Fall 2019

CNB home page lady with dogOur website has a refreshed look and feel! The new design makes our website easier to use on computers, tablets and mobile devices. The desktop and mobile versions of our site include the same information but show differently depending on the device used. The content on our website has been reorganized using accordion-style menus to reduce scrolling on pages. Please read on to learn about more improvements.

How to Access the Online Banking Login
When viewing our website on a larger screen such as a desktop computer or laptop, the Online Banking Login is now displayed in the upper right-hand  corner. The login section is still in a green box.

When viewing from a mobile device such as a smartphone or tablet, the Online Banking Login is now accessed by clicking the menu icon, the three lines, to the right of our logo. The Online Banking Login appears in green at the top of the drop-down menu. When viewing the menu from a mobile device, the icons above the Online Banking Login help to easily navigate to our locations, contact us and privacy statement and includes a direct call link to our main office when using a smartphone.

Website Search
Information on our website can now be easily found using the new internal search box. This feature allows our website content to be searched by typing keywords or questions. When viewing on a desktop computer or laptop, the blue search box is located above the Online Banking Login. When using a mobile device the search feature appears in the menu below the Online Banking Login.

• The News Center contains articles announcing employee promotions and community initiatives that CNB helps to support that enrich our communities.


• Our Getting to Business section highlights our commercial lending services. The page includes testimonials from our customers and individual photos and biographies of our business team members and the areas they serve.


• The Open a Deposit Account tab has been relocated below the home page banner image. If you need to open a CNB checking or savings account but cannot make it to the bank during office hours, an account can be opened safely and securely from the comfort of your home.


• Our Community Circle Club information can be easily accessed by clicking the graphic of a lounge chair and umbrella located under the home page banner image or in the About CNB menu. Visit this section to learn about club benefits, membership requirements and to view club newsletters.

• The Mortgage Center now includes a section highlighting our Residential Lenders with photos and biographies of our team members that guide consumers through the home buying process.


• A Community Connections section has been added to the About CNB tab. This is where consumers can submit a donation request and send a resume for possible employment at CNB.


• The Security link in the footer includes informational articles such as how to be safe on social media, securing mobile devices and creating strong passwords and security questions.

We hope you like the changes and enjoy the ease of navigating the site.

 

Kathryn M. Austin, President and Chief Executive Officer, Community Bancorp. and Community National Bank
Kathryn M. Austin, President and Chief Executive Officer, Community Bancorp. and Community National Bank

President Kathy Austin proudly announced the promotions of Louise Bonvechio, Beth Morin, Ted Ropple and Sarah Barrup. She also welcomed Shelly Morey as the bank’s new Community Circle Director. Congratulations to all!


Bank Employee Louise BonvechioLouise Bonvechio has been promoted to Executive Vice President, Chief Financial Officer, Cashier and Corporate Secretary of CNB and Treasurer and Corporate Secretary of Community Bancorp. Bonvechio has worked for CNB for over 25 years. This year she completed the Stonier Graduate School of Banking and earned a Leadership Certificate from the Wharton School at the University of Pennsylvania. Austin remarked, “Louise is very deserving of this promotion as she competently manages all aspects of the Bank’s fiscal functions while providing outstanding leadership for the organization.” Louise is very involved in serving our communities. She is Board Chair of RuralEdge, a Director and Treasurer of the Emory Hebard State Office Building Condo Association and a member of the ReNewport Catamount Arts Creative Hub committee. She recently served as a Trustee and Treasurer of the Goodrich Memorial Library and chaired the ReNewport Community Visit, a Vermont Council on Rural Development program. Other recently held positions include a member of the Regional Advisory Board for the North Country Career Center and a member of the Federal Home Loan Bank of Boston’s Member Advisory Panel. Bonvechio was presented with the Vermont Bankers Association’s Outstanding Community Service Banker Award in 2017. She and her husband Brian make their home in Newport.

Bank Employee Beth MorinBeth Morin was promoted to Vice President and Senior Loan Operations Officer. Beth started working for CNB in 1985 and has served the bank in many lending capacities. Most recently, she held the position of Vice President and Special Asset Officer. In her new role, she will oversee Residential and Consumer Loan Processing and Underwriting; Loan Servicing; Loss Mitigation and Special Asset Administration. Austin stated, “Beth’s exceptional skillset and experience make her well-suited to take on her new responsibilities.” During her career, Beth has completed many courses and programs related to banking, finance and lending. Beth makes her home in Westmore with her husband Jim.

