Community Bancorp. Reports Second Quarter 2023 Earnings; Higher Earnings Reflect Continued Strong Growth in Loans

DERBY, VT / ACCESSWIRE / July 24, 2023 / Community Bancorp., (OTCQX:CMTV) Community National Bank reported earnings for the second quarter ended June 30, 2023, of $3.2 million or $0.58 per share, an increase of $175,187 or 5.80% compared to $3.0 million or $0.56 per share for the second quarter of 2022. Year to date earnings for 2023 are $6.5 million or $1.19 per share, an increase of $1.1 million or 20.43% compared to $5.4 million or $1.00 per share a year ago.

Total assets for the Company on June 30, 2023, were $1.03 billion, compared to $1.06 billion at year-end 2022, and $1.00 billion as of June 30, 2022. The year-over-year asset growth was driven by continued growth in the Company's loan portfolio of $78.0 million, or 11.10%, compared to the 2022 period. The asset growth was offset by a decrease in cash and overnight deposits of $47.7 million, or 71.16%. Borrowed funds for the second quarter ended June 30, 2023, increased $40 million, to offset the loan growth as well as a decrease in deposit balances of $20.7 million, or 2.38%, compared to June 30, 2022.

Total net interest income for the second quarter ended June 30, 2023, increased $431,678, or 5.51%, to $8.2 million, compared to $7.8 million for the same quarter in 2022. The year-over-year improvement reflects an increase of $2,384,258 or 31.25%, in interest and fees on loans due to loan growth and higher interest rates, offset by an increase in interest on deposits expense of $1,638,926, or 279.94%, due to higher interest rates. Net interest income for the six months ended June 30, 2023, increased $1,396,815, or 9.07%, to $16.8 million compared to $15.4 million for the same period in 2022, reflecting the same trends.

The provision for credit losses for the second quarter ended June 30, 2023, was $281,142, compared to $337,500 for the same period in 2022. The year-to-date provision for credit losses was also lower, at $567,668, compared to $1,200,000 for the same period in 2022. The $632,332 year-over-year decrease was driven primarily by a write-down on a single non-performing loan totaling $667,474 in March 2022.

Total non-interest income for the second quarter ended June 30, 2023, of $1.8 million increased $204,135, or 12.49%, compared to $1.6 million for the same period in 2022. Total non-interest income for the six months ended June 30, 2023, was $3.6 million compared to $3.3 million for the six months ended June 30, 2022, an increase of $276,483, or 8.33% year over year. Total non-interest expenses increased $429,459, or 7.90% for the second quarter comparison period, and $855,574, or 7.86%, year over year.