“EPS”) (unaudited)
(Dollars in thousands, except share data)
| | | For the Quarter Ended June 30, | | | For the Year Ended June 30, | |
| | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
| | | (In thousands, except per share data) | |
| Net income | | $ | 4,688 | | | $ | 4,060 | | | $ | 9,057 | | | $ | 7,585 | |
| Less: dividends to preferred shareholders | | | – | | | $ | 28 | | | | – | | | $ | 56 | |
| Net income available to common shareholders | | $ | 4,688 | | | $ | 4,032 | | | $ | 9,057 | | | $ | 7,529 | |
| Weighted average number of common shares used in computing earnings per share | | | 5,594,749 | | | | 5,612,675 | | | | 5,590,465 | | | | 5,608,997 | |
| Earnings per common share | | $ | 0.84 | | | $ | 0.72 | | | $ | 1.62 | | | $ | 1.34 | |
Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
Community Bancorp. and Subsidiary
(Dollars in thousands, except share data)
| | | Quarter Ended | |
| | | June 30, 2026 | |
| Computation of Pre-tax, pre-provision net revenue | | | |
| Net interest income | | $ | 11,247,806 | |
| Non-interest income | | $ | 2,312,747 | |
| Less: Non-interest expense | | $ | 7,165,238 | |
| Pre-tax, pre-provision net revenue | | $ | 6,395,315 | |
| | | | | |
| Computation of Pre-tax, pre-provision net revenue return on average assets | | | | |
| Pre-tax, pre-provision net revenue | | $ | 6,395,315 | |
| Average Assets | | $ | 1,228,309,434 | |
| Pre-tax, pre-provision net revenue return on average assets | | | 2.11 | % |
| | | As of | |
| | | June 30, 2026 | | | December 31, 2025 | | | June 30, 2025 | |
| Computation of Fully Diluted Tangible Book Value per Common Share | | | | | | | | | |
| Total shareholders' equity | | $ | 120,894 | | | $ | 113,687 | | | $ | 106,343 | |
| Less: | | | | | | | | | | | | |
| Preferred Stock | | | – | | | | – | | | $ | 1,500 | |
| Common shareholders' equity | | $ | 120,894 | | | $ | 113,687 | | | $ | 104,843 | |
| Less: | | | | | | | | | | | | |
| Goodwill | | $ | 11,574 | | | $ | 11,574 | | | $ | 11,574 | |
| Other Intangibles | | | – | | | | – | | | | – | |
| Tangible common shareholders' equity | | $ | 109,320 | | | $ | 102,113 | | | $ | 93,269 | |
| | | | | | | | | | | | | |
| Common shares issued and outstanding | | | 5,601,858 | | | | 5,582,927 | | | | 5,608,914 | |
| | | | | | | | | | | | | |
| Fully Diluted Tangible Book Value per Common Share | | $ | 19.51 | | | $ | 18.29 | | | $ | 16.63 | |
| | | As of | |
| | | June 30, 2026 | | | December 31, 2025 | | | June 30, 2025 | |
| Computation of Tangible Common Equity to Tangible Assets | | | | | | | | | |
| Common Equity | | $ | 120,894 | | | $ | 113,687 | | | $ | 106,343 | |
| Less: | | | | | | | | | | | | |
| Goodwill | | $ | 11,574 | | | $ | 11,574 | | | $ | 11,574 | |
| Other Intangibles | | | – | | | | – | | | | – | |
| Tangible Common Equity | | $ | 109,320 | | | $ | 102,113 | | | $ | 94,769 | |
| | | | | | | | | | | | | |
| Total Assets | | $ | 1,172,749 | | | $ | 1,287,559 | | | $ | 1,166,586 | |
| Less: | | | | | | | | | | | | |
| Goodwill | | $ | 11,574 | | | $ | 11,574 | | | $ | 11,574 | |
| Other Intangibles | | | – | | | | – | | | | – | |
| Tangible Assets | | $ | 1,161,175 | | | $ | 1,275,985 | | | $ | 1,155,012 | |
| | | | | | | | | | | | | |
| Tangible Common Equity to Tangible Assets | | | 9.41 | % | | | 8.00 | % | | | 8.21 | % |
For more information, contact:
Investor Relations
ir@communitynationalbank.com