Bank Employee Ted RoppleEdward “Ted” Ropple has been promoted to Vice President and Chief Technology Officer. Ted joined the bank in the fall of 2017. He has worked in the field of Information Security and Technology for over 30 years, spending the last 16 years working in the financial industry. Prior to entering banking, Ted held leadership and consulting roles in the civil construction and health care industries. Ted attended the University of Lowell in Lowell, Massachusetts and holds many technical and industry certifications. Ted and his wife Debbie reside in West Charleston.

Bank Employee Sarah BarrupSarah Barrup was promoted to Special Asset Officer. She started her banking career with CNB in 2003 as a Teller in Derby Line and in 2005, was hired as an Administrative Assistant in our Finance Department. In 2008 she took a position in the Loss Mitigation Department as an Assistant and then was promoted to Specialist. For the past 10 years, Sarah has worked helping customers find ways to avoid foreclosure and establish plans to continue paying obligations. Sarah attended the Northern New England School of banking in 2015 and she has taken several banking courses. Sarah makes her home in Derby with her husband Tom, her daughter Bella and son Mason.

Bank Employee Shelly MoreyShelly Morey joined CNB to serve as the next Community Circle Director. Shelly is a native of the Northeast Kingdom and attended Lake Region Union High School. During high school and after graduation in 1986, Shelly was employed by Vermont Travel Service where she booked leisure and business trips for individuals and groups, including Community Circle. In 2002, she took an Administrative Assistant position at North Country Hospital and, for the last 10 years, worked as the Executive Assistant to the President. When asked about her thoughts on joining CNB Shelly replied, “I’m grateful to join a great organization with such strong community ties, and I am excited to meet and get to know the Community Circle members. I’m honored to have the opportunity to serve the bank and the club’s members.” Shelly makes her home in Newport with her husband Michael.

 

Louise Bonvechio, Treasurer and Corporate Secretary, Community Bancorp., Executive Vice President, Chief Financial Officer, Cashier and Corporate Secretary, Community National Bank
Louise Bonvechio, Treasurer and Corporate Secretary, Community Bancorp., Executive Vice President, Chief Financial Officer, Cashier and Corporate Secretary, Community National Bank

I am pleased to report that Community Bancorp., the parent company of Community National Bank (the Bank), reported earnings for the third quarter ended September 30, 2019, of $2,261,943 or $0.43 per share compared to $2,269,732 or $0.44 per share for the third quarter of 2018. Year-to-date earnings for 2019 are $6,453,146 or $1.23 per share compared to 6,254,929 or $1.20 per share a year ago. Also announced during the quarter was a quarterly cash dividend of $0.19 per share payable November 1, 2019, to shareholders of record as of October 15, 2019.

The Company’s consolidated assets on September 30, 2019, were $729,231,941 compared to $720,347,498 at year end 2018, and $694,499,557 at September 30, 2018. The asset growth has been driven in part by increases in loans in the amount of $23 million, year over year and $26 million so far this year. This year-to-date growth is attributable to an increase of $11.9 million in commercial loans, $4.9 million increase in municipal loans and $14.3 million increase in commercial real estate loans. These increases were offset by a $5.0 million decrease in 1-4 Family Residential Loans. Growth in the commercial loan portfolio was enhanced with $7.5 million in purchased loans and the growth in the commercial real estate loans includes a $4.0 million loan participation with the Atlantic Central Bankers Bank, formerly Bankers Bank Northeast. The available for sale portfolio increased $3.2 million, or 8.2%, from December 31, 2018.

The purchased loan volume mentioned above was through a new loan purchasing program with Bankers Healthcare Group (BHG). BHG originates loans to medical professionals nationwide and sells them individually to a secondary market, primarily banks, through a bid process. Management has established conservative credit parameters and expects a low risk of default in this portfolio. Average loan size is approximately $200,000, with average term of 100 months. With average duration expected to be slightly longer than the portfolio average, it reduces exposure to falling rates in the near term. This portfolio will serve to support asset growth and provide geographic diversification in the portfolio.

The Bank’s relationship with Atlantic Central Bankers Bank provides an opportunity for loan participations on both the buy and sell side. Loan participations are useful in managing the balance sheet. Buying loan participations can help balance fluctuations in local market loan demand and provide diversification in the loan portfolio. Through the selling of participations, the bank can manage lending limits, industry concentrations and credit risk.

