I am pleased to report that Community Bancorp., the parent company of Community National Bank, reported earnings for the second quarter ended June 30, 2017, of $1,499,513, or $0.29 per share compared to $1,295,199, or $0.25 per share for the second quarter of 2016. Year-to-date earnings for 2017 are $2,913,729, or $0.57 per share compared to $2,464,693, or $0.48 per share a year ago. Also announced during the quarter was a quarterly cash dividend of $0.17 per common share, payable August 1, 2017, to shareholders of record as of July 15, 2017.
The Company’s consolidated assets on June 30, 2017, were $648,174,342, an increase of $10,520,677, or 1.7%, from December 31, 2016, and an increase of $51,966,609, or 8.7%, from June 30, 2016. Net loans increased $15,440,927, or 3.2%, since December 31, 2016, and increased $30,911,605, or 6.6%, since June 30, 2016. The increases are attributable to growth in commercial loans and have been funded primarily through an increase in deposits which totaled $533,307,279 on June 30, 2017, compared to $504,735,032 on December 31, 2016, and $468,983,156 on June 30, 2016.
The growth of the commercial loan portfolio has had a positive impact on earnings with an increase in interest income of $481,459, or 8.1% for the second quarter ended June 30, 2017, compared to the second quarter last year and an increase of $819,597, or 7.0% year to date. We managed to fund this growth without as significant an increase in interest expense resulting in an increase in net interest income of $408,950 for the second quarter and $675,939 year to date. Also contributing to the increase in earnings are fees associated with the processing of debit card transactions and fees generated from a new courtesy overdraft program implemented in June of 2016. Management is committed to aligning increases in operating expenses to activities that support the Company’s strategic initiatives so that we can continue to grow while maintaining efficiencies and remaining well-capitalized.
The Company will continue to focus on increasing the profitability of the balance sheet, and prudently managing operating expenses and risk, particularly credit risk, in order to remain a well-capitalized bank in this challenging economic environment. From positive retained earnings, shareholders’ equity grew to $56.1 million as of June 30, 2017, compared to $53.0 million at the same time last year.