Community Bancorp

What they do

Community Bancorp. is a registered bank holding company organized in Vermont in 1982, with Community National Bank as its only subsidiary. The Bank, originally chartered in 1851, provides a broad range of loan and deposit services to individuals, businesses, nonprofits, and municipalities. It operates a main office in Derby, Vermont, eleven branch offices in northeastern and central Vermont, and loan production offices in Chittenden County, Vermont, and Grafton County, New Hampshire.

Revenue drivers

• Commercial and business lending — Offers financing for commercial properties, equipment, inventories, receivables, and standby letters of credit; a core source of interest income and loan growth.
• Retail banking and deposits — Provides checking, savings, and other deposit accounts; deposits fund lending and grew 5.22% year-over-year to $48.7 million as of June 30, 2026.
• Municipal banking — Serves municipalities, contributing to securities portfolio and non-arbitrage relationships; annual maturities of these relationships reduced total assets by $114.8 million from year-end 2025.

Recent performance

For the second quarter ended June 30, 2026, the company reported net income of $4.7 million or $0.84 per share, up 15.47% from $4.1 million or $0.72 per share a year earlier. Six-month 2026 earnings were $9.1 million or $1.62 per share, up 19.40% from $7.6 million or $1.34 per share in 2025. Total assets were $1.17 billion at June 30, 2026, down $114.8 million from year-end 2025 but up 0.53% year-over-year. Net interest income for Q2 2026 rose 13.68% to $11.2 million from $9.9 million in Q2 2025. Net interest margin expanded to 3.95% in Q2 2026 from 3.64% in Q2 2025.

Strategy

Management focuses on growth in Central Vermont and Chittenden County markets, where economic activity is more robust than in Orleans and Caledonia counties, and is expanding into neighboring New Hampshire, as reflected in the 2019 opening of a loan production office in Lebanon. The company emphasizes loan growth funded by cash, securities maturities, and core deposits, with gross loans up 3.06% year-over-year. It also manages its securities portfolio to mitigate interest rate risk, and maintains a focus on credit quality and deposit stability.

Risks

• Geographic concentration — The loan portfolio and deposit base are concentrated in northern Vermont and western New Hampshire, making the company vulnerable to regional economic downturns.
• Interest rate sensitivity — Changes in interest rates could negatively affect loan demand, net interest margin, asset valuations, and overall profitability.
• Deposit funding risk — Reductions in deposit levels could necessitate increased borrowings to fund loans and sales of investment securities, potentially raising costs.
• Cybersecurity and IT risks — Cybersecurity breaches or higher-than-expected IT costs could harm financial performance and reputation.

Outlook

Management anticipates continued growth in loan demand and deposits, supported by expansion into higher-growth markets. The company expects to manage interest rate and liquidity risks through asset/liability management, while maintaining capital ratios that remain above regulatory minimums. Forward-looking statements cite risks from interest rates, economic conditions, and regulatory changes, but management expresses a general outlook for continued local and national economic performance.