Community Bancorp posts higher third-quarter profits

Derby, Vermont. Community Bancorp reported net income of $5.1 million for the third quarter ended September 30, 2026. This figure represents $0.91 per share. The result was a $344,000 increase, or 7.24 percent, over the $4.7 million, or $0.84 per share, the company earned in the same quarter last year.

The bank has seen steady growth since the start of the year. Total earnings for the nine months through September 30 reached $14.1 million, or $2.53 per share. That is a $1.8 million, or 14.72 percent, jump from the $12.3 million, or $2.18 per share, recorded in the same period in 2025. The company attributes the rise to strong loan expansion and higher yields on those loans.

Total assets stood at $1.23 billion as of September 30, 2026. This amount is $56 million lower than at the end of 2025 but up $5.4 million, or 0.44 percent, from September 30, 2025. The year-to-date decline in assets reflects lower cash balances. The bank used that cash to fund new loans, pay off two maturing advances totaling $25 million, and cover a cyclical drop in deposit balances. Despite the cash outflow, the gross loan portfolio grew by $60.3 million, or 6.26 percent, compared to the same period in 2025.

Net interest income increased by $1.1 million, or 10.89 percent, to $11.7 million in the third quarter. This was up from $10.5 million in the same quarter last year. The increase was driven by a $1.1 million, or 7.59 percent, rise in interest and fees on loans. This growth was partially offset by a $243,000, or 6.46 percent, increase in interest paid on deposits. Over the first nine months of the year, net interest income rose 13.43 percent to $33.9 million.

The provision for credit losses for the third quarter was $473,000. This compares to $258,000 in the prior year period. The year-to-date provision reached $1.6 million, up from $991,000 in 2025. The company stated that the $595,000 year-over-year increase was primarily driven by the pace of loan growth. Non-interest income for the quarter fell 8.98 percent to $1.9 million. Non-interest expenses rose 5.12 percent for the quarter and 7.03 percent for the nine-month period.

Equity capital increased to $120.8 million as of September 30, 2026. This corresponds to a book value of $21.53 per share. This is up from $20.36 per share at the end of 2025 and $19.64 per share at the end of the third quarter last year. The change includes a $3.9 million increase in unrealized losses on the investment portfolio due to changing bond rates. These losses are considered temporary and do not affect regulatory capital ratios.

President and CEO Christopher Caldwell noted that tangible book value per share has grown 6.5 percent since the start of the year. He added that the figure is up almost 11 percent compared to the same time last year. Caldwell stated that third-quarter earnings per share rose 8 percent year over year, while year-to-date earnings per share are 16 percent higher than in 2025. He reported that the net interest margin is now above 4 percent for the quarter. Caldwell also cited a non-interest expense to average assets ratio of 2.27 percent as of the end of the third quarter.

The company declared a quarterly cash dividend of $0.26 per share. The payment is scheduled for November 1, 2026. It will be paid to shareholders of record as of October 15, 2026. Community Bancorp is the parent company of Community National Bank, which has operated in the region since 1851.