For immediate release
For more information, contact: Kathryn M. Austin, President & CEO at (802) 334-7915
Trading Symbol: CMTV
(Traded on the OTCQX)
Community Bancorp., the parent company of Community National Bank, has reported earnings for the third quarter ended September 30, 2017, of $1,792,949 or $0.35 per share compared to $1,515,900 or $0.30 per share for the third quarter of 2016. Year to date earnings for 2017 are $4,706,679 or $0.91 per share compared to $3,980,593 or $0.78 per share a year ago.
Total assets at September 30, 2017 were $661,539,071 compared to $637,653,665 at year end and $605,790,430 at September 30, 2016. Commercial loan originations continue to drive asset growth with increases in loans in the amount of $18,798,893 year to date and $35,861,224 year over year. The growth in loans has continued to drive increases in interest income, resulting in an increase of $566,067, or 9.10% for the third quarter. This increase, combined with an increase of only $104,449, or 8.30%, in interest expense, resulted in an increase in net interest income of $461,618, or 8.53%. Net Interest Income for the first nine months of 2017 was $17,141,288 compared to $16,003,730 for the same period in 2016, an increase of 7.68%. Funding for the loan growth came from a combination of an increase in core deposits and use of wholesale funds. Wholesale funds have been kept on short term in order to minimize the Company’s cost of funds. Further contributing to the Company’s performance was an increase in year to date non-interest income of 3.99% as well as an increase in year to date non-interest expenses of only 2.25%, resulting in the increase in net income of 18.24%, compared to 2016.
President and CEO Kathryn Austin commented, “We are pleased to report these third quarter results. We continue to benefit from our loan growth, primarily commercial loans, as well as growth in our core deposits. This is attributable to the good work of our employees. We remain committed to serving our customers and communities as Vermont’s Community Bank.”
As previously announced, the Company has declared a quarterly cash dividend of $0.17 per share payable November 1, 2017 to shareholders of record as of October 15, 2017.
Community National Bank is an independent bank that has been serving its communities since 1851, with offices located in Derby, Derby Line, Island Pond, Barton, Newport, Troy, St. Johnsbury, Montpelier, Barre, Lyndonville, Morrisville and Enosburg Falls.
Forward Looking Statements
This press release contains forward-looking statements, including, without limitation, statements about the Company’s financial condition, capital status, dividend payment practices, business outlook and affairs. 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 economic or monetary conditions, either nationally or regionally, continue to decline, resulting in a deterioration in credit quality 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.