Community Bancorp /VT Annual Report - How They Did This Year

I’ve put together this guide to help you understand Community Bancorp’s latest annual report. I’ve cut through the dense financial jargon so you can see how the company is performing and what that means for your investment.

1. What does this company do?

Community Bancorp is a hometown bank based in Vermont. They handle everything from home mortgages and small business loans to banking for local schools and governments. They focus on building long-term relationships in Vermont and parts of New Hampshire. As of early 2026, their stock trades on the Nasdaq (ticker: CMTV). Their primary subsidiary, Community National Bank, operates 13 offices across northern and central Vermont.

2. Financial health: The "Safety First" approach

The bank is in a very strong position. Regulators classify them as "well capitalized," the highest safety rating a bank can receive. They maintain a high level of capital relative to their assets, far exceeding the minimum safety requirements.

The bank had a great year. Their core profit—the money made from the difference between interest earned on loans and interest paid to depositors—jumped from $34.6 million in 2024 to $40.9 million in 2025. This 18% increase came from a wider interest margin. After setting aside $1.2 million to cover potential bad loans, the bank earned a profit of $12.4 million. This represents a solid return on their assets of about 1.15%.

3. Major wins and changes

• Growing the Loan Book: Total loans grew from $928 million to $965 million. This came mostly from a 6% increase in commercial real estate and home mortgages.
• Efficiency: The bank lowered its interest expenses on borrowed funds from $4.3 million to $1.9 million. This helped boost overall profit and improved their efficiency ratio to 58%.
• Shareholder Value: The company’s "book value per share"—the net worth of the company divided by the number of shares—grew from $17.24 to $20.36. This shows they are creating value for investors, supported by a consistent dividend.
• Wealth Management: In July 2025, the bank increased its ownership in its wealth management arm to 50%. This helps them earn steady fees, making them less dependent on interest rate changes.

4. The competitive landscape

The bank competes with massive national banks and local credit unions. To win, the bank relies on its local roots. They know their customers by name, a personal touch national apps cannot easily replicate. Their funding is also stable, with 88% of their money coming from reliable local checking and savings accounts.

5. Key risks: What to watch

• Credit Losses: The bank holds $10.9 million to cover potential bad loans. If the local economy struggles, especially in commercial real estate, these loans could go unpaid. This would force the bank to set aside more money, which lowers their profit.
• "Hometown" Risk: Almost all their business is in Vermont. If the local economy hits a rough patch, the bank feels it immediately. They are particularly exposed to tourism and small manufacturing.
• Cybersecurity: Like all banks, they are a target for hackers. They spend $850,000 annually on security to prevent data breaches. A major security failure could damage their reputation and lead to fines.

6. Future outlook

Management is playing the long game. They are focusing on stability and steady growth. With a higher book value and growing income, the bank is thriving in a tough market. Their 2026 plan includes growing their loan portfolio by 4% and expanding their wealth management division to increase fee-based income.

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Investor Takeaway: Community Bancorp is currently defined by its stability and conservative, "well-capitalized" approach. When deciding if this fits your portfolio, consider whether you are looking for a steady, locally-focused performer that prioritizes long-term safety over high-risk, high-growth strategies. If you value consistent dividends and a bank with deep roots in its community, this is a company worth keeping on your radar.