Total deposits decreased $2.4 million or 0.4%, since December 31, 2018, consisting of a decrease in core deposits totaling $4.5 million, or 1.5%, and an increase in money market accounts and savings accounts totaling $16.2 million, or 9.1%, and a decrease in time deposits of $14.0 million, or 10.8%. A decrease in wholesale time deposits of $13.5 million, or 11.7%, is predominantly due to the maturity of brokered deposits that were not re placed due to the influx of cash on hand.

Interest income increased $389,432, or 5.2%, for the third quarter of 2019 compared to the same quarter in 2018, and $2,544,526, or 11.9%, for the first nine months of 2019 compared to the same period in 2018. Interest expense increased $288,888, or 23.7%, for the third quarter of 2019 compared to the same quarter in 2018, and $1,567,134, or 51.8%, for the first nine months of 2019 compared to the same period in 2018. The year-to date increase in interest income is due in part to a $440 thousand prepayment penalty received in the second quarter of 2019, as well as the increases in short-term rates. While the increase in short-term rates has had a positive impact on interest income, it also has put upward pressure on interest rates paid on deposit accounts and other borrowings. This pressure is expected to lessen as short-term rates have declined in the third quarter.

Growth of the loan portfolio, combined with charge off activity related to write down adjustments on several loans in workout, required provisions for loan losses of $412,499 for the third quarter of 2019 compared to $210,000 for the same period in 2018, an increase of 96.4%. The year-to-date provision for loan losses of $766,668 for the first nine months of 2019 compares to $570,000 for the same period in 2018, an increase of 34.5%.

Non-interest income increased $54,539, or 3.5%, for the third quarter of 2019, while a decrease of $278,455, or 6.0%, is noted for the first nine months of 2019. The year-over-year decrease is due to the combination of a decrease in income from gain on sale of loans sold in the secondary market in 2019 compared to 2018 and a one-time gain on sale of property in 2018. Loan originations that were subsequently sold in the secondary market were $7.5 million for the first nine months of 2019 compared to $8.9 million for the same period in 2018 resulting in a decrease in gain on sale of loans of $107 thousand, or 40.3%. Also contributing to the year-over-year decrease is a one-time gain on sale of property of $263 thousand in 2018 which was directly related to the sale of a condominium unit to the Company’s affiliate, Community Financial Services Group. No similar gains were reported in 2019.

Non-interest expense decreased $10,616, or 0.2%, for the third quarter of 2019 and increased $389,276, or 2.7%, for the first nine months of 2019. While increases are noted in salaries, wages and employee benefits, both periods were positively impacted with a decrease in other expenses due to the distribution of deposit-insurance assessment credits issued by the FDIC. Credits issued to the Bank equal $164,007, which represents 79.4% of the Bank’s total FDIC assessment for the first nine months of 2018.

From positive retained earnings, shareholders’ equity grew to $67.3 million with a book value per share of $12.60 as of September 30, 2019, compared to $60.9 million and $11.42 per share at the same time last year.

 

Kimico Perry, PHR, Vice President, Human Resources
Kimico Perry, PHR, Vice President, Human Resources

We are pleased to acknowledge employees for reaching important milestones. This past quarter all of our employees were celebrated for the great work they do on behalf of the bank at our Annual Employee Appreciation Night.

Service Awards
• 5-years of service was celebrated by Lyndonville Certified Teller Jessica Brinkerhoff.


• 10-year milestones were achieved by Derby Compliance Assistant Karen Kristiansen, Morrisville Portfolio Manager Sarah Chadburn and Montpelier Regional Vice President and Commercial Lender Justin Bourgeois.


• 15-years of service was reached by Derby Certified Teller Jamie Ivers.


• A 30-year milestone was reached by Lyndonville Loan Servicing Specialist Tammi Stahler.


• Community Circle Director Linda Cloutier celebrated 35 fabulous years of service just before her retirement!

Baby News
Enosburg Teller Jessica Longley and her spouse Matthew welcomed a baby girl Britley on August 20. She joins her big brother Carter.

Retirement News
• On November 1, the bank bid farewell to Linda Cloutier. Linda has been a fixture of the Derby office for many years spending the last 20 with our Community Circle program. Co-workers and members will miss her warm and vibrant personality as she takes a well-deserved retirement.


