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

DERBY, VT / ACCESSWIRE / October 23, 2023 / Community Bancorp., (OTCQX:CMTV) the parent company of Community National Bank reported earnings for the third quarter ended September 30, 2023, of $3.4 million or $0.61 per share, a decrease of $247,997 or 6.87% compared to $3.6 million or $0.66 per share for the third quarter of 2022. Year to date earnings for 2023 were $9.9 million or $1.80 per share, an increase of $860,408 or 9.52% compared to $9.0 million or $1.67 per share for the same period a year ago.

Total assets for the Company on September 30, 2023, were $1.08 billion, compared to $1.06 billion at year-end 2022, and $1.03 billion as of September 30, 2022. The year-over-year asset growth was driven by continued growth in the Company's loan portfolio of $114.4 million, or 15.79%, from the September 30, 2022, period. The asset growth was offset by a decrease in cash and overnight deposits during the same period of $56.4 million, or 76.28%, reflecting the use of cash to fund the loan growth. Borrowed funds for the third quarter ended September 30, 2023, increased $48.0 million compared to a year ago, to supplement funding of loan growth.

Total net interest income for the third quarter ended September 30, 2023, increased $56,493, or 0.67%, to $8.43 million, compared to $8.37 million for the same quarter in 2022. The year-over-year improvement reflects an increase of $2,737,121, or 33.45%, in interest and fees on loans due to loan growth and higher interest rates, offset by an increase in interest on deposits expense of $1,663,260, or 198.48%, due to higher interest rates paid on deposits. Net interest income for the nine months ended September 30, 2023, increased $1,453,307, or 6.11%, to $25.2 million, compared to $23.8 million for the same period in 2022, reflecting the same trends.

The provision for credit losses for the third quarter ended September 30, 2023, was $240,889, compared to $125,000 for the same period in 2022. The year-to-date provision for credit losses was $808,557, compared to $1,325,000 for the same period in 2022. The $516,443 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 third quarter ended September 30, 2023, of $1.7 million increased $179,988, or 11.75%, compared to $1.5 million for the same period in 2022. Total non-interest income for the nine months ended September 30, 2023, grew to $5.3 million, compared to $4.8 million for the nine months ended September 30, 2022, an increase of $456,471, or 9.41% year over year. Total non-interest expenses increased $473,635, or 8.87% for the third quarter comparison period, and increased $1,329,210, or 8.19%, on a year-over-year basis. Equity capital increased to $78.8 million, with a book value per share of $14.08 as of September 30, 2023, compared to equity capital of $75.2 million and a book value of $13.55 as of December 31, 2022.