pressrelease1q2008.htm
Exhibit
99.1
PRESS
RELEASE
Community
Bancorp. Reports Earnings and Dividend
April
17, 2008
|
For
immediate release
|
For more
information contact: Richard White or Steve Marsh at (802)-334-7915
Derby,
VT: Community Bancorp., the parent company of Community National Bank, has
reported earnings for the period ended March 31, 2008, of $217,048 or $0.05 per
share, compared to $675,256 or $0.15 per share for the period ended March 31,
2007.
In
commenting on the Company’s growth and earnings performance, Chairman Richard
White said that first quarter earnings were significantly affected by one time
merger related expenses, including the cost of the bank’s recent computer
conversion and the termination of various contracts and service agreements that
had been in place at LyndonBank. The two companies merged as of the close of
business on December 31, 2007.
Included
in the Company’s income statement for the first quarter were non recurring
merger related expenses of approximately $450,000. “We believe that we have
identified and addressed the bulk of our merger related expenses and now have
them behind us,” said Company President and CEO Steve Marsh.
Total
assets at the end of the quarter were $495,089,209 compared to $502,031,618 at
year end and $338,751,827 at the end of the first quarter a year ago. The
current numbers reflect the integration of all of LyndonBank’s assets and
liabilities, adjusted to fair market value as of 12/31/2007. Of particular note
is the loan portfolio of $358,762,442 (including loans held for sale), which not
only reflects the loans of the combined banks as of December 31, but also
includes loans that have been made in the first quarter of over $25.7 million
(net of an additional $7 million in loans made in the first quarter and sold
into the secondary market).
“This
relatively strong loan activity may be an indication that Vermont will not be as
hard hit by the predicted recession as other parts of the country,” said
Chairman White. “Certainly Vermont didn’t see the excesses in real estate
lending that occurred elsewhere, and the state has relatively little exposure to
subprime mortgage lending. While the rate of foreclosures is up in Vermont, it
is instructive to note that the majority of these foreclosures have been
initiated by out of state entities and not the local banks in Vermont,” White
said
The Board
of Directors has declared a cash dividend of $0.17 per share, payable May 1,
2008 to shareholders of record as of April 15th.
Community
National Bank is an independent bank that has been serving its communities since
1851, with offices now 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, results
of operations, earnings outlook and business affairs. Although these
statements are based on management’s current expectations and estimates, actual
conditions, results, earnings and business 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) 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; (2) interest rate changes in such a way as to
reduce the Company’s interest margins and its funding sources; (3) general
economic or monetary conditions, either nationally or regionally, are less
favorable than expected, resulting in a deterioration in credit quality or
diminished demand for the Company’s products and services; and (4) changes in
laws or government rules, or the way in which courts interpret those laws or
rules, adversely affect the Company’s business or impose additional costs and
regulatory requirements.