• Montpelier Teller Jean Johnson has announced her retirement for December. With her smile and dedicated service, Jean has spent the past 18 years helping our Montpelier customers.

Annual Employee Appreciation Night

On September 26, the bank held its Annual Employee Appreciation Night at the Eastside Restaurant in Newport, VT. Twenty employees reached important service milestones and were recognized for their years of service. Several employees were acknowledged for earning certificates and diplomas through the Center for Financial Training and Education Alliance. The night included fun with work friends, great food and raffle prizes. The evening concluded with entertainment by the World Famous Mentalist Jon Stetson.

 

Community Circle Director Shelly Morey
Community Circle Director Shelly Morey

The Mount Washington Hotel in Bretton Woods, New Hampshire, with all its grandeur and history, welcomes Community Circle to a specially prepared Holiday Luncheon Buffet featuring regionally sourced produce, meats and seafood for a timeless, classic and memorable dining experience. Afterwards, listen to the hotel’s fascinating history on a guided tour.

After leaving Mount Washington, we will make a stop on Main Street in Littleton, New Hampshire to visit “Chutters”, home of the World’s Longest Candy Counter.

The price for this trip is $99.00 which includes transportation, lunch and the tour. We will leave the Community National Bank upper parking lot in Derby at 9:00 a.m. on December 5, 2019, and expect to arrive back in Derby at approximately 5:30 p.m.

Please call Community Circle Director Shelly Morey or Community Circle Assistant Julie Mossa at 334-7915 to reserve your spot.

 

Community Financial Services Group Trust Officer Bob Thompson
Community Financial Services Group Trust Officer Bob Thompson

Personal finance is the term that covers managing your money. Personal finance is about meeting your personal financial goals. Your goals could range from short-term goals such as purchasing household furniture to long-term goals such as saving for your child’s college education or saving for retirement. It is never too late to create financial goals for yourself. The sooner you start the better. If you are wondering where to start here are some tips.

Create a budget. A budget is a critical tool that can be used to assure that you are living within your means. Your budget can also ensure that you are saving enough money to meet your short and long-term goals. One budgeting method called the 50/30/20 method offers a good framework to start your budget. This method allocates 50% of your net income to pay for living essentials such as groceries, rent, utilities and transportation; 30% is allocated to lifestyle expenses such as shopping, a cell phone bill and Internet; and 20% would then be allocated towards paying down debt and saving for both retirement and emergencies. With the use of technology, it has never been easier to manage your money. There are many apps that are available for personal budgeting. The apps help you categorize and track all of your expenditures.

Establish an emergency fund. Ideally, an emergency fund should have between three to six months’ worth of living expenses. Situations can change the amount that you may want to have in your emergency fund. For example, if you have children and/or a spouse that depend on you financially, you may want to have your emergency fund have at a minimum six months of living expenses. If you work in an industry where turnover is high or the injury rate is high, you may want to have a minimum of one-year’s worth of living expenses. Once you’ve reached the funding target for your fund don’t stop saving. Use those funds to increase your savings for other financial goals such as a down payment for a car or retirement savings.

Community Financial Services Group manages $800 million for hundreds of individuals, families and non-profit organizations. If you are interested in meeting with a CFSG representative for unbiased investment & financial planning advice, please call 877-334-1677. Our Trust Officers can meet with you at any Community National Bank office or other convenient location.

Community Financial Services Group, LLC (CFSG) is the Trust and Investment management affiliate of Community National Bank. CFSG accounts are
• Not deposits or other obligations of the bank
• Not guaranteed by the bank
• Not insured by the FDIC; and
• The investments are subject to risk, including the possible gain or loss of principal.

 

Former Community Circle Director Linda Cloutier
Former Community Circle Director Linda Cloutier

The CNB family celebrated the retirement of our Community Circle Director Linda Cloutier who has been with the bank for 35 years.

Linda started her career at CNB in 1984, as a Teller and Customer Service Representative in Derby. In 1998, Linda became the Community Circle Assistant working side-by-side with Jeanne Bonnell. In 2007, she was promoted to a Bank Officer when she became the Co-Director of the Community Circle program. In 2009, she became the sole Director.

For over 20 years Linda has taken great care of our Community Circle Club members. She will be missed greatly by her co-workers and our club members. We wish Linda the best as she enters this exciting new chapter of her life.