Blueprint
PRESS
RELEASE
Exhibit
99.1
Community
Bancorp. Reports Earnings and Dividend
|
July
20, 2018
|
For
immediate release
|
For
more information, contact: Kathryn M. Austin, President & CEO
at (802) 334-7915
Trading
Symbol: CMTV
(Traded
on the OTCQX)
Derby,
VT: Community Bancorp., the parent company of Community National
Bank, has reported earnings for the second quarter ended June 30,
2018, of $2,002,654 or $0.39 per share compared to $1,499,513 or
$0.29 per share for the second quarter of 2017. Year to date
earnings for 2018 are $3,985,197 or $0.77 per share compared to
$2,913,729 or $0.57 per share a year ago.
Total
assets at June 30, 2018 were $654,995,774 compared to $667,045,595
at year end and $648,174,342 at June 30, 2017. The year-over-year
asset growth has been driven in part by increases in loans in the
amount of $18,227,292 year to date and $18,319,098 year over year,
while the decrease during the six month period is due to the
maturing of municipal investments at the end of the annual
municipal finance cycle for school districts in Vermont. Tax
anticipation loans for fiscal year 2019 were funded on July 1, 2018
in an amount comparable to the balances that matured on June
30.
The
growth in loans has continued to support asset yields, resulting in
an increase in net interest income of $881,135, or 7.93% for the
first six months of 2018 compared to the same period in 2017.
Funding for the loan growth came from the use of wholesale funds.
Further contributing to the Company’s performance was an
increase in year to date non-interest income of 12.13% as well as
an increase in year to date non-interest expenses of only 2.20%,
resulting in the increase in net income of 36.77%, compared to
2017. The significant increase in non-interest income was primarily
due to a one-time gain on sale of property of $263,118 which was
directly related to the sale of a Condominium unit to the
Company’s affiliate, CFSG. Prior to the sale, CFSG rented
this unit since its formation in 2002.
President
and CEO Kathryn Austin commented on the second quarter results.
“We are pleased with these results. The increase in loans of
$18.2 million, together with the increases in short-term rates, is
contributing to these improved earnings. While the Bank’s
balance sheet is positioned to earn higher net interest income in a
rising rate environment, the increase in short term rates continues
to put upward pressure on interest rates paid on deposit accounts
and overall funding cost. Core deposits remain our preferred source
of funds whenever possible. These positive results are attributed
to the hard work and dedication of our employees. We continue to be
“Vermont’s Community
Bank.”
As
previously announced, the Company has declared a quarterly cash
dividend of $0.19 per share, an increase of $0.02 per share
compared to the first quarter, payable August 1, 2018 to
shareholders of record as of July 15, 2018.
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.